UK Payslip Guide
Understanding Your Payslip 2026/27
Every payslip tells the story of your earnings and deductions. This guide breaks down each line so you can see exactly where your money goes — from gross pay to take-home.
The two numbers that matter most
Before anything else, your payslip shows your gross pay and your net pay. Everything in between is a deduction.
| Line | What it means | Example (£50,000/yr, monthly) |
|---|---|---|
| Gross pay | Everything you earned before deductions, including basic pay, overtime and bonuses. | £4,166.67 |
| Total deductions | The sum of tax, National Insurance, pension and any other deductions. | £1,033.34 |
| Net pay (take-home) | What actually reaches your bank account. | £3,133.33 |
Income tax (PAYE)
PAYE — Pay As You Earn — is the income tax your employer deducts on behalf of HMRC. For 2026/27 the Personal Allowance is £12,570 and the basic-rate band runs to £50,270.
- Your tax code sets how much Personal Allowance you get. The standard code is 1257L.
- Earnings above the allowance are taxed at 20% (basic), 40% (higher) and 45% (additional) rates.
- Scottish and Welsh taxpayers use different rate bands — see our £100k tax trap guide.
National Insurance (NI)
Employee Class 1 National Insurance is charged on earnings above the primary threshold (£12,570 for 2026/27), at 8% up to the upper earnings limit and 2% above it.
| Band | 2026/27 rate |
|---|---|
| Below £12,570 | 0% |
| £12,570 – £50,270 | 8% |
| Above £50,270 | 2% |
Pensions, student loans and other deductions
These reduce your take-home pay but for different reasons.
| Deduction | Detail |
|---|---|
| Pension | Workplace schemes deduct a % of qualifying earnings. This also lowers the income taxed. |
| Student loan | Repayments start once pay exceeds the plan threshold (e.g. Plan 2: £27,295/yr). Deducted through PAYE. |
| Other | Childcare vouchers, union fees, salary sacrifice or court orders may also appear. |
Year-to-date (YTD)
Most payslips show a "YTD" column — the running total of each figure since the start of the tax year (6 April). This is how PAYE stays accurate across the year and why a one-off bonus can push you into a higher band temporarily.
Quick checks
Check your tax code is correct — a wrong code quietly over- or under-charges you all year.
Compare gross to your contract — overtime and bonus should be there.
Use our take-home calculator to confirm net pay matches your payslip.
If net pay looks wrong, check YTD figures before contacting payroll.