What does PAYE mean?

Question

Ok - starting a new job tomorrow (first in 12 yrs!) This might seem like im clueless but can someone explain to me what PAYE means?

Im classed as a casual worker - only doing 20 hrs for 4 weeks (including 1 wks training). Does my employer sort my tax n stuff out or will I have to do this? Dont want to seem stupid by asking tomorrow - no-one I have asked can give me a simple yes or no answer!

In UK

Answer 1

P A Y E = Put Away Your Earphones.  It means your shouldn't listen to your iPOD when you're working.

Good luck with your job.

Answer 2

It just means that your employer pays tour tax and national insurance for you.

Pay As You Earn

Answer 3

Pay As You Earn - paying tax and insurance as you go along!

Answer 4

Steffi is correct, as usual. PAYE - known by tax office staff as Pay as You Moan - as this is what taxpayers normally do.

Answer 5

Pay as you earn - it's how you pay income tax.  Your employer sorts it out so you don't have to bother.  The only thing you have to do is give your employer your P45 so they put you on the right tax code and you get taxed at the right amount through PAYE.

Answer 6

Pay as you earn

Answer 7

PAYE - pay as you earn   :)))

Answer 8

Pay as you earn,Your employer sorts it.

Answer 9

PAYE means pay as you earn so your employer should deduct tax national insurance from your wages

Answer 10

PAYE is pay as you earn - if the employer is paying your PAYE you have no need to worry about paying anything.

Answer 11

What a lot of rubbish answers! You will come under the Pay As You Earn system, aka Schedule E Tax.

If you haven't worked for 12 years, any P45 you may have from a previous job will be well out of date. Your employer should ask you to sign a form P46, to say that his is your only/main job. If you can sign, he will probably put you on code 543L, but on an emergency, or week 1 basis. Now this will mean tax will be deducted, as each week will be taken in isolation. That results in you paying too much tax, as you have a backlog of tax allowance to 6th April. Download form P91 from www.hmrc/p91, complete back to the time you last worked, and send to tax office. HMRC are unlikely to have any record for you, as they only go back 6 years. A cumulative code number will be issued, but as you are only working for 4 weeks (any chance it may be extended?) it may not be done in time for employer to make refund.

If that is the case, depending on what you will be doing (doesn't apply if you will be signing on for jobseekers), a month after you leave job, you can download form P50 from www.hmrc/p50, complete it, and send to tax office with form P45 for refund to be made from there, or if you won't have any more paid employment before next 5th April, you can do it immediately you leave.

NIC will be deducted from you, but that is non-refundable. It is not calculated on a cumulative basis like tax, each payday is taken on its own.

Tax and NIC deductions taken from your wages are paid to HMRC by your employer.

Answer 12

pay as you earn. Tax will automatically come out of your salary. You wont have to do anything apart from hand your employer your p45 from last job or fill in a p60.

Answer 13

PAYE means Pay as you eran, basically your tax, which will be 20% after your allownaces

Answer 14

Good Luck BusyBee in your new job. Yes, PAYE, or pay as you earn is a government method of income taxation , which basically means that more tax and national insurance is deducted from your earnings as they increase, meanwhile taking into account your allowances. You should receive a payslip with your wages, which shows earnings, tax rating and deductions!

Answer 15

PAYE - pay as you earn

Answer 16

Pay As You Earn - I copied this answer from the other people :)

I learnt something new today :)