Annual Take Home
£17,920
10.4% effective rate
Monthly
£1,493
Weekly
£345
Daily
£69
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Salary | £20,000 | £1,667 |
| Personal Allowance | £12,570 | £1,048 |
| Income Tax | -£1,486 | -£124 |
| Basic Rate (20%) | £1,486 | £124 |
| National Insurance | -£594 | -£50 |
| Take Home Pay | £17,920 | £1,493 |
How Your Salary Is Taxed
63%
37%
Tax-Free
£12,570
Basic (20%)
£7,430
Marginal Tax Rate28%
PAYE vs Ltd Company
Simplified comparison at £20,000 gross income
PAYE Take Home
£17,920
£1,493/month
Ltd Take Home (est.)
£17,742
£1,479/month
Ltd estimate: £12,570 salary + dividends after 25% corp tax and 8.75% dividend tax. Excludes accountancy costs, employer NI, and other overheads.
Full PAYE vs Ltd comparisonRelated Calculators
What Would You Take Home on a Different Salary?
How Much Is £20,000 After Tax in the UK?
If you earn £20,000 a year in the UK, your take-home pay after income tax and National Insurance will be approximately £17,920 per year, or £1,493 per month.
This calculation uses 2025/26 PAYE tax rates. The personal allowance is £12,570, basic rate is 20% on income from £12,571 to £50,270, higher rate is 40% from £50,271 to £125,140, and additional rate is 45% above £125,140. National Insurance is charged at 8% on earnings between £12,570 and £50,270, and 2% above that.
Your effective tax rate on a £20,000 salary is 10.4%, meaning you keep 89.6% of your gross income. Your marginal rate is 28% — this is the rate you would pay on additional earnings.