Introduction

PAYE (Pay As You Earn) is the HM Revenue & Customs system for collecting income tax from the pay of employees, including directors, as they earn it.

 

As an employer, you need to deduct income tax and National Insurance contributions (NICs) from your employees’ pay and submit the deductions to HM Revenue & Customs.

 

This guide explains how you deduct income tax and NICs, introducing the various forms and processes involved.

Subjects covered in this guide

• Introduction
• Employer’s responsibility for PAYE
• Getting started with PAYE
• When to apply PAYE
• Employee tax codes
• PAYE forms - and when to use them
• Where to get further information on PAYE