PAYE: an overview
Income tax & NI | (2)
Pay as you earn (PAYE) is how the government collects income tax from employees - including you if you are a director of your limited company. (It doesn't apply if you're a sole trader - you pay tax via your tax return if you're self employed).
Each month (typically), you need to deduct send the right amount of income tax (and national insurance) from employees' pay and send it to HM Revenue & Customs (HMRC).
There is lots more information about PAYE on the HMRC website.
Managing PAYE
You can manage PAYE yourself online, and HMRC sends you a CD to work out what ...