Plain-English explainers on how HMRC calculates Income Tax and National Insurance in 2026/27. Covers the bands, the frozen personal allowance, the £100k taper, employee NI rates, and how tax codes translate into what you actually pay.
A benefit in kind is a non-cash perk from your employer, such as private medical insurance or a company car, that can be taxable. HMRC often collects the tax by reducing your tax-free allowance in your tax code, which means more tax is taken from your salary through PAYE.
8 Aug 2026
Your tax code tells your employer or pension provider how much tax-free income to give you before deducting PAYE tax. A common code is 1257L, which usually means the standard £12,570 Personal Allowance for 2026/27. If your pay, benefits, pension or second job has changed, it is worth checking the code is still right.
28 Jul 2026
An emergency tax code means your employer does not yet have the right tax details for you, so PAYE uses a temporary code to tax your pay. It often happens when you start a new job or get taxable pay from a new source. If too much tax is taken, the refund is usually made through payroll or by HMRC.
28 Jul 2026
A UK tax refund means you paid more Income Tax than you owed, usually because your tax code, pay, or job situation changed during the tax year. You can check by reviewing your payslips, P60 and HMRC online account, then comparing the tax deducted with what should have been paid.
27 Jul 2026
The £100k tax trap happens when your income exceeds £100,000. At this point, you begin to lose your Personal Allowance, which increases the amount of your income that is taxed. Between £100,000 and £125,140, many people face an effective tax rate of around 60%, even though there is no official 60% tax band.
5 Jul 2026