Table of contents

Session 1 Calculating and deducing tax
Objectives 1
Who pays tax? 1
When do you pay tax? 2
How does the PAYE scheme work for income Tax? 3
Which personal allowance? 6
Making the calculations easier7
Summary 24
Quiz 1: calculating and deducting tax 25
Session 2 National insurance scheme
objectives 26
What is national insurance? 26
Making NIC calculations 27
Rates of NIC 28
Completing the deductions working sheet 30
summary 35
Quiz 2: National insurance scheme 36
Session 4 Calculating employees' pay
Objectives 42
Employee records 42
Gross pay 42
Wages and salaries 43
Overtime and shit payments 43
Bonus and commission payments 47
Holiday pay 49
Statutory sick pay (SSP)/ Statutory maternity pay (SMP) 51
Expenses 52
Summary 53
Quiz 4: Calculating employees' pay 54
Session 5 More about national and other deductions
Objectives 55
Categories of class ! National insurance contributions 55
Further deductions 58
Month-end payments under the PAYE scheme 61
Summary 64
Quiz 5; More about national insurance and other deductions 65
Session 6: Events in the tax year
Objectives 67
The start of a new tax year 67
New employees 71
Emergency tax codes 77
Other tax codes 77
Employees leaving 78
Death of an employee 84
Week 53 84
At year end 86
Summary 93
Quiz 6: Events in the tax year 94














includes bibliographic references and index