The Kept Pound UK take-home pay calculator

Guide · Published 31 October 2026

How to read your payslip

Your payslip shows how your employer got from your salary to the money in your bank account. Once you know where to look, it takes about a minute each month to check it's right.

Payslips look different from one employer to the next, but they all show the same things. Here's an example for someone earning £35,000 a year, paying 5% into a workplace pension, in October 2026.

Example payslip with numbered labels An example payslip for October 2026. Tax code 1257L, NI letter A, tax period month 7. Basic salary £2,916.67. Deductions: income tax £344.67, National Insurance £149.53, pension £145.83, totalling £640.03. Net pay £2,276.64. Year to date: gross pay £20,416.69, income tax £2,412.69, National Insurance £1,046.71, pension £1,020.81. Employer pension £87.50. Example Ltd Employee: A. Sample · Payroll no. 0042 PAYSLIP · EXAMPLE ONLY Pay date 31 Oct 2026 Tax period Month 7 Tax code 1257L NI letter A Payments Basic salary 2,916.67 Deductions Income tax 344.67 National Insurance 149.53 Pension (5%) 145.83 Gross pay £2,916.67 Total deductions £640.03 Year to date Gross pay 20,416.69 Income tax 2,412.69 National Insurance 1,046.71 Pension 1,020.81 Employer pension (3%) 87.50 Paid on top. Not taken from your pay. Net pay £2,276.64 1 2 3 4 5 6 7 8
An example payslip, not a real one. The numbers match the explanations below. On a phone, scroll sideways to see all of it.

What each part means

  1. Tax code. This tells your employer how much you can earn tax-free. 1257L is the standard code: drop the letter and add a zero to get your £12,570 Personal Allowance. A different number usually means HMRC is adjusting for something, such as a company car, untaxed income or tax owed from an earlier year. An S at the start means Scottish rates and a C means Welsh. If you see W1, M1 or X at the end, or a code like 0T or BR, read our guide to emergency tax codes.
  2. National Insurance letter. Most employees are on A. C means you're over State Pension age and don't pay employee NI. M is for under-21s and H for apprentices under 25. You still pay the normal rate on these two, but your employer pays less. X means no NI is due, for example if you're under 16.
  3. Tax period. The tax year runs from 6 April to 5 April, so October pay falls in month 7. Weekly-paid staff see a week number from 1 to 52 instead (occasionally 53, when an extra pay day falls in the year). Payroll uses this to work out how much tax-free allowance you've built up so far.
  4. Gross pay. Everything you earned this period before deductions: salary, overtime, bonus, London weighting and so on. Salary sacrifice schemes usually show here as a negative payment, which reduces gross pay.
  5. Deductions. Income tax, National Insurance and your pension contribution. A student loan shows here too, often marked SL or PGL, along with anything else you've agreed to, such as union fees or Give As You Earn donations.
  6. Net pay. Gross pay minus deductions. This is what should arrive in your bank account.
  7. Year to date. Running totals since 6 April. Your P60, which you get after the tax year ends, shows the same totals for the full year. These figures are the quickest way to check a whole year's tax at once.
  8. Employer pension. What your employer pays into your pension on top of your salary. It isn't taken from your pay, but it's worth checking it matches your contract.

A quick monthly check

If something looks wrong

Start with your payroll or HR team, because most errors are fixed in the next pay run. For tax code problems, contact HMRC directly. Your employer can only use the code HMRC sends them. Keep your payslips, P60s and any P45 for at least a few years, as you'll need them for mortgage applications or to claim back overpaid tax.

Check your net pay against the calculator.

Open the calculator

Sources