Understand PAYE & Payslip

Updated: 6 days ago

It doesn't matter if it’s your first payslip or if you’ve been working for long time - It’s still important to have at least a general picture and understand what your payslip contains regarding information. In this brief article, we’ll give you an overview to understand your payslip and what is PAYE.

If you are an employee in a company, normally you will receive your payslip from your employer where all details, regarding your salary, will be showed on a payslip. Your employer will run the PAYE, which is a system, through which the HMRC collect Income Tax and National Insurance from employment.

All employees have the right to a detailed written payment order - before or until they payday. However, bare in mind that it doesn't apply to independent contractors or people who are working as freelancers.

The information that your payslip must contain are:

- Gross pay. - The amounts of any deductions that change from payday to payday. - The total amount of any fixed deductions. - The total amount of take-home. - The amount and method for any part payment. - Your Tax code. - Your National Insurance number. - Your Pay rate (annual, hourly ...).

It's vital to understand that your Payslips are very important documents and must be kept for two main reasons - Record keeping and Evidence of earnings.

For a better understanding of payslip, look at the picture below. For more on the PAYE subject, please visit GOV.UK.


This article intends to give only a general informative picture and should not, in any case, be taken as a rule. It is strongly recommended to seek a full and professional guidance specifically for your circumstances before making any decisions.


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