The UK is a welfare state, which means that the state is responsible for its people. In simple words, among numerous other facilities, healthcare and education are free in the UK. These facilities are also free for international medical graduates working as doctors in the UK and their families (family includes partner and children; it does not include parents).
Since we get a lot of returns, paying taxes in the UK does not feel like a bad deal.
Amount of Tax Deduction
Depending on their grade, 17% to 27% tax is deducted from a junior doctor’s salary.
Calculation of Tax Deduction
There are two forms of tax deductions from the pay:
- Income tax.
- National insurance.
1. Income Tax
| Annual Earning | Tax Deduction |
| Up to £11,850 | 0% |
| £11,851 to £46,350 | 20% |
| £46,351 to £150,000 | 40% |
You can confirm these numbers from the UK Government’s official website.
Since junior doctors earn somewhere between £30,000 to £40,000, the tax deduction for them would be 20%. And this 20% tax deduction is also only on their pay between £11,001 to £43,000. Which means that their first £11,000 will be tax-free.
2. National Insurance
| Annual Earning | Tax Deduction |
| Up to £8,424 | 0% |
| £8,425 to £46,356 | 12% |
| Over £46,356 | 2% |
You can confirm these numbers from the UK Government’s official website.
Since junior doctors earn somewhere between £30,000 to £40,000, the tax deduction for them would be 12%. And this 12% tax deduction is also only on their pay between £8,160 to £45,000. Which means that their first £8,160 will be tax-free.
Summary of Total Taxation
For most junior doctors, the Income Tax deduction and the National Insurance deduction totals to around 20 to 25 percent deduction from their salary.
Useful Links
- Pay Scales for Junior Doctors in the UK
- What is Banding?
- “Banding” According to the New Contract for Junior Doctors
Frequently Asked Questions
1. How much pay is enough in the UK? It depends on your lifestyle, location, number of dependents and a few other factors. But the following might give you a general idea: £1,900/month can be more than enough for a single person and just enough for a couple. £2,700/month can be more than enough for a couple. 2. Would I be able to save money in the UK? Again, it depends on the factors mentioned above. So savings can be different for every individual. I have seen people save £1,000/month for a whole year and I have seen people not save anything even after a couple of years. So it depends on each individual and how they live. 3. What are the pay scales for junior doctors in the UK? Regardless of the job being training or non-training, junior doctors earn somewhere between £30,000 to £40,000 annually. This equals to £2,700 to £3,000 per month after all deduction. You can read more about it here. 4. How much tax would I have to pay on annual earning of £30,000? There will be two components of tax deductions from your salary. A. Income tax. The initial £11,000 would be free of tax. 20% income tax would be deducted from your pay between £11,851 and £30,000. Total annual income tax deduction: £3,629 The initial £8,160 would be free of tax. 12% national insurance would be deducted from your pay between £8,160 and £30,000. Total annual national insurance deduction: £2,589 £3,629 + £2,589 = £6,218 £6,420 = 20.7% of £30,000 Therefore, the total annual tax deduction on annual earning of £30,000 will be £6,218. This equal to 20.7% of the total earning. 5. How much tax would I have to pay on annual earning of £48,000? There will be two components of tax deductions from your salary. A. Income tax. The initial £11,850 would be free of tax. 20% income tax would be deducted from your pay between £11,851 and £46,350. 40% income tax would only be deducted from your pay between £46,351 and £48,000. Total annual income tax deduction: £7,652 The initial £8,424 would be free of tax. 12% national insurance would be deducted from your pay between £8,425 and £46,356. Total annual national insurance deduction: £4,583 £7,652 + £4,583 = £12,235 £12,235 = 25.4% of £48,000 Therefore, the total annual tax deduction on annual earning of £48,000 will be £12,235. This equal to 25.4% of the total earning.
B. National insurance.A. Income Tax on Annual Earning of £30,000
Earning
Deduction %
Deduction £
Up to £11,850
0%
£0
£11,851 to £30,000
20%
£3,629
B. National Insurance on Annual Earning of £30,000
Earning
Deduction %
Deduction £
Up to £8,424
0%
£0
£8,425 to £30,000
12%
£2,589
Total Taxation on Annual Earning of £30,000
B. National insurance.A. Income Tax on Annual Earning of £48,000
Earning
Deduction %
Deduction £
Up to £11,850
0%
£0
£11,851 to £46,350
20%
£6,953
£46,351 to £48,000
40%
£659
B. National Insurance on Annual Earning of £48,000
Earning
Deduction %
Deduction £
Up to £8,424
0%
£0
£8,425 to £46,356
12%
£4,551
£46,357 to £48,000
2%
£32
Total Taxation on Annual Earning of £48,000
What would be tax deduction from anual salary of 55000 pounds? Thank you
You can calculate it based on the information given in the article above.