Investment Time Calculator

In the UK, income is taxed progressively using different tax bands. For example, if you earn £20,000 a year:

• The first £12,570 is tax-free (Personal Allowance).
• The remaining £7,430 is taxed at 20% (Basic Rate), which means you pay £1,486 in tax on that portion.

So your net income becomes: £12,570 + (£7,430 - £1,486) = £18,514.

This net income is then used to determine how much you can save or invest.