If you’re earning £18 per hour in the UK in 2025, it’s natural to wonder how much actually lands in your bank account after tax, National Insurance, and pension contributions. Let’s break it down.
UK Salary & Tax Breakdown Calculator
If you live in Scotland, income tax is calculated differently.
Rates and thresholds set by Scottish Government.
A common tax code is “1257L” meaning £12,570 tax-free allowance. Check your payslip, P60, or HMRC letter for your correct code.
• Plan 1: Started before September 2012 in England/Wales
• Plan 2: Started after September 2012 in England/Wales
• Plan 4: Scottish students
• Postgraduate Loan: For master’s/PhD courses
Your payslip or SLC account will confirm your plan.
Gross Annual Salary
If you work full-time at 37.5 hours per week, £18/hour translates to a gross annual salary of £35,100:
- £18 x 37.5 hours x 52 weeks = £35,100
This is the starting point before any deductions are applied.
What Affects Take-Home Pay?
Several factors impact your net income:
- Income Tax: The standard Personal Allowance is £12,570 in 2025. You only pay tax on earnings above this.
- National Insurance (NI): NI kicks in above £12,570 with varying rates.
- Pension Contributions: Auto-enrolment typically deducts 5% from your salary (with 3% added by your employer).
Estimated Take-Home Pay (2025)
Assuming you’re under 65, enrolled in a workplace pension, and have a standard tax code (1257L):
- Gross Salary: £35,100
- Income Tax: £446.00
- National Insurance: £2,282.40
- Pension Contribution (5%): £1,755.00
- Estimated Take-Home Pay: £30,616.60 per year
Monthly, Weekly, and Daily Breakdown
| Frequency | Net Pay (£) |
|---|---|
| Annual | 30,616.60 |
| Monthly | 2,551.38 |
| Weekly | 589.74 |
| Daily | 117.95 |
These figures are estimates based on April 2025 thresholds. Use our Take-Home Calculator for a personalised view.
Final Thoughts
Earning £18/hour puts you above the UK national average. Your take-home pay will depend on your specific circumstances, but this gives a solid benchmark. Whether you’re budgeting or comparing offers, knowing your real income after tax is crucial.