Introduction to Income Tax and NICs

Introduction to Income Tax and NICs Introduction

Introduction

1.1

Objectives

At the end of the course, delegates should be able to:

Calculate gross earnings

•

• Calculate income tax and NICs liabilities

• Handle payments for starters and leavers correctly

• Sequence the required calculations correctly

• Outline the correct process for systems output

Calculate net pay.

•

1.2

The ideal

All Payroll departments will be working towards the ideal:

The Payroll office needs to gather good quality data in a relevant format at an appropriate time, so that knowledgeable and conscientious pay staff using effective and efficient systems can produce timely and accurate payments.

1.3

Key dates

5 April annually

– end of tax year

6 April annually

– start of tax year

6th of each month

– start of new tax period

19th of each month – due date for payment to HM Revenue & Customs (HMRC) for those paying by cheque

22nd of each month – due date for payment to HMRC for those paying electronically

Please note that if the 19th or 22nd (as applicable) falls on a weekend or bank holiday, then the due date is the last working day before that date.

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