{"id":1704,"date":"2022-01-12T00:23:33","date_gmt":"2022-01-12T00:23:33","guid":{"rendered":"https:\/\/uk.legalvision.com.au\/?p=1704"},"modified":"2022-06-07T07:24:26","modified_gmt":"2022-06-07T06:24:26","slug":"paye-scheme","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/employment\/paye-scheme\/","title":{"rendered":"What is PAYE in England and Wales?"},"content":{"rendered":"

As an employer, you are responsible for paying your employees their pay. However, this is not as straightforward as handing them the agreed hourly, weekly or monthly rate of pay. Instead, where your employees meet certain conditions, you will be required to pay them through PAYE. Paying your employees through PAYE requires you to calculate and make a specific deduction to their salary before paying it to them. There are strict rules relating to this, which you must note. <\/span>This article will explain what PAYE means, when you may need to use it, and how to operate it. It will also explain the types of deductions you may need to make from your employee\u2019s salary and what to do with these.<\/span><\/p>\n

What Does PAYE Mean?<\/span><\/h2>\n

PAYE stands for pay as you earn. It is a system run by<\/span> Her Majesty\u2019s Revenue and Customs (HMRC)<\/span><\/a> for employers to operate.<\/span><\/p>\n

It allows for collecting<\/span>\u00a0Income Tax<\/span><\/a> and<\/span>\u00a0National Insurance<\/span><\/a> during employment before your employees can receive their salary<\/a>. An employee will have one or more tax codes that will allow for calculating tax from their earnings. If an employee’s tax code is incorrect, it is generally up to your employees to sort this out.<\/span><\/p>\n

What Are The Rules Regarding When to Use PAYE?<\/span><\/h2>\n

As an employer, you may have to run a PAYE scheme if your employees:<\/span><\/p>\n