An employee's wages or salary are deducted from his or her gross salary through payroll deductions in the United Kingdom. Employers deduct these from employee paychecks before they receive net pay.

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Using HMRC's latest tax codes is essential if you pay employees through the PAYE system. Your employees receive the correct payment, and Income Tax is deducted correctly.

Tax codes are explained in this article, as well as how employees' tax codes may change under different circumstances.

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