UK / Pillar
PAYE and Income Tax — pillar hub
PAYE (Pay As You Earn) is how HMRC collects income tax from your wages each period. Your tax code sets your allowance; everything above it is taxed in bands.
Educational guidance only. Not affiliated with HMRC. Not regulated tax, legal, financial, payroll or employment advice.
Bands for 2026/27
In England, Wales and Northern Ireland: basic 20% on £12,571–£50,270, higher 40% on £50,271–£125,140, additional 45% above £125,140. Scottish residents use S-prefix codes and Scottish bands; Welsh use C-prefix.
Read PAYE on your payslip
- Look for "PAYE income tax" or "Tax this period".
- Compare against the year-to-date figure.
- Cumulative codes recalculate each period using YTD; non-cumulative (M1/W1/X) calculate that period only.
Quick answer — why is my PAYE higher than expected?
PAYE varies because your tax code can be cumulative or non-cumulative. On a cumulative code, every period rebalances against year-to-date pay and tax. On Month-1 / Week-1 / X basis, the period is calculated standalone, ignoring earlier periods. Bonuses, back-pay or a coding-notice change can also spike one period.
Related
Educational guidance only. PayslipIQ provides an educational second opinion based on the figures you supply and the public 2026/27 UK PAYE, NI, pension and student-loan rules. Verify any final figure with your payroll team, HMRC, your pension provider or a qualified professional before acting.
See our methodology, Trust Centre and AI limitations.