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KembaraXtra – Legal Terms – Pay As You Earn (PAYE)
Pay As You Earn (PAYE) is the system used in the United Kingdom to collect income tax and National Insurance contributions directly from employees’ wages.
Under the PAYE system, employers deduct tax and contributions before paying employees their salaries.
HM Revenue and Customs issues tax codes that employers use to calculate deductions.
Employers are responsible for forwarding the deducted amounts to HM Revenue and Customs.
The system also facilitates collection of student loan repayments and certain other statutory deductions.
Pay As You Earn (PAYE) is the system used in the United Kingdom to collect income tax and National Insurance contributions directly from employees’ wages.
Under the PAYE system, employers deduct tax and contributions before paying employees their salaries.
HM Revenue and Customs issues tax codes that employers use to calculate deductions.
Employers are responsible for forwarding the deducted amounts to HM Revenue and Customs.
The system also facilitates collection of student loan repayments and certain other statutory deductions.
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