Supporting Guidance: employer compliance: guidance by subject: net pay arrangements: deductions from gross pay before tax
Employers may recover money due from their employees by making deductions from their wages. PAYE should be operated on the gross pay unless the deduction is confined to one of the following net payment arrangements
- a successful salary sacrifice. See EIM42750
- payroll giving scheme COG913520
- approved or (from 6-4-2006) registered pension schemes. See PTM044230 onwards.
If the employer has incorrectly operated PAYE on a net pay figure you should