NHS doctors are typically employed on a PAYE (Pay As You Earn) basis. This means that your employer deducts income tax and National Insurance contributions automatically from your salary. The amount of tax you pay depends on your income level and is calculated based on the UK’s progressive tax rates. Your tax code, which you can find on your payslip, determines how much tax is taken from your salary. It’s important to check that your tax code is correct to avoid paying too much or too little tax.