Don’t be kept in the dark about tax; get online and find a PAYE calculator which can work out exactly how much tax you should be paying. PAYE is an acronym for “Pay As You Earn”, which is the system that is used to make tax deductions from your salary. The amount of tax taken is based upon several factors such as how much you earn, benefits, etc. The PAYE system eliminates the need for filling in an annual tax return which can be very time consuming and result in penalties if submitted after the deadline.
The PAYE calculator is useful for both employers and employees to understand how much tax should be paid. However, PAYE calculators can only give an estimate of the amount as other factors could be involved. However, PAYE calculators definitely give a good indication of how much tax you should be paying.
Using a PAYE calculator couldn’t be easier. Simply enter in your gross salary (the amount you earn before deductions are made), along with your tax code which can be found on your payslip or P45. If applicable, include the amount of National Insurance that you pay. The PAYE calculator will then use this date to generate the amount of tax you are required to pay.