Guide
PAYE & tax codes
PAYE is how employers take income tax and National Insurance from your pay. Your tax code tells them how much you can earn tax-free.
Step by step
- 1Find your tax code on your payslip or P60
- 2Check it in your personal tax account or the HMRC app
- 3Compare with your circumstances (benefits, second jobs)
- 4Report changes or errors to HMRC
- 5Check the next payslip for any correction
Common mistakes
- Ignoring an emergency code (W1/M1/X)
- Not telling HMRC about company benefits
- Splitting allowance wrongly across two jobs
Related guides
Take-home pay calculator for 2026/27
Last checked against GOV.UK: 28 October 2026. Tax year 2026/27.
Not affiliated with HMRC. General information, not professional tax advice. Check GOV.UK or speak to a qualified adviser for your situation.