UK pay and taxes: payslips, hours and deductions

1. Check one pay period at a time

Start with the dates: last week’s wages and this week’s bank payment may cover different periods.

Hours × rate
Compare paid hours with your own records. Check overtime, holiday pay and piecework separately. Ask for a breakdown if the total differs.
Gross → deductions → net
Gross pay is the amount before deductions. Deductions are amounts taken off. Net pay is what remains. Subtract deductions from gross pay and compare net pay with the bank transfer.
Tax code and year-to-date totals
Your tax code controls how Income Tax is calculated. YTD (year to date) shows totals since the start of the tax year. These help you check HMRC records but do not by themselves prove you have overpaid.

Worked example: checking the figures, not predicting your wages
Item	Example	What to check
Hours × rate	40 × £12.71	Your hours and agreed rate
Gross pay	£508.40	Pay before deductions
Income Tax / PAYE	−£40.00	An assumed tax amount for this example
National Insurance	−£21.31	Employee contribution: category A example
Accommodation	−£77.70	Housing for 7 days in this example
Net pay	£369.39	£508.40 − £40.00 − £21.31 − £77.70

This example excludes pension contributions, holiday pay, bonuses and other deductions. Your PAYE depends on your code, income and earlier payments. The £40 is an assumed figure to demonstrate the arithmetic, not an HMRC calculation.

You must receive a payslip on or before payday. It must show hours if your pay varies with time worked. Fixed deductions may be explained in a separate written statement.

GOV.UK: what a payslip must show

2. Check your rate and paid hours

Current Home Office guidance requires at least £12.71 for each hour and at least 32 paid hours a week for seasonal horticulture work and certain poultry roles. These are amounts before tax and other deductions, not a promise of take-home pay.

Poultry roles with occupation codes 5431 and 5433 have different requirements: £15.88 an hour and the equivalent of £38,700 a year. Check the occupation code and terms in your CoS (Certificate of Sponsorship) and contract.

For fortnightly or monthly pay, the guidance allows reasonable averaging of hours over the pay period. If shifts are scarce, ask your employer and scheme operator for a written calculation of paid hours. The CoS assignment date also matters; your contract and applicable agricultural wage rules may require more.

Do not divide net pay by hours to check the minimum rate: tax, NI and housing are treated differently. Check earnings and deductions separately.

3. Understand each deduction

Each item should have a name, an amount and a reason. Ask about anything unclear, even if the total seems small.

A deduction needs a lawful basis, such as legislation, your contract, written agreement or recovering an accidental overpayment. Different deductions have different exceptions. If unsure, ask for the calculation and independent advice.

Income Tax / PAYE is tax your employer sends to HMRC.
National Insurance (NI) is an employee contribution. Employer NI is a separate cost for the employer.
Pension means a contribution to a pension scheme: ask for the scheme name and terms.
Housing, transport, an advance or other costs: compare these with your contract and written agreements. Agreement alone does not override minimum wage rules.

Housing: from April 2026 the accommodation offset is £11.10 a day (£77.70 for 7 days). This is a minimum wage calculation threshold, not a legal rent cap. If employer-provided housing costs more, the excess reduces the pay that counts towards minimum wage.

Example: housing costs above the offset

If £90 is deducted for 7 days, the excess over £77.70 is £12.30. That difference reduces the pay counted for minimum wage purposes. Whether the pay is lawful depends on earnings, hours and other circumstances; £90 alone does not answer this.

Keep your housing agreement and breakdown: move-in dates, days charged, utilities and deposit. Check that the same cost has not been charged twice.

4. If the figures do not match

Write down the difference
List the period, your hours and rate, earnings and disputed deduction. Attach copies of your payslip, shift record and contract; keep the originals.
Write to your employer and scheme operator
Ask them to check the specific items and reply in writing. You can suggest a deadline, such as 7 days or before the next payday. Keep the correspondence and any promised correction date.
Get independent help
In England, Scotland and Wales, Acas provides free, confidential advice on employment rights: 0300 123 1100, Monday to Friday, 8:00–18:00. You can ask for an interpreter. In Northern Ireland, contact the Labour Relations Agency.

Do not wait until the season ends. In England, Wales and Scotland, most claims about underpayment before 1 October 2026 have a limit of 3 months minus 1 day; for problems from 1 October, it is 6 months minus 1 day. Scottish breach of contract claims change on 9 November. Northern Ireland rules differ: check with the LRA. An internal grievance does not extend the deadline. Before a tribunal claim, you normally need to notify Acas within the time limit; timely notification starts early conciliation and pauses the clock. Check your own deadline early.

Message template for your employer

Hello. Please check my pay for [dates]. My records show [hours] × [rate]. The payslip shows [amount/hours]; I do not understand the deduction for [name, amount]. I have attached my calculation and copies of the documents. Please explain the difference and confirm when any error will be corrected. Please reply by [date].

Calculators: estimate, then check

The salary calculator estimates pay after tax and NI. The refund calculator estimates a possible overpayment. They do not replace your employer’s or HMRC’s calculation or establish entitlement to a refund.

Actual dates and the tax year matter for seasonal workers: an annual salary estimate may not match a short season. Check the region, tax code, pension contributions and housing deductions.

What your tax code means

A code other than 1257L is not necessarily wrong. Compare it with HMRC records and your circumstances.

1257L usually means the standard £12,570 tax-free allowance. Entitlement depends on your circumstances.
BR means all income from this job is taxed at the basic rate; it is often used with more than one income source.
0T means the allowance has been used up or the employer does not have enough information.
D0 / D1 means income from this job is taxed at the higher / additional rate.
NT means no Income Tax is taken from this income.
K means untaxed income or adjustments recorded by HMRC exceed your allowance; check HMRC’s notice.
M / N means receiving / transferring part of an allowance between spouses or civil partners through Marriage Allowance.
W1 / M1 / X / NONCUM means tax is calculated for the individual week or month without year-to-date totals. It does not guarantee an overpayment.
An S / C prefix means Scottish / Welsh rules.

Tax refunds after the season: only if you overpaid

A refund returns overpaid Income Tax, not automatically every deduction. The amount depends on total income, entitlement to a Personal Allowance and tax already paid. A short season alone does not guarantee a refund.

Foreign workers leaving the UK must tell HMRC. If you do not normally file Self Assessment, use the official P85 route. If you file a return, check the residence section (SA109) rules: HMRC’s standard online service does not support that section.

NI refunds follow a separate process for errors or overpaid contributions. Leaving the UK does not itself entitle you to a refund of correctly paid NI.

Apply yourself or pay for help

You can deal with HMRC yourself without an agent’s commission. Paid help is a separate choice: before agreeing, check the full price, minimum fee, cancellation terms, who receives the money and what authority you give.

Do not share your HMRC password or login codes. Check the representative’s authority and the claim before submission. A fixed refund promised without checking documents is a reason to ask questions, not to count on the money.

Which documents to keep

Payslips for every payment, together with shift records and bank statements.
P45 when you leave a job: income and tax up to departure. If you do not have a P45 for a new job, the employer can use a starter checklist.
P60 summarises the tax year if you work for that employer on 5 April; it is issued by 31 May.
SA302 and tax year overview show your Self Assessment calculation and tax account summary. They may be needed as evidence of income; requirements vary by organisation.
P85 tells HMRC you are leaving and allows a possible overpayment to be checked. It is not a wage certificate.

Other tax situations

Seasonal employment is usually taxed through PAYE: your employer deducts tax. Not every worker needs a Self Assessment return.

The Seasonal Worker route does not allow self-employment or unrestricted extra work. The CIS, business and freelance information below applies to people whose immigration conditions allow those activities.

Find your situation: employment, agency, study or business

Seasonal, other employed and agency workers: start with payslips, tax codes and PAYE, then use the official refund checker.
Students with permission to work: tax depends on income and circumstances, not simply on being a student.
CIS subcontractors: construction deductions are payments towards tax, not a promised refund. Keep CIS statements.
Sole traders or PAYE plus other income: check registration requirements, allowable expenses and the trading allowance.
Limited company directors: company tax, salary and dividends require separate calculations. Duties depend on income and HMRC notices.

If you need a return: seven steps

For 2025/26, the usual deadlines are: tell HMRC you need to file by 5 October 2026; paper return by 31 October 2026; online return and payment by 31 January 2027. A later HMRC notice and certain circumstances can change deadlines. The initial late filing penalty is usually £100.

Gather P45/P60 forms, CIS statements and records of other income and expenses.
Check whether you must file and register if needed; keep your UTR (tax reference number).
Prepare access to your HMRC account.
Complete the main return using documents, not guesses.
Add the required sections, such as self-employment, property, overseas income or residence.
Check the calculation, tax due or possible overpayment.
Submit, save the confirmation and pay any tax on time.

Reference: taxes and reliefs for 2026/27

The tax year runs from 6 April 2026 to 5 April 2027. Each tax rate applies to the relevant portion of income, not necessarily your whole salary.

Income Tax and National Insurance

For salary in England, Wales and Northern Ireland with the standard Personal Allowance: the first £12,570 is tax-free; then 20% up to total income of £50,270; 40% up to £125,140; and 45% above that. The Personal Allowance falls by £1 for every £2 of adjusted income above £100,000. Scotland has different bands and rates.

For category A employees paid weekly: NI is 0% up to £242, 8% on the portion from £242 to £967, and 2% above £967. This is a pay-period contribution; a short season does not turn it into an annual tax. Other categories and pay frequencies need their own calculation.

If you have a UK student loan

Annual income thresholds for 2026/27: Plan 1 — £26,900; Plan 2 — £29,385; Plan 4 — £33,795; Plan 5 — £25,000. Repayments are 9% above the applicable threshold. For a postgraduate loan, the threshold is £21,000 and the rate is 6%. Employers use the threshold for each pay period.

HMRC: 2026/27 rates and thresholds

Marriage Allowance, expenses and pension contributions

Marriage Allowance can reduce a couple’s tax by up to £252 a year if they meet the conditions. It is not a payment to every married couple.
The trading allowance covers up to £1,000 of annual gross trading income where its conditions apply. It does not permit work outside visa conditions or exempt everyone from filing a return.
You may claim tax relief for qualifying work expenses, such as uniform care or necessary tools. Relief returns tax on the eligible amount, not necessarily the full purchase cost.
Pension tax relief depends on the scheme and your tax rate. Check whether it has already been provided through your employer before claiming again.

Check a company or tax adviser

A Companies House entry confirms a registered company exists. It does not guarantee an honest offer, the contact’s authority or permission to recruit seasonal workers. Match contact details against the official website and your scheme operator.

Check a tax adviser’s identity, contract, price and any claimed ICAEW, ACCA or AAT membership in the relevant register. The word accountant alone does not prove qualifications. Paid assistance is not automatically a scam.

Quick answers

Can I start work without an NI number?

Yes, if you can prove your right to work. A National Insurance number records tax and contributions, but not having one does not itself prevent you starting work. Check whether you already have one and apply if needed.

Will all my tax be refunded after six months?

Not necessarily. HMRC checks income, allowance entitlement and Income Tax paid. Only an overpayment can be refunded. Correctly paid NI, rent and pension contributions do not become an Income Tax refund.

Does W1 or M1 mean there is a mistake?

It means tax is calculated for each period without year-to-date totals. The code may be temporary and does not always mean an overpayment. Check your employment and income information with HMRC.

Does a seasonal worker need Self Assessment?

Not just because they are a seasonal worker. Employment tax is usually deducted through PAYE. Other income, circumstances or an HMRC requirement may mean you must file a return.

When does the tax year end?

On 5 April. The next tax year starts on 6 April. Keep documents separately for each year.

What is P85?