Learning Guide · 5 chapters

Payroll Deep Dive

Under the hood of the UK payroll engine. Gross-to-net, PAYE + personal allowance, NI categories + director method, pension contributions, and salary sacrifice savings explained.

  1. 1
    How gross-to-net works
    A walk through every line on a UK payslip, in the order Blankitt HR calculates them.
  2. 2
    PAYE, tax codes and the personal allowance
    What each tax code format means, how cumulative calculation works, and why the personal allowance disappears above £100,000.
  3. 3
    National Insurance categories and the director method
    How the eight NI categories work, when to override the default, and why directors calculate NI differently.
  4. 4
    Pension contributions: relief at source, net pay and salary sacrifice
    The three pension contribution modes UK auto-enrolment supports, how they each interact with tax and NI, and which one to pick.
  5. 5
    Salary sacrifice — your savings explained
    How sacrifice arrangements save tax and NI for pension, cycle to work, EV schemes and holiday buy. When to use it and when to walk away.