Where did 20% of my wages go? How Income Tax, National Insurance, tax codes and payslips work in the UK, with the current tax year's figures and what to check on your first payslip.
The National Minimum Wage (from 1 April 2026): £12.71/hr at 21+, £10.85 at 18–20, £8 under 18 and for apprentices. It's the law, not a vibe.
Zero-hours contracts: no guaranteed hours, but you still get minimum wage, holiday pay, payslips and (in Great Britain) a written statement of terms from day one.
Gross pay − income tax (PAYE) − National Insurance − pension − student loan (if any) = net pay.
1257L = the standard £12,570 Personal Allowance. Letters like BR, 0T, K, S (Scotland) and C (Wales) change how you're taxed.
England, Wales & NI 2026/27: £0–£12,570 tax-free, 20% up to £50,270, 40% up to £125,140, 45% above. Each rate applies only to that slice.
Employee NI 2026/27: 0% up to £12,570, 8% to £50,270, 2% above. Your employer pays 15% on top (you don't see it).
Emergency codes (BR, 0T, or W1/M1) happen when your employer doesn't have your details. Fix the code and overpaid tax usually comes back.
Your £12,570 allowance is shared across all jobs. HMRC can split it if your main job doesn't use it all.
P45 = when you leave a job (give it to your next one). P60 = your year's pay and tax summary, by 31 May. Tax year runs 6 April to 5 April.
Real tax refunds come through your pay, the HMRC app/online account or a letter. Texts or emails with refund links = scam.
Statutory holiday = 5.6 weeks a year (28 days max for a 5-day week). Part-time gets it pro rata. Check your pay, code and NI record in the free HMRC app.
On a Student visa you can usually work up to 20 hours a week in term (degree level or above) or 10 (below degree level), and full time in official vacations. Check your own visa conditions.
On UC, each extra £1 you earn above your work allowance reduces UC by 55p. Count childcare, travel and study time before taking extra shifts.
Your National Insurance number usually arrives by letter just before you turn 16. Lost it? Find it in the HMRC app or your personal tax account. Keep it private.
From April 2026 the National Minimum Wage for under-18s is £8 an hour (once you're over school leaving age). Your employer can't pay less, even if you agree.
Fix codes via your employer + HMRC app/online account. Never via a link, DM or 'agent' asking for your login.
Free with a code
GameWork, Payslips & Tax: quick answers
Mo (20) works 20 hours a week at the 18–20 minimum wage of £10.85. What's the weekly pay before deductions?
20 × £10.85 = £217. At £9 an hour it'd be £180 — Mo was losing £37 a week. That's a lot of meal deals.
Dex: 'Cash in hand is the move, bro. No tax, no problem.' What's the catch?
No payslip, no record of hours, no proof for holiday pay, sick pay or a mortgage. Yes. Being 'off the books' mostly protects the employer. A payslip is your receipt for your own labour.
Work, Payslips & Tax: in-depth guides
Related topics
- Side Hustles & Self-employmentReselling, gigs and the taxman.
- PensionsFree money from your employer (yes, really).
- Benefits & SupportUniversal Credit and help you might not know exists.
Browse the whole money library or play the free money games.