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Pay As You Earn (PAYE) is the mechanism of income tax due on salaries and wages paid by employers from employees’ pay. Under PAYE, the employer deducts PAYE tax and National Insurance from the employee’s pay and pays this, together with employer’s National Insurance contributions, over to HMRC. Under Real Time Information (RTI), the employer must supply HMRC electronically with details of pay and deductions each time that a payment is made to an employee.
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