First job money checklist: payslips, tax and pensions
Quick answer: Starting your first job? Check your tax code is right, understand the deductions on your payslip, stay in your workplace pension, and set up a simple budget and savings habit from your first payday.
Your first pay packet comes with a payslip full of deductions and a few decisions that can pay off for decades. This checklist covers the money basics to get right when you start work.
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Primary source: https://www.gov.uk/income-tax
Get your payslip and tax right
Your payslip lists your gross pay and the deductions: Income Tax, National Insurance and (usually) a pension contribution. Check your tax code — most people on a single job get the standard code, and a wrong code is the most common reason for over- or under-paying tax. You can check and fix it through your HMRC online account.
If you start partway through the year or have more than one job, keep an eye on the code, as emergency codes can over-tax you until HMRC catches up.
Pensions and saving early
Under auto-enrolment, most employees are put into a workplace pension that the employer also pays into. Staying in means free employer money and tax relief — opting out throws that away, so it is rarely worth it even on a low salary.
Set up a small standing order to a savings account on payday to start an emergency fund. Building the habit early matters more than the amount.
Common questions
Should I opt out of my workplace pension?
Usually no. Your employer and the government both contribute, so opting out means turning down free money. Only consider it if you genuinely cannot afford the contribution.
How do I check my tax code is correct?
Sign in to your HMRC online account or the HMRC app to see your tax code and what it means. Contact HMRC if it looks wrong, especially after starting a new job.