Tax
Taxable income
Income left after statutory deductions and reliefs, on which PAYE bands are applied.
Taxable income is gross income minus allowable deductions: pension, NHF and NHIS contributions, and rent relief. The PAYE bands are applied to this figure, not to gross pay, which is why effective tax rates are usually well below the top marginal band.
Related terms
Help & how-to
See it in practice
Update PAYE when the tax law changes
Edit one effective-dated table. No software update, no waiting.
Remit PAYE, pension & NHF on time
Generate the schedules, track the deadlines, and record each payment reference.
Year-end: produce the Form H1 return
Each employee's annual gross, taxable and PAYE totals, ready to file with the state.
See it applied to real payroll
Vintage People applies these statutory rules on every run, with a full audit trail.