[peɪ æz juː ɜːn (piː-eɪ-waɪ-iː)]
Pay as you earn (PAYE) is a system that allows an employer to deduct Income Tax and National Insurance directly from an employee's salary.
Pay as you earn (PAYE) is a system used by employers in the United Kingdom to deduct Income Tax and National Insurance contributions directly from Employees' salaries. This system was introduced to make the tax system simpler and more efficient for Employees.
The amount of tax deducted is calculated using the employee's earnings and their Tax Code. You can provide your employer with your P45 in order for them to have the correct Tax Code. The money is then paid directly to HMRC by the employers.
PAYE can also deduct other things like Pension contributions and Student Loan repayments.
Employees may also need to submit a Self Assessment if they earn over £100,000 or have other forms of income. At Earnr, we can help you with your Self Assessment to save you time and make sure it is correct.
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