16-Year-Old Payslip: Why has HMRC taken no tax?

When you get your first payslip at 16, seeing no tax deducted is perfectly normal. However, it is not because "children don't pay tax." Age has absolutely nothing to do with Income Tax in the UK. A 16-year-old pays the exact same Income Tax rates as a 45-year-old CEO.

The reason you are paying zero tax is purely mathematical, based on two massive tax-free thresholds.

Reason 1: You haven't earned £12,570 yet (Income Tax)

Every single worker in the UK gets a Personal Allowance. For the 2026/27 tax year, this allowance is £12,570. This means the first £12,570 you earn in a tax year (which runs from April 6th to April 5th) is completely protected from Income Tax.

Because you are 16 and likely working part-time around school or college, your total earnings for the year will almost certainly fall below £12,570. Therefore, your employer's payroll software knows not to deduct any Income Tax.

If you were to drop out of school and somehow land a full-time job paying £30,000 a year at age 16, you would absolutely pay 20% Income Tax on the amount above £12,570.

Reason 2: You are exempt from National Insurance

While Income Tax doesn't care about your age, National Insurance (NI) absolutely does.

By law, you do not pay a single penny of National Insurance until you reach your 16th birthday. Once you turn 16, you are technically liable for NI, but you still won't pay it unless you earn over the Primary Threshold (currently £242 a week or £1,048 a month).

As a teenager working weekend shifts, it is highly unlikely you will earn more than £242 in a single week. As long as your weekly wage stays below that threshold, your National Insurance deduction will be £0.

Minimum Wage for 16 and 17-Year-Olds

When checking your payslip, the most important thing to verify is your hourly rate. It is illegal for an employer to pay you less than the National Minimum Wage.

For the 2026/27 tax year, the legal minimum wage specifically for 16 and 17-year-olds is strongly enforced. Even if you are on a "probation" or "training" period, you must be paid at least the legal minimum for your age bracket for every hour you are at the workplace.

(Note: If you are an apprentice, there is a different, lower Apprentice Rate that applies in your first year).

Working Hour Restrictions (Child Employment Laws)

If you are 16 or 17, the law considers you a "young worker." You have much stricter employment protections than adults. Check your payslip to ensure your employer isn't illegally overworking you:

• You cannot legally work more than 8 hours a day.
• You cannot legally work more than 40 hours a week.
• You cannot do "night shifts" (usually defined as working between 10pm and 6am).
• You are legally entitled to a 30-minute rest break if your shift lasts longer than 4.5 hours.

If your payslip shows 45 hours of work in a single week, your employer is breaking the law, and you should speak to your parents, guardians, or a manager immediately.

Frequently Asked Questions