Guides to tax on your pay

Tax year 2026/27 · every figure computed from official rates

Income tax

Emergency tax codes (W1, M1, X): why and how to fix
What W1, M1, X and NONCUM mean on your payslip, why you were put on an emergency tax code, how it affects your pay, and how to get any overpaid tax back.
How income tax works in the UK (2026/27)
How the Personal Allowance and tax bands work, how much income tax you pay on your salary in 2026/27, and a full worked example.
Scottish income tax bands (2026/27)
Scottish income tax bands and rates for 2026/27, who counts as a Scottish taxpayer, and how much more or less you pay than in the rest of the UK.
Tax codes explained: what your code means
What the numbers and letters in your tax code mean, including L, M, N, T, K, BR, D0, D1, NT and 0T, the S and C prefixes, and how to check and fix yours.
The 60% tax trap between £100,000 and £125,140
Why income between £100,000 and £125,140 is taxed at an effective 60%, with a worked example and how pension contributions get you out.
What’s changed for the 2026/27 tax year
Every change to income tax, National Insurance, student loans, the minimum wage and statutory pay between 2025/26 and 2026/27, from official rates.

National Insurance explained (2026/27)
Class 1 National Insurance thresholds and rates for 2026/27, how employee and employer NI are worked out, and what changes after State Pension age.

High Income Child Benefit Charge explained
When the High Income Child Benefit Charge applies in 2026/27, how it is worked out between £60,000 and £80,000, and how pensions can cut it.
Marriage Allowance: who can claim and how much
Who can claim Marriage Allowance, how much it is worth in 2026/27, how the M and N tax codes work, and how to apply and backdate your claim.
Pension tax relief: relief at source vs net pay
How pension tax relief works, relief at source compared with net pay, how higher-rate taxpayers claim extra relief, and worked comparisons for 2026/27.
Salary sacrifice explained
How salary sacrifice works, how much income tax and National Insurance it saves, and its effect on mortgages, maternity pay, benefits and the minimum wage.

How bonuses are taxed
How income tax, National Insurance and student loans apply to a bonus, why your bonus payslip can look over-taxed, and how a pension changes what you keep.
How to read your payslip
What each line on a UK payslip means, from tax code and NI letter to pension, student loan and year-to-date totals, and how to check your pay is right.
National Minimum Wage and Living Wage rates (2026/27)
National Living Wage and Minimum Wage rates for 2026/27 by age, what they come to as a full-time salary, and the take-home pay after tax and NI.
P60, P45 and P11D explained
What a P60, P45 and P11D are, when your employer must give you each one, what the figures on them mean, and what to check.
What does pro rata mean? Part-time salary explained
What pro rata means in a job advert, the formula for turning a full-time salary into a part-time one, how holiday works, and a worked example.
Student loan repayments: plans and thresholds (2026/27)
Student loan thresholds for Plans 1, 2, 4, 5 and Postgraduate Loans in 2026/27, which plan you are on, and how repayments work with more than one loan.

How to claim a tax refund from HMRC
The common reasons employees overpay tax, how P800 tax calculation letters work, how to claim a refund online, and how to avoid tax refund scams.
Paying tax on two jobs
How income tax and National Insurance work with two jobs, why your second job is often on a BR code, and how to split your Personal Allowance.
Self-employed vs employed: tax compared
How income tax and National Insurance differ for the self-employed and employees in 2026/27, Class 4 compared with Class 1, and a worked example.