What Does PAYE Stand For?

PAYE stands for Pay As You Earn

PAYE, or Pay As You Earn, is a tax withholding system used primarily in the UK, where employers deduct income tax and National Insurance contributions from employees' salaries at the time of payment. This approach ensures that individuals pay their tax liabilities gradually throughout the year, rather than in a lump sum, facilitating easier budgeting and compliance with tax obligations.