£124,000 After Tax

Guide to 'getting paid'

• Our salary calculator indicates that on a £124,000 salary (gross income of £124,000 per year) you receive take home pay of £75,196 (a net wage of £75,196).
• The total tax you owe as an employee to HMRC is £48,804 per our tax calculator. Your employer collects this through PAYE and pays it over to HMRC on your behalf.
• The total tax of £48,804 is made up of £42,700 income tax and £6,104 employee national insurance contributions.
• Your employer pays a separate tax to HMRC for employing you. This employer National Insurance contribution totals £15,949. This tax is not taken out of your pay. It is an additional cost to your employer on top of your salary of £124,000.
• The total cost of employing you to your employer is therefore £139,949 which is your salary plus the employer national insurance contribution.
• £124000 after tax is £75196.
• Gross income - The total salary / wage / pay before any deductions or taxes
• Income tax - A tax on an employee for being employed. Collected through PAYE by the employer
• National insurance - A contribution an employee makes for certain benefits including the state pension. Collected through PAYE by the employer
• PAYE (Pay As You Earn) - A process by which HMRC collects employee taxes directly from the employer
• Net pay - Also known as net salary or net income. This is the take home pay received after any deductions or taxes have been subtracted from Gross income