The earnings of all employees in the UK are subject to deductions for Income Tax and National Insurance Contributions
The method of calculating Income Tax liability is known as “Pay As You Earn”
The abbreviation NICs ALWAYS refers to…
Class 1 NICs that are collected through the payrill
A division of the government department HMRC is NICO: what does this stand for?
The National Insurance Contributions Office
Name 6 types of UK taxes:
- Income tax
-Inheritance tax
-Stamp duty
-VAT & Customs & Excise duties
-Capital Gains tax
-Corporation tax
Tax year is
6th-5th April
PAYE is cumulative, ie
It is calculated on cumulative earnings to date.
What year was Income Tax introduced
1798
What year was PAYE introduced
1944
When was NI introduced?
1940s to fund social welfare
Name 14 possible clients of Payroll
-Employee
-Employer
-HR
-Finance
-Auditors
-IT
-Pensions
-HMRC
-NICO
-Courts/Local Authorities
-Child Support Agency
-DWP
-Trade Unions
-Banks/Building Societies
Employers must keep records for HMRC for how long?
3 full tax years beyond the current tax year
PAYE Reference number: is in 2 parts, eg: 212/B2613
First part is the Tax Office district number.
Second half is the companys 1st initial and number of employers beginning with that initial
What does TUPE stand for?
Transfer of Undertaking Protection of Employment
Taxcode: 0T
Zero Tax Adjustment
Taxcode D0:
Pays tax at a higher rate
Tax Code D1
Pays tax at additional rate
Taxcode K
Additional earnings for tax
Taxcode NT
No Tax
Scottish Tax code SD0
Scottish Intermediate Rate
SD1
Scottish Higher Rate
Scottish Taxcode SD2
Scottish Advanced Rate
Taxcode SD3
Scottish top rate
Taxcode SK
Scottish- additional earnings for tax
Welsh taxcode C0T
Zero Tax Adjustment
