User Guide & Glossary

Everything you need to know about understanding your pay and using our calculator.

How to Use

For Employees

1

Enter Gross Pay

Input your annual salary or hourly rate. Select the correct period from the dropdown.

2

Tax Code & Region

Default is 1257L. If you live in Scotland, ensure "Scotland" is selected as tax bands differ.

3

Add Deductions

Select your Student Loan plan and Pension % to get an accurate Net Pay figure.

Go to Calculator →

For Employers

1

Toggle Employer Mode

Switch the toggle below the main calculator to reveal the Employer Modeller.

2

Build Your Team

Click "Add Employee". You can enter Annual Salaries or Hourly Rates for each staff member.

3

Analyze True Cost

See the total liability including Employer NI (15%) and Employer Pension contributions.

Go to Employer Tool →

Payroll Glossary

Gross Pay

The total amount you earn before any tax, National Insurance, or other deductions are taken off.

Net Pay (Take Home)

The amount that actually lands in your bank account. Gross Pay minus all deductions.

Tax Code

A code (e.g. 1257L) that tells your employer how much tax-free income (Personal Allowance) you are entitled to.
BR: All income taxed at 20%.
D0: All income taxed at 40%.
K-code: You have untaxed income being collected via PAYE.

National Insurance (NIC)

A tax on earnings that builds entitlement to state benefits.
Class 1 (Primary): Paid by employees (8% main rate).
Class 1 (Secondary): Paid by employers (15% main rate).

Salary Sacrifice

An arrangement where you agree to reduce your earnings in exchange for a non-cash benefit (like Pension or Cycle to Work). This lowers your Gross Pay, meaning you pay less Tax and NI.

Auto-Enrolment

A government initiative requiring employers to enroll eligible staff into a pension scheme. The standard minimum is 8% total (3% employer, 5% employee).