Updated for 2025/26
£18,040 vs £23,040 Salary Comparison
Compare a £18,040 salary against £23,040. Find out exactly how much more (or less) you will take home after tax.
Gross Difference
+£5,000
per year
Take Home Extra
+£300.00
per month
You Keep
72%
of the raise
5-Year Gain
+£18,000
cumulative
Entry-Level Career Progression
This comparison is typical for early career moves or first promotions. At this salary range, most of your income is taxed at the basic rate (20%), so you keep a higher percentage of any raise.
- Negotiate hard - you keep ~70-80% of any increase at this level
- Consider employers offering good pension matching (often worth more than small salary differences)
- Look for roles with clear progression paths to higher bands
- Factor in benefits like free lunches, gym memberships, or transport subsidies
Compare Salaries
Enter multiple salaries to compare take-home pay for 2025/26
£
£
Comparison Results
| Metric | £18,040 | £23,040 | Difference |
|---|---|---|---|
| Gross Salary | £18,040 | £23,040 | £5,000 |
| Income Tax | £1,094 | £2,094 | £1,000 |
| National Insurance | £438 | £838 | £400 |
| Pension | £0 | £0 | £0 |
| Take-Home Pay (Yearly) | £16,508 | £20,108 | £3,600 |
| Take-Home (Monthly) | £1,376 | £1,676 | £300 |
| Effective Tax Rate | 8.5% | 12.7% | 4.2% |
£18,040
Gross£18,040
Take-Home£16,508
You Keep91.5%
£23,040
Gross£23,040
Take-Home£20,108
You Keep87.3%
Tax Band Analysis
Understanding where your money goes
£18,040
Tax BandBasic Rate
Marginal Rate20%
Income Tax£1,094.00
National Insurance£437.60
Take Home (Monthly)£1,375.70
£23,040
Tax BandBasic Rate
Marginal Rate20%
Income Tax£2,094.00
National Insurance£837.60
Take Home (Monthly)£1,675.70
What £300.00 Extra Buys You
Real-world value of the take-home difference
Monthly Subscriptions
Netflix, Spotify, gym - £100.00/mo
Weekend Breaks
1-2 UK getaways per month at this budget
Full Comparison: £18,040 vs £23,040
£18,040
- Gross Pay£18,040.00
- Take Home (Year)£16,508.40
- Take Home (Month)£1,375.70
- Effective Tax Rate8.5%
£23,040
- Gross Pay£23,040.00
- Take Home (Year)£20,108.40
- Take Home (Month)£1,675.70
- Effective Tax Rate12.7%
The difference in take-home pay is £3,600 per year, which works out to £300.00 per month.