Pay As You Earn

All employees and company directors are subject to P.A.Y.E. on wages and salaries drawn from a business.

A business must register with the Inland Revenue to start a P.A.Y.E. scheme following which the Inland Revenue will issue the necessary documentation and paperwork in order for an employer to complete the payroll manually.

With the increasing number of provisions for maternity pay, sick pay, student loans and child support agency, etc., the manual preparation of payrolls for more than a few employees is becoming a significant burden on employers. We are able to assist by providing a wages bureau service whereby all the employer needs to provide, on a regular basis, is the number of hours worked. We will then deal with all the calculations and notify you of the final net payments to be made to the employees and to the Inland Revenue.

The P.A.Y.E. year is in line with the income tax year which runs from 6 April, for example 2004/2005 starts 6 April 2004.

The month of April as defined for P.A.Y.E legislation is 6 April to 5 May and is known as month one. The month 6 March to 5 April (March) is month twelve.

Generally, tax and national insurance deducted under P.A.Y.E. must be paid to the Inland Revenue fourteen days after the month end, that is 19 May for month 1.