» For other uses see Paye (disambiguation) PAYE (pay as you earn) is a withholding tax in the United Kingdom, Ireland, and certain other countries. It is an amount collected by employers on behalf of the government from employees as a provisional payment of tax on the employee's income. Application The amount withheld is determined partly by the employee's expected tax allowances, exemptions and reliefs, and partly by tax tables that determine the amount of tax to be deducted for the salary o… (More on Paye)