Who is primarily responsible for deducting and paying income tax and National Insurance for employees?

Employers are primarily responsible for deducting and paying income tax and National Insurance contributions for their employees. This obligation is fulfilled through the Pay As You Earn (PAYE) system, which mandates that employers withhold tax and National Insurance from employees' wages before they are paid. The employer's role includes calculating the appropriate tax and National Insurance rates based on the individual employee's earnings and any tax code assigned to them.

Once the deductions are made, the employer must then remit these amounts to HM Revenue and Customs (HMRC) on a regular basis. This system ensures that employees do not have to manage their tax payments independently, thereby streamlining the taxation process and ensuring compliance with tax laws.

In contrast, employees themselves are not directly responsible for tax remittances as this task is managed by their employers. Tax authorities like HMRC enforce tax compliance but do not handle deductions directly from an individual’s salary. Payroll service providers may assist employers in managing payroll tasks, including calculations of deductions, but the ultimate responsibility for making those deductions and payments rests with the employer.