Deductions at Source, also known as withholding tax, involve a method of tax collection where a portion of income is deducted at the time of payment by the payer to ensure timely and efficient tax collection.
A rule introduced in the Finance Act 2000 that requires individuals providing services through intermediaries to be taxed as employees rather than self-employed, affecting tax deductions, National Insurance contributions, and expense deductions.
A managed service company (MSC) is a type of business entity that primarily provides the services of an individual while compensating that individual through dividends and expense payments rather than a traditional salary. Changes in tax law from 2007 have brought PAYE regulations to apply to these companies.
Pay-as-you-earn (PAYE) is the UK scheme for collecting income tax and National Insurance contributions. It places the responsibility on employers to collect these taxes from employees as payments are made.
The Pay-As-You-Earn (PAYE) system is a method of paying income tax and national insurance contributions to the revenue authorities based on an employee’s regular earnings.
Individuals who independently operate their trades or businesses and are taxed based on their profits rather than through PAYE, with unique National Insurance contributions compared to employees.
