Introduction to income tax and NICs

Ascertaining gross pay

• Classifying taxable and NICable pay elements

• Calculating pay apportionments correctly

Processing deductions

• Ascertaining what makes a deduction from pay lawful

• Classifying the three types of deductions

• Distinguishing deductions which affect taxable and NICable pay

• Overview of tax relief methods for pension contributions

National Insurance Categories

• Listing the NI category letters currently in use

• Identifying the correct NI category letter for employees

• Awareness of proof required to apply certain category letters

Calculating National Insurance Contributions

• Recognising the names and current amounts of NIC thresholds

• Listing the current rates of NICs for each category letter

• Calculating NICs using the Exact Percentage method

• Calculating NICs using the Table method

Identifying different tax codes

• Identifying circumstances which warrant “emergency tax codes”

• Categorising different tax codes

• Distinguishing Scottish tax codes

Calculating income tax

• Identifying the different allowances available

• Navigating through Pay Adjustment Table A

• Calculating income tax using the table method

• Calculating income tax using the manual method

• Awareness of circumstances where tax refunds may be processed

Completing gross to net calculations

• Identifying the correct order to calculating gross to net figures

• Performing gross to net calculations

Awareness of payslip obligations

• Awareness of deadlines and eligibility for a payslip

• Outlining the minimum information required on payslips

Administering starters & leavers correctly

• Listing information required for processing starters & leavers

• Completing forms P45 and New Starter Checklist correctly