P · Glossary
PAYE
Pay As You Earn — system for collecting tax + NI from employees' wages.
PAYE (Pay As You Earn) is the system for collecting income tax and Class 1 NI from employees. Employer calculates, deducts and remits to HMRC each pay run. Code-driven: your tax code (e.g. 1257L) tells the employer how much PA to apply.
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