Overtime pay is added to your regular salary and taxed at your marginal tax rate. Whether you’re paid time-and-a-half (1.5×) or double time (2×), the extra income is subject to income tax and National Insurance.
Calculating Net Overtime
If your base salary already uses up your personal allowance, all overtime is taxed from the first pound. A basic rate taxpayer keeps approximately 72p of every extra £1 earned in overtime (after 20% tax + 8% NI). Higher rate taxpayers keep only 52p.
Is Overtime Worth It?
This calculator helps you see exactly how much of your overtime pay you’ll actually take home. Be particularly careful if overtime pushes your total earnings across a tax threshold — the marginal rate on that portion will be significantly higher.