How to budget on a UK salary

Guide · Last checked: 21 October 2026 · Figures for the 2026 to 2027 tax year

A budget is just a plan for your money before the month starts. Here's a simple way to do it.

Step 1: Know what you actually take home

Your take-home pay is what's left after Income Tax, National Insurance and anything else taken from your wages, such as a pension or student loan. Your payslip shows the exact amount, so start with that.

For the 2026 to 2027 tax year in England, Wales and Northern Ireland, GOV.UK says:

you pay no Income Tax on the first £12,570 (your Personal Allowance, if you have the standard one)
Income Tax is 20% on taxable income from £12,571 to £50,270, 40% from £50,271 to £125,140, and 45% on taxable income over £125,140 (England, Wales and Northern Ireland)
most employees pay National Insurance of 8% on earnings between £1,048.01 and £4,189 a month, and 2% above that

Income Tax bands are different in Scotland. Your tax code can also change these amounts.

Step 2: List the must-pays

Rent or mortgage, Council Tax, energy, water, phone, travel, food and minimum debt payments. These come first.

Step 3: Plan the rest

Decide how much goes to savings, to paying off debts faster, and to spending money. Even a small amount saved each month adds up.

Step 4: Check in each month

Compare what you planned with what you spent. If a category keeps going over, change the plan rather than giving up on it.

If your income changes month to month

If you're self-employed or your hours vary, build a small buffer in good months so you can pay yourself a steady amount in quieter ones.

Plan it in QuidsUp

Set your monthly amounts for each category, log income and spending, and see month by month how you're doing. We do the working out for you.

Open the budget planner

🔒 Your data stays on your device. QuidsUp saves what you add on your own phone or computer, not on our servers.

Sources

This guide is general information, not financial advice.