Understanding your payslip

• Total Gross
  • Total Gross

    Total Gross

    This is the total of all the payments being made before any deductions from pay. Where a negative value is shown it reflects a reduction in your gross pay.
• £
  • £

    £

    The amount of gross pay.
    
    If this is a negative figure it means you owe the company money.

• Total Deductions
  • Total Deductions

    Total Deductions

    Summary of all the deductions being made in this pay period.
• £
  • £

    £

    The amount of deductions.
    
    If this is a negative figure it means the money is being paid to you rather than from you.

• 
  • Address

    Your Address

    Your residential address including the post code for use by your employer when communicating to you via post.
    
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• This Period
  • This Period

    This Period

    Relates to this tax pay period. This will normally be for a week or month depending on your employment conditions. You might be paid in other intervals such as fortnightly, 4-weekly or lunar.
    
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• Year to Date
  • Year to Date

    Year to Date

    This is referring to the tax year. This will be a point between 6th April and 5th April the following year.

• Total gross pay
  • Total Gross Pay

    Total gross pay

    Summary of all payments awarded to you in this pay period.
• Total gross pay TD
  • Total Gross Pay TD

    Total gross pay TD

    This is the total of all the payments made to you during the tax year.
    
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• Gross for tax
  • Gross for Tax

    Gross for Tax

    This is the total of all the payments you will receive that are subject to Income Tax.
    
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• Gross for tax TD
  • Gross for Tax TD

    Gross for Tax TD

    This is the total of your pay that has been subject to tax during the current tax year.
    
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• Earnings for NI
  • Earnings for NI

    Earnings for NI

    This is the total of all payments you will receive that are subject to National Insurance Contributions.
    
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• Tax paid TD
  • Tax paid TD

    Tax Paid TD

    This is the total amount of tax you have paid during the current tax year.
    
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• Payment Period
  • Payment Period

    Payment Period

    This is normally the date from and to for which your pay is covering. It might also show your pay day, or only the day to which your pay is being calculated e.g. pay 25th of the month it might show 25 June 2012.
    
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• Earnings for NI TD
  • Earnings for NI TD

    Earnings for NI TD

    This is the total amount of your pay that has been eligible for National Insurance Contributions during the current tax year.
    
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•  
• National Insurance TD
  • National Insurance TD

    National Insurance TD

    The total amount of National Insurance Contributions that have been deducted in the current tax year.
    
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• Company Name
  • Company Name

    Company Name

    This is the legal name of your employer.
• Net Pay
  • Net Pay

    Net Pay

    This is total gross pay less all the deductions both statutory and voluntary. This is the amount of money that will go into your bank account, or on the cheque or paid in cash to you to spend.
• £
  • 

    £

    This is total payments less total deductions resulting in net pay.

• Tax: 810L
  • Tax Code

    Tax Code

    Your personal tax code allocated to you from Her Majesty's Revenue & Customs (HMRC). The code tells the employer how much you can earn before paying tax.
    
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• Dept: 0
  • Dept

    Dept

    Normally this number, or department name is used to advise the employer which area of the business you work in.
    
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• Tax Period: 1
  • Tax Period

    Tax Period

    This is the period for which tax is being calculated. If paid monthly April would be tax period 1, if paid in March and monthly it would be tax period 12.
    
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• Payment Method: Bacs
  • Payment Method

    Payment Method

    This is not always shown on the payslip but if it is, it will be reporting how the employer has paid your net pay
    
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Employee Number

A unique number that acts as a personal identifier. Remember to use this when speaking with your employer.

This identifier can be made up with numbers and letters. Employers might use to identify which department the employee works in. HMRC also use this number as an additional identifier.

Some organisations provide a new number for every employment, but others might use the same one when rejoining, to link all history of work for the same employer.

Employee Name

This is your title and full name. It is important that your legal names are provided e.g. Robert not Bob.

Some systems allow use of a 'known name' e.g. Bob, but most can only record one version, which will be the registered legal name.

You have a duty to inform both your employer and Her Majesty's Revenue & Customs (HMRC) of changes. For advice on how to tell HMRC go to www.hmrc.gov.uk. Your employer will have their own procedures.

Process Date

This could be either the date when you will be paid, or the last possible working day for that pay period being covered by the payslip.

Make sure you understand whether this date is the date you are being paid, or the date to which your pay covers.

Your contract of employment or your Terms & Conditions should confirm your pay dates.

NI Number

This is your personal identifier for recording all deductions made for Income Tax (PAYE), National Insurance, and all the state benefits you receive. Please make sure you give this number to your employer when you start employment. Without it the government doesn't know your paying tax or National Insurance!

HM Revenue & Customs (HMRC) needs to know your employee's National Insurance number so that your National Insurance account can be kept up to date and your entitlement to state benefits like the State Pension can be protected.

National Insurance numbers consist of two letters, followed by six numbers, followed by one letter, A, B, C or D. No other format is acceptable. It will look something like this: QQ123456A. You will have been issued a letter by HMRC just before your 16th birthday.

NI Category

This is the category of National Insurance being used to calculate your National Insurance liability. Different letters mean different rates of contribution payable.

Category A is the standard letter used for someone between 16yrs and state retirement age. Other letters mean a different percentage calculation on pay but there are strict rules before an employer can use them.

To find out more about the different NI rates go to www.hmrc.gov.uk.

Payments

There are different types of pay that an employer may need to provide. Your payslip might show you which payments are subject to tax and or National Insurance; possibly with an asterisk.

Employers will often be limited as to what they can show on a payslip. It will depend on what payroll software they use, and how much space is available. Online payslips are becoming much more popular as they have more space on them.

As with any payslip, if you are not sure about what something means you should always check with your company's payroll department.

Units

The number of payments being covered. This would normally relate to hours, however it could relate to other units such as number of days.

Presentation is normally 1.00 for hours, or a rate of pay for overtime e.g. 1.50 reflecting time and half.

Rate

The value of money awarded for one of the units and so may be the amount for one hour or for one day.

All employers must adhere to the National Minimum Wage set by the Low Pay Commission. There are very big fines for employers who do not comply! You should contact the Department for Business, Innovation & Skills for advice www.bis.gov.uk

Amount

The payment awarded for that pay item. If it shows a negative value then if possible this amount is being deducted from your pay.

Unless otherwise specified monetary amounts will be in sterling. Other than statutory deductions from pay i.e. Income Tax etc the employer should receive written agreement from the employee. Where an employee has been overpaid contractual conditions might apply.

Deductions

This is all the deductions from your gross pay.

More information on the types of deductions from pay can be found at www.direct.gov.uk

Your Address

Your residential address including the post code for use by your employer when communicating to you via post.

It is important to always ensure your most up to date address is held by your employer. You are also obliged by law to inform Her Majesty's Revenue & Customs and any other government department of any changes.

To advise HMRC please visit www.hmrc.gov.uk

This Period

Relates to this tax pay period. This will normally be for a week or month depending on your employment conditions. You might be paid in other intervals such as fortnightly, 4-weekly or lunar.

If you are weekly paid and have holiday advanced this payslip will cover more than the normal week length. The tax code will relate to the last tax point covered to include the holiday weeks. You would however normally see the additional holiday pay recorded under gross pay.

A tax period starts on the 6th of a month and ends on the 5th of a month. This is an annual allowance that is then divided by the number of pay days you have. For further information on what a tax period is please visit www.hmrc.gov.uk

Total gross pay TD

This is the total of all the payments made to you during the tax year.

The tax year always runs from 6th April to the 5th April and so only the gross pay paid April onwards should be included.

Gross for Tax

This is the total of all the payments you will receive that are subject to Income Tax.

In most situations the pay subject to tax will match all your pay elements. Items such as expenses will not normally be subject to tax.

To find out more about tax calculations and period rules go to www.hmrc.gov.uk

Gross for Tax TD

This is the total of your pay that has been subject to tax during the current tax year.

In most situations the pay used for calculating tax liability will be the same as your gross pay but some payments like non-taxable expenses are not subject to tax.

Earnings for NI

This is the total of all payments you will receive that are subject to National Insurance Contributions.

In most situations the pay that is subject to National Insurance will match all your pay elements. but some like non- taxable expenses are not.

For more information on National Insurance go to:

www.direct.gov.uk or www.hmrc.gov.uk

Tax Paid TD

This is the total amount of tax you have

The tax year always runs 6th April to 5th April. You can confirm this figure by adding the tax taken each pay period using the payslips for this tax year.

Payment Period

This is normally the date from and to for which your pay is covering. It might also show your pay day, or only the day to which your pay is being calculated e.g. pay 25th of the month it might show 25 June 2012.

In some situations the date will refer to a period behind the payment date, known as working in arrears. This could be a payment in advance such as paying to the end of the month on 25th of the month.

Earnings for NI TD

This is the total amount of your pay that has been eligible for National Insurance Contributions during the current tax year.

In most situations the pay subject to National Insurance will match your gross pay.

National Insurance TD

The total amount of National Insurance Contributions that have been deducted in the current tax year.

The tax year always runs 6th April to 5th April. You should be able to confirm this value by adding the National Insurance deducted each pay period using your payslips for this tax year.

Tax Code

Your personal tax code allocated to you from Her Majesty's Revenue & Customs (HMRC). The code tells the employer how much you can earn before paying tax.

The code will be a number and a letter. If the letter is after the number it will help reduce your taxable pay for calculating tax, if the letter is before the number it tells the employer to add pay to your earnings which results in you paying more tax.

More on tax codes can be found at www.direct.gov.uk or via www.hmrc.gov.uk

Dept

Normally this number, or department name is used to advise the employer which area of the business you work in.

The purpose of this might be financial to ensure your salary costs are put in the right budget, or for the payroll department to batch the payslips to send to the relevant department.

Tax Period

This is the period for which tax is being calculated. If paid monthly April would be tax period 1, if paid in March and monthly it would be tax period 12.

There are 52 tax weeks or 12 tax months. This ensures that your tax allowance as per your tax code is equally split over the tax year. The further in the year, the more weeks or months allowance will have been used.

Payment Method

This is not always shown on the payslip but if it is, it will be reporting how the employer has paid your net pay.

Your contract should confirm how payment will be made. Options include direct transfer where payment is made directly to your chosen bank account, or pay card that you can use with ATM tills. It could also be a cheque, which you need to put into a bank account. Of course it could be cash although this is not common.

Gross Salary/Basic Pay

Gross Salary/Basic Pay

Basic pay will either be the hours worked up to the expected contracted hours (with any extra hours reported separately as added hours or overtime) or it will show all hours worked (and then only add premium pay reported under overtime)

It may also be reported as if the expected contract hours have been worked and then reduced for hours not worked by reporting a line called 'short hours'. This means the person worked short of their contract hours and will reduce the pay. The two added together reflect the hours actually to be paid.

All employers must adhere to the National Minimum Wage set by the Low Pay Commission. There are very big fines for employers who do not comply! You should contact the Department for Business, Innovation & Skills for advice - www.bis.gov.uk

Advance Pay

Advance Pay

In rare cases an employer will advance pay to an employee - just remember that it will be adjusted by being taken off at a later date, normally the following pay day.

You might also find employers refer to this "advance" as a loan due to the way in which PAYE regulations are written.

Added hours/overtime

Added hours/overtime

This is payment for working above your contractual hours. This may be paid with a premium. This should show in the title - so overtime at double time would be shown as Overtime DT, or O/T x 2.

Overtime can be paid at a flat rate which would normally apply to part- time employees until they have reached the normal full time hours. It might also be paid at other rates such as time and a third, double time, time and half or even triple time. This will depend on your contract of employment. Normally only additional rates of pay would show under this element.

Back Pay

Back Pay

Money owed for an underpayment in the past. This may have been because of a mistake made by you or your employer, or a past entitlement that missed the payroll deadline, or because pay values changed for earlier work carried out.

Also common for back pay would be delayed pay-rises for example, due to negotiation with unions.

If you are on maternity the employer must re-calculate your maternity pay to reflect any back dated pay rises. This is known as the Alabaster rule.

Holiday Pay

Holiday Pay

Payment for holiday. This could be for holiday soon to be taken, or to pay for holiday accrued that was not taken but owed and now paid as you are leaving employment.

Check your contract of employment to find out what your company offers in respect of holiday pay. The Working Time Directive and subsequent Working Time Regulations that the UK must adhere to, states as at 2012 you are entitled to 28 days holiday including all 10 ten bank holidays.

Your employer might pay you for example 25 days holidays that you can take any time plus the 10 bank holidays. As this adds up to more than 28 days this exceeds the UK obligation. If you only work for part of year this will be reduced accordingly, as it would be for part-time employees.

Statutory Maternity Pay

Statutory Maternity Pay

This might be shown as SMP on your payslip. The rate of pay is set by the government and normally changes each April. This is pay that a woman can receive whilst she is on maternity leave providing certain conditions are met.

Further information on SMP can be found via www.direct.gov.uk

You should also check with your employer any contributions that might be required to fulfil your pension rights.

Occupational Maternity Pay

Occupational Maternity Pay

This might be shown as OMP, or additional pay on your payslip. You should check with your employer whether they offer a "top up" to the statutory amounts set by the government.

Check your employment contract or the company hand book to see what the company may offer. This additional pay might be for a certain number of weeks or for the full statutory maternity leave entitlement. For example the employer might say for the first 26 weeks they will top up your pay to ensure you receive the equivalent of half pay?

Occupational Maternity Pay is not a statutory entitlement and will differ depending on your employer's Terms & Conditions.

Statutory Adoption Pay

Statutory Adoption Pay

This might be shown as SAP on your payslip. The rate of pay is set by the government and normally changes each April. This is pay that an employee can receive whilst taking leave after the adoption of a child providing certain conditions are met.

Further information on SAP can be found via www.direct.gov.uk

Occupational Adoption Pay

Occupational Adoption Pay

This might be shown as OAP, or additional pay on your payslip. You should check with your employer whether they offer a "top up" to the statutory amounts set by the government.

Check your employment contract or the company hand book to see what the company may offer. This additional pay might be for a certain number of weeks or for the full statutory adoption leave entitlement. For example the employer might say for the first 26 weeks they will top up your pay to ensure you receive the equivalent of half pay?

Occupational Adoption Pay is not a statutory entitlement and will differ depending on your employer's Terms & Conditions.

Statutory Paternity Pay

Statutory Paternity Pay

This might be shown as SPP on your payslip. The rate of pay is set by the government and normally changes each April. This is pay that an employee can receive whilst taking paternity leave providing certain conditions are met.

Further information on SPP can be found via www.direct.gov.uk

Occupational Paternity Pay

Occupational Paternity Pay

This might be shown as OPP, or additional pay on your payslip. You should check with your employer whether they offer a "top up" to the statutory amounts set by the government.

Check your employment contract or the company hand book to see what the company may offer.

Occupational Paternity Pay is not a statutory entitlement and will differ depending on your employer's Terms & Conditions.

Statutory Sick Pay

Statutory Sick Pay

This might be shown as SSP on your payslip. The rate of pay is set by the government and normally changes each April. This is pay that you are entitled to receive whilst off sick, providing certain conditions are met which include meeting an average earnings test and have been sick for at least four calendar days.

Further information on SSP can be found via www.direct.gov.uk

If you are not entitled to SSP from your employer you will be given a form SSP1 which will be sent to the DWP who will assess your circumstances and possibly award a state benefit payment.

Occupational Sick Pay

Occupational Sick Pay

This might be shown as OSP on your payslip. This is pay that your employer would pay in addition to SSP.

You should refer to your contract of employment or the company handbook to understand what your employer offers. Quite often the rate of OSP will be based on an employee's number of years service.

This is not a statutory entitlement.

Redundancy pay - non taxable

Redundancy pay - non taxable

If an employer has to stop your contract because your job no longer exists you may qualify for payment. The government has set the limit to £30,000 before any tax is due. National Insurance is not due on redundancy payments.

Further information including the way in which redundancy pay is calculated can be found at www.direct.gov.uk Please note that an employer may pay additional monies above the statutory weekly rate of pay as prescribed by government and in legislation.

Redundancy - taxable

Redundancy - taxable

Any redundancy pay that exceeds £30,000 is subject to tax.

Further information can be found on how tax is calculated on redundancy pay via www.hmrc.gov.uk

Pay In Lieu Of Notice

Pay In Lieu Of Notice

Often referred to as a PILON. This is money paid to you to compensate youfor the employer not providing sufficient notice about the end of your contract, and or requesting that you do not work your contractual notice and leave the company immediately.

PILONs can be taxable or non taxable depending on the circumstances of your departure and or the custom and practice of the employer. To understand more about the tax implications you should visit www.hmrc.gov.uk

Compensation

Compensation

This payment is normally made due to the employer financially compensating you for a breach of contract, or by way of negotiation to end your contract of employment amicably. It can also be referred to as a compromise agreement. It would normally be issued by the Human Resource department.

You should always seek legal advice when considering any compensation payment if you are unsure of its terms. These payments may be subject to Income Tax depending on the circumstances.

Expenses

Expenses

These expenses must be related to your job or business for them to be non taxable. They are normally paid by the employer as reimbursement for an expense you have incurred e.g. an evening meal whilst away on company business.

Your company may have an expenses policy. It is important to make sure you adhere to the rules. Some employers might for example have a maximum amount that they would reimburse for an evening meal.

Further information on expenses and benefits can be found via www.hmrc.gov.uk Please note that this guidance is aimed at the employer.

Meal allowance

Meal allowance

Your employer may provide an allowance for purchasing a meal.

A meal allowance may qualify for tax exemption if it meets certain rules such as being a reasonable amount and that you incurred it through working away from your place of main work carrying out company business.

First Aid Allowance

First Aid Allowance

IF you act as first aid officer then your employer may pay you an allowance. This could be paid annually or more frequently.

The amount of the allowance will be determined by the employer and should normally be detailed in the company hand book. This payment will be treated as earnings and therefore will be subject to Income Tax and National Insurance.

Commission or bonus

Commission or bonus

Extra pay awarded because sales or targets have been achieved. This could be a contractually agreed payment or discretional by the employer.

Shift pay/allowance

Shift pay/allowance

Extra premium payment made because you are working hours that are considered special or un sociable such as overnight or week-ends.

Shift allowances can be set at different rates depending on which part of the day they are worked. In some cases a flat rate is paid as the individual works different shifts in rotation. This method might be used to ensure you receive the same pay each pay day.

Staff suggestion scheme

Staff suggestion scheme

Reward for an idea you have suggested that will give benefit to the employer.

Not all companies offer this scheme so check with your employer.

Fees

Fees

This is a fixed payment for work that is a specific personal service you have provided e.g. consultancy.

Unless paid via an invoice for a self employed person this payment would be subject to Income Tax and National Insurance.

Ex-gratia

Ex-gratia

Extra payment that the employer is giving you in recognition of something special you have done and which is not included in your contract of employment.

It is rare due to recent legislation that any payments made under ex-gratia are not subject to National Insurance. There are however some circumstances where this might apply. For more information please visit www.hmrc.gov.uk

London/regional weighting

London/regional weighting

Extra money paid because the work is being done in a specific place and paid in recognition that's its more expensive to live and work in these places e.g. London.

Jury pay

Jury pay

Money paid to you whilst you are serving as a jury member for the country.

Your employer might pay you normal pay whilst serving on a jury and request payment from you when you receive monies from the court. Alternatively your employer might deduct the daily rate paid by the courts from your pay in advance and you would then retain the fees paid by the court. For more information about compensation and expenses as well as duty for being on jury service go to www.direct.gov.uk

Responsibility pay

Responsibility pay

Payment for doing carrying out a job that requires additional responsibility. It is reported separately to highlight it's being paid.

Fire fighter

Fire fighter allowance

Payment for responsibility for special duties. Specific training is provided to receive this allowance as it will enable the employee to carry out specific duties in the event of a fire on the business premises.

Car allowance

Car allowance

Payment to reflect the requirement to have a car but where the employer does not wish to provide a specific vehicle, known as "company car".

Relocation pay

Relocation pay

This is special pay to help cover the cost of moving residence and is associated with a change of job. If the payment meets specific rules it may be exempt from both Income Tax and National Insurance.

The employer will offer you a relocation package should it be applicable to the job offer. For information on the tax and National Insurance rules please visit www.hmrc.gov.uk

Honorarium

Honorarium

This is pay normally awarded due to a service being provided that might normally have been voluntary. It is also sometimes used to make a one off special payment perhaps for someone "acting up" in a role for a short period that was unexpected e.g. sickness cover.

C/F or B/F

C/F or B/F

C/F stands for carried forward and B/F stands for brought forward.

C/F would be used should the total deductions you owe be more than the amount you are being paid, therefore it is necessary for a balancing figure to be entered which may take your net pay zero. The amount outstanding would then be carried forward to your next pay day. The following pay slip might then show B/F. This is the amount that was carried forward from your last pay slip. The value shown means you will have that amount taken off your pay if possible.

National Insurance

National Insurance

The amount of National Insurance that must be deducted from your pay this period as prescribed by government.

Your contributions are based on your pay that is subject to National Insurance in the relevant pay period. The percentage deducted will be dictated by the National Insurance category applicable to you.

To understand how National Insurance Contributions (NICs) are calculated please visit www.hmrc.gov.uk or www.direct.gov.uk

Student loan

Student loan

If you have received a student loan whilst studying you must repay this amount through your earnings. Repayment is only implemented when your earnings reach a certain threshold.

The student loan repayment scheme is based on a percentage of your pay within thresholds set by the government. The Student Loan Company advises HMRC, and HMRC advises the employer. Once an instruction is received by the employer to deduct student loan repayments they must continue to do so until HMRC issues a stop notice, or the employee leaves employment. The employee can also inform the employer that they have a student loan when completing the starter form (P46) or if notified by a P45 by a previous employer.

For further information you can visit the Student Loan Company - www.slc.co.uk or visit www.hmrc.gov.uk

Payroll giving/GAYE

Payroll giving/GAYE

This where you have voluntarily agreed to donate to a charity or multiple charities via your employer. To do this the employer must have an approved Payroll Giving scheme, or sometimes referred to as a Give As You Earn scheme (GAYE).

The contribution taken will be used to reduce the level of your taxable pay therefore resulting in a lower tax liability.

To understand the rules related to payroll giving go to www.direct.gov.uk.

Save As You Earn (SAYE)

Save As You Earn (SAYE)

This deduction will be shown if you have entered into an employer savings scheme.

You would normally be notified of a savings scheme along with the terms and conditions of such a scheme, often referred to as a Save As You Earn scheme on commencement of employment, or later if introduced after your employment has commenced.

Court orders

Court orders

These deductions are normally a statutory deduction and are issued by the Courts, Child Support Agency/Child Maintenance & Enforcement Commission or local authorities for unrecovered debt, or to contribute to a child's financial upbringing.

There are several types of AEO, which are issued by courts, child support agency or from local authorities. The employer cannot stop taking these deductions until those authorities instruct a change. You have to appeal to those authorities to alter the deduction. One exception is the Scottish Debt Arrangement Scheme whereby this is a voluntary deduction agreed by the employee and the creditor.

Advice on Attachment from Earnings can be found via www.direct.gov.uk or from the Ministry of Justice department.

Pension

Pension

If you have elected to join the company pension scheme, or have been automatically enrolled into a company pension the deductions will be shown. Please note from October 2012 to 2017 depending on employer size, all employers will need to provide a company pension scheme. If certain conditions are met the employee must be automatically enrolled, and both the employee and employer must make contributions.

Payment into a pension fund can qualify for tax relief. In some situations relief is given through your pay. If you are in what is referred to as a Contracted Out scheme then the employer can deduct your pension contribution from your gross pay before Income Tax is calculated.

For information about how tax relief is given on pension please go to www.hmrc.gov.uk For information on the new pension automatic enrolment rules please visit www.thepensionsregulator.gov.uk

AVC

AVC

This is a scheme whereby you have agreed to pay Additional Voluntary Contributions to enhance your pension in retirement.

AVCs qualify for tax relief - any money you pay will be taken off your total taxable pay value thus reducing your tax liability.

For information about how tax relief is given on pension and AVC look up www.hmrc.gov.uk

Loan repayment

Loan repayment

This deduction is in respect of any loans that your employer has provided you,and for which you have agreed to repay over a specified period.

Depending on the amount and period of the loan they can be except from Income Tax. If the conditions are not met then they will fall into the benefits in kind category and will be subject to Income Tax.

For more information on the tax rules around company loans visit www.hmrc.gov.uk

Any other deduction

Any other deduction

There are many more categories of deduction that your employer might use, and that you have agreed to. These might include Trade Union subscriptions, social club or a saving club. These would all need to be authorised by you before any deductions could be made.

Please refer to your company handbook for schemes that your employer might offer.

Income Tax

Income Tax

The amount of tax due from your pay this pay period as prescribed by government.

Tax is calculated on your taxable pay. Taxable pay is gross pay less any pay elements that are not subject to Income Tax such as some pension scheme contributions or payments made to a charity under a Payroll Giving scheme.

To understand how Income Tax (PAYE) is calculated please visit www.hmrc.gov.uk or www.direct.gov.uk