Election Comparison Calculator
The 2017 election may be over, although the hung parliament means things are not as clear as they could be, especially as to which policies will be enacted. All the parties have policies related to taxation, and The Salary Calculator has tried to show you what their different policies may mean to you. Enter your salary details in the form below, and see how your annual take-home might be affected if the different policies come into law.
Note: These are estimated figures only, based on the limited information the parties have made available. More information below. If you can help provide more detailed information please let us know.
Notes on the Election Comparison Calculator
The Election Comparison Calculator uses the information made available by the parties to estimate what the impact on you of those policy changes would be. In a lot of cases, not all of the details are available (for example, changes to tax bands or tax rates). The current rates and bands have been used, unless the party's policy specifies new thresholds. Since tax bands usually increase in line with inflation, it should be expected that by the next budget these would change but this information is not yet available.
Scotland - income tax on salaries is a devolved power in Scotland, which means the rates and thresholds are not set by Westminster but by the Scottish Government. Therefore, the Election Calculator is not relevant for Scottish residents.
Not all of the parties have made specific policy statements about every area of income tax / national insurance / pensions. The Election Comparison Calculator assumes that if no policy statement on a subject has been made by the party, no change would be made by them in their next budget. This means that the blind person's allowance and student loan repayments are the same across the board. Details of the general information used by the calculator are on the page about The Salary Calculator. Party-specific details are below:
PAYE tax / NI contributions are not the only way that the government can gather revenue, and they are not the only ways in which the parties' tax policies differ. Inheritance tax, VAT, corporation tax and many other variables will be debated during the election campaign but they are not relevant to this calculator and are therefore not included. This may mean that although you may think you would be better off under a certain party, other tax changes recommended by that party may have a negative effect on your total disposable income.
The Labour manifesto says that they will lower the threshold for 45% income tax to £80,000 and introduce a 50% rate for those earning over £123,000.
They also say they would raise the Minimum Wage from £7.50 to the Living Wage, expected to be around £10 / hour by 2020 - this does not affect the calculations above.
The Conservatives have said that they will increase the tax-free personal allowance from £11,500 to £12,500 over the course of the next parliament, as well as increasing the threshold at which the 40% tax threshold is introduced from £45,000 to £50,000. This is a restatement of their previous election pledge.
They say they would increase the Living Wage so that it is equal to 60% of "median earnings", and from then on it would be linked to median earnings, from its current position of £7.50. This is not included in the calculations.
The Liberal Democrat manifesto says they will "aim in the long term, and as resources allow" to raise the National Insurance threshold to be the same as the income tax threshold (i.e. personal allowance), reducing National Insurance contributions. They will, however, increase income tax by 1p in the pound (i.e. to 21%, 41% and 46%, depending on income).
They also say they would remove the "Marriage Allowance", which currently allows a married couple to transfer 10% of the lower earner's tax-free personal allowance to the higher earner.
UK Independence Party
UKIP say that they will increase the tax-free personal allowance from its current £11,500 to £13,500, and raise the threshold for 40% tax from £45,000 to £55,000. They also say they will, "when economic conditions allow", reinstate the personal allowance for those earning over £100,000 (currently the tax-free allowance is reduced or removed entirely for high earners).
On the minimum wage, they say they will "reverse goverment cuts to the number of minimum wage inspectors", there is no mention of changing the minimum wage from its current level.
Unfortunately the Green Party's manifesto is not specific enough to create a calculator. They say they will have a phased abolition of the cap on employee's National Insurance - currently, NI is charged at 12% from £8,164 up to £45,000 and at only 2% after that - they would remove this lower rate so higher earners would continue to pay at 12%. They would like to introduce a universal basic income, although the current manifesto mentions only a pilot scheme.
They also plan to increase the Minimum Wage to £10 / hour (currently £7.50 / hour). They want to introduce a wealth tax on the top 1% of earners, and phase in a 4 day working week with a maximum of 35 hours.