1. What is Monthly PAYE?

PAYE (Pay As You Earn) is the system used in the UK to collect Income Tax and National Insurance from employment. The monthly PAYE amount is calculated by dividing the annual tax liability by 12 months.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Annual Tax — Total tax liability for the year in GBP
• 12 — Number of months in a year

Explanation: This calculation provides an equal monthly distribution of your annual tax liability.

3. Importance of PAYE Calculation

Details: Understanding your monthly PAYE helps with budgeting and financial planning. It ensures you know how much tax will be deducted from your salary each month.

4. Using the Calculator

Tips: Enter your total annual tax amount in GBP. The value must be zero or positive.

5. Frequently Asked Questions (FAQ)

Q1: Is PAYE the only tax deducted from salary?
A: No, National Insurance contributions are also deducted through the PAYE system.

Q2: What if my income changes during the year?
A: The PAYE system automatically adjusts your tax deductions if your income changes.

Q3: How accurate is this simple calculation?
A: This provides a basic estimate. Actual deductions may vary based on tax codes, allowances, and other factors.

Q4: When is PAYE typically deducted?
A: PAYE is deducted each time you get paid, usually monthly for most employees.

Q5: Can I claim a PAYE refund?
A: Yes, if you've overpaid tax through PAYE, you can claim a refund from HMRC.