PAYE

PAYE or better known as Pay As You Earn effects most people of an employed status. In essence what an employed person earns is immediately taxed at source and that person will receive a net pay after the deductions. Assuming no other income and that the tax payer does not exceed the higher rate of tax there is no necessity to complete a tax return.

There are stringent rules when employing staff and substantial fines for missing deadlines, consequently to better help you understand PAYE please refer to the links below:

Paying somebody for the first time

P11 Deduction working sheet

Using a tax code to deduct PAYE

What next?

More detailed information

Working out and recording PAYE on the form P11

Working out and recording NIC on the form P11

Making payments to the Inland Revenue

Taking on a new employee

What to do when an employee leaves

Employee's tax code changes in the year

Changes that may effect an employee's NIC

Working tax credits paid with wages

Student loan deductions

PAYE Rates and limits for 2005-2006

Time table for submitting forms

Guides and leaflets

Paying someone for the first time

• What you have to do

• The first things you will need from your Starter Pack

P11 Deductions Working Sheet

• National Insurance contributions tables

• PAYE Income Tax

• Dealing with P45 information

• When to use a P46

Using a tax code to deduct PAYE

• Code numbers with L, P, T, V or Y not followed by week 1, month 1 or X

• Code BR not followed by week 1, month 1 or X

What next?

• Paying your employees

• Paying the Inland Revenue

• Other payroll events

Part 1 - Working out and recording PAYE on form P11

• Tax codes and how to use them

• Employer's CD-ROM PAYE tax calculator

• Pay Adjustment Tables, Tables A

• Taxable Pay Tables, Calculator method

• Taxable Pay Tables, Manual method

• When to use a code on a week 1/month 1 basis

• How to use a code on a week 1/month 1 basis

• Calculating the total pay adjustment to date

• Examples

• Filling in the 'PAYE Income Tax and Tax Credits' section on form P11

• Unusual circumstances

Part 2 Working out and recording NICs on form P11

• How Class 1 NICs are made up

• How to work out NICs

• Methods of working out NICs

• Filling in a form P11 - NICs

Part 3 Making payments to the Inland Revenue

• When to make payment

• How the payments are calculated

• Keeping records

• Making a payment

• Further information about payments and payslips

• Examples

Part 4 Taking on a new employee - including someone who has worked for you before

• Who to treat as an employee

• National Insurance numbers

• A new employee gives you a form P45

• A new employee doesn't give you a form P45

• Employee gives you a form P45 after the first pay day

• Taking on a new employee - for one week or less

• Tracing National Insurance numbers

Part 5 What to do when an employee leaves

• Which forms you have to complete

• Example of a completed form P45

• Other points to note

Part 6 Employee's tax code changes in the tax year

Part 7 Changes that may affect an employee's NICs

• An employee reaches age 16

• A married woman or widow who is entitled to pay reduced rate NICs

• An employee joins or leaves your pension scheme

• An employee has more than one job

• An employee becomes a director of your company

• An employee goes abroad to work

• An employee reaches or is over State Pension age

• An employee dies

• Which National Insurance Table to use

• Recalculating NICs following changes

Part 8 Working Tax Credit paid with wages

• Knowing when to pay Working Tax Credit

• Do I have to pay Working Tax Credit?

• Funding Working Tax Credit payments

• Paying and accounting for Working Tax Credit

• Stopping Working Tax Credit payments

• Where to get further help and advice

Part 9 Student Loan Deductions

• Start notification

• Working out and paying over Student Loan Deductions

• Stop notification

• Where to get further help and advice

PAYE Rates and limits for 2005/2006

• Pay As You Earn (PAYE)

  • Thresholds

  • Rates

  • Emergency tax code

• Mileage payments
• Class 1A NICs on benefits in kind
• Class 1B National Insurance contributions
• Class 1 National Insurance contributions (NICs)
  • Earnings limits
  • Lower Earnings Limit (LEL)
  • Earnings Threshold (ET)
  • Upper Earnings Limit (UEL)
  • National Insurance rates and earnings limits 2005-2006
• Statutory Sick Pay (SSP)
• Statutory Maternity Pay (SMP)
• Statutory Paternity Pay (SPP)
• Statutory Adoption Pay (SAP)
• Funding of SMP/SPP/SAP
• National Minimum Wage
• Collection of Student Loans

Guides and leaflets

• SE1 - Thinking of working for yourself?

• Starting to work for yourself guide

• Thinking of taking somebody on

• Prospective Employer Pack