PAYE (Pay As You Earn)
The UK system for collecting income tax and National Insurance from employees’ wages.
Employers must operate PAYE to deduct income tax and National Insurance from salaries and pay them to HMRC. Once a startup hires its first employee, it registers as an employer and runs payroll under PAYE. Compliance is a basic operational requirement.
Examples
A startup sets up PAYE before its first hire’s payday. — Payroll software files PAYE submissions to HMRC.
How it relates to The Startup Foundry
Operational compliance signals a well-run company — part of the Executability investors assess.