iHow it is calculated
From gross: tax = gross × rate. From net: gross = net ÷ (1 − rate), tax = gross − net:
£1,000 gross at a 20% rate = £200 withheld, £800 paid. If the net is £1,000, the gross is £1,250 and £250 is withheld.
Work out tax withheld at source — from a gross amount, or gross it up from a net amount — at the rate you set.
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Enter the gross or net amount and the withholding rate.
Withholding rates depend on the payment: CIS 20%, and treaty rates for cross-border interest, royalties and dividends. Calculate from gross or gross up from net. Set the rate for your case.
Gross amount 1,000.00 · Withheld 200.00 (20.00%) · Net amount 800.00 £Indicative figures, not advice. Rates depend on the payment type and change over time — set the rate for your case. Instant in-browser, no account.
Last updated: 11 July 2026 Source: GOV.UK — HMRC
⚖︎ Results are for informational purposes and do not constitute tax advice. For specific situations, consult a licensed accountant or the relevant tax authority.
From gross: tax = gross × rate. From net: gross = net ÷ (1 − rate), tax = gross − net:
£1,000 gross at a 20% rate = £200 withheld, £800 paid. If the net is £1,000, the gross is £1,250 and £250 is withheld.
Tax deducted at source by the payer and passed to the tax authority, rather than paid by the recipient later. A common UK example is the Construction Industry Scheme (CIS), where 20% is withheld from subcontractors.
Gross = net ÷ (1 − rate). For a £1,000 net at 20%, the gross is 1,000 ÷ 0.80 = £1,250 and £250 is withheld.
It depends on the payment — CIS is 20% (30% unverified), and other cross-border payments have their own treaty rates. Set the rate that applies.
Generally no for UK-resident landlords, but the Non-resident Landlord Scheme can require 20% to be withheld from rent paid to landlords abroad.