images from tax matters the images in this powerpoint can be copied for use in your own presentation...
TRANSCRIPT
Images from Tax Matters
• The images in this PowerPoint can be copied for use in your own presentation on tax, National Insurance and related topics.
• The images are licensed for use on Tax Matters and related teaching materials.
Benefits chart
Key words: payslip, income tax, National Insurance, deductions
Rollover explanations
1. This tax code shows that the employee can earn £6,475 in the year before they pay tax. This is called a tax-free allowance.
2. The National Insurance number is a unique identifier which allows the deductions to be credited against the employee’s name.
3. This is a record of how much Mr McGonagle has earned and how much has been deducted in the current tax year.
4. The tax year runs from April to April.
5. Net pay is the amount the employee will receive in their bank account.
6. Deductions are the amounts taken out of wages before the employee receives them.
7. Gross pay: the amount he earned before tax was deducted.
8. Mr McGonagle is paid weekly. His wage is based on the number of hours worked plus basic pay.