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Workplace Salaries and Tax Records

What is PAYE Tax? The UK Pay As You Earn system (PAYE) is a method of paying National Insurance contributions and Income Tax.

PAYE: This ‘Pay As You Earn’ section includes key information about the National Minimum Wage and the current payment rates.

An amount of Income Tax and National Insurance contributions get taken or ‘deducted’ from wages. In most cases, your employer will also deduct tax from an occupational pension if you have one.

All these processes take place before you receive your pension or wages.

Find out how to keep pay and tax records and the correct procedures for using PAYE forms: P45, P60, P11D.

Note: This section is where you get expert advice about you payment rights as workers and employers. There is extra information about the pay you need to declare and how to report any cash in hand payments.

Guide to Pay, Tax and Wages

HMRC Childcare Vouchers

The online tool helps you determine whether claiming tax credits is best – or not. But, parents should use the childcare vouchers better off calculator as a general guide only.

National Living Wage (NLW)

Check out the latest rise to the mandatory National Living Wage (NLW). The guide shows what hourly rate you should be getting if you are a worker aged 25 or older.

National Minimum Wage (NMW)

The section explains employer responsibilities for paying the National Minimum Wage. All employers must ensure their workers receive the least amount due to them.

NMW Rates

The National Minimum Wage rates change every October in the United Kingdom. Whereas, the rate for the National Living Wage change most often in April.

NMW Calculator

There is a National Minimum Wage and Living Wage calculator for workers in the UK. You can check if you are getting the minimum wage using the online tool.

Note: The rates for the National Minimum Wage 2020/21 are also available in Welsh language. Read ‘Cyfraddau’r Isafswm Cyflog Cenedlaethol a’r Cyflog Byw Cenedlaethol‘ (Cymraeg).

Registering as an Employer

You will need to register with HMRC as an employer if you start employing people. New employers usually prefer to register as an employer online using the government facility.

Note: The video presented by HMRC [5:09 seconds] contains more information for new employers on PAYE and how to get started.

Your Pay at Work, Tax, and the National Minimum Wage in United Kingdom