Question 1

Is PaySlipIQ really free to use?

Accepted Answer

Yes. PaySlipIQ.co.uk runs every payslip check free of charge, with no sign-up, no card details and no paywall on results. The service is funded by a small set of contextual partner links (pension reviews, refund firms) shown after your analysis, never inside it. You get the same engine HR consultants pay for elsewhere: gross-to-net reconciliation, tax code validation against the 2026/27 Personal Allowance of £12,570, NI category checks and pension contribution maths. Upload a photo or PDF, get a flagged report in under 30 seconds. If we ever introduce a paid tier, the current checker stays free for individual employees.

Question 2

Do you store my payslip image or data after analysis?

Accepted Answer

No. Payslip images are processed in memory, parsed by our OCR and tax engine, then discarded within minutes. We do not retain the file, your name, NI number or employer details on our servers beyond the active session. Aggregated, fully anonymised statistics are kept for accuracy tuning, but nothing personally identifying. We are registered with the Information Commissioner's Office and comply with UK GDPR Article 5 data minimisation. To be extra safe, redact your NI number with a black marker before uploading. Read the full policy at /privacy.

Question 3

How accurate is your tax code analysis vs HMRC?

Accepted Answer

Our tax code engine matches HMRC's PAYE Manual logic for codes issued under SI 2003/2682 (the PAYE Regulations) and is reconciled monthly against HMRC's published thresholds. For 2026/27 it validates the standard 1257L, Scottish S-prefix codes, Welsh C-prefix, K codes, BR, D0, D1, NT and emergency suffixes W1/M1/X. Accuracy on a clean payslip image is above 98% for code interpretation; the remaining cases involve mid-year code changes HMRC has not yet notified. We are not HMRC, so always cross-check flagged issues with your Personal Tax Account at gov.uk/personal-tax-account before contacting your employer.

Question 4

What tax year does PaySlipIQ use?

Accepted Answer

PaySlipIQ defaults to the 2026/27 tax year (6 April 2026 to 5 April 2027). Headline figures applied: Personal Allowance £12,570 (frozen until April 2028 under the current threshold freeze), basic rate 20% to £37,700, higher rate 40% to £125,140, additional rate 45% above. Employee NI is 8% between the Primary Threshold of £12,570 and the Upper Earnings Limit of £50,270, then 2% above. Scottish bands apply separately for S-prefix codes. If your payslip pre-dates 6 April 2026, switch the tax year selector before uploading so we apply the correct 2025/26 figures.

Question 5

Can I check Scottish payslips with the tax code prefix S?

Accepted Answer

Yes. Codes beginning with S (for example S1257L, SBR, SD0, SD1, SD2, SD3) trigger our Scottish rate engine, which uses the bands set by the Scottish Parliament for 2026/27: 19% starter, 20% basic, 21% intermediate, 42% higher, 45% advanced and 48% top rate above £125,140. Scottish taxpayers still pay UK-wide National Insurance and UK rates on savings or dividend income. We flag the common error of an English employer paying a Scottish-resident worker on 1257L instead of S1257L, which usually under-deducts tax. Update your address with HMRC at gov.uk/tell-hmrc-change-address to fix it.

Question 6

What if I think my employer is taxing me incorrectly?

Accepted Answer

First, run the payslip through PaySlipIQ to confirm the discrepancy. Second, check your tax code in your Personal Tax Account; HMRC, not your employer, sets the code via a P2 coding notice. Third, raise it in writing with your payroll department, citing the specific line (gross pay, code applied, NI category). If payroll refuses to correct it and the code is the issue, ring HMRC's PAYE helpline on 0300 200 3300 with your NI number and PAYE reference to hand. For genuine employer errors (wrong NI letter, missed pension deduction), escalate to ACAS on 0300 123 1100 before tribunal.

Question 7

Why is my emergency tax code (W1, M1, X) costing me money?

Accepted Answer

Emergency suffixes W1 (week 1), M1 (month 1) and X mean your code is applied on a non-cumulative basis: each pay period is taxed in isolation, ignoring any unused Personal Allowance from earlier in the year. Starting a new job mid-year on 1257L W1 typically over-deducts tax because the engine cannot reclaim months 1 to 6 of allowance you did not use. The fix is a P45 from your previous employer, or completing the new starter checklist accurately, so HMRC issues a cumulative code. Most people are refunded automatically through payroll once the cumulative code arrives; if not, claim via gov.uk/claim-tax-refund.

Question 8

How do I claim back overpaid PAYE tax from prior years?

Accepted Answer

You can claim PAYE refunds for the previous four tax years, so in 2026/27 that covers back to 2022/23. If HMRC has reconciled your year, you receive a P800 calculation letter; refunds under £10,000 are claimable online through your Personal Tax Account using the P800 reference. For unreconciled years, submit form R40 (savings) or write to Pay As You Earn, HM Revenue and Customs, BX9 1AS with payslips, P60s and a calculation. Avoid claim-firm middlemen taking 30 to 48% commission. PaySlipIQ exports a PDF summary of underpaid allowances you can attach to your claim.

Question 9

What HMRC documents work with PaySlipIQ?

Accepted Answer

Upload a P60 (annual summary, issued by 31 May), P45 (leaver statement, parts 1A, 2 and 3), P800 (HMRC tax calculation), P11D (taxable benefits in kind) or P2 (coding notice) alongside any monthly or weekly payslip in PDF, JPG, PNG or HEIC format. The engine cross-references year-to-date figures on payslips against P60 totals to catch payroll roll-over errors, and reads P11D box totals (cars, medical, loans) to verify their effect on your tax code. CIS statements (CIS300) and SA302 self-assessment calculations are supported in read-only mode for context.

Question 10

Is my National Insurance category letter correct on this payslip?

Accepted Answer

We validate the 14 active NI category letters against your circumstances. The default for most employees is A (standard rate, 8% employee, 15% employer in 2026/27 after the April 2025 employer rate rise). Common errors flagged: category C used after State Pension age but the worker is under 66; category H (apprentice under 25) missed, costing the employer relief up to the Upper Secondary Threshold of £50,270; category M (under 21) not applied. Veterans get V for 12 months. Married women on the reduced-rate B election are now extremely rare. If wrong, your employer corrects it via an FPS adjustment to HMRC.

Question 11

How does pension auto-enrolment show on my payslip?

Accepted Answer

Under the Pensions Act 2008, eligible jobholders aged 22 to State Pension age earning above £10,000 are auto-enrolled at minimum 8% of qualifying earnings (£6,240 to £50,270 band): 5% employee including 1% basic-rate tax relief, 3% employer. On your payslip, look for a deduction labelled 'Pension', 'AE', 'NEST' or your scheme name. Net pay arrangement schemes deduct before tax (lower taxable pay shown); relief-at-source schemes deduct after tax and the provider claims 20% from HMRC. PaySlipIQ flags if your contribution is below statutory minimum or if salary sacrifice is incorrectly reducing your NI base.

Question 12

What does 'K' prefix on a tax code mean and is it always wrong?

Accepted Answer

A K code means your deductions (untaxed benefits, company car, medical insurance, State Pension, prior-year underpayment being collected) exceed your Personal Allowance, so you have negative allowances added to taxable pay. K475 means £4,750 added to your taxable income for the year. It is not automatically wrong: high-value benefits in kind genuinely produce K codes. It is wrong if a one-off underpayment from three years ago is still being recovered, or if a company car you returned is still loaded. Check your P2 coding notice on gov.uk and ring HMRC on 0300 200 3300 to remove obsolete adjustments. K codes cap deductions at 50% of gross pay.

Question 13

How is overtime, bonus or backpay taxed differently from basic salary?

Accepted Answer

Mathematically it is taxed the same: PAYE applies your cumulative code to total pay to date, so a one-off bonus is not taxed at a special rate. It feels punitive because the bonus pushes that pay period's annualised earnings into a higher band, so PAYE deducts more that month; you usually recover the difference across following months as the cumulative calculation rebalances. Backpay covering multiple tax years should be split using HMRC's earnings period rules in the PAYE Manual at PAYE70023. Salary sacrifice on bonuses (paid into pension) avoids the spike entirely. PaySlipIQ shows a 12-month projected reconciliation so you can see the true annual rate.

Question 14

Can self-employed or contractor income be checked here?

Accepted Answer

PaySlipIQ is designed for PAYE employees, but supports two contractor cases. CIS subcontractors in construction can upload monthly CIS payment and deduction statements; we verify the 20% standard or 30% unmatched deduction against your gross, and flag missing materials offsets. IR35 inside-scope contractors paid via an umbrella or deemed-employment payroll get a normal payslip check, including holiday pay and Apprenticeship Levy treatment. Outside-IR35 limited company directors should use accounting software (FreeAgent, Xero) and file SA100; our checker will not reconcile dividend vouchers or corporation tax. For status disputes, use HMRC's CEST tool at gov.uk/check-employment-status-for-tax.

Question 15

What if PaySlipIQ flags an error but my employer disagrees?

Accepted Answer

Our flag is a starting point, not a legal ruling. Step one: ask payroll for the calculation in writing, including tax code source, NI category reasoning and pension scheme rules. Step two: verify your tax code independently in your HMRC Personal Tax Account; if PaySlipIQ and HMRC agree but payroll does not, payroll is wrong. Step three: raise a formal grievance under your employer's procedure. Step four: contact ACAS Early Conciliation on 0300 123 1100 within three months less one day of the deduction, a precondition for an Employment Tribunal unlawful deduction claim under section 13 of the Employment Rights Act 1996.

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