Every code on your payslip, explained.

The default code for someone with one job and the full £12,570 Personal Allowance. The "L" suffix means you get the standard PA.

Used when you have a second job and your Personal Allowance is fully used by the first one. ALL pay from this employment is taxed at 20%.

Second employment / pension where the PA is used elsewhere AND the first income is already in the higher-rate band.

Rare. Second employment where the first income is already in the additional-rate band.

Used when HMRC has no details (e.g. new starter with no P45 or starter checklist), or your PA is fully used up. Each band of pay is taxed at the relevant rate.

Used for non-UK-resident workers paid in the UK, certain claims, or where tax is being collected another way.

A "K" code means the value of taxable benefits (company car, untaxed income, tax owed from earlier years) is more than your PA. The number is ADDED to your taxable pay each period.

Tax is calculated only on this period's pay, ignoring prior earnings. Common for new starters until HMRC issues a proper code; usually leads to a refund later.

Prefix "S" (e.g. S1257L) means Scottish income-tax bands apply. Set by HMRC based on your address.

Prefix "C" (e.g. C1257L) means Welsh income-tax bands apply. Rates currently identical to England but the code is set separately.

Default for most employees aged 21–State Pension age. 8% / 2% employee, 15% employer.

Reduced employee rate of 1.85% — only women who elected to pay the reduced rate before 1977. Almost obsolete.

Employee pays no NI. Employer still pays the 15% above the Secondary Threshold.

Employee pays standard 8% / 2%. Employer pays 0% on earnings up to the UEL — significant employer saving.

For people with multiple employments who hold a CA2700 deferment certificate. Employee pays just 2% on this income.

Employee pays standard 8% / 2%. Employer pays 0% on earnings up to the UEL.

Employer pays 0% on earnings up to the UEL for the first 12 months. Employee pays standard rates.

Combination of J and M.

Workplace pension contribution under the Pensions Act 2008. Minimum 5% employee + 3% employer of qualifying earnings.

You "sacrifice" some gross pay in exchange for an employer pension contribution. Saves both Income Tax AND NI on the sacrificed amount.

Contribution is deducted from gross pay BEFORE tax — you get tax relief immediately. NI is NOT reduced.

Contribution is deducted from NET pay. The pension provider claims 20% basic-rate tax relief and adds it to your pot. Higher/Additional rate taxpayers claim the extra via self-assessment.

Extra pension contribution on top of the standard scheme. Tax-relieved the same way as the main scheme.

HMRC income tax deducted at source based on your tax code.

Class 1 employee NI on earnings between PT (£12,570) and UEL (£50,270), plus 2% above. Funds State Pension and certain benefits.

9% of earnings above your plan threshold (or 6% for Postgraduate Loan). HMRC tells your employer which plan to apply.

6% of earnings above £21,000. Paid in addition to undergrad Plan loan if you have both.

Court order or DWP order for the employer to deduct unpaid debts (council tax arrears, child maintenance, benefit overpayments) directly from pay.

Maternity / Paternity / Sick / Adoption / Shared Parental Pay. Shown as additions, not deductions — but appear on the same payslip.

How the net pay is transferred to your bank account — takes up to 3 working days.

Running total since 6 April. Each column on the right of your payslip usually shows period + YTD.

Issued by your employer at the end of every tax year (by 31 May). Summary of total pay, tax, NI, student loan and pension for the year.

Issued when you leave a job. Hand it to your next employer or HMRC so your tax code can be set correctly.

Annual form listing benefits in kind (private medical, company car). The cash-equivalent is added to your taxable income via your tax code.