Net Income

Net income is the income you receive after you’ve paid tax, such as Income Tax and National Insurance (NI), to HMRC. In simpler terms, it’s what you’re left with after you’ve paid your taxes. It’s important to know the difference between your gross pay and take-home pay. That way you can be sure you haven’t been overcharged on tax or paid incorrectly by your employer.

How do I work out my net income?

Your net income can be easily worked out by deducting your tax, National Insurance, pension contributions and student loan repayments etc. Your net income can also be checked by seeing the amount actually being paid into your bank account. Ensure that you are on the correct tax code so that you are paying the correct Income Tax and National Insurance – you can check this with HMRC.