What’s PAYE Tax – UK?
PAYE (Pay As You Earn) is the UK’s rule for deducting income tax and National Insurance contributions (NICs) directly from employees’ wages before they receive their pay. This ensures that taxes are collected progressively throughout the tax year based on earnings and tax codes. Employers must deduct and remit these payments to HMRC on behalf of their employees.
HMRC PAYE Tax Calendar 2025/26
The PAYE tax calendar is based on the UK tax year, which begins on 6th April 2025 and ends on 5th April 2026. Below is the reference calendar for tax periods:
- HMRC Tax Week Calendar 2025/26
- HMRC Tax Week Calendar 2024/25
- HMRC Tax Week Calendar 2023/24
- HMRC Tax Week Calendar 2022/23
- HMRC Tax Week Calendar 2021/22
PAYE Payment Schedule
The PAYE calendar consists of the following tax periods:
- Weekly
- 2-weekly
- 4-weekly
- Monthly
Breakdown of PAYE Tax Periods:
- Weekly tax period: Runs from 6th April to 12th April, followed by subsequent weekly cycles.
- 2-weekly tax period: This covers two-week periods, starting with weeks 1-2, 3-4, and 5-6, and continuing throughout the tax year.
- 4-weekly tax period: Covers four-week periods, beginning with weeks 1-4, 5-8, 9-12, and other similar dates.
- Monthly tax period: Starts on every 6th day of each month and ends on the 5th of the following month.
Understanding these structures ensures accurate payroll processing and compliance with HMRC regulations. Using reliable PAYE payroll software simplifies these processes, providing timely and correct submissions to HMRC.
Real-Time Information (RTI) Submission
Under the RTI system, every time you pay your employees, you must submit a Full Payment Submission (FPS) to HMRC. The FPS contains details of payments and deductions, allowing HMRC to calculate your PAYE bill.
Key RTI considerations:
- The date of FPS submission determines your PAYE tax period.
- Late FPS submissions may result in penalties, so it is crucial to file on time.
- Employers must ensure all PAYE data is accurate to avoid compliance issues and ensure smooth payroll operations.
By keeping track of the 2025/26 PAYE tax calendar, employers can stay compliant, avoid fines, and maintain accurate payroll records. Utilising HMRC-recognised payroll software will help automate these tasks, ensuring that all deadlines are met seamlessly.