Flashcards
Topic 12 Earnings
Cards in this deck (21)
- 1Gross interestinterest paid without tax deducted
- 2HM Revenue and Customs [HMRC]the government department that collects various taxes.
formerly : the Inland Revenue - 3IncomeEarnings, savings and investments payments received within a certain timeframe
- 4Income taxtax paid on earnings, self-employment and interest on savings
- 5National Insurance [NI]money deducted from pay of people who are employed or self-employed and used by the government to fund state pensions and other benefits
- 6National Living Wagethe minimum that people aged 25 plus must be paid per hour by law.
the national minimum wage applies to workers under aged 25 - 7National Minimum Wagethe minimum per hour to which workers are entitled to by law.
The rate depends on a worker's age and whether they are an apprentice.
[Know the current rates]
Worker aged 25 and over are entitled to the National Living Wage - 8Net Interestinterest paid after tax has been deducted from the gross (total) amount earned
- 9P45a document legally required from an employer when an employee stops working for them.
It summaries the employee's tax and NI details for their next employer - 10P60a document prepared at the end of every tax year to show all the income tax and NI contributions paid by an individual during the preceding 12 months
- 11Pensionthe income that people receive after retiring from work.
In the UK can be received from the state
pension payment schemes run by their former employer
arrangements that they have made for themselves (private) - 12Personal Allowancethe amount of income you are allowed to earn before you become liable for income tax
- 13Self-assessmenta method used often by self-employed people to calculate he amount of tax and NI the need to pay
- 14Self-employmentearning an income by selling your goods or services directly to a consumer, rather than being employed by someone else and being paid a wage or salary
- 15Taxable incomeincome on which tax must be paid : that is after deducting allowances and any permitted expenses form the total income earned (gross earnings)
- 16Tax banda category of income on which a specific rate of tax is payable
- 17Tax codea code used by a person's employer or pension provider to calculate the tax to deduct from pay or pension
- 18Tax paid at sourcetax deducted by the provider (on behalf of the government)
as of April 2016, providers no longer deduct income tax form savings interest at source - 19Tax returna tax form completed annually bt people in certain situations e.g. self-employed / people who receive money in addition to their salary
It sets out details of income and expenditure and allows the taxpayer or HMRC to calculate the amount of tax and NI contributions owed - 20Tax ~Yearaka financial year :
its duration = April 6 to April 5 in the following year.
the tax people owe is calculated according to how much they have earned April-April rather than Jan-Dec - 21Zero-hour contracta type of employment contract that does not set out a fixed number of hours that an employee must work and be paid for.
the employer is not obliged to provide work nor the employee to take work offered
Information
- Description
- Flashcards on Topic 12 Earnings , created by Dawn S_akura on 27/12/2016.
- Created by
- Dawn S_akura
- Views
- 4
- Tags
- Rating