Tax codes, decoded
The number usually represents your tax-free allowance. An S prefix means Scottish rates; C means Welsh. BR, D0 and D1 tax all pay at a single rate, while K codes add untaxed income.
Guides
Pay guides
Short explanations for the details that can make a payslip differ from a simple annual estimate.
The Personal Allowance taper
Above £100,000, the allowance falls by £1 for every £2 of adjusted net income. It reaches zero at £125,140 in 2026/27. Historical rules.
Three pension methods
Compare salary sacrifice and the Personal Allowance taper · Compare bonus pension and cash effects.
Compare take-home before and after a pay rise.
Salary sacrifice can reduce tax and NI. Net pay reduces the pay taxed, but not NI. Relief at source takes a net contribution and your provider adds basic-rate relief.
Why pay frequency matters
NI and loan deductions are tested in each pay period. Monthly and weekly thresholds can create small differences, especially when bonuses or overtime are uneven.
Student loans
Choose the plan shown in your Student Loans Company account or repayment letter, independently of your current tax region. Postgraduate repayments are a separate option.
Calculate student-loan repaymentsCheck your plan on GOV.UKBonuses and one-off pay
Enter a one-off amount in pounds or as a percentage of annual base pay. Normal periods exclude it; the bonus-period view includes it. The year total counts it once.
Read the calculation assumptionsRedundancy and leaving pay
Use the Bonus / redundancy / leaving pay section. Keep qualifying compensation separate from notice pay, holiday pay and other taxable earnings. Enter expected earnings for the whole tax year, including any new job.
The result estimates annual tax impact, not the exact final payslip.
Read the redundancy rules and limitationsWorkplace benefits
Add each benefit separately, using your employer’s reported taxable values and payroll treatment. Amounts can be entered monthly or annually. Salary sacrifice, cash allowances and post-tax payments have separate fields.
Read how benefits are calculatedGood questions
A few things worth knowing.
How accurate is this UK salary calculator?+
takehome.info uses published HMRC and Scottish Government rates for the selected tax year, period-specific National Insurance thresholds and the tax code you enter. It is designed for steady employment income. Actual payroll can differ because of rounding, irregular pay, benefits, earlier pay in the tax year or adjustments made by HMRC.
What is the standard tax code for 2026/27?+
1257L is the standard code for 2026/27, representing a £12,570 Personal Allowance. Scottish codes usually begin with S and Welsh codes with C. Your own code may differ; use your payslip.
Does salary sacrifice reduce National Insurance?+
A qualifying pension salary-sacrifice arrangement usually reduces the cash salary used for Income Tax, employee National Insurance and student-loan calculations. A net pay pension reduces Income Tax but not National Insurance. Always confirm the arrangement with your employer.
Why might my payslip be a few pounds different?+
Employers calculate PAYE and National Insurance for each pay period, with statutory rounding. Cumulative tax, an emergency W1/M1 code, bonuses, benefits and payroll cut-off dates can all create small differences from an annual estimate.
Are Scottish Income Tax rates included?+
Yes. Choose Scotland to use the Scottish bands for the selected tax year. S-prefixed tax codes also select Scottish treatment; any region conflict is flagged. National Insurance and student-loan rules remain UK-wide, and your loan plan is independent of tax region.
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