1. Worshipful Company of Tax Advisers
Your payslip
Worshipful Company of Tax Advisers

2. Your Payslip

3. Money for living You have to work to earn money to live.
Most workers are employees and are paid a salary.
The pay you are offered will not be the actual amount you receive.
Tax and other deductions will reduce your pay to your ‘take home’ amount.

4. Deductions What is taken out? Income tax
National Insurance contributions
Student loan repayments
Pension contributions

5. What should I look for on my payslip?

6. Mr A Smith NI Number: AB123456C Tax Code: 1000L Pay by: BACS
Mr A Smith NI Number: AB123456C Tax Code: 1000L
Pay by: BACS
Date: 30 April 2014
DESCRIPTION RATE (£) HOURS
Salary
  TOTAL
AMOUNT (£)
1,000.00
THIS YEAR (£)
1,000.00
33.30
40.00
13.33
  0.00
86.63 4
Tax
National Insurance
Pension Contributions
Student loan
Total taxable pay to date: £1,000
33.30
40.00
13.33
  0.00
86.63
913.37
NET PAY
Employers NIC this period: Tax District: Centre 1
Employers NIC Year to Date: Tax Reference: 961/111111

7. DESCRIPTION RATE (£) HOURS
Salary
  TOTAL
AMOUNT (£)
1,000.00

8. DESCRIPTION RATE (£) HOURS Salary 10 100 TOTAL AMOUNT (£) 1,000.00
Salary
  TOTAL
AMOUNT (£)
1,000.00
Tax
National Insurance
Pension Contributions
Student loan
Total taxable pay to date: £1,000
33.30
40.00
13.33
  0.00
86.63

9. 913.37 DESCRIPTION RATE (£) HOURS Salary 10 100 TOTAL AMOUNT (£)
Salary
  TOTAL
AMOUNT (£)
1,000.00
Tax
National Insurance
Pension Contributions
Student loan
Total taxable pay to date: £1,000
33.30
40.00
13.33
  0.00
86.63
913.37
NET PAY

10. Mr A Smith NI Number: AB123456C Tax Code: 1000L Pay by: BACS
Mr A Smith NI Number: AB123456C Tax Code: 1000L
Pay by: BACS
Date: 30 April 2014
DESCRIPTION RATE (£) HOURS
Salary
  TOTAL
AMOUNT (£)
1,000.00
THIS YEAR (£)
1,000.00
33.30
40.00
13.33
  0.00
86.63 4
Tax
National Insurance
Pension Contributions
Student loan
Total taxable pay to date: £1,000
33.30
40.00
13.33
  0.00
86.63
913.37
NET PAY
Employers NIC this period: Tax District: Centre 1
Employers NIC Year to Date: Tax Reference: 961/111111

11. Work out your monthly take home pay
You earn £15,000 each year
Use your hand-out to calculate how much you receive each month

12. Annual deduction rates
Income tax National Insurance
£0 - £10, % £0 - £8, %
£10,001 - £40, % £8,001 - £42, %
£40,001 - £150, % £42, %
£150, %
Student loans repayment Pension contributions
£0 - £21, % £0 - £8, %
£21, % £8,001 - £42, %
£42, %

13. Payslip example - £15,000 NET PAY 1,073.34 DESCRIPTION RATE (£) HOURS
Salary
  TOTAL
AMOUNT (£)
1,250.00
Tax
National Insurance
Pension Contributions
Student loan
Total taxable pay to date: £1,250.00
83.33
70.00
23.33
  0.00
176.66
1,073.34
NET PAY

14. Payslip example – £15,000
Mr A Smith NI Number: AB123456C Tax Code: 1000L
Pay by: BACS
Date: 30 April 2014
DESCRIPTION RATE (£) HOURS
Salary
  TOTAL
AMOUNT (£)
1,250.00
THIS YEAR (£)
1,250.00
83.33
70.00
23.33
  0.00
176.66 4
Tax
National Insurance
Pension Contributions
Student loan
Total taxable pay to date: £1,250
83.33
70.00
23.33
  0.00
176.66
1,073.34
NET PAY
Employers NIC this period: Tax District: Centre 1
Employers NIC Year to Date: Tax Reference: 961/111111

15. Are you on the ball?
Wayne has signed a new contract with his club, earning £300,000 per week.
What would Wayne pay in income tax and National Insurance contributions each week?

16. Wayne’s weekly payslip
NI Number: AB123456C Tax Code: 0T
Pay by: BACS
Date: 5 April 2015

17. Wayne’s weekly payslip
DESCRIPTION Weekly
 Salary
AMOUNT (£)
300,000.00
THIS YEAR (£)
15,600,000.00

18. Wayne’s weekly payslip
Tax
National Insurance
Pension Contributions
Student loan
Total taxable pay to date: £15,600,000
134,663.50
6,062.30
0.00  
140,725.80
7,002,500.00
315,240.00
0.00  
7,317,740.00
159,274.20
NET PAY

19. Wayne’s weekly payslip
Employers NIC this period: £41, Employers NIC Year to Date: £2,151, Tax District: Centre 1 Tax Reference: 961/111111

20. Wayne’s weekly payslip
Wayne NI Number: AB123456C Tax Code: 0T
Pay by: BACS
Date: 5 April 2015
DESCRIPTION Weekly
Salary
AMOUNT (£)
300,000.00
THIS YEAR (£)
15,600,000.00
7,002,500.00
315,240.00
0.00
  0.00
7,317,740.00
Tax
National Insurance
Pension Contributions
Student loan
Total taxable pay to date: £15,600,000
134,663.50
6,062.30
0.00
  0.00
140,725.80
159,274.20
NET PAY
Employers NIC this period: £41, Tax District: Centre 1
Employers NIC Year to Date: £2,151, Tax Reference: 961/111111

21. Key points
Your ‘pay’ and what you actually get paid will differ because of
Income tax
National Insurance contributions
Student loan repayments
Pension contributions

22. Key points
Understand your payslip.
Check that the deductions are correct.
Know what you will actually receive as your pay increases.

23. Worshipful Company of Tax Advisers