Payslip deduction analyser
Enter your payslip figures to get a plain-English explanation of every deduction — and an automatic check that your gross minus deductions equals your take-home pay.
Enter your payslip details
Before any deductions
Amount paid into your bank account
Deductions listed on your payslip
Gross pay
£3,000.00
Total deductions
£800.00
✓ reconciled
Taxable pay (est.)
£2,880.00
Net pay
£2,200.00
Net pay reconciles with listed deductions
- Gross pay
- £3,000.00
- Net pay
- £2,200.00
- Listed deductions
- £800.00
- Gross minus net
- £800.00
- Taxable pay estimate
- £2,880.00
- The listed deductions reconcile with gross minus net pay within £1.
- This analyser explains common UK deduction labels and does not replace payroll, HMRC, or employment-law advice.
What each deduction means
Income TaxIncome Tax£400.00
Income tax deducted through PAYE (Pay As You Earn). HMRC calculates the amount using your tax code. The standard code for 2026/27 is 1257L, giving a Personal Allowance of £12,570. Check your payslip's tax code is correct — an emergency code (W1, M1, or OT) means HMRC has not yet sent your employer your correct code.
Official guidance →National InsuranceNational Insurance£280.00
Employee National Insurance Contributions (NICs). For 2026/27, Class 1 employee NICs are charged at 8% on earnings between the Primary Threshold (£12,570/yr) and the Upper Earnings Limit (£50,270/yr), and 2% above the UEL. Check the rate on your payslip — anything above 8% on main earnings may be an error.
Official guidance →PensionPension£120.00pre-tax
Auto-enrolment workplace pension contribution. The legal minimum employee contribution is 5% of qualifying earnings (earnings between £6,240 and £50,270 per year). Your employer must contribute at least 3%. Many employers offer enhanced contributions — check your contract. Pension contributions are taken from gross pay before income tax, reducing your tax bill.
Official guidance →This tool provides general explanations of common UK payslip deductions. It does not account for all edge cases or sector-specific rules. For specific payroll queries, contact your payroll team or ACAS.
Understanding your payslip
UK employers are required by law to provide a written payslip to all employees on or before their pay date (Employment Rights Act 1996 s.8). The payslip must show gross pay, net pay, and any deductions — including fixed deductions (where the employer can give a standing statement) and variable deductions (which must be itemised each period).
The largest deductions for most employees are PAYE income tax and employee National Insurance contributions (NICs). Both are calculated by your employer and paid to HMRC on your behalf each month. Your tax code determines how much personal allowance is applied before income tax is calculated.
Frequently asked questions
What deductions should appear on a UK payslip?
A UK payslip must show gross pay, net pay, and any fixed deductions (income tax, NI). It must also show variable deductions if they change each period. Common deductions include: PAYE income tax, employee National Insurance, pension contributions, student loan repayments, and any salary sacrifice arrangements (pension, electric vehicle lease, cycle-to-work). Your employer is legally required to give you a payslip on or before your pay date.
Why is my income tax deduction different from last month?
Income tax through PAYE is cumulative — HMRC looks at your total earnings and tax paid so far in the tax year and adjusts each month to keep you on track. A higher deduction this month may mean your employer corrected an underpayment, or you received a bonus or commission that pushed you into a higher cumulative total. A lower deduction may follow a month where you were temporarily overtaxed. Always check your tax code has not changed to an emergency code.
What is salary sacrifice and how does it save me tax?
Salary sacrifice is an arrangement where you agree to reduce your contractual gross pay, and your employer pays the sacrificed amount toward a benefit (pension, EV lease, cycle-to-work scheme). Because your gross pay is lower, you pay less income tax and National Insurance on that amount. At the 20% basic rate, a £100 sacrifice costs you only £68 in take-home pay (saving £20 tax + £12 NI). Your employer also saves employer NI on the sacrificed amount.
Can my employer make deductions from my wages without my consent?
No — unauthorised deductions from wages are illegal under the Employment Rights Act 1996 (s.13). Your employer can only deduct wages if: (1) required by law (tax, NI, court orders); (2) authorised by a relevant provision in your contract; or (3) you have given prior written consent. If you see a deduction you do not recognise and did not authorise, raise it with your payroll team in writing. If unresolved, you can bring a claim to the Employment Tribunal within 3 months.
What does 'reconciliation' mean on this payslip analyser?
Reconciliation checks whether your listed deductions add up to the difference between your gross pay and net pay. If the totals match, your payslip is internally consistent. If they do not, it typically means there is a deduction missing from the list you entered, or the gross/net figures are slightly different from what appears on your actual payslip. It does not necessarily mean your employer has made an error — it may just be a data entry issue.