PAYE, Self Assessment, tax codes, National Insurance. The UK tax system works very differently to SA. Here is what you need to understand from day one.
PAYE: if you are employed
PAYE means your employer deducts income tax and National Insurance from your salary before you receive it. You do not file a tax return unless you have other income.
- Check your tax code on your first payslip. Standard code for 2026-27 is 1257L, meaning you can earn £12,570 tax-free annually. An emergency code (W1 or M1 suffix) means you are being taxed at a higher rate. Contact HMRC to correct this.
- Income tax rates 2026-27 — 0% up to £12,570. 20% on £12,571-£50,270. 40% on £50,271-£125,140. 45% above £125,140.
- National Insurance — 8% on earnings £12,570-£50,270. 2% above £50,270.
Self Assessment: if you are self-employed
- Register at gov.uk/register-for-self-assessment as soon as you start self-employed work.
- UK tax year: 6 April to 5 April. Self Assessment return for 2025-26 due by 31 January 2027.
- Keep receipts and records of all business income and expenses throughout the year.
Sending money to SA
- Wise — Consistently best exchange rates, low fees. Most popular with saffas in the UK.
- Mukuru — SA-focused money transfer. Good rates, widely used in the saffa community.
- Avoid: using your UK bank's standard international transfer. Rates and fees are significantly worse.
Your UK payslip explained
- Gross pay — Your total salary before deductions
- Income tax — Deducted via PAYE based on your tax code
- Employee NI — National Insurance contributions (you pay this)
- Employer NI — Your employer's NI (shown for information, you do not pay this)
- Net pay — What arrives in your bank account
- Pension contribution — Auto-enrolled workplace pension (minimum 5% employee + 3% employer from 2026)
If you earn over £10,000/year, your employer automatically enrols you in a workplace pension. You contribute minimum 5%, your employer contributes at least 3%. Never opt out. The employer contribution is free money.
Information correct as of August 2026. UK tax rates change each April. Always verify at hmrc.gov.uk. Saffa does not provide tax advice.