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PAYE

Pay as You Earn tax (PAYE) is a withholding tax on salary and other income payments to employees.

The PAYE Scheme is operated by the employer and taxes withheld from employees are paid to HMRC periodically. Freelance professionals, contractors and agency workers are sometimes paid under the PAYE scheme of the end client or recruitment company. Being paid under PAYE scheme of an end client or recruitment company is a simple, low hassle way of receiving your income, however the net retention rates are normally much lower than those given by operating your own limited company or under an umbrella company and therefore not a popular choice for the workers.

If you are interested in finding out about the alternatives to being paid under PAYE then please call us on +44 (0) 20 8735 6370.