Why your payslip is cumulative

Each payslip looks at your whole year so far, so deductions even out.

Your employer compares your pay so far this year with your credits and band so far this year. If an earlier month was low, the next one catches up by using the unused credits. That's why the tax on two identical payslips can differ. This is called the cumulative basis.

Terms: Cumulative basis

All payslip topics · General information, not tax advice.