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Showing posts from August, 2025

What is Shared Parental Leave in the UK? Know the Basics

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 Shared Parental Leave (SPL) is one of the UK’s more progressive employment rights, allowing parents to share leave and pay after the birth or adoption of a child. It’s designed to give families flexibility in caring for their new arrival, and to encourage both parents to take an active role in childcare. While SPL can be incredibly beneficial, the rules are detailed and sometimes confusing. Understanding how it works, who qualifies, and how to apply is key to making the most of it. What is Shared Parental Leave? Shared Parental Leave is a government scheme that lets eligible parents share up to 50 weeks of leave and 37 weeks of pay between them during the first year after the child’s birth or adoption. Instead of one parent taking the bulk of the leave (traditionally the mother), SPL enables both parents to decide how they want to split their time off, whether together, separately, or in blocks. How It Works in Practice Here’s the basic process: Maternity or Adoption...

What is PAYE Tax?

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  PAYE (Pay As You Earn) is the UK system where employers deduct Income Tax and National Insurance Contributions (NICs) from employees' wages before they're paid. This ensures employees pay the correct amount of tax throughout the year, rather than through a lump sum at the end. Key Elements of PAYE Tax Calculation To calculate PAYE tax correctly, you’ll need to understand the following components: 1. Tax Code Every employee is assigned a tax code by HMRC. This code tells the employer how much tax-free income the employee is entitled to. For example, a tax code of 1257L means the employee can earn £12,570 tax-free in a year. 2. Income Thresholds (2025/26) Income tax bands for England, Wales, and Northern Ireland: Band Income Range Tax Rate  Personal Allowance    Up to £12,570     0%      Basic Rate   £12,571 – £50,270    20%    Higher Rate   £50,271 – £125,140    40%  Additional R...

Why Are Payslips Important for Employees in the UK?

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 For many employees, payslips are something they glance at briefly and then forget. However, understanding your payslip is vital for keeping track of your earnings, deductions, and overall financial health. In the UK, it's also your legal right to receive one. Whether you’re full-time, part-time, or on a zero-hours contract, your payslip holds essential information that can impact your finances in more ways than you might think. What Is a Payslip? A payslip is a document given to employees each payday that details their earnings before and after deductions. It’s also known as a wage slip or pay statement . By law, all UK employees must receive a payslip on or before payday, either in digital or printed form. Key Information Found on a Payslip A standard UK payslip will typically include: Gross pay – total earnings before deductions Net pay – the amount paid after all deductions National Insurance (NI) contributions Income tax (PAYE) Pension contributions ...