Your UK payslip explained, line by line (2026/27)
A UK payslip has four parts: what you earned, what came off, the codes that drive the deductions, and the year-to-date totals. Most mistakes hide in the codes, not in the sums.
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Earnings
Basic pay, overtime, holiday pay, bonuses and statutory payments such as Statutory Sick Pay (118.75 GBP a week until April 2026, 123.25 GBP from 6 April 2026, or 80% of your average weekly earnings if lower). Pension contributions under a net pay arrangement or salary sacrifice are taken off before tax, so the 'taxable pay' line can be lower than gross pay. That is expected.
Income tax (PAYE)
The tax year runs from 6 April to 5 April and PAYE is cumulative: each month payroll compares the tax due on your pay so far this year with the tax already taken. With the standard code 1257L, the first 12,570 GBP of the year is tax-free, then 20% applies up to 50,270 GBP, 40% up to 125,140 GBP and 45% above (England, Wales and Northern Ireland). The allowance shrinks by 1 GBP for every 2 GBP of income over 100,000 GBP. Scottish taxpayers (codes starting with S) have six bands from 19% to 48%.
National Insurance
NI is not cumulative: each pay period stands alone. For category letter A, the most common, you pay nothing up to 1,048 GBP a month, 8% between 1,048 and 4,189 GBP, and 2% above. A one-off bonus month therefore costs more NI than the same money spread over the year. Your employer pays its own 15% above 417 GBP a month; it is not deducted from you. Past State Pension age your letter should be C and the employee NI line should be zero.
Pension and student loan
Auto-enrolment applies from age 22 when you earn over 10,000 GBP a year: at least 8% of qualifying earnings (pay between 6,240 and 50,270 GBP), of which at least 3% comes from the employer. Under 'relief at source' schemes your line shows 4% because the provider adds the tax relief. Student loans take 9% of pay above your plan's threshold: Plan 1 26,900 GBP, Plan 2 29,385 GBP, Plan 4 33,795 GBP, Plan 5 25,000 GBP; postgraduate loans take 6% above 21,000 GBP. Being on the wrong plan is one of the most common payslip errors.
What to check every month
The tax code matches the last notice from HMRC and has no W1, M1 or X at the end; the NI letter; the tax period (month 7 is October); hours and holiday paid; last month's year-to-date figures plus this month equal the new year-to-date; the pension percentage is the one you agreed; the student loan plan. Payslop runs these checks for free.
Check your own payslip. Upload it and every line is explained, the rates verified and the questions for HR written for you. Free, nothing stored. Decode my payslip
Questions people ask
Why did I pay more tax this month than last month?
Usually one of three reasons: a bonus or overtime pushed part of the month's pay into a higher band, HMRC sent a new tax code that collects an underpayment, or an earlier refund through payroll has ended. The tax code line on both payslips tells you which.
A student loan was deducted but I earn less than the threshold over the year. Is that wrong?
Not as far as payroll is concerned: repayments are worked out per pay period, so a month with a bonus can go over the monthly threshold. After the tax year ends, the Student Loans Company refunds what you overpaid for the year if you ask.
Where is my employer's pension contribution?
It is not deducted from you. Many payslips print it as an information line; if yours does not, the pension provider's statement shows it.
Related guides
Indicative rules as of October 2026. Not tax or legal advice.