Working & Your Paycheck
Your first Payslip
P45s and P60s
National Insurance
Your first payslip shows how your gross pay turns into the money you actually take home, with tax, National Insurance and other deductions clearly listed.
P45s and P60s are official forms that summarise your pay and tax for a job, helping you prove what you’ve earned and how much tax you’ve already paid.
National Insurance is money taken from your pay that helps fund state benefits like the State Pension, so paying it builds up your entitlement for the future.
Gross Pay vs. Net Pay
PAYE: Pay As You Earn
Tax on Part-Time & Summer Jobs
Gross pay is your total earnings before any deductions, while net pay is the amount you actually take home after tax, National Insurance and other deductions are taken off.
PAYE (Pay As You Earn) is the system your employer uses to take income tax and National Insurance from your pay before it reaches your bank account.
Tax on part-time and summer jobs still follows the same rules as other work, so you may pay income tax and National Insurance depending on how much you earn in total during the tax year.
Self-Employment & Side Hustles
Self-employment and side hustles give you more control over how you earn, but also add tax responsibilities. Knowing how to track income, claim expenses and report on time helps you stay compliant and keep more of what you make.