First job, first payslip
Lesson 4 of 12 in our free Life Events guide: a 5-minute money game with the key points below.
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Questions you'll answer
Mo earns £28,000. Tax: 20% on income over £12,570. NI: 8% over £12,570. Plan 5 loan (England): 9% over £25,000. Ignoring pension, roughly what's Mo's monthly take-home?
Mo's first payslip shows a tax code ending in 'W1' or 'M1' and more tax than expected. What's going on?
Quick facts
- P45 → Document. You get it when you LEAVE a job. Give it to your next employer.
- P60 → Document. End-of-tax-year summary of your pay and tax. Keep it.
- National Insurance → Deduction. Builds your State Pension record and some benefits.
- Workplace pension contribution → Deduction. Auto-enrolment: at least 5% from you (including tax relief) and 3% from your employer, on qualifying earnings.
- 1257L → Code. The standard tax code.