£10.85 Per Hour
After Tax (2026/27)
Key takeaway: At £10.85/hr for 37.5 hours/week, you earn £21,158 gross per year. After £1,718 income tax and £687 National Insurance, your annual take-home is £18,753 — or £1,563 per month (£9.62/hr net). If you work 40 hours/week, your monthly take-home is £1,647.
£10.85/hr Take-Home by Hours Worked
| Hours | Gross / Yr | Tax + NI | Net / Mo | Net / Hr |
|---|---|---|---|---|
| 16 hrs | £9,027 | £0 | £752 | £10.85 |
| 20 hrs | £11,284 | £0 | £940 | £10.85 |
| 25 hrs | £14,105 | £430 | £1,140 | £10.52 |
| 30 hrs | £16,926 | £1,220 | £1,309 | £10.07 |
| 35 hrs | £19,747 | £2,010 | £1,478 | £9.74 |
| 37.5 hrs | £21,158 | £2,405 | £1,563 | £9.62 |
| 40 hrs | £22,568 | £2,800 | £1,647 | £9.50 |
| 45 hrs | £25,389 | £3,589 | £1,817 | £9.32 |
| 48 hrs | £27,082 | £4,063 | £1,918 | £9.22 |
What is £10.85 per hour?
£10.85 per hour is the official National Minimum Wage for workers aged 18 to 20 in the UK, effective from April 2026. This is a significant increase from previous years as the government moves toward a single adult rate.
Student jobs and part-time work
Many 18–20 year olds work part-time while studying. Because your Personal Allowance is £12,570, you won't pay any income tax at all if you work fewer than 22 hours a week at £10.85 an hour for the full year. For example, working 16 hours a week gives you £752 a month completely tax-free.
How tax is calculated at £10.85/hr
If you work 37.5 hours a week at £10.85 per hour, your gross annual salary is £21,158. Here is how your take-home pay is calculated for the 2026/27 tax year:
- Personal Allowance: The first £12,570 you earn is completely tax-free.
- Taxable Income: You pay 20% Income Tax on the remaining £8,588, which equals £1,718.
- National Insurance: You pay 8% NI on earnings above the £12,570 threshold, which comes to roughly £687.
Subtracting the tax and NI leaves you with a net take-home pay of £18,753 per year (or £1,563 per month).
Can you live on £10.85 per hour?
For many 18-20 year olds, £10.85 an hour (£1,563 monthly take-home) is manageable if living at home or sharing accommodation, but it can be a very tight budget if renting independently. Here is an example monthly budget working 37.5 hours a week:
- Monthly Take-Home: £1,563
- Rent (Shared House/Room): -£650
- Bills (Council tax, Energy, Water, Broadband): -£200
- Groceries: -£200
- Transport / Commute: -£120
- Money remaining for life & savings: £393
When do I move to £12.71?
You will automatically move up to the full National Living Wage of £12.71 per hour on your 21st birthday. If you are currently on an apprenticeship, you will move to your age-appropriate rate (or the full NLW) as soon as you complete the first 12 months of your apprenticeship if you are 19 or over.
Need a full payslip breakdown?
Use the detailed take-home calculator to see exactly what you keep at any hours, with annual, monthly and weekly figures and a full deductions breakdown.
Open the full calculator →Frequently Asked Questions
How much is £12.71 per hour after tax monthly?
Working 40 hours a week at £12.71/hr gives you a gross monthly salary of about £2,203. After income tax (£231/mo) and National Insurance (£92/mo) your take-home pay is approximately £1,880 per month. Actual figures vary slightly with your tax code.
What is the annual salary for £12.71 per hour?
£12.71 × 40 hours × 52 weeks = £26,437.28 per year gross. After tax and NI the net annual figure is approximately £22,555.
How much is £10.85 per hour after tax monthly?
If you work 37.5 hours per week at £10.85 per hour, your monthly take-home pay is £1,563. If you work a 40-hour week, your monthly take-home pay increases to £1,647.
What is the annual salary for £10.85 per hour?
At £10.85 per hour, working 37.5 hours a week gives you an annual gross salary of £21,158. After taxes and National Insurance, your net annual take-home pay is £18,753.
Is £10.85 per hour the minimum wage for 18 year olds?
Yes, £10.85 per hour is the official National Minimum Wage for 18 to 20-year-olds in the UK, effective from April 2026. This applies to you from your 18th birthday until you turn 21.
How much is £10.85 per hour per week?
Working 37.5 hours a week at £10.85 per hour gives you a gross weekly pay of £406.88. After tax and NI deductions, you take home approximately £360.64 each week.
Do 18–20 year olds pay less tax?
18-20 year olds follow the exact same tax rules as older adults: the first £12,570 you earn is tax-free. However, because £10.85/hr results in lower total earnings than the £12.71/hr rate, you end up paying less total tax in absolute terms.
About this guide
This calculator is maintained by UKMinimumWage.co.uk and verified against official HMRC and GOV.UK rates. Last updated August 2026.