What £125000 after tax in the UK really means in 2024

What is £125000 after tax UK?

For an annual income of £125,000.00 in the UK for the tax year 2023/2024, the breakdown is as follows:

Taxable Income: £112,430.00 (after deducting the personal allowance of £12,570.00 from the total income).
Income Tax: £7,540.00 (calculated on the taxable income).
National Insurance Contributions: £7,423.52 annually.
Net Income (After Tax and National Insurance): £80,144.48 annually, £6,678.71 monthly, and approximately £219.57 daily.

What would the impact of student loans be on £125000 after tax in the UK?

Plan 1: The payment threshold is £21,165.00. Therefore, under plan 1, there would be a deduction of £9,345.15.
Plan 2: The payment threshold is £27,295.00. Therefore, under plan 2, there would be a deduction of £8,793.45.
Plan 4: The payment threshold is £26,575.00. Therefore, under plan 4, there would be a deduction of £8,858.25.
Postgraduate Loan: The payment threshold is £21,000.00. Therefore, under a postgraduate loan scheme repayment, there would be a deduction of £9,360.00.



What kind of roles make £125000 in the UK?

1. Doctor (Consultant):
A doctor, also known as a consultant, is responsible for diagnosing and treating various medical conditions. They may specialize in areas such as cardiology, oncology, neurology, or surgery. Consultants often lead medical teams and may also be involved in teaching and research.

2. IT Director:
An IT director oversees the technological operations of an organization. They are responsible for developing and implementing IT strategies, managing IT staff, ensuring the security and efficiency of IT systems, and aligning technology with the business's overall goals.

3. Financial Director:
A financial director is in charge of a company's financial planning and management. They oversee financial reporting, budgeting, forecasting, and risk management. They play a critical role in decision-making and shaping the financial direction of the business.

4. Engineering Director:
An engineering director leads the engineering department within a company. They are responsible for overseeing the design and development of products, managing engineering teams, ensuring quality control, and driving innovation in the field of engineering.

5. Legal Counsel/Senior Lawyer:
A legal counsel or senior lawyer provides legal advice and representation to a company or organization. They handle legal matters such as contracts, negotiations, compliance, and litigation. They play a key role in protecting the legal interests and rights of the entity they represent.


Whether your salary is £125000 or £1250000, it's always important to help to stretch your salary across the month by adopting a careful budgetting strategy.

With an annual income of £125,000, it's important to start by creating a comprehensive budget. Begin by listing all your monthly expenses including mortgage/rent, utilities, groceries, transportation, and any debt repayments. Allocate a portion of your income towards long-term savings, emergency fund, and retirement contributions. It's crucial to regularly track your spending and make adjustments as necessary to ensure you are living within your means and working towards your financial goals. Consider seeking professional advice to optimize tax strategies and investment opportunities given your higher income level.


The other side of building long-term wealth for you and your family - other than budgetting and saving more - is earning more (ofcourse, usually easier said than done). Here are a few steps which could help you to do this by increasing your salary by a further £5000 in 2024:

1. Pursue higher education or a professional qualification relevant to your field to boost your skills and knowledge.
2. Keep updated with industry trends and technology advancements by attending workshops, seminars, and conferences.
3. Gain additional certifications or licenses that are recognized in your industry, potentially leading to better job opportunities and higher pay scales.
4. Expand your network by joining professional organizations and participating in networking events, opening doors to new career opportunities.
5. Enhance your communication and negotiation skills to effectively advocate for higher pay during salary negotiations.
6. Consider seeking out freelance or part-time work to supplement your income.
7. Research and apply for higher-paying job roles within your existing company or externally, leveraging your experience and skills.
8. Invest in personal development, such as coaching or mentoring, to fine-tune your job performance and potentially increase your value to employers.
9. Create and maintain a strong online professional presence, showcasing your expertise and experience on platforms like LinkedIn.
10. Stay abreast of financial market trends to identify potential investment opportunities or ways to improve your savings and investments.


Keen to find out more about your earnings after tax in the UK, or anywhere else in the world? Check out the free salary calculator over at salarybueno.com.