PAYE is the system under which your employer deducts income tax from your pay during the year. It is a sophisticated system as it takes into account your personal allowances and the different tax rates and tax bands. The tax deducted must be shown on your payslip each pay day, and on the P45 which is given to you when you leave that employment, or on the P60 form which is given to you at the end of the tax year.
A system operated by employers for collecting income from employees and making payment to the Inland Revenue.
the British system of withholding tax
People who earn income from employment or who receive a pension are liable for income tax under the PAYE system.
Employees pay Schedule E income tax and the employer is responsible for deducting the tax due (in accordance with the employee's allocated tax code) and paying it to the Inland Revenue. Certain records must be kept by the employer for the benefit of the Inland Revenue.
Known as the PAYE scheme. A system whereby employees suffer income tax deduction at source from their salaries. Instead of paying the gross salary to the employee, the employer is obliged under law to deduct an appropriate amount of tax and remit this amount to the Inland Revenue.