Is London Weighting Taxable
Clear explanation with practical examples for UK workers
Is London Weighting Taxable?
Yes — London weighting is fully taxable as earnings under UK tax law. HMRC treats London weighting (also known as London allowance or HCAS in the NHS) as part of your gross income, subject to income tax and National Insurance contributions at the same rates as your base salary.
There is no special tax treatment, exemption, or relief for London weighting. Whether it is a percentage supplement (NHS) or a fixed annual amount (teachers, civil service), it is added to your gross pay and taxed through PAYE in the normal way.
Tax Impact of London Weighting
| Base Salary | LW Amount | Total Gross | Tax on LW (20%) | NI on LW (8%) | Net LW Gain |
|---|---|---|---|---|---|
| £28,000 | £4,000 | £32,000 | £800 | £320 | £2,880 |
| £35,000 | £5,000 | £40,000 | £1,000 | £400 | £3,600 |
| £48,000 | £3,500 | £51,500 | £1,050 | £70 | £2,380 |
Note the third example: at £48,000 base, the London weighting pushes total gross above £50,270, meaning part of the weighting is taxed at 40% instead of 20%. This is important for workers near the higher rate threshold.
London Weighting and Other Considerations
London weighting affects pension contributions (calculated on total pay including weighting), student loan repayments (threshold based on total earnings), and Child Benefit (High Income Charge applies above £50,000 total). It does NOT affect your personal allowance unless your total income exceeds £100,000.
Calculate your total London salary with our London weighting calculator. For pro rata adjustments on London-weighted salaries, use the pro rata calculator. To understand your full take-home pay including London weighting, try our net pay tool.
Quick Summary: Is London Weighting Taxable
If you're short on time, here's what you need to know about is london weighting taxable:
- What it means: Is London Weighting Taxable involves calculating pay or entitlement proportionally based on the ratio of hours or time worked versus the full-time equivalent.
- The formula: Full-Time Amount × (Your Hours ÷ Full-Time Hours) = Your Pro Rata Amount
- Who needs it: Part-time workers, term-time staff, teachers, job-sharers, and anyone on reduced hours.
- UK law: Under the Part-time Workers Regulations 2000, part-time employees have the right to be treated no less favourably than comparable full-time workers.
Worked Example: Is London Weighting Taxable
A teacher on Main Pay Scale point 3 (£31,350) working in Inner London receives:
- Base salary: £31,350
- Inner London weighting: £5,000
- Total salary: £36,350
- Monthly gross: £3,029
The London weighting rates for 2025/26 are:
| Zone | Annual Allowance | Monthly |
|---|---|---|
| Inner London | £5,000 | £417 |
| Outer London | £3,483 | £290 |
| Fringe | £1,258 | £105 |
Tips for Is London Weighting Taxable
- Always use gross salary: Enter the salary before tax and deductions — the calculator works with gross figures.
- Check your contract: Your employment contract should state your full-time equivalent hours. Common UK standards are 35, 37, 37.5, and 40 hours per week.
- Know your rights: Under the Part-time Workers Regulations 2000, part-time employees must receive the same hourly rate, holiday entitlement (pro rata), and benefits as full-time colleagues.
- Tax personal allowance: For 2025/26, the first £12,570 of earnings is tax-free. If your pro rata salary falls below this, you pay no income tax at all.
- National Insurance: Employee NI is 8% on earnings between £12,570 and £50,270 (2025/26 rates). Check HMRC NI rates for the latest figures.
Pro Rata Holiday Entitlement
Under the Working Time Regulations 1998, all UK workers are entitled to a minimum of 5.6 weeks' paid holiday per year (28 days for full-time). If you work part-time, your entitlement is calculated pro rata based on your actual hours or days worked.
| Days Worked/Week | FTE Ratio | Statutory Days/Year | Bank Holidays (pro rata) |
|---|---|---|---|
| 5 days (full-time) | 1.0 | 28 days | 8 days |
| 4 days/week | 0.8 | 22.4 days | 6.4 days |
| 3 days/week | 0.6 | 16.8 days | 4.8 days |
| 2.5 days/week | 0.5 | 14 days | 4 days |
| 2 days/week | 0.4 | 11.2 days | 3.2 days |
Holiday entitlement is always rounded up — never down — when the result is not a whole number, per ACAS guidance on holiday entitlement. Bank holidays may be included in or added on top of your statutory 28 days, depending on your contract.
All calculations on this page follow ACAS pro rata pay guidelines and are consistent with the UK Employment Rights Act 1996. Tax figures use HMRC 2025/26 rates. The April 2025 National Living Wage of £12.21/hour is applied where relevant.
Further Reading
For more help with is london weighting taxable, explore our free UK tools. You may also find these useful: pro rata calculator, term-time salary calculator, overtime calculator.
Last updated: February 2026. Verified against HMRC 2025/26 tax rates and April 2025 National Living Wage (£12.21/hour).
Frequently Asked Questions
London weighting is an additional payment made to employees working in London to help offset the higher cost of living. It varies by zone — Inner London typically receives the highest amount.
Typical London weighting: Inner London £3,500–£5,000, Outer London £2,000–£3,000, London Fringe £1,000–£1,500. Exact amounts vary by employer and sector.
Yes, London weighting is fully taxable. It is treated as part of your salary and subject to income tax and National Insurance contributions, like any other earnings.
No. London weighting is most common in the public sector (NHS, education, civil service). Private sector employers may offer it but are not legally required to.