Work out your take-home pay
Income tax, National Insurance and net pay for any UK salary, 2026-27.
The right to an itemised pay statement has covered every UK worker, not just employees, since 6 April 2019 [1]. An employment tribunal that finds unnotified deductions can order an employer to repay up to 13 weeks of them, even where the deductions themselves were lawful [2].
For employers, accountants and payroll bureaux, the payslip is therefore more than a courtesy document. It is a statutory statement with prescribed contents, a fixed deadline and its own enforcement route. A bureau producing thousands of payslips a month carries the compliance exposure of every single one.
This article explains the payslip from the employer's side of the desk: the legal definition, the mandatory contents, the standing statement rule for fixed deductions, the hours requirement for variable pay, and what happens when a payslip falls short.
Key takeaways
- Section 8 of the Employment Rights Act 1996 gives every worker the right to a written, itemised pay statement at or before payday.
- The mandatory contents are gross pay, net pay, every variable deduction with its purpose, and hours worked where pay varies by time.
- Fixed deductions may be aggregated only if the worker holds a standing statement of fixed deductions, reissued at least every 12 months.
- A tribunal can declare a payslip non-compliant and award up to 13 weeks of unnotified deductions; claims must be brought within three months less one day.
- The payslip sits inside a wider PAYE chain: the Full Payment Submission is due on or before the same payday, and payroll records must be kept for at least three years.
What a payslip is in law
The legal foundation is section 8 of the Employment Rights Act 1996, which entitles the worker to a written itemised pay statement at or before the time of payment [3]. Two amendment orders extended the right from employees to all workers and added the hours requirement, both effective from 6 April 2019 [4].
The mandatory items
The statute prescribes a short, precise list, summarised in the table below [3].
| Item | Requirement |
|---|---|
| Gross pay | The total before any deductions [[5]](https://www.gov.uk/payslips) |
| Variable deductions | Each shown separately, with amount and purpose [[5]](https://www.gov.uk/payslips) |
| Fixed deductions | Itemised, or aggregated under a standing statement [[6]](https://www.acas.org.uk/deductions-from-pay-and-wages) |
| Net pay | The amount actually payable [[5]](https://www.gov.uk/payslips) |
| Split payments | The amount and method of each part-payment [[5]](https://www.gov.uk/payslips) |
| Hours worked | Required where pay varies by time worked [[1]](https://www.gov.uk/government/publications/payslip-policy-a-guide-to-the-2019-legislation) |
The format is unregulated: print, email or a secure portal all satisfy the law, provided the statement arrives at or before payment [2].
The expected extras
Tax code, National Insurance number, pay rate and year-to-date totals are not statutory payslip items, but HMRC lists them as good practice and most payroll software includes them by default [7]. They earn their place: the cumulative figures let the worker reconcile the year, and they anchor the P60 the employer must issue after 5 April [8].
Fixed deductions and the standing statement
Variable deductions such as tax and National Insurance must always be itemised per period. Fixed deductions, a union subscription for example, may instead be shown as one aggregate figure, but only if the employer has issued a standing statement of fixed deductions [6]. The standing statement must be in writing, state the amount, frequency and purpose of each deduction, and be reissued at least every 12 months or whenever a deduction changes [2]. A bureau aggregating fixed deductions without a current standing statement on file converts a tidy payslip into a technical breach across every affected client.
The hours rule for variable pay
Where any element of pay varies with time worked, the payslip must show the hours that produced it, either as a single total or broken down by rate [1]. The rule was introduced so that variable-hours workers can test their pay against the National Minimum Wage, which rose to £12.71 an hour for workers aged 21 and over from 1 April 2026 [9]. Salaried staff whose pay does not move with hours are out of scope, but a salaried employee paid extra for overtime brings those overtime hours into scope for that period [1].
The payslip inside the PAYE chain
A payslip is the visible output of a payrun; the invisible output is the Full Payment Submission. Employers must send the FPS to HMRC on or before the same payday the payslip relates to, under Real Time Information [10]. Only HMRC-recognised software can submit it, which is why the recognition badge is the baseline for any serious UK payroll product. The deductions printed on the payslip, income tax at 20%, 40% or 45% [11] and employee National Insurance at 8% then 2% [12], must match the figures filed in the FPS line by line.
Record-keeping completes the chain. PAYE records must be kept for three years from the end of the tax year, and HMRC can charge a penalty of up to £3,000 where records are incomplete [13]. Minimum wage records carry a longer six-year requirement, so payslip data effectively needs retention beyond the PAYE minimum. A full walkthrough of the cycle sits in Moonworkers' PAYE payroll checklist, and the employer-side costs are covered in the guide to employer National Insurance.
When payslips go wrong
A worker who receives no payslip, or an incomplete one, can ask an employment tribunal for a declaration of non-compliance [5]. Where deductions were made but never notified on a payslip, the tribunal can order repayment of up to 13 weeks of those deductions, regardless of whether the employer was otherwise entitled to make them [2]. Claims about unlawful deductions must be lodged within three months less one day of the deduction, or the last in a series [14].
HMRC's umbrella-company guidance adds a market-wide warning: payslips that group deductions together can hide the true tax position, and workers are told to treat them as a red flag [15]. The reputational cost of opaque payslips now extends well beyond the tribunal room, a theme developed in Moonworkers' review of PAYE errors and penalties.
Producing compliant payslips at scale
For a single employer, payslip compliance is a template question. For an accountancy practice running dozens or hundreds of client schemes, it is an industrial process: every client, every period, every worker, with itemisation, hours logic and standing statements handled consistently. A multi-client payroll dashboard automates that repetition, generating and delivering itemised payslips on every payrun with per-payslip pricing that scales with volume rather than headcount.
Platforms that embed payroll go one step further: an HMRC-recognised payroll API generates the payslip, files the FPS and stores the record inside the host product, so the platform's users never handle the compliance plumbing at all.
Reproduce a payslip's figures
The Moonworkers take-home pay calculator rebuilds the gross-to-net figures a compliant payslip must show, applying PAYE, National Insurance, student loan and pension deductions for the 2026-27 tax year across all four UK territories.
£ per month
e.g. 1257L, S1257L, BR, D0
S = Scotland · C = Wales · W1/M1 = non-cumulative
Enter a salary or hourly rate above
About this calculator
This calculator gives you a close estimate of your UK payroll deductions for 2026-27, using HMRC's exact percentage method. It covers the vast majority of employees on standard tax codes, but it won't match your payslip to the penny in every case. Edge cases it does not cover include in-year tax code changes, K-code carry-forwards, Week 53 adjustments, payrolled benefits in kind, and multi-employment NI deferral. Powered by the same engine as the Moonworkers Payroll API.
Frequently asked questions
Why might the result differ from my payslip?
This calculator uses your current gross pay and tax code to produce an estimate. Your employer may apply adjustments not covered here, such as mid-year tax code changes, K-code carry-forwards, or benefits in kind processed through payroll. For most employees on a standard tax code these differences are negligible.
What tax code should I enter?
Use the tax code shown on your most recent payslip or the PAYE Coding Notice (P2) from HMRC. If you're not sure, 1257L is the standard code for most employees resident in England, Wales, or Northern Ireland. Use S1257L for Scotland or C1257L for Wales if you pay Scottish or Welsh income tax.
Which NI category applies to me?
Most employees use Category A. Use M if you are under 21, H if you are an apprentice under 25, or C if you are over State Pension age. Your employer is responsible for assigning the correct category — if in doubt, check your payslip.
Which student loan plan am I on?
Your plan depends on when and where you studied. Plan 1 covers students who started before September 2012. Plan 2 is for English and Welsh students who started from September 2012 to July 2023. Plan 5 applies to English students who started from August 2023. Plan 4 covers Scottish students. You can check your plan at gov.uk or on your payslip.
What is the YTD cumulative PAYE mode?
HMRC's standard method calculates income tax on your total earnings to date each period, then subtracts tax already paid. If you're mid-year and want to see exactly what tax should be deducted in a specific period, expand the Year-to-date section and enter your running totals from previous periods only.
Conclusion
The payslip is the smallest document in UK payroll and the one with the widest reach. It is a statutory statement under the Employment Rights Act, the worker's window into PAYE, the evidence base for minimum wage compliance and the human-readable twin of the FPS filed with HMRC. Treating it as an afterthought invites tribunal claims measured in weeks of deductions; treating it as a controlled output of a well-run payroll makes compliance a by-product rather than a task.
The regulatory direction is towards more itemisation, not less. The 2019 extension to all workers, the hours rule and the scrutiny of umbrella payslips all point the same way: pay transparency is becoming a baseline expectation of the UK labour market, and the employers and bureaux whose systems already itemise everything have nothing to retrofit.
Frequently asked questions
Is an employer legally required to provide a payslip in the UK?
Yes. Section 8 of the Employment Rights Act 1996 requires a written itemised pay statement for every employee and, since 6 April 2019, every worker, at or before the time of payment. Genuinely self-employed contractors are the main exception, because they invoice for their services rather than receive wages.
Can fixed deductions be shown as a single total on a payslip?
They can, but only where the employer has issued a standing statement of fixed deductions listing each deduction's amount, frequency and purpose. The standing statement must be reissued at least every 12 months or when a deduction changes. Without it, every fixed deduction must be itemised on the payslip itself.
What can a tribunal award for a non-compliant payslip?
The tribunal can declare the employer non-compliant and, where deductions were made without being properly notified on a payslip, order repayment of up to 13 weeks of those unnotified deductions. The claim must normally be brought within three months less one day of the relevant deduction.
Do payslips have to show hours worked?
Only where pay varies according to time worked. In that case the payslip must show the number of hours the pay covers, either as a single figure or broken down by rate. Fixed-salary workers whose pay does not change with hours are outside the requirement, although overtime paid in a given period brings those hours into scope.
