Payroll / operating a PAYE schemeA brief introduction to the Pay As You Earn Scheme:
The PAYE regime is the system of tax collection where employers deduct income tax and national insurance contributions (NICs) from an employees wage. This can be deducted weekly or monthly.
The PAYE system was originally designed to be a simple method of collecting tax at source, however over the years is has become increasingly more complicated with a variety of tax codes being introduced. Cases of employees paying too much or too little tax has become more common in recent years.