Plain-English UK pay & tax guides
Written by the PaySlipCheck editorial team. Sourced from HMRC. Reviewed every quarter to stay current.
Payslip & PAYE essentials
How to read your UK payslip properly
A line-by-line walkthrough of every section of a UK payslip — gross pay, tax code, deductions, year-to-date figures, NI letter — so you can spot errors.
Why your take-home pay changes month to month
Even on a steady salary your net pay can swing by hundreds. Twelve reasons it happens and what to do about each.
Tax codes decoded
What does 1257L mean?
The standard UK tax code for 2025/26. What the numbers mean, what the L means, and when it's wrong.
Tax code BR — am I paying too much?
BR means basic-rate flat tax with no allowance. Correct for a second job, costly if it's your only one. How to spot and fix it.
K tax codes explained
K means negative allowance — HMRC is collecting extra tax through your salary. Worked example, common reasons, and how to challenge.
Bonuses & pensions
How UK bonuses are taxed
The 50% bonus tax myth, what's really happening on your payslip, and how to keep more of it via bonus sacrifice.
Salary sacrifice pension — full guide
The most tax-efficient way to fund a pension in the UK. Numbers by tax band, employer NI bonus, and when not to use it.
Contractors & self-employed
Inside vs outside IR35
The full 2025/26 guide — how IR35 status is determined, who decides, and what it means for your take-home as a UK contractor.
Umbrella vs limited company
Side-by-side take-home comparison across day rates, plus the real admin and cost differences.
Sole trader vs limited company
The switching point in 2025/26 is around £40k of profit. Here's the maths and a step-by-step transition guide.
Dividend tax rates 2025/26
£500 allowance then 8.75% / 33.75% / 39.35%. Four worked examples for company directors and investors.
More guides coming soon
We're working on:
- How UK bonuses are taxed (and why they look like 50% tax)
- Salary sacrifice pension — the full guide
- Emergency tax codes W1, M1 and X
- NI category letters A–X explained
- Understanding your P60 and P45
- Statutory Maternity Pay — full breakdown
- What changes in the 2026/27 tax year (will publish March 2026)
If there's a UK pay topic you'd like us to explain, drop us a note.