Employment tax
Where should I start?
Start with Income Tax bands if you want the big picture, then Tax codes or PAYE if something looks wrong on your payslip. Use the Income Tax Calculator for a known salary, or Net to Gross if you are targeting a take-home figure.
- New to PAYE or checking a payslip: Start with PAYE Explained, then Tax codes Explained if the code looks wrong.
- Planning take-home or a job offer: Use the Income Tax Calculator for a known salary, or Net to Gross for a take-home target — then read Income Tax bands.
- Scottish taxpayer: Read Scottish Income Tax Explained, then compare with Income Tax bands for the rest of the UK.
- Pension or student loan on your payslip: See Pension tax relief or Student loan repayments, then estimate with the Income Tax Calculator.
Featured calculators
Featured guides
- Income Tax Bands ExplainedPersonal Allowance, basic, higher and additional rates — and how Scotland differs.Read guide
- Tax Codes ExplainedHow PAYE tax codes work, what 1257L means, and how to check your code is right.Read guide
- PAYE ExplainedHow Pay As You Earn collects Income Tax and National Insurance through your employer.Read guide
All guides in this topic
- Income Tax Bands ExplainedPersonal Allowance, basic, higher and additional rates — and how Scotland differs.Read guide
- National Insurance ExplainedClass 1 National Insurance for employees — categories, thresholds and how National Insurance differs from Income Tax.Read guide
- Tax Codes ExplainedHow PAYE tax codes work, what 1257L means, and how to check your code is right.Read guide
- Emergency Tax Codes ExplainedWhy new starters see emergency tax, what W1/M1 and 0T mean, and how refunds usually work.Read guide
- PAYE ExplainedHow Pay As You Earn collects Income Tax and National Insurance through your employer.Read guide
- Salary Sacrifice ExplainedHow salary sacrifice pensions reduce taxable pay and National Insurance, and what to check before agreeing.Read guide
- Student Loan Repayments ExplainedHow Plan 1, 2, 4 and 5 undergraduate loans and postgraduate loans are repaid from salary.Read guide
- Pension Tax Relief ExplainedRelief at source, net pay and salary sacrifice — how pension contributions get tax relief in the UK.Read guide
- Scottish Income Tax ExplainedHow Scottish Income Tax bands work for Scottish taxpayers while National Insurance remains UK-wide.Read guide
- Net to Gross Salary ExplainedHow to work out the gross salary that delivers a target take-home pay after tax, National Insurance and other deductions.Read guide
- Benefits in Kind ExplainedOverview of taxable employer benefits, Class 1A National Insurance, payrolling and P11D.Read guide
Frequently asked questions
What is PAYE?
PAYE (Pay As You Earn) is how most employees pay Income Tax and National Insurance through payroll. Your employer deducts amounts each pay period using your tax code and sends them to HMRC.
Why is my tax code wrong?
Tax codes can change after a new job, benefits in kind, underpayments or emergency coding. Check the Tax Codes Explained and Emergency Tax Codes Explained guides, then contact HMRC if the code does not match your situation.
Should I use Income Tax or Net to Gross?
Use Income Tax when you know your gross salary. Use Net to Gross when you know the take-home you need and want the gross salary that delivers it.
Are benefits in kind taxed through PAYE?
Often yes when payrolled; otherwise they may appear on a P11D and affect your tax code. See Benefits in Kind Explained.
Latest guides
- Income Tax Bands ExplainedPersonal Allowance, basic, higher and additional rates — and how Scotland differs.Read guide
- National Insurance ExplainedClass 1 National Insurance for employees — categories, thresholds and how National Insurance differs from Income Tax.Read guide
- Tax Codes ExplainedHow PAYE tax codes work, what 1257L means, and how to check your code is right.Read guide
- Emergency Tax Codes ExplainedWhy new starters see emergency tax, what W1/M1 and 0T mean, and how refunds usually work.Read guide
Official HMRC resources
This hub is for general information only. It is not tax, legal or financial advice.