Your First UK Payslip 2026/27: A Guide for 16-21 Year Olds

Your first UK payslip is full of acronyms and codes that nobody explained at school. This guide walks through what each line means, why your tax/NI is what it is, and what to flag with your employer if something looks off - written for 16-21 year-olds starting their first job, apprenticeship, or part-time work.

Who pays what - the headlines for 2026/27

Age	Hourly minimum	NI starts at	Income tax starts at
Under 18	£7.55/hr (NMW)	£12,570/year	£12,570/year
18-20	£10.00/hr (NMW)	£12,570/year	£12,570/year
21+	£12.21/hr (NLW)	£12,570/year	£12,570/year
Apprentice (year 1, any age)	£7.55/hr	£12,570/year	£12,570/year

If you earn less than £12,570 a year (£241/week), you pay no income tax and no employee NI. Most school leavers in their first year fall in this band.

Your first payslip - what each section means

A typical first payslip has 4 sections:

Section 1 - Header (your details)

Name:           Alex Smith
Employee No:    045892
NI Number:      AB123456C
Tax Code:       1257L (or 0T or 1257L W1)
NI Category:    A (or M for under 21, F for apprentices under 25)
Pay Period:     May 2026 / Week 9
Pay Date:       31 May 2026

The Employee Number is your employer's internal reference. NI Number is HMRC's identifier for you for life (you got yours around your 16th birthday). Tax Code says how much tax-free pay you get - see the next section.

Section 2 - Pay (your income)

Basic Pay:                    £1,200.00
Overtime:                       £150.00
                              ----------
Gross Pay:                    £1,350.00

Gross Pay is what you earn before any deductions. Basic Pay is your contracted hours at your hourly rate. Overtime is anything above your basic hours.

Section 3 - Deductions (what's taken off)

Income Tax:                     £100.00
NI:                              £40.00
Student Loan:                     £0.00
Pension:                         £30.00
                              ----------
Total Deductions:               £170.00

If you earn under £12,570 in the year, Income Tax and NI should both be £0. If they're not, your tax code may be wrong (see below).

Section 4 - Net Pay (what hits your bank)

Net Pay:                       £1,180.00

Net Pay = Gross Pay − Total Deductions. This is what arrives in your bank account on payday.

Your tax code - the most important line

Your tax code is usually:

• 1257L - the standard UK code. Means £12,570 tax-free per year (£1,047.50/month). This is what you should be on if you have one job and gave a P45 or starter checklist to your employer.
• 0T - emergency code, no tax-free allowance. Means you'll pay tax on every £ earned. This usually means you didn't give your employer a starter checklist or P45.
• BR - Basic Rate, 20% on everything. This is the second-job code.
• 1257L W1 / M1 / X - non-cumulative version of 1257L. Used temporarily after a job change.

If you have 0T or BR on your first payslip, you're likely on emergency tax. Talk to your employer about the starter checklist - it asks 3 simple questions:

• A: This is my first job since 6 April this year.
• B: This is now my only job, but I had another job since 6 April this year.
• C: I have a second job or pension.

For most school leavers and apprentices, the answer is A - pick that on the checklist and you'll get the standard 1257L code within 1-2 pay cycles.

See our tax codes guide for the full list.

Apprentice pay - special rules

If you're an apprentice (any age) in the first 12 months of your apprenticeship, your minimum wage is £7.55/hour (the apprentice rate for 2026/27).

After 12 months:

• Aged 18 or under: still £7.55/hour minimum.
• Aged 19+: standard NMW for your age band kicks in (£10.00 for 18-20, £12.21 for 21+).

Your NI category letter as an apprentice under 25 is F (rather than A) - this means your employer pays no NI on you, which can encourage employers to take on apprentices but doesn't change YOUR contributions.

When NI starts costing you money

Once you earn more than £241/week or £1,047.50/month (the 2026/27 Primary Threshold), employee NI kicks in at 8% on the excess.

Worked example: £1,300 monthly gross.

Gross:                                  £1,300.00
NI threshold:                           £1,047.50
NI-able earnings:                         £252.50
Employee NI at 8%:                         £20.20

NI is calculated per pay period, not annually. If your earnings vary month-to-month, your NI will too.

When income tax starts costing you money

Once you earn more than £1,047.50/month AND have used your full Personal Allowance (£12,570 in the year), income tax kicks in at 20%.

For a school leaver starting in September, you only have 7 months of the tax year left (September to March). Your Personal Allowance is annual, so you can earn the full £12,570 in those 7 months tax-free, then pay 20% on anything above.

Practical: most under-18s earning £15-25,000/year as apprentices end up paying very little tax in their first year because they only worked half the year.

Your first P60 - the annual summary

In May or early June following the end of the tax year (5 April), your employer issues a P60 showing your total pay + tax + NI for the year. Keep it forever - you need it for:

• Mortgage applications later in life.
• Visa applications if you ever travel/work abroad.
• Verifying your State Pension qualifying years (every year you earn above £6,396 counts).
• Tax refund claims if you discover an error.

If you stopped working before the year end, you got a P45 instead - three pages, give the second + third to your next employer.

Common first-payslip errors

1. Tax code on 0T or BR - give your employer a starter checklist.
2. NI category letter wrong - under 21 should be M (not A); apprentices under 25 should be F.
3. Pay below minimum wage - if your hourly rate is below the table at the top, your employer is underpaying you. This is illegal. Report to HMRC NMW enforcement on 0300 123 1100 (you don't need to leave your job).
4. Pension auto-enrolment despite earning under £10,000/year - you can OPT OUT of pension auto-enrolment if you earn below £10,000/year. Speak to payroll.
5. Holiday accrual missing - you accrue holiday from day one. 5.6 weeks per year (28 days for full-time, pro-rated for part-time).

Setting up your Personal Tax Account

When you turn 16, you can set up a Personal Tax Account at gov.uk/personal-tax-account. This shows:

• Your tax code (and lets you check if it's right).
• Your tax + NI history.
• Your State Pension forecast (yes, even at 16!).
• Refund opportunities.
• Address + contact details on record with HMRC.

Set it up early. It's the single most useful tool for managing your relationship with HMRC.

When to ask for help

For first-payslip questions:

• Your employer's payroll team - internal questions about hours, deductions, tax code.
• HMRC tax code helpline 0300 200 3300 - for tax-code or NI-number questions HMRC needs to verify.
• Citizens Advice - free, in-person help on employment rights and pay disputes.
• Acas 0300 123 1100 - for unpaid wages or workplace disputes.

Disclaimer

PayslipIQ provides automated educational guidance based on the figures you supply. It is not regulated tax or employment-law advice. UK PAYE rules vary slightly each tax year; this guide reflects 2026/27 rates. For substantial pay or workplace issues, contact Acas on 0300 123 1100 or Citizens Advice.