# UK Net Salary Calculator – Specification (Tax Year 2026/2027)

## Overview
Calculate net take-home pay for UK employees across all four nations (England, Northern Ireland, Scotland, Wales) for the 2026/2027 tax year (6 April 2026 – 5 April 2027).

## Tax Year
- **Label**: 2026/2027
- **Start**: 6 April 2026
- **End**: 5 April 2027

## Data Sources (All Official Government)
| Component | Source | URL |
|-----------|--------|-----|
| Income Tax (England/NI/Wales) | GOV.UK | https://www.gov.uk/income-tax-rates |
| Income Tax (Scotland) | Revenue Scotland | https://www.gov.scot/publications/scottish-income-tax-rates-and-bands/pages/2026-to-2027/ |
| Income Tax (Wales) | GOV.UK | https://www.gov.uk/welsh-income-tax |
| National Insurance | HMRC | https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2026-to-2027 |
| Student Loan Thresholds | HMRC | https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2026-to-2027 |
| Pension Annual Allowance | GOV.UK | https://www.gov.uk/tax-on-your-private-pension/annual-allowance |

---

## Golden Rule Answers

### 1. What is the tax year?
2026/2027 (6 April 2026 – 5 April 2027)

### 2. Personal Allowance
- **Amount**: £12,570
- **Taper**: £1 reduction for every £2 of adjusted net income over £100,000
- **Zero at**: £125,140+

### 3. Income Tax Bands by Nation

#### England, Northern Ireland, Wales (identical)
| Band | Taxable Income | Rate |
|------|---------------|------|
| Personal Allowance | £0 – £12,570 | 0% |
| Basic Rate | £12,571 – £50,270 | 20% |
| Higher Rate | £50,271 – £125,140 | 40% |
| Additional Rate | Over £125,140 | 45% |

#### Scotland (6 bands)
| Band | Taxable Income | Rate |
|------|---------------|------|
| Personal Allowance | £0 – £12,570 | 0% |
| Starter Rate | £12,571 – £16,537 | 19% |
| Basic Rate | £16,538 – £29,526 | 20% |
| Intermediate Rate | £29,527 – £43,662 | 21% |
| Higher Rate | £43,663 – £75,000 | 42% |
| Advanced Rate | £75,001 – £125,140 | 45% |
| Top Rate | Over £125,140 | 48% |

*Note: Scotland uses UK Personal Allowance (£12,570) with same taper rules.*

### 4. National Insurance (Class 1 Employee) – UK-wide
| Threshold | Annual | Monthly | Weekly |
|-----------|--------|---------|--------|
| Lower Earnings Limit (LEL) | £6,708 | £559 | £129 |
| Primary Threshold (PT) | £12,570 | £1,048 | £242 |
| Upper Earnings Limit (UEL) | £50,270 | £4,189 | £967 |

| Earnings Band | Rate |
|--------------|------|
| Below PT | 0% |
| PT to UEL | 8% |
| Above UEL | 2% |

*Note: Married women's reduced rate (Category B) = 1.85% between PT and UEL*

### 5. National Insurance (Class 1 Employer) – UK-wide
| Threshold | Annual | Monthly | Weekly |
|-----------|--------|---------|--------|
| Secondary Threshold (ST) | £5,000 | £417 | £96 |
| Upper Secondary Threshold (UST) | £50,270 | £4,189 | £967 |

| Earnings Band | Rate |
|--------------|------|
| Below ST | 0% |
| Above ST | 15% |

*Zero rate for employees under 21, apprentices under 25, veterans up to UST*

### 6. Student Loan Repayments (9% above threshold, 6% postgraduate)

| Plan | Annual Threshold | Monthly | Weekly | Applies To |
|------|------------------|---------|--------|------------|
| Plan 1 | £26,900 | £2,241.66 | £517.30 | Pre-2012 loans |
| Plan 2 | £29,385 | £2,448.75 | £565.09 | 2012-2023 undergrad |
| Plan 4 | £33,795 | £2,816.25 | £649.90 | Scotland pre-2012 |
| Plan 5 | £25,000 | £2,083.33 | £480.76 | Post-2023 undergrad |
| Postgraduate (Plan 3) | £21,000 | £1,750 | £403.84 | Masters/Doctoral |

### 7. Pension Annual Allowance
- **Standard**: £60,000
- **Taper**: £1 reduction per £2 adjusted income over £260,000
- **Threshold income**: £200,000
- **Minimum tapered**: £10,000 (at £360,000+ adjusted income)
- **Money Purchase AA** (if flexibly accessed): £10,000

### 8. Calculation Logic
1. **Gross Annual Salary** → Input
2. **Pension Contribution** (employee %) → Deduct from gross for tax/NI
3. **Taxable Income** = Gross - Pension - Personal Allowance (with taper)
4. **Income Tax** = Sum of (band width × band rate) for applicable nation
5. **Employee NI** = Sum of (band width × NI rate) on gross (not reduced by pension)
6. **Student Loan** = 9% × (Gross - Plan Threshold) if Gross > Threshold
7. **Net Annual** = Gross - Income Tax - Employee NI - Student Loan - Pension
8. **Net Monthly** = Net Annual / 12

### 9. UI Requirements
- Single page with dynamic form
- Nation selector (England, NI, Scotland, Wales)
- Gross salary input (annual)
- Pension contribution % (default 5%, optional)
- Student loan plan selector (None, Plan 1-5, Postgraduate)
- Tax year selector (2025/26, 2026/27)
- Results: Gross, Tax, NI, Student Loan, Pension, Net (annual & monthly)
- Breakdown tables for tax and NI bands

### 10. Test Cases (3 per nation)

#### England/NI/Wales
1. £30,000, 5% pension, no student loan
2. £60,000, 8% pension, Plan 2
3. £150,000, 10% pension, Plan 1

#### Scotland
1. £30,000, 5% pension, no student loan
2. £60,000, 8% pension, Plan 4
3. £150,000, 10% pension, Postgraduate

---
*Generated: 2026-08-20 | Data from official UK government sources*