PJM Accountancy // Mini-Guides // PAYE and NICs Guide

 

 

Read the full PAYE and NICs Mini Guide here...

 

Introduction:

 

Pay As You Earn (PAYE) is a system overseen by HM Revenus and Customs (HMRC), under which employers deduct from employees' wages, salaries, pensions, etc, an amount of income tax and national insurance contributions (NICs) in accordance with PAYE codes, tables and other instructions and procedures laid down by HMRC. Over the course of a year the amounts deducted should match the employee's tax and NIC liability.

 

Employers deduct tax and NICs, add their own NICs, and pay the total over to HMRC, net of certain adjustments - for example, where they have paid statutory sick pay - every month or quarter. The overall liability is reviewed and calculated when the annual return is completed after the end of the tax year.

 

Read the full PAYE and NICs Mini Guide here...