Big Moves · Guide
Your first job
Everything that happens to your pay before it reaches you — and the paperwork worth keeping.
Your first payslip, line by line
| Line | What it means | Example on £24,785 a year |
|---|---|---|
| Gross pay | Your pay before anything comes off | £2,065 |
| Tax code | How much you can earn tax-free. 1257L is normal | 1257L |
| Income tax (PAYE) | 20% of what you earn above £12,570 a year | −£204 |
| National Insurance | 8% above £12,570; builds your State Pension | −£81 |
| Pension | Usually 5% of qualifying earnings from you, at least 3% from your employer | Depends on your scheme |
| Student loan | 9% above your plan’s threshold | £0 on Plan 5 |
| Net pay | What reaches your account | £1,780 before pension |
TL;DRFull-time on the National Living Wage, about £1,780 a month reaches you before pension. Check the tax code first — it’s the line most likely to be wrong.
Worth knowing
£12.71an hour is the National Living Wage for 21 and over from April 2026. It’s £10.85 at 18–20 and £8.00 for under-18s and apprentices.GOV.UK
22+and earning over £10,000 a year with one employer? You’ll be enrolled in a workplace pension automatically. You can opt out, but you lose your employer’s contribution.GOV.UK
W1 / M1at the end of your tax code means an emergency code — you might pay too much tax until HMRC has your details. It usually fixes itself, with a refund.GOV.UK
P45 + P60Keep them. Your P45 comes when you leave a job; your P60 every April shows your pay and tax for the year.GOV.UK
TL;DRMost of this happens automatically. Your job is to check the tax code, keep your P45 and P60, and decide about the pension.
Your 5-minute move
Check your tax code
Find it on your payslip or in the HMRC app. If it isn’t 1257L, it’s worth finding out why.
Receipts · checked 9 November 2026