Precision Utility
Payslip Breakdown
Calculator
Tax Year
2025/26
Default Tax Code
1257L
Enter your gross pay and see every deduction line by line — just like reading your actual payslip. This calculator breaks down income tax, National Insurance, pension contributions and student loan repayments using current HMRC rates for the 2025/26 tax year. Adjust your tax code, pension percentage and student loan plan to match your real payslip exactly.
Payslip Details
Your Net Pay
£0.00
Gross Pay
£0.00
Total Deductions
£0.00
Deduction Rate
0%
Payslip Breakdown
Monthly — Tax Year 2025/26
Code: 1257L
| Description | Amount |
|---|
How the payslip breakdown calculator works
Enter your gross pay for the period — either monthly or weekly. The calculator parses your tax code to determine your Personal Allowance, then applies the correct HMRC income tax bands for the 2025/26 tax year. Each deduction is calculated independently and displayed as a separate line on your payslip.
Your pension contribution is deducted from gross pay before tax is calculated (salary sacrifice method). This reduces the amount on which you pay income tax and National Insurance, meaning your pension costs you less than the headline amount.
National Insurance is calculated on your pay period earnings using the monthly or weekly thresholds. The primary threshold matches the Personal Allowance at £1,048 per month, with 8% charged up to the upper earnings limit (£4,189/month) and 2% on anything above.
Student loan repayments are calculated at 9% of earnings above your plan’s monthly threshold (6% for Postgraduate loans). The result is a clean payslip-style breakdown showing every deduction from gross to net pay.
Understanding your payslip in 2025/26
Every UK employee is entitled to an itemised payslip showing gross pay, all deductions and net pay. Understanding each line helps you verify your pay is correct and spot any errors early. Here are the key figures for the 2025/26 tax year:
- Personal Allowance: £12,570 per year (£1,048/month). Earned tax-free, set by your tax code
- Basic rate (20%): monthly earnings between £1,048 and £4,189
- Higher rate (40%): monthly earnings between £4,189 and £10,428
- Additional rate (45%): monthly earnings above £10,428
- Employee NI: 8% on monthly earnings £1,048 to £4,189, then 2% above
- Pension auto-enrolment: minimum 5% employee contribution (3% employer)
Student loan thresholds are divided by 12 for monthly payslips. Plan 1 threshold is £1,835/month, Plan 2 is £2,274/month, Plan 4 is £2,305/month, Plan 5 is £2,083/month, and Postgraduate is £1,750/month.
For the latest rates and thresholds, check the official HMRC income tax rates page on GOV.UK.
Frequently asked questions
What is tax code 1257L?
Tax code 1257L is the standard tax code for most UK employees in the 2025/26 tax year. The number 1257 means your Personal Allowance is £12,570 (multiply by 10). The letter L confirms you are entitled to the standard tax-free allowance. If your payslip shows a different code, HMRC has adjusted your allowance — for example to collect underpaid tax from a previous year.
Why is my National Insurance different from my income tax?
National Insurance and income tax are separate systems with different thresholds and rates. NI is charged at 8% on earnings between £12,570 and £50,270 per year, then 2% above that. Income tax uses progressive bands at 20%, 40% and 45%. NI is calculated on each pay period independently, while income tax is cumulative across the year — which is why the amounts rarely match.
What is pension auto-enrolment?
Pension auto-enrolment requires UK employers to enrol eligible workers into a workplace pension scheme. The minimum total contribution is 8% of qualifying earnings — at least 3% from your employer and 5% from you. Your contribution is usually deducted from your gross pay before tax (salary sacrifice), which reduces your income tax and National Insurance bill.
What is an emergency tax code?
An emergency tax code (often shown as 1257L W1 or 1257L M1) means HMRC is taxing you on a non-cumulative basis — each pay period is treated in isolation rather than accounting for your year-to-date earnings. This usually happens when you start a new job without a P45 or when HMRC hasn’t updated your records. You may overpay tax temporarily, but HMRC will issue a refund once your correct code is applied.
What should I do if my payslip is wrong?
First, check your tax code is correct — an incorrect code is the most common cause of payslip errors. Compare each deduction line against a payslip calculator using the same inputs. If you spot a discrepancy, raise it with your employer’s payroll department. If your tax code is wrong, contact HMRC directly on 0300 200 3300 to have it corrected. You can also check your tax code online through your HMRC Personal Tax Account.
What is the difference between employer and employee National Insurance?
Employee NI (Class 1) is deducted from your pay at 8% on earnings between £12,570 and £50,270, then 2% above that. Employer NI is a separate charge paid by your employer at 15% on earnings above £5,000 — it does not appear on your payslip and does not reduce your take-home pay. Your employer pays both their share and sends your share to HMRC on your behalf.