Question 1

Is overtime taxed more in the UK?

Accepted Answer

Overtime is not taxed at a special higher rate — it is added to your total annual income and taxed at your marginal income tax rate. If your overtime pushes you into the higher rate (40%) band, only the portion above £50,270 is taxed at 40%, not all of it. The tax feels higher because you are earning more, not because overtime has a special penalty rate.

Question 2

How is overtime tax calculated in the UK?

Accepted Answer

Your employer adds overtime pay to your regular salary and applies your tax code to the combined total. Income tax is then charged at 20% on earnings between £12,570 and £50,270, and 40% above that. National Insurance is 8% on earnings between £12,570 and £50,270, and 2% above. Our calculator shows you the exact split.

Question 3

What is time-and-a-half pay?

Accepted Answer

Time-and-a-half (1.5×) means you are paid 1.5 times your standard hourly rate for overtime hours. For example, if your standard rate is £15/hr, time-and-a-half gives you £22.50/hr for overtime hours. It is the most common overtime rate in the UK.

Question 4

Do I lose all my overtime to tax?

Accepted Answer

No — even on higher-rate tax (40%), you keep at least 48p in every £1 of overtime (60p income tax + 2p NI = 42p deducted). On basic rate tax (20%) you keep around 72p in every £1 of gross overtime. Use this calculator to see exactly how much you keep at your income level.

Question 5

Does overtime count for pension auto-enrolment?

Accepted Answer

It depends on your employer's pension scheme. Many workplace pensions only apply to "qualifying earnings" between £6,240 and £50,270 per year. Overtime pay may or may not be included in qualifying earnings — check with your employer or pension provider. Our calculator lets you include pension contributions for a more accurate figure.

Question 6

Does overtime affect my student loan repayments?

Accepted Answer

Yes. Student loan repayments are calculated as a percentage of all income above the repayment threshold. Plan 2 deducts 9% on earnings above £27,295, so overtime pushes more of your income above the threshold and increases your repayment. The calculator accounts for this when you select your student loan plan.

Question 7

What if I only work overtime occasionally?

Accepted Answer

This calculator annualises your overtime hours — it assumes you work the same overtime every week of the year. If you only work overtime occasionally, divide the annual overtime take-home figure by 52 and multiply by the number of overtime weeks you actually work. Or enter an estimate of your total yearly overtime hours spread over 52 weeks.

Rate	What It Means	Example (£15/hr base)	When Used
1× (Standard)	Same as regular pay	£15.00/hr	Flexible working, some salaried roles
1.25× (Time & Quarter)	25% premium	£18.75/hr	Evening shifts, some retail
1.5× (Time & Half)	50% premium	£22.50/hr	Most common — weekdays and Saturdays
2× (Double Time)	100% premium	£30.00/hr	Sundays, bank holidays
3× (Triple Time)	200% premium	£45.00/hr	Rare — Christmas Day, emergency cover

Overtime Calculator UK 2026-2027

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