UK Income Tax Calculator (Wales)
Estimate your UK Income Tax as a Welsh taxpayer with precision. This professional-grade tool models non-savings income with Welsh rates (WRIT), and optionally accounts for pension relief, Gift Aid, savings interest, and dividends. Built for clarity, accessibility, and speed.
Calculator
Welsh rates and UK-wide allowances for the selected year.
If you receive Marriage Allowance, your tax is reduced (up to £252 in 2024/25).
Adds an extra personal allowance (year-specific; not tapered).
This calculator models Welsh rates for non-savings/non-dividend income.
Optional: Savings and Dividends
Fields marked * are required. All amounts in GBP.
Results
Detailed breakdown
Personal Allowance used: £0.00 (taper: £0.00) + Blind Allowance: £0.00
- NSND basic rate tax: £0.00
- NSND higher rate tax: £0.00
- NSND additional rate tax: £0.00
- Savings 0% (Starting Rate + PSA): £0.00
- Savings taxed: £0.00
- Dividends 0% (Allowance): £0.00
- Dividends taxed: £0.00
- Band extension (Gift Aid + RAS gross): £0.00
- Marriage Allowance tax reduction: £0.00
Data Source and Methodology
Primary references:
- HMRC: Income Tax rates and allowances, 2023/24 and 2024/25. See “Rates and thresholds for employers” and “Income Tax rates” on GOV.UK. Direct: https://www.gov.uk/income-tax-rates
- Welsh Rates of Income Tax (WRIT) overview — GOV.WALES. Direct: https://www.gov.wales/welsh-rates-income-tax
- Savings and dividends guidance (Personal Savings Allowance, Starting Rate for Savings, Dividend Allowance) — GOV.UK. Direct: https://www.gov.uk/apply-tax-free-interest-on-savings and https://www.gov.uk/tax-on-dividends
Tutti i calcoli si basano rigorosamente sulle formule e sui dati forniti da questa fonte.
The Formula Explained
Adjusted Net Income: \( ANI = (G + S + D) - P_{\text{pre}} - 1.25 \cdot (P_{\text{RAS}} + GA) \)
Personal Allowance taper: \( PA_{\text{eff}} = \max\{0, PA - \min(PA, \tfrac{\max(0, ANI - 100{,}000)}{2})\} + BPA \)
Band extension from reliefs: \( BRL' = BRL + 1.25 \cdot (P_{\text{RAS}} + GA) \)
Starting Rate for Savings: \( SRS = \max\{0, 5000 - I_{\text{NSND}}\} \)
Savings taxed at 0%: \( S_{0\%} = \min(S, SRS) + \min(PSA, S - \min(S, SRS)) \)
Dividends 0%: \( D_{0\%} = \min(DA, D)\)
Total tax (by bands and types): \( T = T_{\text{NSND}}^{20/40/45} + T_{\text{S}}^{20/40/45} + T_{\text{D}}^{8.75/33.75/39.35} - MA_{\text{credit}} \)
Glossary of Variables
- G: Gross non-savings income (salary, self-employment, pensions).
- P_pre: Pre-tax pension (salary sacrifice or net pay).
- P_RAS: Relief-at-source pension contributions (net paid by you).
- GA: Gift Aid donations (net). We gross to GA × 1.25.
- S: Savings interest; D: Dividend income.
- ANI: Adjusted Net Income used for the personal allowance taper.
- PA: Personal Allowance; BPA: Blind Person’s Allowance.
- BRL: Basic rate limit; BRL′: BRL extended by grossed reliefs.
- SRS: Starting Rate for Savings (up to £5,000, reduced £1 for £1 by NSND taxable income).
- PSA: Personal Savings Allowance (£1,000 basic, £500 higher, £0 additional).
- DA: Dividend Allowance (£1,000 in 2023/24; £500 in 2024/25).
Worked Example
How It Works: A Step-by-Step Example
Inputs (2024/25): G = £55,000; P_pre = £2,000; P_RAS = £2,000; GA = £600; S = £800; D = £1,200; Marriage Allowance received = No; Blind Allowance = No.
- Gross up RAS pension and Gift Aid: 1.25 × (2,000 + 600) = £3,250 band extension.
- Adjusted Net Income: ANI = (55,000 + 800 + 1,200) − 2,000 − 3,250 = £51,750 ⇒ no taper.
- PA_eff = £12,570. NSND taxable: (55,000 − 2,000) − 12,570 = £40,430.
- Extended basic limit BRL′ = 37,700 + 3,250 = £40,950 ⇒ most NSND stays in basic rate.
- Savings: SRS = max(0, 5,000 − 40,430) = £0 ⇒ PSA (basic taxpayer) = £1,000 ⇒ all £800 at 0%.
- Dividends: DA (2024/25) = £500 ⇒ £700 taxed at dividend basic rate 8.75% = £61.25.
- NSND tax: £40,430 at 20% = £8,086; no higher-rate spill.
- Total tax ≈ £8,086 + £0 (savings) + £61.25 (dividends) = £8,147.25.
This example omits National Insurance. Your scenario may vary with different reliefs and thresholds.
Frequently Asked Questions (FAQ)
Do Welsh rates differ from England?
Welsh Rates of Income Tax (WRIT) apply to non-savings and non-dividend income. In recent years, the combined rates have matched England’s 20% / 40% / 45%, but the Senedd can vary them.
Does this include National Insurance?
No. This tool focuses purely on Income Tax for transparency. NI depends on class and thresholds that change during the year.
How are Gift Aid and relief-at-source pensions handled?
We gross them up by 25% to extend the basic rate band and reduce adjusted net income (relevant for personal allowance taper). Net pay or salary sacrifice pensions reduce taxable pay directly.
What about the Starting Rate for Savings and PSA?
The £5,000 Starting Rate for Savings applies if your taxable non-savings income is below £5,000 after allowances (reduced £1-for-£1). We then apply the Personal Savings Allowance based on your highest tax band.
How do dividends get taxed?
After allowances, dividends are taxed at 8.75% (basic), 33.75% (higher), and 39.35% (additional). The Dividend Allowance is £1,000 in 2023/24 and £500 in 2024/25, taxed at 0% but still uses up bands.
Is this suitable for self-assessment?
Use it for planning. For filing, follow HMRC’s Self Assessment and consider nuances (losses, benefits in kind, high income child benefit charge).