Payroll processing — gross to net

What you'll learn

1. 1

   Imagine you earn £2,500 a month. That's your gross pay — the full amount before anything is taken off.

2. 2

   What does 'gross pay' mean?

3. 3

   Here's a bar model of your £2,500 gross pay. The different coloured sections show where the money goes: tax, National Insurance, and your net pay (what you actually keep).

4. 4

   Let's calculate net pay for a gross salary of £2,500. Tax = £400, National Insurance = £200.

5. 5

   Now you try! Drag the slices to show how £3,000 gross pay is split: £500 tax, £250 NI, and the rest is net pay.

6. 6

   Gross pay = £4,000. Tax = £800, NI = £300. What is the net pay?

7. 7

   If net pay is £1,500 and tax is £300, what is the gross pay?