Payslip Errors: What To Do If Your Pay or Tax Looks Wrong
Spotted something wrong on your payslip? Don’t ignore it. Payroll errors can affect your tax record, your take-home pay, and even your P60 at year end. Here’s exactly what to check, how to work out if there’s a mistake, and who to contact to get it fixed.
Common payslip errors
| Error | What it looks like | Likely cause |
|---|---|---|
| Wrong gross pay | Salary is lower or higher than agreed | Payroll entry error, pay rise not applied |
| Wrong tax deduction | Tax seems too high or too low | Incorrect tax code applied by HMRC or employer |
| Wrong NI deduction | NI is unexpectedly zero or very high | NI category error, earnings below threshold |
| Wrong tax code | Tax code doesn’t match what HMRC has | HMRC issued a new code that wasn’t applied |
| Missing student loan deduction | Loan deductions not showing | Plan details not set up in payroll system |
| Wrong NI number | NI number doesn’t match your records | Data entry error when you joined |
| Wrong name or address | Personal details are incorrect | Starter form error, name change not updated |
Step 1 — check the basics
Before contacting anyone, do a quick self-check:
- Gross pay — does it match your contracted salary or agreed hourly rate for this period?
- Tax code — is it 1257L or your expected code? Check your HMRC Personal Tax Account at gov.uk if unsure
- NI number — does it match your NI card or any HMRC correspondence?
- Deduction amounts — use the free OS Payroll salary calculator to check your expected tax and NI figures
→ Check your figures — free salary calculator
Step 2 — compare with previous payslips
Pull out your last two or three payslips and compare the figures side by side. Look specifically at:
- Has your gross pay changed unexpectedly?
- Has your tax deduction jumped or dropped without a corresponding change in salary?
- Have any new deductions appeared that you don’t recognise?
- Are the YTD (year-to-date) totals progressing correctly — each month higher than the last?
A sudden change in any of these figures without an obvious reason (bonus, pay rise, tax code update) is a red flag.
Step 3 — contact payroll or HR
If something looks wrong, contact your payroll or HR department as soon as possible — ideally before the next pay run, as corrections applied in the same month are simpler. When you contact them:
- State clearly what you believe is wrong and what you expected
- Reference the specific pay period and payslip date
- Keep copies of the payslips showing the error
- Use the salary calculator results as supporting evidence if the tax or NI looks wrong
Step 4 — contact HMRC if needed
If the error relates to your tax code — for example, you’re paying too much tax because your code is wrong — you may also need to contact HMRC directly. You can do this via:
- Personal Tax Account at gov.uk — update your tax code online
- Check your income tax service at gov.uk/check-income-tax
- Phone — 0300 200 3300 (Mon–Fri, 8am–6pm)
If you’ve overpaid tax as a result of an error, HMRC will arrange a refund — either through an adjusted tax code or a direct repayment.
What if the error affected multiple months?
If a payroll error has been running for several months, your employer should correct the cumulative amount, not just the current month. Make sure any correction covers the full period affected, and check your YTD figures are correct after the fix is applied.
If you believe the error has affected your end-of-year P60, ask your employer to reissue a corrected P60 after the correction has been processed through payroll.
Frequently asked questions
What should I do if I’ve been overpaying tax due to a payroll error?
Contact your payroll department and HMRC. If HMRC update your tax code, any overpayment will usually be refunded through reduced deductions in subsequent months. If the tax year has already ended, HMRC may issue a direct rebate.
My payslip shows BR tax code — is this an error?
Not necessarily — BR means all income from this job is taxed at 20% with no personal allowance. This is correct for a second job. If it appears on your main job, contact HMRC immediately — you are almost certainly overpaying tax.
Can I be penalised for a payroll error I didn’t cause?
Generally no — if the error was made by your employer or HMRC, you are not liable for any underpayment of tax resulting from it, as long as you didn’t know about it. HMRC has a system of ‘reasonable excuse’ that typically protects employees in these situations.
How long does my employer have to correct a payslip error?
There’s no fixed legal deadline, but errors should be corrected in the next available pay run. If your employer is slow to act, you can raise a formal grievance and, if needed, contact HMRC or ACAS.
What if my P60 figures are wrong because of a payslip error?
Contact your payroll department straight away. Your employer can submit a corrected submission to HMRC and reissue your P60. Keep copies of all payslips showing the discrepancy as evidence.
This post is for general information only and does not constitute financial or tax advice. For queries about your specific situation, contact your payroll department or HMRC.