A practical UK payslip guide covering gross pay, net pay, PAYE tax, National Insurance, pension, student loans, pay period and year-to-date totals.
A payslip is easiest to read when you separate the pay coming in, the deductions going out, and the net pay left at the end. Gross pay starts the calculation, payroll deductions reduce it, and net pay is the amount paid for that period.
On £35,000 a year, a standard 2026/27 tax code and no pension or student loan, the figures work out like this. Open a calculator to put your own numbers in.
A payslip is easiest to read when you separate the pay coming in, the deductions going out, and the net pay left at the end. Gross pay starts the calculation, payroll deductions reduce it, and net pay is the amount paid for that period.
| Tax/source year | 2026/27 |
|---|---|
| Region | England/Wales/Northern Ireland |
| Tax code basis | 1257L where the page uses PAYE defaults |
| Pension basis | No pension deduction unless this example says otherwise |
| Student loan basis | No student loan unless selected in this example |
| Calculator setting | The answer is more useful when matched to the same tax year, region, tax code, pension and loan settings used in the calculator. |
|---|---|
| Records to compare | Payslips, HMRC records, student-loan notices and pension scheme documents can explain differences. |
| Tax code | HMRC tax-code changes, K codes, BR/D codes, or emergency markers can change PAYE deductions. |
|---|---|
| Cumulative basis | Week 1, Month 1 or non-cumulative payroll can differ from a smooth annual calculator estimate. |
| Pension method | Relief at source, net pay and salary sacrifice can affect taxable pay and take-home pay differently. |
| Payroll timing | Bonus, overtime, arrears, refunds, cut-off dates and corrections can all move a single payslip. |
| Open the salary calculator with editable assumptions | calculator next step |
|---|---|
| Review calculation sources and methodology | source context |
| What is not decided here | PayBreakdown does not decide payroll correctness, lender approval, benefit entitlement or employer compliance, and does not give regulated financial, mortgage, debt, tax, payroll or legal advice. |
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The figures on this page use the values below. Open the calculator if your example salary differs.
Most payslips group the same information even when the layout looks different. The wording can vary, but the calculation usually follows a gross-to-net pattern.
Two employees with the same headline salary can have different payslips because payroll is personal to tax code, pension method, loan plan, pay timing and employer scheme rules.
A clear question is easier for payroll to answer. Compare the payslip fields before treating a single deduction as isolated.
This is educational guidance for understanding how UK pay and tax work. It does not decide payroll correctness, HMRC treatment, lender approval, benefit entitlement or employment rights, and it is not regulated financial advice. Where a figure matters, check it against your payslip, your HMRC account, or the official guidance linked on this page.
Net pay is usually the budgeting figure because it is the amount paid after payroll deductions. Gross pay is useful for comparing jobs and tax bands.
Pension method, salary sacrifice, taxable benefits or payroll adjustments can make taxable pay differ from the headline gross pay.
No. These pages explain payslip terms. They do not upload, store or read payslip files or employer portal data.
Last updated 2026-08-19. Estimates are for planning and should be checked against official records where the decision matters.