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PAYSLIP

Your Payslip Explained

If you are a contractor that works through multiple umbrella companies, you may be faced with different looking payslips.

This can make it difficult to understand what is being deducted and why.

Payslips are allowed to be designed differently, however there are certain points that must be included, by law, on every payslip.

Click on the orange dots on the image to reveal the must-haves for every payslip you are issued.

If advanced holiday, 

Payslip

Pay rate for the week will be broken down between NLW, holiday pay if taken and additional pay.

The total of these income breakdowns will give you the GROSS FOR TAX on page 2.

2. This shows your employees tax and NI.

Tax is calculated at 20% and 13.25% (including the 1.25% NHS, health & social care levy).

Higher rates are 40% and 3.25%

The standard tax code is 1257L

If HMRC issue a different code it will be shown here and this may affect your tax.

Please let us know if you have any tax code queries.

This is the amount that will clear in your bank account

Your National Insurance number.

Your National Insurance number.