PAYE stands for ‘Pay As You Earn’ and has been around since the 1940s. As an employer using PAYE, you pay your staff’s tax contributions to HMRC directly from their pay. This means when an employee receives their salary, all their deductions for tax and payments like student loan repayments have already been made.. PAYE (also known as Pay As You Earn) was first introduced in 1994 and is a system used in the UK that collects income tax and National Insurance contributions from employees’ salaries or wages. Here, the employers take care of deducting the correct amount of income tax and National Insurance contributions from their employee’s paychecks and.
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You must register before the first payday. It can take up to 30 working days to get your employer PAYE reference number. You cannot register more than 2 months before you start paying people.. You’ll need to set up a Government Gateway account in order to access HMRC’s online services.. There are 3 types of account: individual accounts; organisation accounts