PAYE
PAYE - employment tax in the UK.
In the United Kingdom, income tax on wages is collected automatically by the employer through the PAYE system. We help employers process taxes and contributions correctly, and assist employees in reclaiming overpaid tax using their P45 and P60 documents. We explain tax codes, monitor deadlines and deal with HMRC on your behalf.
What is PAYE
Pay As You Earn - tax deducted at source
PAYE (Pay As You Earn) is the UK system for collecting income tax and National Insurance contributions directly from an employee's wages. The employer sends the deductions to HMRC with every payroll run, so the employee receives their net pay after all mandatory deductions have been made.
- Income tax deducted automatically from every pay packet
- National Insurance (NI) contributions for both employer and employee
- Applies to everyone employed under a contract of employment
- The employer acts as the collection agent on behalf of HMRC
Tax Code
Your tax code - the key to correct deductions
Every employee in the UK is assigned a personal tax code that determines their tax-free allowance. It consists of numbers representing the amount of income exempt from tax, followed by letters indicating the reliefs that apply. An incorrect tax code is the most common reason for overpaid tax.
- Checking your tax code is correct with HMRC
- Emergency tax codes and how to get them corrected
- Claiming available reliefs such as Marriage Allowance
- Updating your code when you change jobs or circumstances
Tax refund
Claiming back overpaid tax in the UK
Statistically, one in three people working in the UK is entitled to a tax refund. You can claim back overpaid tax for up to four previous tax years using your P45 or P60 documents - the UK equivalents of Polish PIT statements. There is no reason to wait - the sooner you submit your claim, the sooner you get your money back.
- Reviewing P45 and P60 documents for potential overpayments
- Tax refunds when you have worked only part of the tax year
- Recovering overpaid tax after leaving employment
- Correcting assessments where an emergency tax code was applied
How we help
How PolAccount helps with PAYE
We provide end-to-end PAYE support - for employers running payroll and for employees looking to reclaim overpaid tax. We liaise with HMRC on your behalf, keep track of deadlines and ensure your returns are accurate, keeping the paperwork on your side to an absolute minimum.
- PAYE processing and RTI reporting for employers
- Preparing and submitting tax refund claims
- Communicating with HMRC and representing you before the tax office
- Advice on changing jobs, multiple employers or income from different sources
Need help with PAYE?
Talk to our adviser.
Tell us about your situation - whether you want to reclaim overpaid tax or need payroll support for your business. Free consultation, no obligation.