Questions › Chapter 5: The UK government, the law and your role
What is the system called in which employers take income tax from wages and pay it straight to the tax office?
- APay As You Earn (PAYE)Right answer
- BSelf-assessment
- CSmall claims procedure
- DNational Insurance
Answer: Pay As You Earn (PAYE)
Under PAYE, most employees have the correct tax taken from their pay by the employer and sent to HMRC automatically.
From chapter 5 of the handbook, "The UK government, the law and your role", section "Fundamental principles". Practice question 606 of 651, written in our own words.