PaychecklyUK Tax & Salary Guides
Plain-English explainers for the parts of the UK tax system that catch people out. No jargon, no upsells.
Featured
High-earner essentialsThe 60% Tax Trap, Explained
If you earn between £100,000 and £125,140, you are almost certainly paying an effective marginal rate of 60%, not 40%. Here is exactly why — and the one pension move that makes it disappear.
Quick references
Tax codesTax Code 1257L — what it means
The most common UK tax code. We break down what the digits stand for and how it affects your monthly take-home.
Tax Code BR — why you're paying 20% on everything
BR usually appears on second jobs. Here is when it's correct, when it's a mistake, and how to fix it.
Tax Code D0 — flat 40% explained
D0 means every pound of this income is taxed at 40%, with no personal allowance. Common for higher-rate earners with a second income source.
Pensions & tax planning
Tax planningSalary Sacrifice Explained
Swap part of your gross pay for a pension, EV, or cycle benefit — and pay less Income Tax and National Insurance. Worked examples, the 60% trap angle, and the mortgage catch to watch for.
Student Loan Plans Compared
Plan 1, 2, 4, 5 and Postgraduate — which one you're on, how much comes out of your pay each month, when each is written off, and why overpaying is usually a mistake.
Marriage Allowance — Claim £252 a Year
Over a million eligible couples never claim this. Who qualifies, how to backdate four years for a ~£1,250 lump sum, and how to claim free without the rip-off claim sites.
Contractors & company directors
ContractorsIR35 Explained — Inside vs Outside
The rule that decides a contractor's take-home. What inside and outside IR35 mean, who decides, the three HMRC tests, and the 15–25% the wrong status can cost you.
Salary vs Dividends for Directors
The tax-efficient way to pay yourself from a limited company — the optimal small salary, 2026/27 dividend rates, a worked example, and the Corporation Tax catch.
Tax & pay essentials
EssentialsUK Income Tax Rates & Brackets
The 2026/27 bands explained — 20%, 40%, 45%, the Scottish system, and how the "slices" really work so a pay rise never costs you your whole income.
How to Read Your Payslip
Every line decoded — gross, net, tax code, NI, pension, student loan and YTD — plus five checks to spot when you're being overtaxed.
National Insurance Explained
How much NI you actually pay, the 8% and 2% bands, worked examples by salary, what it funds, and the one move that legally reduces it.
Emergency Tax Codes Explained
On W1, M1, X, 0T or BR? Why it happened, how much extra you're paying, and the exact steps to fix it and get your refund.
Coming soon
Scheduled for publication. Email us if one is time-sensitive — we'll prioritise it.
- Pension tax relief: auto-enrolment vs salary sacrifice vs personal
- Capital Gains Tax basics for employees with shares