A UK payslip is essentially a record provided by your employer each time you are paid. It contains detailed information about your earnings before and after deductions, as well as any deductions themselves, such as Income Tax, National Insurance contributions, pension contributions, and any repayments, like student loan repayments.
Here’s a breakdown of what typically appears on your UK payslip:
- Gross salary: Your total earnings before any deductions.
- Deductions: This section lists everything subtracted from your gross salary, which can include Income Tax, National Insurance contributions, pension contributions, student loan repayments, and any other deductions like union fees or workplace giving.
- Net pay: The amount of money you take home after all deductions have been made.
- Your National Insurance number and tax code, which are used by your employer to calculate your tax and National Insurance contributions.
- Additional information such as bonus payments, overtime, or any other earnings and deductions like salary sacrifices.
Payslips serve several important purposes beyond just showing what you’ve earned and what’s been deducted. They're proof of your income, which you might need when applying for a loan or mortgage, renting a property, or completing your Self Assessment tax return if you're also self-employed or have other income.
Only authorized entities, like HMRC, your employer for agreed deductions, or through court orders for things like child maintenance, can make deductions from your salary. It's crucial to regularly review your payslip to ensure all deductions are correct and to understand your entitlements and obligations. Keeping your payslips safe and secure is also important, as they contain sensitive personal and financial information.
