P A Y E
The Pay As You Earn (PAYE) system is a method of paying income tax. The Salaries Office deducts tax from an employees wages or occupational pension before paying the wages to the employee. Wages includes sick pay and maternity pay. This means that the employee pays tax over the whole year, each time s/he is paid. The Salaries section is responsible for paying the tax monthly to HMRC.
If an employee pays tax on her/his wages or occupational pension under PAYE, the PAYE system can also be used to collect the income tax of any other taxable income s/he has. For example, if the employee pays tax under PAYE on an occupational pension, the tax due on her/his state retirement pension is collected through PAYE by deducting tax from the occupational pension.
For further information, please visit: