Who is responsible for deducting PAYE tax?

The responsibility for deducting PAYE (Pay As You Earn) tax lies with employers. Under the PAYE system, employers are tasked with calculating, withholding, and remitting income tax and National Insurance contributions from their employees' salaries. This means that when an employee is paid, the employer must ensure that the appropriate amount of tax is deducted before the salary is disbursed.

Employers have access to the necessary payroll data and resources to accurately determine how much tax to withhold based on income levels and personal tax codes. They are also responsible for submitting these deductions to the tax authorities on behalf of their employees.

While tax authorities monitor compliance and provide the guidelines necessary for accurate deductions, it is ultimately the employer's responsibility to perform the deductions correctly. Employees, on the other hand, do not handle the deductions themselves, as that task falls to the employer. Payroll services can assist employers in this process, but they act on behalf of the employer and do not hold the primary responsibility for the deductions.