PAYE tax

  • How tax is collected from your salary or pension
  • What tax codes mean and how they are applied
  • How underpaid tax is collected through PAYE
  • How overpaid tax is refunded back to you

What's in this guide

What is PAYE?

Understand how Pay As You Earn works, and how income tax is collected from your salary in monthly instalments.

PAYE tax codes

Tax codes tell your employer or pension provider how much tax they need to deduct from your pay. Find out what the numbers and letters mean.

PAYE problems

PAYE is straightforward but things can go wrong - meaning you can pay more or less tax than you need to. We explain what to do if this happens.

Self-assessment tax

Self-assessment is the alternative to PAYE. Find out who has to complete a tax return and how self-assessment works.

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