The maximum amount you can contribute to UK pensions each tax year and still receive tax relief — £60,000 in 2026/27, with tapering for incomes above £260,000.
A UK tax code that taxes all income from this source at the basic rate of 20%, with no personal allowance applied.
Your total pay before any deductions for tax, National Insurance, pension or student loan are taken out.
A UK tax code starting with K that signals a negative allowance — extra taxable income is being added to your pay, rather than allowance being given.
The combined Income Tax and National Insurance rate that applies to the next pound you earn — distinct from your average (effective) tax rate.
A tax on UK earnings paid by employees, employers and the self-employed, used to fund state benefits and the State Pension.
A UK pension contribution mechanism where the contribution is deducted from gross pay before Income Tax is calculated. Confusingly named — it's about pension method, not your overall net pay.
Your take-home pay — what's left after Income Tax, National Insurance, pension contributions, student loan and any other deductions are taken from your gross salary.
The UK system through which employers deduct Income Tax and National Insurance from employees' pay before paying it to them.
Money paid into a UK pension scheme by you, your employer, or both — eligible for tax relief at your marginal rate, up to the annual allowance of £60,000.
The tax benefit on UK pension contributions, given at your marginal Income Tax rate. Delivered via three mechanisms: salary sacrifice, net pay arrangement, or relief at source.
The amount you can earn each tax year before paying any UK Income Tax — £12,570 in 2026/27, frozen until April 2031.
A UK pension contribution mechanism where contributions come from your take-home pay and the provider reclaims basic-rate (20%) tax relief from HMRC on your behalf.
An arrangement where you give up part of your gross salary in exchange for a non-cash benefit (most commonly pension contributions), reducing your Income Tax and National Insurance.
A reduced pension annual allowance for high earners — kicks in above £260,000 of adjusted income, reducing the standard £60,000 allowance down to £10,000 at £360,000.
A short code on your payslip that tells your employer how much tax-free Personal Allowance to apply to your pay each period.
A pension scheme arranged by your employer that you're automatically enrolled into under UK auto-enrolment rules. Statutory minimums in 2026/27: 5% employee + 3% employer of qualifying earnings.