Your gross pay is your pay before any deductions (tax, National Insurance, pension, etc). If your payslip shows a lower gross amount, check your contract for agreed salary, overtime, bonuses or allowances. You can ask your employer/payroll for breakdown.

The tax you pay depends on your tax code, your total earnings, how often you’re paid, personal allowances and other income. If you have unused personal allowance, initial deductions may be low.

A tax code indicates how much tax free income you are allowed before tax is deducted. It also reflects any allowances, benefits or under payments from previous years. If you have changed job, your circumstances have changed or you get a new code, your payroll may apply a “Week 1/Month 1” basis.

NI contributions are deducted from earnings above the threshold (for employees). The rate depends on your NI category (e.g., A, B, etc) and whether you’re a director or have special status. The employer also pays NI separately.

Your payroll might apply Week 1/Month 1 (non cumulative) basis if your tax code includes W1 or M1, meaning each pay period is treated in isolation rather than cumulatively. This often happens when a new tax code is issued mid year or if you have multiple jobs.

A payslip is a statement given each pay period showing your gross pay, deductions (tax, NI, pension, other), net pay and pay period details. Under the Employment Rights Act 1996 (Itemised Pay Statement) you must receive an itemised pay statement if you’re a worker or employee.

Check your contract for your salary, hours or rate, and review your payslip to see if pay corresponds. If you work more hours (overtime), check policy. Raise the matter with your employer or payroll/HR department in writing. If unpaid wages are owed you may have legal recourse.

Errors should be corrected by your employer. If tax or NI has been wrongly deducted, the employer should submit a correction to HMRC and adjust future payslips. As one Reddit user put it: “Send HMRC all of the internal correspondence where you’ve asked for your company/payroll to correct their mistake…” (Reddit)

Possible reasons:

your earnings for the pay period fall below tax thresholds after allowances; you may have a tax code giving full personal allowance; or you may be in a new role in a tax year and your allowance hasn’t been used yet.

Each job may operate with its own tax code. The main job generally uses your full personal allowance. Secondary jobs often use a code that assumes no allowance (for example BR – basic rate) so tax is taken at 20%.

You are entitled to receive at least the NMW/NLW for your age and status if you are a “worker” or “employee”. If you’re paid less per hour (including some unpaid overtime or deductions) you may be under paid.

If your employer offers a workplace pension and you’re eligible (auto enrolled), pension contributions are deducted from your pay (often before tax) and employer contributions are made too. This reduces take home pay.

During statutory leave (e.g., Statutory Sick Pay, Statutory Maternity Pay) you will receive pay in line with statutory rules; tax and NI deductions still apply. Employers may reclaim some statutory pay from HMRC.

You should receive your final salary for the work done, any outstanding holiday pay, contractual pay owed, and possibly redundancy/pay in lieu of notice (if applicable). A P45 should be issued. Tax and NI are deducted as usual.

A P45 is a form given when you leave employment. It shows your pay and tax deduction to date. Your new employer uses it to set your correct tax code and avoid over payments.

A P60 is a certificate given annually (after the tax year ends, 5 April) to employees still employed on that date. It shows your total pay and tax deducted in the year.

If you receive benefits (company car, private health, etc) or certain expenses, these may be treated as taxable benefits or payrolled benefits and appear on your payslip or annual P11D. These increase your taxable pay.

HMRC may issue a new tax code if your situation changes (new job, benefits, under paid tax from previous year, you start or stop collecting state pension, etc). Your employer should apply the new code and adjust your tax deductions accordingly.

Employers can only make lawful deductions: those required by law (tax, NI), authorised in your contract, and/or agreed by you. Deductions for e.g., damage or equipment should be in writing and not reduce your pay below the National Minimum Wage/National Living Wage.

Your overtime or shift allowances should be paid per your contract or employer policy. They are part of your gross pay and taxable. They may affect your net pay, tax, NI, pension.

If your pension contribution changes, your net pay will adjust accordingly. Your tax/NI may also change due to reduced taxable pay (if pension deduction is relief giving). Your year to date pension and tax data should be reflected correctly.

The frequency affects how your pay is processed, but annual earnings determine tax/NI liability. The payroll software calculates on the pay period. More frequent pay means more frequent deductions but the annual sum is what matters for allowances.

After a pay rise your gross pay increases, so tax, NI and pension contributions increase too, which reduces the net gain. Also effect of lower tax code or lost allowance may reduce net benefit.

Employment income that is PAYE will have tax deducted at source; other income (freelance/self employed) may require you to file a Self-Assessment tax return. Your combined income may move you into a higher tax band.

In a net pay arrangement pension contributions are deducted before tax (so tax relief is immediate); in relief at source, contributions are deducted after tax and the pension scheme claims basic or higher rate tax relief separately. The arrangement affects your net pay.

Yes, a change in hours reduces gross pay. This lowers tax and NI but also reduces take home pay and possibly pension contributions (employment eligibility for workplace pension). Your tax code stays but deductions adjust to new earnings.

Statutory payments (Statutory Sick Pay, Statutory Maternity/Paternity Pay) may be lower than your normal wage. Also holiday pay may average prior pay if overtime is included or be calculated differently based on employer policy.

Payroll should report the payment in the period the pay date occurs. If pay is for future period, it may still be taxable in the pay period it’s paid.

Yes—you can opt out of automatic enrolment pension within a certain period (often 1 month) or later. If you opt out, pension contributions stop, and your net pay increases accordingly. Your employer contributions stop too.

In the UK the tax year runs from 6 April to 5 April the following year. Your year to date pay and deductions reset after the tax year. Payroll software should reflect the correct totals.

Student loan repayments from salary are based on your earnings above the threshold and correct plan type (Plan 1, Plan 2, Plan 4, Postgraduate). Payroll deducts the set percentage once earnings exceed threshold.

Use the year to date figures on your payslip (gross pay and deductions). Compare to expected tax/NI given your salary and tax code. Online calculators can help.

A tax month (in payroll terms) runs from the 6th of one month to the 5th of the next. Payroll reporting to HMRC uses these tax months. For example, payments made 6 May 5 June fall in tax month 02 of the tax year starting 6 April.

Sometimes pay dates change due to bank holidays or payroll issues. Splitting payments (e.g., part paid early) may occur for admin reasons—but your deductions still apply based on pay date and period.

Payroll Giving allows you to donate to charity from your gross pay before tax so you get immediate tax relief. The amount donated and tax relief should be shown on your payslip.

If your employer becomes insolvent you may have unpaid wages and other claims. Deductions (tax, NI) may still need clarifying. For liquidations, you may need to submit claims with the insolvency practitioner.

A K code means your other income/benefits exceed your allowances, so the tax code subtracts an amount from your tax free allowance (i.e., you owe tax). It may reflect under paid tax or benefits.

Speak with your payroll department first—ask for a breakdown of how calculations were made. If you still disagree, raise a formal complaint via your employer’s grievance process. You might also contact HMRC (for tax/NI) or your pension provider.

Employers must keep payroll and pay records for at least 3 years after the end of the tax year to which they relate (and often longer for certain records).

Overtime/bonus/commission count as taxable pay when paid. They may push you into a higher tax band for that pay period or cumulatively for the year. NI deductions increase accordingly.

If you are genuinely an employee, you should be on a payroll and have PAYE deductions. Umbrella companies and agency work can be more complex (IR35, self employed misclassification).

Possible causes:

pay from multiple jobs, tax code change, cumulative earnings pushing into a higher band, benefits in kind, bonuses

Yes, you can ask your employer to apply “tax code BR, D0 or similar” to take more tax, or ask HMRC for a voluntary additional tax deduction. This may help if you have other untaxed income.

• Gross pay = total pay before any deductions.

• Taxable pay = portion of gross pay subject to Income Tax (it may exclude certain exempt amounts).

• Net pay = pay you receive after all deductions (tax, NI, pension, others).

If you are UK tax resident and receiving UK employment income you may still be subject to PAYE. If you become non resident or are seconded, special rules apply (tax, NI, treaty).

Generally no—if you’re an employee subject to PAYE you cannot opt to receive all pay gross without tax/NI unless very special arrangements apply (for example certain offshore employments, but these are complex).

First raise the matter with your employer/payroll department. If unresolved you can contact HMRC and ask them to check your employment and PAYE record. You may also ask for your “PAYE Coding Notice” or check your Personal Tax Account.

Working from home does not itself change your pay tax/NI. However, if you’re eligible for home working allowance or expense relief, that may affect taxable pay. If your employment status changes (self employed vs employee) that may affect payroll.

Usually employer NI is not shown on your payslip as it is the employer’s cost. But some employers show a “cost to company” figure. Your payslip should show your NI contributions, not employer’s.

Keep your payslips, P60s and P45s in a safe place (digital or physical). They are useful for verifying tax/NI, applying for mortgages, pension calculations, checking pensionable service, and resolving disputes.