Payslip Explained.

What each line on a UK payslip means in 2026/27

A UK payslip shows your pay before anything is taken off, each amount your employer takes off, and what is left to land in your bank account. In 2026/27 most employees pay 20% income tax on what they earn above £12,570 a year, and 8% National Insurance on what they earn between £12,570 and £50,270.

Pay before anything is taken off

Usually labelled gross pay or total pay. It's set by your salary or your hours, plus any overtime or bonus.

Tax code

HMRC gives this to your employer. It sets how much you can earn before income tax starts.

Income tax

Usually labelled PAYE or income tax. Your employer works it out from your tax code, usually 20% of what you earn above £12,570 a year and 40% above £50,270.

National Insurance

This counts towards your state pension. It's usually 8% of what you earn between £12,570 and £50,270 a year, and 2% above that.

Pension

What you pay into your workplace pension. It's set by the percentage in your scheme, and your employer usually pays in on top.

Student loan

Your student loan repayment. It's usually 9% of what you earn above your plan's threshold.

Take-home pay

What lands in your bank account. It's your pay, less everything taken off above.

What your tax code usually means

Your tax code tells your employer how much of your pay is tax-free. The standard code for 2026/27 is 1257L, which usually means the full £12,570 allowance is being used against one job. Other codes are common and often correct, but they are worth checking.

1257L

1257L is the standard code for 2026/27. It usually means your full £12,570 tax-free allowance is being used against this job.

BR

BR means all your pay from this job is taxed at 20%, with no tax-free allowance. That's normal for a second job and often wrong for a main job.

D0

D0 means all your pay from this job is taxed at 40%. That's normal for a second job if you're a higher earner. Otherwise it's worth checking.

0T

0T means you're getting no tax-free allowance against this job. It's common when a new employer doesn't have your starter details yet, so it may correct itself once they do.

K codes

A K code usually means you owe more than your tax-free allowance covers, so extra tax is being collected through your pay. It's usually down to a company benefit or tax owed from an earlier year.

NT

NT means no income tax is being taken from this pay at all. That's rare, so it's worth checking with HMRC that it's right.

This is general information for UK employees, using England, Wales and Northern Ireland rates. If your code looks off, HMRC can confirm what it should be.