| PAYE is the abbreviation for "Pay as You Earn" | | | | deductions, together with your tax code. You |
| and is the method of deducting tax from your | | | | should be able to find your current tax code on a |
| earnings as defined by the UK Government. When | | | | recent payslip or if you have recently changed |
| you work from an employer, your earnings will | | | | jobs you will find it on your P45. You can also find |
| automatically be liable for taxation and the amount | | | | out how much National Insurance you will be liable |
| of tax you pay will depend on your circumstances | | | | for if applicable. |
| and your individual tax code. This automatic | | | | Using a PAYE calculator is a good way of working |
| method of taxation takes away the headache of | | | | out your finances and also checking that you are |
| filling in an annual return each year and therefore | | | | being taxed at the right amount. If you have any |
| you can be sure that you are paying your tax bill | | | | concerns or believe your tax code to be |
| in full. | | | | incorrect, you need to inform HMRC as soon as |
| Using a PAYE calculator is a great way for both | | | | possible. Don't rely on anybody to contact you. |
| employers and employees to determine how | | | | By staying on top of your tax situation you can |
| much PAYE will be withheld from salaries paid on | | | | be sure that you are being charged the right rate |
| a weekly, fortnightly, four-weekly or monthly | | | | throughout the year. |
| basis. Of course, a PAYE calculator can only give | | | | If you are working as a contractor, using a PAYE |
| you an estimate as other factors may apply, but | | | | calculator will help you to stay on top of your |
| it will give a good indication. Being prepared for | | | | finances and understand that your tax |
| deductions is a good idea especially if you have | | | | contributions may be liable to change throughout |
| recently started a new job or your salary has | | | | the year depending on your working conditions |
| changed. | | | | and the contracts you take on. Being prepared is |
| Finding a PAYE calculator is easy and there are | | | | important as is keeping your finances in check and |
| many available online. To find out how much you | | | | a PAYE calculator can help you to verify that you |
| will pay in tax you simply enter your gross salary; | | | | are being taxed fairly and at the right rate. |
| that is how much you earn each year before any | | | | |