Free PAYE Tax UK 2025/26 | Check Your Tax Code & Deductions calculator for the UK. Get instant, accurate results with our easy-to-use online tool. Updated...
Calculate your exact PAYE deductions, check your tax code, and understand how much tax you should be paying
PAYE (Pay As You Earn) is the system HMRC uses to collect Income Tax and National Insurance from employees. Instead of paying a lump sum at the end of the year, your employer deducts tax from each payslip based on your earnings and tax code.
| Tax Band | Income Range | Tax Rate | Monthly Threshold |
|---|---|---|---|
| Personal Allowance | £0 - £12,570 | 0% | £1,047.50 |
| Basic Rate | £12,571 - £50,270 | 20% | £3,139.58 |
| Higher Rate | £50,271 - £125,140 | 40% | £6,239.58 |
| Additional Rate | Over £125,140 | 45% | - |
Your tax code tells your employer how much tax-free income you're entitled to. The standard code for 2025/26 is 1257L.
The most common code. You get the full £12,570 Personal Allowance. The number 1257 means £12,570 (multiply by 10), L means standard allowance.
M1 = monthly, W1 = weekly. Each pay period calculated separately, not cumulatively. May result in overpaying tax. Contact HMRC to fix.
All income taxed at 20% with no Personal Allowance. Often used for second jobs where your allowance is used by your main employer.
All income taxed at 40%. Used for second jobs when you're already a higher rate taxpayer from your main job.
No tax-free allowance applied. All income is taxed. Often used temporarily when HMRC needs more information about your tax affairs.
You owe tax from previous years or have taxable benefits that exceed your allowance. The K number is added to your income before tax.
| Letter | Meaning | Common Use |
|---|---|---|
| L | Standard Personal Allowance | Most employees under 65 |
| M | Marriage Allowance recipient | Received 10% of partner's allowance |
| N | Marriage Allowance transferor | Transferred 10% to partner |
| T | Other calculations needed | High earners, complex situations |
| S | Scottish taxpayer | Lives in Scotland, different rates |
| C | Welsh taxpayer | Lives in Wales (same rates as England) |
Emergency tax codes are temporary codes used when HMRC doesn't have enough information about you. They often result in paying too much tax.
Each month calculated independently. Previous months' earnings ignored. Common when starting a new job.
Each week calculated separately. Same as M1 but for weekly-paid employees.
All income taxed at 20% with no allowance. Used when no P45 provided and form not completed.
No tax-free allowance, non-cumulative. You'll definitely overpay tax. Urgent HMRC contact needed.
Click any salary to see the full calculation in the calculator above:
| Feature | PAYE (Employees) | Self-Assessment |
|---|---|---|
| How Tax is Paid | Deducted from salary by employer | You calculate and pay directly to HMRC |
| When Tax is Paid | Each payday (weekly/monthly) | 31 January (+ 31 July for payments on account) |
| Who Calculates | Employer using your tax code | You (or your accountant) |
| Tax Return Required | Usually no | Yes, annually |
| Used By | Employees, pensioners | Self-employed, landlords, high earners |
PAYE (Pay As You Earn) is the system HMRC uses to collect Income Tax and National Insurance from employees. Your employer deducts tax from your wages before you receive your pay, based on your tax code. In 2025/26, the tax-free Personal Allowance is £12,570, meaning you pay 20% on income between £12,571-£50,270, 40% on £50,271-£125,140, and 45% above that.
Common reasons for wrong tax codes: HMRC has outdated information about your income, you have benefits in kind (company car, health insurance) not accounted for, you have multiple jobs and allowances are split incorrectly, you owe tax from previous years, or there's simply an administrative error. Check your Personal Tax Account at gov.uk to see what information HMRC holds about you.
If you've overpaid tax, you can claim a refund by: updating your tax code through your Personal Tax Account (refund through payroll), calling HMRC on 0300 200 3300, or completing form P50 if you've stopped working. If you're still employed, HMRC will usually adjust your tax code to give you the refund through your wages.
When you leave a job, your employer gives you a P45 showing your earnings and tax paid. Give this to your new employer so they can use the correct tax code. Without a P45, you may be put on an emergency tax code and overpay tax until HMRC updates your records. If you're starting work for the first time, complete your employer's Starter Checklist.
Yes, National Insurance is deducted through PAYE alongside Income Tax. In 2025/26, employees pay 8% NI on earnings between £12,570 and £50,270, and 2% on earnings above £50,270. Your employer also pays 13.8% NI on your earnings above £9,100 (though this doesn't come from your wages).
Expert Reviewed — This calculator is reviewed by our team of financial experts and updated regularly with the latest UK tax rates and regulations. Last verified: January 2026.
Last updated: January 2026 | Verified with latest UK rates
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