UK payslips explained · 2026/27 tax year

Why has my take-home pay gone down?

A lower net payment does not always mean your employer has made a mistake. A change in tax, National Insurance, pension deductions, student-loan repayments or your gross pay can all affect the amount that reaches your bank account.

Common reasons take-home pay falls

Gross pay changed

Unpaid leave, reduced hours, a lower commission or bonus, sick pay, a salary-sacrifice change, or a different pay period can reduce the starting amount.

Income Tax increased

Your tax code may have changed, PAYE may have corrected earlier tax, or a bonus or extra payment may have pushed part of that payment into a higher tax band.

Pension contribution increased

Automatic enrolment, a contribution-rate change, or a scheme that uses full salary rather than qualifying earnings can change the amount deducted.

Student-loan deduction started or rose

Repayments are normally calculated separately for each pay period. A higher payment can cross the relevant threshold even if your annual salary has not changed.

Other deductions appeared

Examples include workplace benefits, union subscriptions, attachment orders, season-ticket loans, overpayment recovery or charitable-giving arrangements.

Could a tax-code change be the reason?

Look for a new code on your payslip. A code ending in M1, W1, X or NONCUM means payroll calculates tax using that period only, rather than earlier pay and tax in the year. A later move back to cumulative PAYE can also produce an adjustment.

Do not assume a different code is wrong: HMRC can change it when your circumstances or information change. But it is worth checking that it matches your employment and allowances.

How to investigate a lower payslip

1. Put the latest and previous payslips side by side and identify which deduction or pay item changed.
2. Use the payslip checker with the current payment's figures, pay frequency, tax code and pension method.
3. Check the code with the tax-code checker and, if necessary, your HMRC Personal Tax Account.
4. Ask your payroll team to explain any item you do not recognise. They can confirm the pay period, pension basis and employer-specific deductions.
5. Contact HMRC if you believe your tax code or personal circumstances are wrong.

When a lower payment can be expected

A one-off bonus, commission payment or overtime can increase deductions in that period. National Insurance and student-loan repayments are normally calculated per pay period, so their treatment can differ from annual salary estimates. Pension changes also reduce net pay, although they can increase the amount going into your pension.

When to query it promptly

Speak to payroll promptly if the gross pay, hours, rate of pay, pension percentage, deduction or bank details appear wrong. If the issue is a tax code that does not reflect your circumstances, use HMRC's official services rather than relying only on a calculator estimate.

Check your own figures