UK Government, the Law and Your Role
What does PAYE stand for?
APay As You Earn — income tax deducted directly from wages ✓
BPayment Annually for Your Earnings at year end
CPersonal Account for Your own Earnings and savings
DPublic Allocation for Year-end Employment tax
Explanation
PAYE stands for Pay As You Earn. It is the system used to collect income tax and National Insurance from employees directly from their wages before they receive them.
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