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Paying tax and self-assessment

Study note

Most people have income tax taken automatically from their wages through a system called PAYE (Pay As You Earn). People who are self-employed usually pay their tax through self-assessment, by completing a tax return each year. Tax is collected by HM Revenue and Customs (HMRC).

Memory tip: Employees pay via PAYE; the self-employed use self-assessment; HMRC collects tax.

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How is income tax usually collected from employees' wages?

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