UK Payroll & PAYE Calculator (2026/2027)
Calculate gross-to-net employee salary, Employer National Insurance (13.8%), Employee NI (8%), PAYE tax, and Workplace Pension.
£35,000
3%
Minimum UK Auto-Enrolment Employer Pension Rate is 3%.Payroll Summary
Gross Employee Salary:£35,000
Employee PAYE Tax:£4,486
Employee NI (8%/2%):£1,794
Employer NI (13.8%):+£3,574
Employer Pension (3%):+£863
Net Employee Take-Home Pay
£28,720 / year
(£2,393 / month)
Total Employer Payroll Cost:£39,437
Real-Time Mathematical Audit
Live Step-by-Step UK PAYE Payroll Walkthrough
Line-by-line proof of employee deductions and total employer payroll costs.
Step 1: Employee PAYE Income Tax£4,486 Tax
Gross Annual Salary: £35,000
Personal Allowance: -£12,570
Taxable Salary (20%/40%): £22,430
💡 Deducted directly at source via PAYE on payday.
Step 2: Employee National Insurance (Class 1)8% Main Rate
Primary Threshold (£12,570): 0% Tax
£12,570 to £50,270 (8%): £1,794
Employee Net Take-Home: £28,720
💡 Take-Home Salary = Gross Salary (£35,000) minus Tax (£4,486) & NI (£1,794).
Step 3: Employer National Insurance (13.8%)Employer Cost
Secondary Threshold Base (£9,100): £25,900
Employer NI Charge (13.8%): +£3,574
💡 Eligible employers can claim £5,000/yr HMRC Employment Allowance!
Step 4: Total Employer CostTotal Cost
Gross Salary: £35,000
Employer NI (13.8%): +£3,574
Employer Pension (3%): +£863
Total Cost to Employer: £39,437
💡 Includes Workplace Pension auto-enrolment contributions.
UK Payroll Tax & NI Rates (2026/2027)
| Payroll Tax Type | Threshold / Band | Tax / NI Rate | Deducted From |
|---|---|---|---|
| Employee Income Tax (PAYE) | £12,571 – £50,270 | 20% Basic | Employee Gross Salary |
| Employee Class 1 NI | £12,571 – £50,270 | 8% Main Rate | Employee Gross Salary |
| Employer Class 1 NI | Above £9,100 / yr | 13.8% Employer Rate | Employer Company Cost |
Knowledge Base
Frequently Asked Questions (UK Payroll & PAYE)
Employer Class 1 National Insurance is charged at 13.8% on employee earnings above the Secondary Threshold (£9,100 per year or £175 per week). Eligible UK businesses can claim the £5,000 annual Employment Allowance to reduce their Employer NI liability.
ADVAQ UK Chartered Tax Advisory
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Our UK payroll team sets up HMRC PAYE schemes, processes monthly payslips, files RTI FPS submissions, and manages Auto-Enrolment pension contributions.