PAYE operation: payments for PAYE purposes: introduction
The PAYE regulations set out how an employer who makes payments of PAYE income is required to deduct and account for the income tax due.
PAYE income consists of
- Employment income
- Pension income
- Social security income
This section of the Manual is concerned with the taxation of payments of PAYE income.
The Employer Further Guide to PAYE and NICs (booklet CWG2) also gives a detailed list of the kinds of payment that count as pay for PAYE purposes. It covers
- Payments made by cash or cheque
- Credits made to the employee’s bank or building society account
- Credits made to an account in the employer’s name but from which the employee can draw
- Amounts voted to a director and credited to an account from which the director can draw
- Some non-cash pay such as vouchers or credit tokens
- Payments in the form of readily convertible assets