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The UK Government, the Law and Your Role › Taxes and Finance
What is the system called whereby income tax is automatically deducted from wages by employers and paid to HMRC?
- Pay As You Earn (PAYE)
- National Insurance
- Value Added Tax
- Self Assessment
Why this is the correct answer
Pay As You Earn, known as PAYE, is the system through which employers automatically deduct income tax and National Insurance contributions from employees' wages before paying them. This means most workers never have to file a tax return themselves.