Understanding your payslip

Updated on 12 November 2017

The purpose of this section is to help you understand your monthly armed forces payslip. You can find out more about how PAYE and NIC are calculated on your pay from the armed forces on our website.

We also have an example of a simpler payslip in the 'useful tools' section of the website.

If you live in Scotland and are a Scottish taxpayer, different income tax rates and bands apply to your earned income. There is more information in our section on Scottish income tax. The same principles apply.

Armed Forces payslip example 2017

Victor's payslip:

1 – This is Victor's July payslip; for PAYE purposes this is month 4.

2 – NI Number – Victor knows that this is his NI number.

3 – Tax is normally calculated on a cumulative basis but it can be calculated on a month 1 basis.

4 – Victor's tax code is 1150L. This means that Victor's full personal allowance of £11,500 for 2017/18 is being used to calculate the tax due.

5 – Victor is a member of AFPS 15. For the 2016/17 tax year, members of the armed forces do not pay reduced rate National Insurance contributions (NIC), as they did until 5 April 2016. Instead they pay NIC at the full rate.

6 – PTD means period to date so these amounts are Victor's gross pay, the amount that is subject to NIC (Niable) and the amount that is subject to tax (Taxable).

7 – YTD means year to date so these amounts are the total Victor has received since the beginning of the tax year.

8 – The split amount is used when the armed forces pay your net pay to two separate bank accounts. Perhaps you are working overseas and one part of your net pay goes into an overseas bank account and the other part into your normal UK bank account.

9 – Total payments is the total of the "Pay and Allowances" section.

10 – Total deductions is the total of the "Charges and Deductions" section.

11 – This figure should be your Total Payments minus your Total Deductions.

12 – The "Pay and Allowances" section itemises the amounts paid to you. A negative figure is a reduction.

13 – The "Charges and Deductions" section itemises the amounts taken away from your payments. A negative figure is an amount paid to you.

14 – The "Pay Information" section shows how some of the amounts in "Pay and Allowances" or "Charges and Deductions" have been calculated.

15 & 16 – During June (so the previous month) Victor was posted away from his normal base. These amounts show adjustments to his pay and deductions to reflect this.

The "Pay Information" section shows how these amounts have been calculated.

15a & 15b – LOA and LSA are the amounts of Local Overseas Allowance and additional living out supplement relating to June.

15c – This amount claws back the amount of GYH(M) that Victor received in June that related to the period he was serving abroad.

16a – This amount refunds the amount of CILOCT that Victor paid in June that related to the period he was overseas.

16b – This amount refunds the amount of single accommodation charge that Victor paid in June that related to the period he was overseas.

You can find out more about the allowances, charges and deductions that alter how much you receive on our website.

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