EVERYTHING YOU NEED TO KNOW ABOUT YOUR PAYSLIP - ADVICE FROM THE NEXT STEP
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EVERYTHING YOU NEED TO KNOW ABOUT YOUR PAYSLIP ADVICE FROM THE NEXT STEP
INTRODUCTION 02 EVERYTHING YOU NEED TO KNOW ABOUT YOUR PAYSLIP. Completing your first month of work as a newly qualified doctor or dentist is a huge achievement, a milestone marked by your first pay day. Your earnings landing in your bank account will be accompanied by a payslip, which you may have posted to your home address or made available to you at work or online. It’s important to get hold of your payslip and understand what it outlines so you can check for any mistakes. In this article, we give a run through of the key features and common errors.
UNDERSTANDING YOUR 03
FIRST PAYSLIP
Upon qualification, new dentists are employed by their
Educational Supervisor’s practice and new doctors are employed
by the local NHS trust. As employees, you’ll pay income tax under
Pay As You Earn (PAYE) and will have Income Tax and National
Insurance deducted at source (i.e. before your pay reaches you),
as well as a student loan if you have one. You will also be
automatically enrolled into the NHS pension scheme, and
contributions for this will also be deducted at source.
PAYE
Pay As You Earn is your
gross pay
INCOME TAX
PAYSLIP
Deducted at source
NO.1
NATIONAL INSURANCE
National Insurance (Class 1)
contributions are deducted at source
STUDENT LOAN (IF YOU HAVE ONE)
Deducted at source
NHS PENSION SCHEME
NHS Superannuation is deducted at source
NET PAY
What you take home after all the deductions
have been taken offUNDERSTANDING YOUR 04 FIRST PAYSLIP You will most likely be paid monthly. In 2020/21, the basic pay (before tax, NI, student loan and pension) for DFT is £32,796 (£2,733.00 a month) and for FY1 is £28,243 (£2,353.58 a month). There are opportunities to earn more than your basic pay, especially when working at the hospital, due to how your hours fall on the rota. For example, you get a 37% uplift on your hourly rate for those worked during unsociable hours, and allowances for working weekends or on-call. The average across the rota cycle is calculated and added onto your basic pay to give your gross pay (that’s your basic pay plus any additions). More information on these additions is available in the NHS pay circular. From your gross pay, the following deductions are made: • National Insurance (Class 1) and Income Tax • NHS Superannuation (your NHS pension contribution) • Student loan repayments (if applicable) What is left is your net pay, and this will be paid into your bank account on ‘pay day’. By law, you must be given a payslip. All payslips follow more or less the same content, though they may vary in layout. They outline the amounts for your gross pay, net pay and each of the deductions that generate the difference, as well as providing some important references such as your payroll number and tax code. The actual figures in your payslip may vary due to your individual circumstances, for example if you have previously been paid for work in the current tax year, perhaps as an FiY1 or working over the summer, but the below serves as a good rough guide.
YOUR PAYSLIP EXPLAINED 05
ASSIGNMENT NUMBER EMPLOYEE NAME LOCATION
12345678 DR T N STEP Addenbrooke’s Hospital
DEPARTMENT JOB TITLE PAYSCALE DESCRIPTION
Paediatrics Foundation Year 1 Foundation Doctor Year 1
WG / WAGE INC DATE STANDARD HOURS PT SAL/WAGE
28243.00 40 28243.00
TAX OFFICE NAME TAX OFFICE REF TAX CODE NI NUMBER
Cambridge University Hos. 123/AB5678 1250L CUMUL AB123456C
PAY AND ALLOWANCES (*= MINUS AMOUNT) DEDUCTIONS(R INDICATES REFUND)
DESCRIPTION WRK/EARNED PAID/DUE RATE AMOUNT DESCRIPTION AMOUNT BALANCE C/F
Basic Pay 173.81 173.81 13.5411 2353.58 NI A 254.55
Addn Roster Hours NP 22.00 22.00 13.5411 297.90 NHS Pension 9.3% 218.88
Night duty 37% 24.00 8.88 13.5411 120.24 Doctors Mess 20.00
WeekendHERE’S WHAT IT MEANS 06
Assignment number rostered hours are overtime within sociable
This number is unique to you and enables your hours (7am – 9pm in England), given here at an
employer and payroll department to identify average of 22 hours this month, paid at the usual
you. rate. Unsociable hours are paid at 137% of your
hourly rate, so the basic rate is paid within your
Wage basic pay or additional rostered hours, and the
This is your basic salary for the year, and is set additional 37% paid within night duty, which is
against your job title and payscale. You’ll want why the figure in the paid/due column is 37% of
to check that these are correct, especially if as the figure in the worked/earned column. A
you progress through training or move between weekend allowance shown here is for an average
hospitals or trusts. of between 1 in 4 and 1 in 5 across the rota cycle,
Standard hours with a monthly payment of £141.21 giving an
This is the number of hours you work per week annual total of £1,695. In Wales, Scotland and
for your basic pay. If you are in a less than full Northern Ireland, your banding payments would
time position, this will be less than 40. You may show here instead of these allowances and
well work above your 40 hours per week, for uplifts. Your employer might also pay any
which you are paid above your basic pay. expenses owed to you via the payroll, which
would appear in this column.
Tax code
HM Revenue & Customs (HMRC) will send you Deductions
your tax code. The code tells your employer Your payslip must show the amount of variable
how much tax-free pay you should get before deductions, such as tax (called PAYE here) and
deducting tax from the rest, called your National Insurance (NI A). Your pension
personal allowance. This is set at £12,500 for contribution will also be shown (which is not
this tax year. This can be adjusted – it is subject to tax), and if you’re making repayments
increased when you claim tax relief on on a student loan, this will be shown on your
expenses, and reduced when you pay tax on a payslip as well. If you’ve signed up to make
benefit in kind, such as private medical contributions to the Doctors Mess, this will come
insurance if provided by your employer. If the out of your payslip here. You’ll normally start
code is wrong, you could end up paying too making student loan repayments from the April
much or too little tax, so you should check this following the date you graduate or leave your
against your latest tax code letter. The letter L in course. HMRC will tell your employer how to
England (S in Scotland or C in Wales) means that work out and deduct the right amount.
this personal allowance is being taken into Totals year to date and period summary
account. W1/M1/X/0T mean that the personal Your payslip will give totals for the pay period in
allowance is not being taken into account, questions and running totals for the financial
called ‘emergency tax codes’ and you could be year on pensions contributions, taxable pay and
paying more tax than you should be. This is National Insurance contributions etc. A financial
easily rectified through your employer’s payroll year runs from 6 April to 5 April.
or by contacting HMRC. If you have been in
employment in this tax year you will need to Pay Date
give your employer your P45, which will show This is the date your pay should be credited to
how much tax you have paid and your tax code. your bank account.
If you have not been in employment in this tax
Net pay
year, your Education Supervisor will ask you to
What’s left - for most of us this is the most
fill in form P46, which will generate a new tax
important figure on the payslip! This is the
code that matches your circumstances.
amount that will be paid into your bank account
National Insurance (NI) number once all deductions have been made. You should
You must have a NI number to work in the UK. check this figure against your bank statement to
You have the same NI number throughout your make sure it matches what is paid in.
whole life – even if you change your name. It’s
your personal identifier for the whole of the
social security system and is used to make sure Hint!
all your contributions are recorded properly. Finally, make sure your employer gives you a
These are important as they help to build up P60 at the end of the tax year (5th April each
your entitlement to state benefits and pension. year). This is a record of your pay and the tax
you’ve paid that tax year, which must be
Payments given to you by 31st May. You will also receive
This section shows how much you have earned a P45 at the end of your employment, for
in wages before any deductions are made. It example at the end of your DFT year. Keep
could also show any extra payments you have both these forms safe as you will need to
earned, through uplifts and allowances in them in the future, for example when you
England and banding in the rest of the UK. start your next job or become self-employed
Examples here are given for England. Additional as an Associate. You can also log in to HMRC
online using a Government Gateway login to
check these figures through the year.A FEW REASONS TO KEEP YOUR 07
PAYSLIPS IN A SAFE PLACE
1. SECURITY
Payslips contain a lot of personal
information about you and your earnings,
including your National Insurance number.
Keep them safe to help avoid them being
used for identity fraud.
2. RECORD KEEPING
It’s a good idea to keep a record of
all your earnings and tax
payments in case there’s a
problem and you need to check
old details.
3. EVIDENCE OF EARNINGS
For some financial products, such as
loans and mortgages, you might be asked
to prove your earnings by showing your
last three payslips.HOW THE NEXT STEP SUPPORTS YOU
WESLEYAN’S THE NEXT STEP
HELPS PREPARE FINAL YEAR
MEDICAL AND DENTAL
STUDENTS FOR WORKING LIFE
AND MAKE THE TRANSITION
BETWEEN UNIVERSITY AND
YOUR FOUNDATION TRAINING
A LITTLE EASIER.
For more information and access to more
resources like this, visit The Next Step Student
Hub. We’re sharing insights and information
over on our Instagram and Facebook channels
too, including details about our upcoming
events.
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