PAYE employee
Employer NIC (13.8%) and employee NIC (8% above the primary threshold) are both shown to reflect total employment cost.
Inputs (2025/26, England & Wales / NI)
Figures cover England, Wales & Northern Ireland; Scottish income tax bands are handled separately. Class 2 NI is treated as £0 for self-employed profits under the small-profits framework.
Estimated net (annual)
£55,174
Effective tax + NIC load 42.7%
Breakdown
- Income tax£19,432
- Employee NIC£5,394
- Employer NIC£9,305
- Class 4 NIC£0
- Corporation tax£0
- Dividend tax£0
- Total£34,132
Quick comparison
| Structure | Net annual | Effective rate |
|---|---|---|
| Limited company (Ltd) | £56,379 | 17.0% |
| PAYE employee | £55,174 | 42.7% |
| Self-employed (sole trader) | £51,911 | 25.8% |