PAYE

Stands for Pay As You Earn and relates to the way in which employees, ie those who work for another person or company, NOT the self-employed, pay their tax and National Insurance as a deduction each time they are paid.

The Employer may also be liable to make National Insurance payments in respect of their employees.

It is the Employer’s legal responsibility to pay over the Income Tax, Employee’s National Insurance and Employer’s National Insurance to HMRC.