Updated for 2025/26
£118,980 vs £123,480 Salary Comparison
Compare a £118,980 salary against £123,480. Find out exactly how much more (or less) you will take home after tax.
Gross Difference
+£4,500
per year
Take Home Extra
+£142.50
per month
You Keep
38%
of the raise
5-Year Gain
+£8,550
cumulative
Senior Leadership Compensation
At this level, tax efficiency becomes crucial. Between £100,000.00-£125,140.00, you face an effective 60% marginal rate as personal allowance is withdrawn.
- The £100k-£125k "trap" means earning £100k often leaves you with more than £115k
- Employer pension contributions can reduce taxable income below key thresholds
- Consider spreading bonuses across tax years where possible
- Professional tax advice typically pays for itself at this level
Compare Salaries
Enter multiple salaries to compare take-home pay for 2025/26
£
£
Comparison Results
| Metric | £118,980 | £123,480 | Difference |
|---|---|---|---|
| Gross Salary | £118,980 | £123,480 | £4,500 |
| Income Tax | £38,820 | £41,520 | £2,700 |
| National Insurance | £4,390 | £4,480 | £90 |
| Pension | £0 | £0 | £0 |
| Take-Home Pay (Yearly) | £75,770 | £77,480 | £1,710 |
| Take-Home (Monthly) | £6,314 | £6,457 | £143 |
| Effective Tax Rate | 36.3% | 37.3% | 0.9% |
£118,980
Gross£118,980
Take-Home£75,770
You Keep63.7%
£123,480
Gross£123,480
Take-Home£77,480
You Keep62.7%
Tax Band Analysis
Understanding where your money goes
£118,980
Tax BandHigher Rate
Marginal Rate40%
Income Tax£38,820.00
National Insurance£4,390.20
Take Home (Monthly)£6,314.15
£123,480
Tax BandHigher Rate
Marginal Rate40%
Income Tax£41,520.00
National Insurance£4,480.20
Take Home (Monthly)£6,456.65
What £142.50 Extra Buys You
Real-world value of the take-home difference
Monthly Subscriptions
Netflix, Spotify, gym - £100.00/mo
Full Comparison: £118,980 vs £123,480
£118,980
- Gross Pay£118,980.00
- Take Home (Year)£75,769.80
- Take Home (Month)£6,314.15
- Effective Tax Rate36.3%
£123,480
- Gross Pay£123,480.00
- Take Home (Year)£77,479.80
- Take Home (Month)£6,456.65
- Effective Tax Rate37.3%
The difference in take-home pay is £1,710 per year, which works out to £142.50 per month.