This tool provides an indication of the potential impact of the Spring Budget 2020 on the tax and national insurance contributions (NIC) you pay. These are based on announcements by the chancellor 11 March 2020, together with existing tax and NIC law.
You need to complete both the ‘Annual income’ and ‘Personal details’ section to work out your basic income tax and NIC liability. The third section calculates the expected taxes on cigarettes, alcohol and fuel. The information you enter, including your residence details, is assumed to be the same for both 2019-20 and 2020-21.
If you live in Scotland, the Scottish Parliament has the power to set all income tax rates and bands (except the personal allowance, which remains reserved) that will apply to Scottish taxpayers' non-savings, non-dividend (NSND) income. However, the UK government sets the personal allowance, national insurance levels as well as duties on fuel, cigarettes and alcohol.
If you are a Welsh resident, tax rates on employment, self-employed income and pension income could potentially differ from those of the rest of the UK in 2021-22. However the rates are aligned for 2019-20 and 2020-21.
Please remember that taxation is complex and these calculations are general so do not necessarily cover all circumstances or reliefs that may affect your tax bill. In particular there are complexities in the allocation of the personal allowance against different sources of income, which can affect individuals with earned income below the higher rate threshold and investment income exceeding the personal savings allowance and/or dividend allowance. This tool may not achieve the optimal result. The calculator should not be used to calculate actual liabilities, determine any financial strategy or as a substitute for professional advice.
Note the following about the boxes for completion.
Salary Annual pre-tax salary or income from employment. Gross pension contributions paid by you should be deducted from salary if not already taken into account.
Pension income - Include this in the salary box if relevant. If you are under state retirement age the calculator assumes that all income in this box is salary and so subject to national insurance.
Self-employed income after expenses Annual income from self-employment after expenses. Gross pension contributions paid by you should be deducted.
Interest income UK interest income is normally received gross from 6 April 2016, i.e. with no tax paid.
Dividends received Dividends received during the year.
Do you live in Scotland? Please see the HMRC guidance for information on Scottish residency
Retired If you have reached the State Pension age by 6 April 2020, then please check this box.
Number of children under 16 Number of children under 16 or under 20 if they are in approved education or training.
Cigarettes per week Average number of cigarettes smoked per week. Tax based on price of £10.80 per pack of 20 cigarettes.
Glasses (175ml) of wine per week Average number of glasses of wine per week (175ml). The VAT is based on a 75cl bottle of wine costing £5.93.
Pints of beer per week Average number of pints of beer per week. The VAT is based on a pint of beer costing £3.73 per pint.
Spirits (doubles, 50ml) per week Average number of spirits per week. The VAT is based on a 70cl bottle of spirits costing £13.13.
Car fuel cost per week (£) Amount spent in £ per week on fuel.
Car fuel Unleaded Petrol, Diesel or LPG.
The calculator does not include tax credits, universal credits, pension credit or any sources of income not listed above and makes the following assumptions: