1.1.1 The PAYE regulations

We saw in the Introduction that an employed person earning £30,000 a year will pay £6,219 in income tax and National Insurance; however, it is not generally he that actually pays this tax. This is his employerʼs responsibility, put on that employer by SI 2003/2682, the PAYE Regulations. Regulation 21 of these requires this:

‘On making a relevant payment to an employee during a tax year, an employer must deduct or repay tax in accordance with these regulations.’

The definitions of ‘employer’ and ‘employee’ are to be found in reg. 2:

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