The Income Tax Acts and the Pay As You Earn (PAYE) regulations require that PAYE must be deducted on the making of any payments of, or on account of, any income assessable to income tax under Schedule E. This means all salaries, wages, fees and even, in some cases, expenses.
Failure to apply PAYE will result in the tax due (and usually the accompanying National Insurance contributions) being sought directly from St George’s, University of London in our capacity as employer. The policy followed by the university, in cases where doubt may exist whether tax should be deducted from a particular payment, is to assume that a liability exists to collect tax under PAYE. In the event of the payment being declared by HMRC to be exempt from tax, any amounts previously deducted can normally be refunded either by the university or by HMRC.
If you live in Scotland
Residents in Scotland are subject to the Scottish rate of income tax, which is different from for other parts of the UK. If you live in Scotland you should ensure that HMRC have your correct home address to ensure they provide the university with the correct tax code for you. Generally speaking, if you live in Scotland your tax code should be prefixed with an ‘S’.
If you live in Wales
Residents in Wales are subject to the Welsh rate of income tax, which is different from for other parts of the UK. If you live in Wales you should ensure that HMRC have your correct home address to ensure they provide the university with the correct tax code for you. Generally speaking, if you live in Wales your tax code should be prefixed with a ‘C’.
It is your responsibility to inform HMRC of your address. Although the university does inform HMRC of individuals' addresses, HMRC may not act on this information.