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PAYE and pension The calculation of PAYE is based on the taxable income, or [Gross salary] - [pension contribution], as described in the Income Tax Act 2006 Section 61 Sub-sections 1 & 2.
PAYE Table As of July 2010 we are to use the PAYE table as shown below.
Enter PAYE rates like this:

Make sure you select the new default table:

If you get wrong PAYE values, check FAQ #1