Learning outcomes: Basic courses
Principles of NICs
Principles of Tax
• Outline the history of NICs in the UK • Understand the NICs system and how it operates • Differentiate the classes of NICs.
• Describe the PAYE system and how it operates • Identify the tax rates and bandings that apply to income • Evaluate and summarise the meaning behind a tax code.
Calculating NICs
Calculating Tax
• State which earnings, or elements of pay, NICs must be calculated on and which are excluded • Select the correct NIC limits, thresholds and rates to use for NIC calculations • Calculate National Insurance contributions due for employees and employers.
• Explain the non- taxable elements of a person’s pay and outline the importance and use of Personal Allowances • Describe the difference between cumulative and non-cumulative operation of PAYE • Manually calculate an employee’s tax using HMRC’s tax tables.
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