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.
A
- Additional RateTax
- The 45% income tax band applied above £125,140 in England, Wales and Northern Ireland. Full definition
B
- Basic RateTax
- The 20% income tax rate covering taxable income between £12,571 and £50,270. Full definition
- Blind Person's AllowanceTax
- An extra £3,070 tax-free allowance for people registered as severely sight impaired. Full definition
C
- Cumulative TaxTax
- PAYE method that uses year-to-date totals so over- and underpayments self-correct. Full definition
- Cumulative Tax CalculationTax
- The PAYE method that recalculates your tax position from 6 April every pay period so that any over- or under-payment self-corrects. Full definition · Read the full guide
E
- Emergency TaxTax
- A temporary tax code used when HMRC lacks information to issue the correct one. Full definition
F
- Flat Rate ExpensesTax
- A trade-specific tax-free allowance for uniforms and tools. Full definition
H
- Higher RateTax
- The 40% income tax band on taxable income between £50,271 and £125,140. Full definition
K
- K CodeTax
- A tax code where untaxed income exceeds your allowance, adding to taxable pay. Full definition
- K Code AdjustmentTax
- The mechanism by which a K-prefix tax code adds untaxed income to your taxable pay each pay period. Full definition
M
- Marriage AllowanceTax
- Transfer £1,260 of unused personal allowance to a spouse, saving up to £252. Full definition
N
- Non-Cumulative Tax (Week 1/Month 1)Tax
- PAYE method that ignores year-to-date totals; flagged W1, M1, or X. Full definition
P
- PAYE (Pay As You Earn)Tax
- HMRC system that collects income tax and NI through your employer at source. Full definition
- Personal AllowanceTax
- The £12,570 of income each tax year that is free of income tax. Full definition
S
- Scottish Income TaxTax
- Six-band Scottish income tax regime, flagged by an S prefix on your tax code. Full definition
T
- Tax CodeTax
- HMRC code (e.g. 1257L) telling your employer how much tax-free pay to apply. Full definition
- Tax PeriodTax
- Numbered PAYE period within the tax year (April = 1). Full definition
- Tax RefundTax
- Money HMRC returns when you have overpaid income tax. Full definition
- Tax-Free AllowanceTax
- Total tax-free income for the year, usually £12,570 plus adjustments. Full definition
- Taxable PayTax
- Gross pay minus tax-free allowances; the figure income tax is charged on. Full definition
U
- UnderpaymentTax
- Unpaid tax from a prior year, usually recovered through next year's tax code. Full definition
W
- Week 1 / Month 1 BasisTax
- A non-cumulative PAYE basis that ignores year-to-date totals, treating every pay period in isolation. Full definition · Read the full guide