Before manually calculating your tax, you'll need to understand your tax code. For more information about understanding tax codes, please refer to our Help Centre article.

To calculate tax manually, follow these six steps:

1️⃣ Sum your taxable payments: Identify taxable income like salary, bonuses, and overtime and add them together.

2️⃣ Minus your pre-tax deductions: Identify any deductions that reduce your taxable income, such as pension contributions or charitable donations, and deduct them from your taxable payments.

3️⃣ Calculate your personal allowance: Calculate your annual personal allowance using your tax code. (e.g., 1257L becomes £12,570).

4️⃣ Calculate your taxable pay: Subtract your personal allowance from your total taxable income.

5️⃣ Apply the relevant tax bands and rates: In the UK, income tax is divided into different bands with varying tax rates.

6️⃣ Calculate how much tax is due: Apply the relevant rates to your taxable income to calculate your tax due.

1️⃣ To manually calculate tax, the first value you need is the elements of your pay that are subject to tax. You can then use this value to calculate the tax due in each period.

First, add together the elements of pay that are subject to tax, then minus any of the following deductions:

Now to calculate the taxable pay and subtract the free-pay allowance (or add it, if your tax code has a ‘K’ prefix).

Using Taylor's taxable pay of £1,010, we can calculate how much tax is due.

Again, add together the elements of pay that are subject to tax, then minus any of the following deductions:

Now to calculate the taxable pay to date and subtract the free-pay allowance to date (or add it, if your tax code has a ‘K’ prefix).

Using Taylor's taxable pay to date of £7020.18, we can calculate how much tax is due.

For further information about income tax, please refer to our Help Centre article.