Cumulative basis
PAYE is operated on a cumulative basis unless an HMRC officer has directed that week 1 or month 1 tables should be used.
Under the cumulative basis, the employee's personal reliefs are applied evenly throughout the year. The cumulative nature of PAYE aims to ensure that approximately the correct amount of tax is collected during the year. This is achieved by the tax tables calculating the tax due for the 'year to date', the employer then deducts any tax already paid previously, to arrive at the tax due
To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to Tolley+™ Research or register for a free trial
Web page updated on 17 Mar 2025 14:50