How to Read a UK Payslip: Complete Guide with Examples

Quick answer: Your UK payslip shows your gross pay, deductions (income tax, National Insurance, pension, student loan), and net (take-home) pay. The most important thing to check is your tax code — if it’s wrong, you’re paying the wrong amount of tax. The standard code for 2025/26 is 1257L, meaning you get the £12,570 Personal Allowance tax-free. Source: GOV.UK — Check your tax.

How to Read a UK Payslip: Complete Guide

Your payslip contains critical information about your earnings and deductions. Understanding it ensures you’re being paid correctly and not overpaying tax. This guide breaks down every section of a typical UK payslip.

The Key Parts of a UK Payslip

1. Personal Details

Your name, address, National Insurance number, and payroll number. Check your NI number is correct — errors here can cause problems with your State Pension and tax records.

2. Pay Period and Date

Shows whether you’re paid weekly, fortnightly, or monthly, and the date you’ll receive payment. Most UK employees are paid monthly.

3. Gross Pay

Your total earnings before any deductions. This includes:

Basic salary
Overtime
Bonuses
Commission
Sick pay or holiday pay

Check this matches your employment contract. If it doesn’t, speak to your payroll department immediately.

4. Tax Code

Your tax code tells your employer how much tax-free allowance to give you. The most common code for 2025/26 is 1257L:

Code	Meaning	Tax-Free Allowance
1257L	Standard Personal Allowance	£12,570/year
BR	Basic Rate — all income taxed at 20%	£0
D0	Higher Rate — all income taxed at 40%	£0
D1	Additional Rate — all income taxed at 45%	£0
0T	No allowance — often used for new starters	£0
K prefix	Benefits exceed allowance	Negative allowance

If your tax code is wrong, you could be paying hundreds of pounds too much or too little. Check your code at GOV.UK — Check your Income Tax.

Read our full guide on income tax bands for how tax is calculated at each rate.

5. Income Tax Deduction

The amount of income tax deducted via PAYE (Pay As You Earn). This is calculated based on your tax code and the income tax bands:

20% on earnings between £12,571 and £50,270
40% on earnings between £50,271 and £125,140
45% on earnings above £125,140

Use our income tax calculator to check if the amount looks right.

6. National Insurance Deduction

For 2025/26, you pay 8% on earnings between £12,570 and £50,270, and 2% above £50,270. These contributions build your NI record for the State Pension.

Read our National Insurance explained guide for full details on rates and thresholds.

7. Pension Contribution

If you’re auto-enrolled in a workplace pension, this shows your contribution (minimum 5% of qualifying earnings). Your employer also contributes at least 3%.

Read our pension auto-enrolment guide to understand how this works and why staying enrolled is almost always the right choice.

8. Student Loan Deduction

If you have a student loan, repayments are deducted automatically:

Plan Type	Threshold (2025/26)	Repayment Rate
Plan 1	£24,990/year	9% above threshold
Plan 2	£27,295/year	9% above threshold
Plan 4 (Scotland)	£32,210/year	9% above threshold
Plan 5	£25,000/year	9% above threshold
Postgraduate	£21,000/year	6% above threshold

Source: GOV.UK — Student loan repayments.

9. Net Pay (Take-Home)

Your actual pay after all deductions. This is the amount that hits your bank account. Compare this with our income tax calculator to verify the figure.

10. Year-to-Date (YTD) Figures

Shows cumulative totals for the current tax year (6 April to 5 April). Useful for checking that your total tax paid matches expectations.

Common Payslip Errors to Watch For

Wrong tax code — the most common error. If you’ve changed jobs, your code may not have updated.
Incorrect NI number — can affect your State Pension eligibility.
Emergency tax — new starters are sometimes put on an emergency code (1257L W1/M1), which doesn’t account for previous earnings in the tax year.
Missing pension contributions — check your employer is contributing their share.
Student loan over-deduction — if you’ve paid off your loan, HMRC may not have told your employer to stop.

If you spot an error, contact your employer’s payroll department first, then HMRC if needed at GOV.UK — Contact HMRC.

Frequently Asked Questions

“What does tax code 1257L mean?” | “1257L is the standard UK tax code for 2025/26. The number 1257 represents your Personal Allowance of £12,570. The letter L means you’re entitled to the standard allowance. Most employees should have this code.” “Why is my first payslip taxed at emergency rate?” | “New employees are often put on an emergency tax code (1257L W1/M1) until HMRC sends your employer the correct code. This is non-cumulative, meaning each pay period is taxed independently. You’ll get a refund once your correct code is applied.” “How do I check if my tax code is correct?” | “Check your tax code at GOV.UK using your Government Gateway ID. Your employer should also give you a P2 Notice of Coding when your tax code changes.” “What percentage of my salary goes to NI?” | “For 2025/26, employees pay 8% on earnings between £12,570 and £50,270, and 2% on earnings above £50,270. This is separate from income tax.”

Sources and Further Reading

Disclaimer: This guide provides general information about UK payslips. Individual circumstances may vary. If you believe you’ve overpaid tax, contact HMRC or check GOV.UK — Claim a tax refund.