Complex sentence: Employees pay pay-as-you-earn (PAYE) taxes based on their income (less certain allowances)-the system is quite progressive with little or no tax on low earners and a high rate applied to top earners.
Split into simpler sentences: Employees pay pay-as-you-earn (PAYE) taxes based on their income, less certain allowances. It is a progressive tax system with little or no tax on low earners and a high rate applied to top earners.