Maximum income calculator

Work out the maximum income your client can apply for under Income Protection.

This calculator allows you to work out the maximum income your client can apply for under Income Protection. It doesn’t apply to Key Person Income Protection.

This calculator will also allow you to enter your client’s sick pay arrangements to help you make a recommendation that is tailored to their needs.

Any income from other plans your client has isn't taken into account. You should deduct this from the result unless those plans are to be cancelled.

The maximum annual income available is:

• 65% of the first £60,000 of your client’s earnings before tax plus
• 50% of their remaining earnings before tax above £60,000
• The overall maximum is £250,000 a year (£20,833.33 a month).

Please note, this calculator is very general in nature and won't exactly reflect your client’s personal tax situation. The information shouldn't be construed as legal or tax advice.

The calculator assumes:

• no sick pay is received after the second deferred period
• the percentage of company sick pay provided relates to the employee’s gross annual salary
• your client has use of their full basic personal tax-free allowance and the allowance will be restricted where earnings exceed the limit for the full personal allowance, and
• your client is subject to not-contracted-out Class 1 National Insurance Contributions.

It doesn’t take into account any changes to the personal allowance based on their personal circumstances.

This information is based on our current understanding of law and HM Revenue & Customs practice for the tax year 2024/25. It uses the personal tax rates listed on www.gov.uk and uses English tax rates only. It may be affected by future changes and individual circumstances.