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The (New) SmartWork Payslip Explained

This guide explains each part of your new SmartWork payslip so you can understand exactly how your pay is calculated and what each section means. As an umbrella company, SmartWork receives your assignment rate from your agency and processes all employment-related costs before paying you your net income.

Header Information

  • Employee Name / Number / NI Number: Your personal details.
  • NI Category: Determines how much National Insurance you pay.
  • Tax Code: Indicates how much tax-free income you’re entitled to (e.g. 1257L = £12,570 tax-free annually).
  • Pay Date: The date you’re paid.

Company Income and Costs

This section shows how much SmartWork receives from your agency and the employer costs deducted from that amount before calculating your pay.

  • Company Income Received: The total assignment rate SmartWork received for your work (e.g. £1,000.00).
  • Apprenticeship Levy: A small percentage (0.5%) paid by the employer to support apprenticeships.
  • Employer’s National Insurance: A legal obligation based on your earnings – not taken from your pay.
  • Company Margin: SmartWork’s fixed margin for managing your employment.

These costs are deducted before calculating your gross pay. They do not directly reduce your take-home pay.

Assignment Rate

  • Units / Rate / Total: Shows the number of hours or days worked (e.g. 5 days at £200 = £1,000).
  • Agency/Description: The source of the income – usually your agency or client.

Payments Breakdown

This shows how your gross pay is calculated from the remaining funds.

  • Basic Rate: Your pay at National Minimum Wage (NMW) – this forms part of your gross salary.
  • Holiday Pay: Accrued holiday pay that is paid in advance (you’ll still be paid when on leave).
  • Additional Taxable Wage: The rest of your gross pay above the NMW, which reflects your contract rate.

All these amounts are taxable income and appear in your gross earnings.

Deductions

These are your statutory employee deductions:

  • PAYE (Income Tax): Based on your tax code and earnings.
  • Employee’s NI: National Insurance based on your NI category and pay level.

Pension contributions are not shown in this sample because the illustration shows a deferred employee. If you’re auto-enrolled (after 90 days), this will appear as a deduction.

Umbrella Illustration

  • Period: The tax week or month this payslip covers (e.g. Period 11).
  • Pay Frequency: Weekly or monthly.

Summary Section

This Period

  • Total Taxable Pay: The total gross earnings before deductions.
  • Earnings for NICs: The portion of your pay on which NI is calculated.
  • Expenses: Reimbursable business expenses (if any).
  • Net Payment: The amount paid to your bank account – your take-home pay.

Year to Date Totals for:

  • Taxable Pay
  • NIable Pay
  • PAYE Income Tax
  • National Insurance

Additional Notes

This payslip is based on the 2025/26 tax year using the 1257L tax code on a week 1/month 1 basis.

  • Holiday Pay is paid up front – you will still be paid when taking time off.
  • Mileage Claims: Subject to supervision, direction, and control (SDC) assessment.
  • Auto-Enrolment: If eligible, you will be automatically enrolled into a pension after 90 days. You’ll have the option to opt out at that point.
  • Assignment Rate: The rate invoiced by SmartWork and inclusive of all employment costs (Employer NI, Apprentice Levy, holiday pay, pension, etc.).

Frequently Asked Questions (FAQs)

What are the most common tax codes?

  • 1257L: Standard tax-free allowance of £12,570 for the 2025/26 tax year
  • NT: No tax deducted
  • 0T: Full income taxed – P45 or P46 not provided
  • BR: 20% tax on second income
  • D0: 40% tax on higher-rate second income
  • D1: 45% tax on income
  • Wk1/Mth1 (Emergency Code): Equal tax-free allowance applied per pay period

Why do I pay Employer’s National Insurance and the Apprenticeship Levy?

These are standard employment costs covered by the assignment rate, which is the total amount SmartWork receives for your work. This includes:

  • Employer’s NI
  • Apprenticeship Levy
  • Employer’s pension contributions

These costs do not come out of your take-home pay. They are accounted for separately and are explained in your Key Information Document (KID).

How do I opt out of the workplace pension?

You’ll receive details from The People’s Pension Group by email. If you haven’t received this, please email: payroll@smartwork.com

Will all my tax liabilities be taken care of?

Yes. SmartWork pays all:

  • VAT
  • PAYE
  • National Insurance
    … directly to HMRC on your behalf.

I think I’m on the wrong tax code – what should I do?

Contact HMRC directly on 0300 200 3300. They will issue SmartWork with a revised code.

Why is my home address on my employment contract?

This allows you to work at multiple sites without needing new contracts every time you move.

Do I need to upload timesheets to both my agency and SmartWork?

Yes — unless your agency uses a self-billing system, in which case, they pay SmartWork directly without the need for invoicing.

What if I don’t have my P45?

You will complete an NSC (New Starter Checklist) during the SmartWork registration.

Need Help?

If you have questions about your payslip, tax code, or deductions, our payroll team is here to help:

📧 payroll@smartwork.com
📞 0800 434 6446