2026/27 tax year — England, Wales & Northern Ireland
Annual salary
£20,000
gross per year
Monthly take-home
£1,493
after tax & NI
Weekly take-home
£345
after tax & NI
2026/27 tax breakdown
Gross salary£20,000
Income tax−£1,486
National Insurance−£594
Take-home pay£17,920
Based on 2026/27 England, Wales & Northern Ireland tax rates. Assumes standard tax code 1257L, no student loan, no pension contributions. Scotland has different income tax bands.
PeriodGrossTake-home
Per hour£10.26£9.19
Per day£76.92£68.92
Per week£384.62£344.61
Per month£1,666.67£1,493.30
Per year£20,000.00£17,919.60
This is below the National Living Wage of £12.71/hour for workers aged 21 and over.
Try a different amount Use the salary converter to calculate any hourly rate, day rate, or annual salary.
£20,000 a year is a common UK starting salary for graduate and early-career roles in admin, retail management, operations, and customer service. It’s around the UK median for full-time employees, so it’s a useful benchmark for comparing pay.
On a gross annual salary of £20,000, HMRC deducts £1,486 in income tax and £594 in employee National Insurance for 2026/27 — leaving a take-home of £17,920 per year, or roughly £1,493 per month.
The first £12,570 of income is tax-free (the personal allowance). Earnings between £12,571 and £50,270 are taxed at 20%; between £50,271 and £125,140 at 40%; and above £125,140 at 45%. Employee National Insurance is 8% on earnings between £12,570 and £50,270 and 2% above that.
What this salary is worth per hour
On a 37.5-hour week, a gross salary of £20,000 works out to roughly £10.26 per hour. At 40 hours per week it’s about £9.62 per hour.
Questions about £20,000 a year
On a gross salary of £20,000, you’ll pay roughly £1,486 in income tax and £594 in National Insurance for 2026/27. That leaves a take-home of approximately £17,920 per year.