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UK Payslip Glossary

Every term you might see on a UK payslip, explained in plain English. 97 entries, updated for the 2026/27 tax year.

B

Benefits in Kind (BIK)Benefit
Taxable non-cash perks like a company car, medical insurance, or a beneficial loan. Full definition

C

Childcare VouchersBenefit
A closed salary sacrifice scheme that swaps salary for tax-free childcare vouchers. Full definition
Company Car TaxBenefit
Income tax on the private use of a company car, scaled by list price and CO2. Full definition
Cycle to Work SchemeBenefit
A salary sacrifice for a bike and safety kit, repaid from gross pay over 12-18 months. Full definition

N

Notional PayBenefit
A non-cash amount that is treated as taxable pay for PAYE and NI purposes even though no money changes hands. Full definition

O

Optional Remuneration Arrangements (OpRA)Benefit
Anti-avoidance rules that strip the income-tax and NI savings out of most salary-sacrifice benefits taken in exchange for cash pay. Full definition

S

Salary SacrificeBenefit
Swap gross salary for a non-cash benefit, cutting tax and NI. Full definition