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Answers · UK Tax · Payroll · VAT · Pensions

Plain-English explainers

UK payroll, PAYE, VAT, pensions, and Self Assessment topics — every claim cited against gov.uk and legislation.gov.uk.

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Payslips & PAYE

Pay, pensions & student loans

Proof of income & receipts

VAT & exports

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Payslips & PAYE

PAYE·15 April 2026·8 min read

How Do I Read a UK Payslip? (2026/27 Anatomy Guide)

By law a UK payslip shows gross pay, every deduction, net pay, and hours where pay varies. Read in order: identifier block, gross, deductions, year-to-date, net. This guide also covers gross vs net, benefits in kind, tax-year dates, umbrella and agency payslips, and rebuilding a lost past payslip.

PAYE·18 April 2026·3 min read

How Does UK PAYE Work in 2026/27? (Worked Example)

PAYE assigns a tax code (default 1257L = £12,570 tax-free) and applies the 2026/27 bands cumulatively each pay period. Scotland sets its own rates.

PAYE·25 June 2026·3 min read

What Is Emergency Tax (Week 1 / Month 1)?

An emergency tax code ends W1, M1 or X. It taxes each pay period in isolation instead of cumulatively, so you often overpay. HMRC corrects it and any overpaid tax is refunded, usually within the same tax year.

PAYE·25 June 2026·4 min read

What Is Salary Sacrifice and How Does It Show on My Payslip?

Salary sacrifice means giving up part of your cash pay in return for a non-cash benefit, such as extra pension or a cycle-to-work bike. Because your taxable salary falls, you pay less income tax and National Insurance on a smaller amount.

PAYE·16 July 2026·4 min read

Does the India-UK deal remove National Insurance from my payslip?

From 15 July 2026, an Indian employee posted to the UK by an India-based employer pays no UK National Insurance for up to 60 months, under the CETA Double Contributions Convention. Income tax and PAYE are untouched.

Pay, pensions & student loans

PAYE·26 June 2026·5 min read

UK Statutory Pay Explained: How Much Are SSP and SMP?

Statutory Sick Pay (SSP) and Statutory Maternity Pay (SMP) are the two legal-minimum payments your employer must run through payroll. For 2026/27 SSP is £123.25 a week for up to 28 weeks, paid from the first qualifying day. SMP is paid for up to 39 weeks: 90% of your average weekly earnings for the first 6 weeks, then the lower of £194.32 a week or 90% of earnings for the next 33 weeks.

PAYE·26 June 2026·4 min read

What Counts as a Qualifying Year for the State Pension?

A qualifying year is a tax year in which you paid or were credited with enough National Insurance to count toward your State Pension. You need 35 qualifying years for the full new State Pension of £241.30 a week in 2026/27, and at least 10 to receive any of it.

PAYE·21 April 2026·3 min read

Which UK Student Loan Plan Am I On?

Five plans in 2026/27: P1 £26,900, P2 £29,385, P4 £33,795, P5 £25,000, Postgrad £21,000. 9% above the threshold (6% for Postgrad).

PAYE·26 June 2026·4 min read

What Is an Attachment of Earnings Order on My Payslip?

An attachment of earnings order (AEO) is a court instruction telling your employer to take money from your pay to clear a debt such as unpaid fines or council tax. A deduction from earnings order (DEO) is the equivalent for child maintenance, set by the Child Maintenance Service rather than a court.

PAYE·9 May 2026·3 min read

What Do I Do If I Lost My P45?

HMRC does not reissue P45s. The Starter Checklist is the prescribed substitute for any new starter without a recent P45; picking the right A/B/C statement determines the starting tax code.

Proof of income & receipts

PAYE·9 May 2026·4 min read

How Do I Get a Replacement P60 in the UK?

Most employers reissue P60s on request, but it's not a statutory duty. The HMRC Personal Tax Account holds P60-equivalent figures for the last 5 tax years. Lenders verify P60 and payslip figures against what HMRC already holds, so the figures on a replacement must reconcile.

Mortgage·31 May 2026·3 min read

SA302 or P60: Which Document Do UK Lenders Want?

P60 evidences PAYE income; SA302 evidences self-assessed income. Which one a UK mortgage lender asks for depends on how you are paid, not which is easier.

Self Assessment·18 July 2026·3 min read

How Do I Make a Payslip If I Am Self-Employed or a Sole Trader?

A sole trader does not get a payslip, because a payslip is an employer document under Employment Rights Act 1996 s.8 and you are not your own employee. You evidence self-employed income with the SA302 and Tax Year Overview instead.

Self Assessment·18 July 2026·3 min read

How Do I Show Proof of Income Without a Payslip?

Without payslips, UK income is proven with the HMRC SA302 and Tax Year Overview, bank statements, an accountant's letter, and signed contracts. Lenders and landlords accept these for self-employed and irregular income.

Document compliance·27 May 2026·5 min read

When Should a UK Business Issue a Payment Receipt?

UK receipts are not required on every payment but are routine for cash, expenses, and paired with VAT invoices. A receipt confirms payment; a quotation precedes the work; a VAT invoice demands it. Retention: 5 years sole trader, 6 years company.

VAT & exports

VAT·26 June 2026·5 min read

Input VAT vs Output VAT: What's the Difference?

Output VAT is the VAT you charge on sales; input VAT is the VAT you pay on purchases. Your VAT return reports the difference and you pay HMRC the net, under sections 24 to 26 of the VAT Act 1994. This guide also covers the £90,000 registration threshold and the Making Tax Digital rules.

VAT·26 June 2026·3 min read

What Is a Simplified VAT Invoice?

A simplified VAT invoice is a shorter invoice allowed for supplies of £250 or less including VAT. It needs only five fields instead of the full set, under Regulation 16 of the VAT Regulations 1995.

VAT·17 July 2026·4 min read

How Do I Make a CETA-Compliant VAT Invoice for Exports to India?

Two documents, not one. Raise a standard UK VAT invoice (usually zero-rated for export) as the commercial invoice, then claim CETA's preferential tariff on a separate origin declaration you register for with HMRC. The invoice does not carry the origin claim.

VAT·18 July 2026·4 min read

Which Goods Qualify for the India-UK CETA Preferential Tariff?

Under the India-UK CETA (in force 15 July 2026), a preferential tariff applies only to originating goods: those wholly obtained in the UK or India, or sufficiently transformed under the product-specific rules. Eligibility is proven with an origin declaration, not the invoice.

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VAT·9 September 2026·4 min read

How Do You Self-Certify Origin Under CPTPP?

Under CPTPP Chapter 3, a UK exporter self-certifies origin: the exporter, producer, or importer completes a Certification of Origin with the nine Annex 3-B data elements. No chamber stamp or approved-exporter registration is required, and one certification covers all 11 CPTPP markets.

VAT·9 September 2026·4 min read

How Do You Make a UK-EU TCA Statement on Origin?

A UK-EU TCA statement on origin is the prescribed Annex ORIG-4 wording you place on your commercial invoice or another commercial document. It is self-declared with no chamber stamp, carries your GB EORI as the exporter reference number (or your full address if you have none), and secures the zero preferential rate for goods that qualify as originating.

VAT·9 September 2026·4 min read

When Do You Need a Non-Preferential Certificate of Origin?

A non-preferential Certificate of Origin certifies where goods were made, for letters of credit, quotas, and trade-defence cases; it claims no reduced duty. For official use it normally needs a UK Chamber of Commerce stamp, so a self-prepared PDF is a draft to submit for endorsement, not an issued certificate.

VAT·9 September 2026·4 min read

How Do You Complete an India-UK CETA Origin Declaration?

To complete an India-UK CETA origin declaration: confirm the goods are originating under the Annex 3A product-specific rule, register your EORI with HMRC, make the standalone Annex 3B declaration (not on the invoice), then have it authenticated by India's CBIC to obtain a URN before the importer can claim the preferential tariff.

References

Last modified on 9 September 2026