Most people glance at their payslip to check the bottom line, but understanding every line means you can spot errors, check you're on the right tax code and understand what you're actually paying.
Gross pay vs net pay
Gross pay is what you earn before deductions. Net pay (take-home pay) is what you receive after Income Tax, National Insurance and any other deductions like pension contributions.
Key lines to check
- Tax code: should normally be 1257L for standard personal allowance. If it's different, check why.
- PAYE Income Tax: the tax deducted this period
- National Insurance: contributions toward your State Pension and benefits
- Pension: your contribution and employer's contribution (check you're getting the full employer match)
- Cumulative figures: year-to-date totals help you track if you're approaching thresholds
If anything looks wrong, contact your employer's payroll department first. If they can't resolve it, contact HMRC via your personal tax account at gov.uk.