The U.K tax system allows you to pocket £12,500 without paying income tax. However, because you make £18,000 per year, you will still need to pay your income tax.
That said, the tax year usually runs from the 6th of April to the 5th of April, And also, for the current year, not all persons will receive the same personal allowance.
Generally, your personal allowance is determined by whether you owe or overpaid on your income tax for the previous year. That aside, persons who make £100,000 or more per year can expect to receive a slightly lower personal allowance.
£18000 After Tax
If your salary is £18000, your taxable income would be £5,500, tax £1,100.00, national insurance £1,020.00, and yearly take-home pay of £15,880. That said, Here is a breakdown of your after Tax take home pay for someone who earns £18,000.
£18.000 After Tax Explained
Assuming you earn 18k per year, here’s a breakdown of your after tax calculations.
- You will pay a total of £1,100 in tax.
- You’ll pay no tax on the first £12,500 that you’re earning.
- You’ll pay £1,100 tax on £5,500 (at 20%)
- You’ll pay no higher rate tax
Your National Insurance
You will pay no more than £1,020 in national insurance.
Net Income After Tax and Insurance