I just relocated to UK, and I received my very first payslip. I run some simulations on salary calculators, to understand how much I would have received in my bank account. The payslip states the following:

Gross pay: X GBP
NIAble pay: X GBP
Taxable pay: X GBP

Tax (PAYE): ~ X / 4
National insurance: ~ X / 11
Net pay: ~ X / 1.7

So, I understand that the net pay is the gross pay subtracted with tax and NI, but I have some doubts on how these are calculated, since I get different results in salary calculators online, where the taxable amount is lower than the gross. My annual gross was ~ X * 13 at that time.

Why is the taxable amount the same as the gross amount?

1 Answer 1


The taxable pay is the same as the gross pay because you don't have any deductions for things like pension contributions. All of your income is therefore taxable, but it's not all taxed, because some of it is below the threshold where tax becomes payable.

  • 1
    What’s your PAYE code? You may be on emergency coding, as a new immigrant, and that will make the tax deduction higher.
    – Mike Scott
    Apr 18, 2018 at 18:48
  • 1
    Playing with this calculator, they must be using 0T (no tax allowance: for >£123k pa or when they have no information) rather than the default/emergency code of 1185L (see also What is the 2018/19 PAYE tax code?). @LorenzoMarcon Yes, things should sort themselves out a month or so after you get a "proper" tax code.
    – TripeHound
    Apr 19, 2018 at 8:38
  • correct, in the payslip the tax code it's 0T M1. ok, so as far as I get, I'll eventually get a tax reimbursement when HMRC will do the calculation with the correct code, is that correct? Apr 19, 2018 at 12:40
  • 3
    @LorenzoMarcon What should happen is that when your tax code gets sorted out the overpayment will be refunded over the rest of the tax year by deducting less tax from your future payments. But it’s certainly worth keeping an eye on it and making sure that happens.
    – Mike Scott
    Apr 19, 2018 at 14:50

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