Understanding your payslip
We also have an example of a simpler payslip in the useful tools section.
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. Otherwise, the same principles apply.
1 – This is Victor's July payslip; for PAYE purposes this is month 4.
2 – NI Number – Victor knows that this is his National Insurance number.
3 – Tax is normally calculated on a cumulative basis but it can be calculated on a month 1 (non cumulative) basis.
4 – Victor's tax code is 1185L. This means that Victor's full personal allowance of £11,850 for 2018/19 is being used as the basis of his tax code and to calculate the tax due.
5 – Victor is a member of AFPS (Armed Forces Pension Scheme) 15. For the 2018/19 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. National Insurance category A reflects this.
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) for the pay period.
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 Longer Separation Allowance relating to June.
15c – This amount claws back the amount of Get You Home travel allowance or GYH(M) that Victor received in June that related to the period he was serving abroad.
16a – This amount refunds the amount of CILOCT (Contribution in Lieu of Council Tax) 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.
16c – the figures for NIC and income tax payable are based on the figures for Niable and taxable pay respectively; these figures include benefits that are being payrolled.
You can find out more about the allowances, charges and deductions that alter how much you receive on our website.