Explainer
Payment Plus explained
Payment Plus can look brilliant on paper. This guide explains what it is and why your take-home can be lower than the headline rate.
What it is
Extra pay for additional hours/cover. The headline rate is gross.
Why it feels “less”
Often taxed at your marginal rate, plus NI and sometimes pension.
Best next step
Use the calculator to estimate net in seconds.
What Payment Plus is (plain English)
Payment Plus is a way of paying extra for additional hours/cover in many workplaces. The headline rate can look great — but take-home depends on your tax band, NI and pension.
Why take-home is often lower than expected
- Marginal tax: extra pay may be taxed at your marginal rate.
- NI: National Insurance applies too.
- Pension: contributions may be taken depending on scheme/rules.
Rule of thumb: if you’re near a band threshold, extra pay can “feel” like it gets hit harder. That’s exactly why the after-tax estimate page exists.
Worked example (simple)
Extra hours
8
Rate (gross)
£22/hr
Gross pay
£176
Your net might be notably lower depending on your band. Use the calculator for a quick estimate.