The tax and revenue agencies of many countries employ the Pay As You Earn (PAYE) system, in which money is deducted from paychecks by the employer and remitted to the government with regular paychecks as they are earned. Any sum taken in excess of the amount of tax due it repaid to the taxpayer.

Who is responsible for paying PAYE tax?

Introduction. An employer is obliged to deduct PAYE from all amounts of remuneration paid to an employee. The rules relating thereto are set out in the Fourth Schedule to the Income Tax Act.

Who has to pay PAYE?

Most people pay Income Tax through PAYE . This is the system your employer or pension provider uses to take Income Tax and National Insurance contributions before they pay your wages or pension. Your tax code tells your employer how much to deduct.