PAYE

The UK system where income tax and National Insurance are deducted from an employee's salary by the employer before they are paid.

If you hire staff or pay yourself a salary through your limited company, you operate PAYE. You are responsible for calculating and paying employee tax to HMRC, fines apply for errors.

You pay yourself a £12,570 salary through your limited company. You run PAYE payroll monthly, submit the Real Time Information (RTI) report to HMRC, and pay over any PAYE due.