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What is PAYE? (Employment)

 

 

 

On your wage slip you will see the amount of tax you are paying monthly or weekly. Alongside this amount there will be deductions for your pension and national insurance. It is automatically deducted from your wages or salary by your employer and you get a notification of how much tax you have paid in the year.

Beyond grumbling over what has been taken out of your wages and checking you are being taxed in the right bracket, your responsibility ends.

Your employer is responsible for sending the tax to HMRC.

At the end of the year you get a P60 form, which details how much tax you are paying to the government.

Dull and depressing as this event may be, we think it is worth spending ten minutes mulling over with a comforting cup of tea and a biscuit, because mistakes can be made.

If you are given the wrong tax code or circumstances have changed for you, you could be paying more than you should be and will be entitled to claim your over-payment back.

If you are in a job where you have to take over-night stays in another part of the country, you incur travel expenses, you can claim any work related expenses. Speak to your employer and ask if they have an expenses policy to make sure you are not out of pocket unnecessarily.

As a business owner, a Coding Notice (CN) is a document issued by HMRC each tax year which advises an employer how much tax to deduct at each payroll date. The CN calculation starts with the 'Personal Allowance', which is the amount a taxpayer can earn free of UK tax. The Personal Allowance is then adjusted by you, your H.R or payroll team to reflect tax deductible items and taxable income.

 

 

Other Keywords: job; permanent; work; full-time; company; employee; employment; boss

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