Cost-to-company calculator: United Kingdom
What an employee costs each month and each year: gross salary, the employer’s social security and other costs, next to what the employee takes home.
Enter the figures and press Calculate: the breakdown shows here, with the rules used.
Results are estimates for planning only, not legal, tax or payroll advice. Rates marked "estimate" are published figures Mihnaro has not confirmed; check them with the country’s tax authority, its social security body or your accountant, and your employment contract. Each rule shows its source.
Rules for United Kingdom and their sources
The version in force from 2026-04-06. "Verified" rules were checked against the official source named; the others are estimates to confirm.
Requires confirmation
These rules of United Kingdom are not applied, or are applied as estimates, because we could not confirm them from an official source yet. What is needed to add them:
- End of service, Overtime, Hours in a work day, Salary days in a month: The UK has no statutory gratuity or overtime rate; statutory redundancy pay depends on age and is not covered. Needed: A redundancy rule (age bands and weekly pay cap) from gov.uk, to add a redundancy calculator.
Pay and working time
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Currency: GBP Legal basis cited
Bank of England · read 2026-11-01
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Paid annual leave days (minimum): 28 Legal basis cited
Working Time Regulations 1998: holiday entitlement · read 2026-11-01
5.6 weeks: 28 days for a 5-day week; bank holidays may be counted in it.
Social security
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Social security salary: basic + allowances Legal basis cited
HMRC: expenses and benefits, round sum allowances · read 2026-11-01
Class 1 contributions are on gross pay; a round sum allowance counts in it, less any specific business expense it covers. Benefits in kind are not covered.
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Employee contributions by monthly salary band: 0–1,048: 0% · 1,048–4,189: 8% · 4,189–∞: 2% Legal basis cited
HMRC: rates and thresholds for National Insurance contributions · Class 1 primary, 2026 to 2027 · read 2026-11-01
Monthly: 8% between £1,048 and £4,189, 2% above.
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Employer contributions by monthly salary band: 0–417: 0% · 417–∞: 15% Legal basis cited
HMRC: rates and thresholds for National Insurance contributions · Class 1 secondary, 2026 to 2027 · read 2026-11-01
Monthly: 15% above £417. Employment Allowance and age reliefs are not covered.
Income tax
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Tax brackets and allowances are: yearly Legal basis cited
HM Revenue & Customs: Income Tax rates and Personal Allowances · read 2026-11-01
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Income tax brackets: 0–37,700: 20% · 37,700–125,140: 40% · 125,140–∞: 45% Legal basis cited
HMRC: Income Tax rates and allowances for current and past years · 2026 to 2027 · read 2026-11-01
Bands of income after allowances: basic 20% up to £37,700, higher 40% from £37,701 to £125,140, additional 45% over that. With the standard allowance, 45% starts at £125,140 of pay, where the allowance has tapered to nothing.
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Personal allowance: single: 12,570 Legal basis cited
HM Revenue & Customs: Income Tax rates and Personal Allowances · read 2026-11-01
£12,570; it goes down by £1 for every £2 of income over £100,000 (the taper below).
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Allowances not taxed, up to % of basic: 0% Legal basis cited
HMRC: expenses and benefits, round sum allowances · read 2026-11-01
“Add the full amount of the round sum allowance to the employee’s other earnings” for PAYE.
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Social security comes off taxable income: No Legal basis cited
HMRC CWG2 (2026 to 2027): Employer further guide to PAYE and National Insurance contributions · read 2026-11-01
Pay for PAYE is gross pay less only pension contributions and payroll giving; National Insurance is not among the deductions.
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Tax credits, rebates and deductions: Personal Allowance taper Legal basis cited
HM Revenue & Customs: Income Tax rates and Personal Allowances · read 2026-11-01
“Your personal allowance goes down by £1 for every £2 that your adjusted net income is above £100,000”: nothing left from £125,140. Pay is taken as the adjusted net income (no pension or gift aid).
England, Wales and Northern Ireland: Scotland has its own bands and is not covered. No statutory overtime premium (gov.uk: “Employers do not have to pay workers for overtime”), so the overtime calculator is not offered. Student loans, pensions and salary sacrifice are not covered.
Payroll, leave and end of service in one system
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