PAYE

PAYE, or Pay As You Earn, is a system used by employers to deduct income tax and National Insurance contributions from employees' wages before paying them. This means employees receive their net salary, after these deductions, directly into their bank accounts. Employers then send the collected amounts to the government regularly. PAYE ensures taxes are paid steadily throughout the year, making tax collection more efficient and helping employees avoid large, unexpected tax bills at year-end. It's a straightforward way to manage tax payments, ensuring compliance and ease for both employees and the government.