[teɪk-həʊm peɪ]
Take-home Pay is the amount of money received by an employee from their employer once taxes and deductions are taken away through the PAYE system.
Take-home Pay refers to the amount of money that an Employee receives after taxes and deductions are taken off.
In the UK, employers are required to deduct several mandatory contributions from an Employee's salary. This includes Income Tax, National Insurance contributions, Pension contributions, and Student Loan Deductions. These are all automatically deducted through the PAYE system.
The amount of Income Tax that is automatically deducted depends on an individual's Tax Code. It is important to check that HMRC has all the correct information so that they are not deducting too much or too little tax.
Take-home Pay can be the same as Net Income if the individual does not have any deductions apart from tax. However, it is normally not the same as Net Income does not remove deductions like Student Loan Deductions.
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