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2010/2011 Tax Calculator

Wed, Nov 11, 2009

TaxPenny Blog

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2010/2011 UK Tax Calculator – Click Here

We have added a 2010/2011 Tax Calculator with the 50% rate and new tapering for Personal Allowances over £100,000.

Using our figures, an individual earning £250,000 will take home £141,220 in the 2010/2011 Tax Year. This means an additional £12,590 could be taken as tax due to the Personal Allowance and 50% tax changes.

An individual earning £105,000 would have been taxed a total of £36,739 this year, but next tax year this will rise to £37,739 – an increase of £1000.

In the 2010-11 tax year the Personal Allowance reduces where the income is above £100, 000 – by £1 for every £2 of income above the £100,000 limit. This applies to all age groups.

However, for people over the age of 65, for the 2008-09 and 2009-10 tax years the tax free allowances will never be less than the basic Personal Allowance.

From the 2010-11 tax year the Personal Allowance for people aged 65 to 74 and 75 and over can be reduced below the basic Personal Allowance where the income is above £100,000.

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14 Comments For This Post

  1. joe Says:

    I have a pension income of £28024 and a job income of £22300 for 2010/11 tax year.

    HMRC have given me a tax coding of k222 on the pension (£28024) and BR on the job income (£22300)

    I can’t work out how this will translate into actual pay (net) and also would I be better off if they applied the tax codes vice-versa?

  2. admin Says:

    Hi Joe,

    I am assuming you are over 65 and the pension annuity is from a private pension.

    Pension income = £28,024

    PAYE income = £22,300

    If the two income sources were combined in the 2010/2011 tax year, your total income would be £50,324.

    As this is below £100,000 but above the age-related allowance limit, your personal allowance will be reduced from £9,490 to £6,475.

    There are no National Insurance Contributions to be paid due to your age, so total tax would be £10,059.60.

    Net Earnings £40,264.40.

    If we seperated the income sources and used the revenues ‘tax codes’, we get the following:

    Pension – K222 code
    Earnings £28,024
    Personal allowance -£2,220
    Tax Deducted £6,048.80
    Net Earnings £21,975.20

    PAYE – BR code
    Earnings £22,300
    Personal Allowance £0
    Tax Deducted £4,460
    Net earnings £17,840

    Net Earnings £39,815.00

  3. Lisa Says:

    I don’t think that is much of an increase, and to be fair the government is going to need more money this year to help with the debts and turmoil of the last year.

  4. Rob Hughes Says:

    I am 60 years old have private pension of 10140 net per year and salary of 25452 net per year.

    I have just been advised by HMRC that my tax code of 647L for 2009/10 is changing to D0 for 2010/11.

    Am I worse off?

  5. Says:

    Hi Rob,

    Try your figures at

    You will be able to tell if your tax codes are correct or not.

    With the figures you have given me, (assuming the d0 is being applied to your salary income and your pension income is being taxed with your normal personal allowance), I have the following figures:

    Your pension income is liable to £733 in tax (£6475 tax free allowance)

    Your salary income is liable to £10,181 in tax (£0 allowance, all taxed at 40% as per d0 coding)

    This would result in you tax bill being £5,090 too much.

    If this is the case, please make sure your employer/tax office is made aware of the incorrect tax code.

    I would think your tax codes should be 647L for your pension and BR for your salary or vice-versa!

    Ray –

  6. David Kennedy Says:

    Similar to Joe above, do you think my tax coding is correct.
    Aged 52, I have a pension of £22540 – tax code of 564L M1 (no NI) and a wage of £23700 – tax code of BR (paying NI)
    Wold be interested in your thoughts.

  7. Says:

    Hi David,

    I’m not sure about the Month 1 aspect of your tax coding for your pension – Month 1 emergency codes treat each month on its own and give you an equal amount of tax-free pay every payday – but taking into account the full £5649 tax free allowance on it, the tax due is £3,378.

    On your wage, you are being taxed on the full amount at 20% with zero tax free allowance so tax due is £4,740.

    Total taxed = £8,118

    Using and combining the incomes, gives a tax due of £8,426 – which is what you would pay if you had the total income of £46,240 being taxed in the normal manner with the £6,475 tax allowance.

  8. David Kennedy Says:

    thanks that has been a help

  9. Paul Foster Says:


    My name is Paul and I am 55 years of age and I was wondering if you might be able to help please, I am on a forces pension of £14743 with a tax code of DO. My salary income is £42221 with a tax code of 647L, this includes a company pension contribution of 7.2%.

    Would you kindly advise if my codings are correct along with any other advise.

    Many thanks


  10. admin Says:

    Paul, if the company pension contribution of 7.2% is paid from your gross income and not employer contributed, there is a possibility you may be paying £1,089.98 more tax through the tax codes HMRC have issued for you – please verify with your local tax office. I entered your details into the compare tax on two incomes calculator.

  11. Naseem Mir Says:

    I work in a private company and wish to retire according to the company 85 rule.will i be taxed on the lump sum if it is £100,000 and how much and do i have to retire before April 2011 to avoid extra tax or the changes will not affect me in 2011.

  12. Matt Says:

    I earn £15450 per annum, am 32 and co habiting but not married with no children, have no pension or any other income or company perks, should mt tax code be 647L as I am not much better of after the budget, only £80 ish, is this right?

  13. Carol Says:

    Hi, my name is Carol, married with three children and I have just returned to work after 5 years of home duties. I work part time, 16 hours a week, with travelling expenses. I have just received my first wage. My tax code is OT and I am a bit confused. I thought my gross annual wage, projected as being 6240, was below the taxable allowance but I have payed tax on my wage. I do not understand why my tax code is OT and not 647L. Can you please explain?

  14. sally willis Says:

    am i entittled to a tax rebate

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