Glossary · PAYE and payroll
Cumulative basis
How PAYE normally works: each payslip looks at your pay and tax for the whole year so far.
On the cumulative basis, unused credits and band carry forward from one pay period to the next. If you had a low-paid month or started mid-year, later payslips catch up and can give you a refund automatically.
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Related terms
All terms · General information, not tax advice.