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Payslip Explainer Card 2026/27

Every line on a UK payslip, decoded on one printable page — tax codes, NI categories, deductions and YTD figures.

Printable 1-page PDF · Plain-English definitions · Common tax code letters

What’s On the Card

Every payslip has three parts: what you earned (gross pay), what came off (deductions), and what landed in your account (net pay). This one-page PDF explains every field in between — gross pay, tax code, NI category, Income Tax, National Insurance, pension contributions, student loan, net pay and year-to-date (YTD) figures — plus a quick-reference table of common tax code letters.

Common Tax Code Letters at a Glance

CodeMeaning
LStandard Personal Allowance (most common)
M / NMarriage Allowance received (M) or transferred (N)
BRAll income taxed at basic rate — often a second job or emergency code
D0 / D1All income taxed at higher / additional rate
0TNo Personal Allowance applied — check this urgently
KNegative allowance — tax is added to income, not deducted
W1 / M1Emergency code — taxes each pay period alone, not cumulatively

BR, 0T or W1/M1 codes lasting more than 2 months usually mean you’re overpaying tax. Check yours free with our Tax Code Checker.

Frequently Asked Questions

The number x10 is your tax-free Personal Allowance — 1257L means £12,570 tax-free. The letter shows adjustments: L is standard, M/N relate to Marriage Allowance, BR taxes everything at basic rate, 0T removes your allowance entirely, and K adds extra taxable income rather than deducting it.
It tells HMRC which National Insurance rates apply to you. Most employees are category A (standard rate). Others include B (legacy reduced rate), C (over State Pension age), H (apprentices under 25) and M (under 21).
Year-to-date — the cumulative total since 6 April. Payslips show YTD gross pay, tax, NI, pension and net pay, which are the figures HMRC uses for your year-end tax position.
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