Employment and Payroll Taxes

by Sarah Laing
access120 days access
cpd hours4 CPD hours

This course will enable you to:

  • Determine whether someone is employer or self-employed and their different tax obligations
  • Understand the reporting requirements and timescales that employers must adhere to
  • Know how to deal with various expenses payments for tax purposes
  • Deal with popular BIKs for tax purposes
  • This course has been revised and is up to date for 2021/22.

    The Pay As You Earn (PAYE) system for employment tax and National Insurance (NI) is designed to make life easier for employees, because it is generally the employer's responsibility to get contributions to HMRC right. For the employer, there is a series of compliance procedures, which they must adhere to, and a severe penalty regime in operation if they fail to satisfy their employment tax obligations.

    As an accountant or finance professional, it is important to understand, for tax purposes, how to determine an individual's employment status, how to operate PAYE, and the implications of the expenses and benefits-in-kind regime.

    This course covers all these areas and more, giving a broad understanding of how employment tax works. Employment and Payroll Taxes is a useful reference tool for both employers and employees, as well as accountants in both practice and industry.

    By the end of the course, you will have a good understanding of the basic principles of employment tax, enabling you to approach the subject with confidence in your accounting or finance role.

    Employment Status

    • Why is employment status important?
    • What are the indicators of employment?
    • What rights do employees have?
    • What are the indicators of self-employment?
    • What are the different National Insurance classes?

    Taking on Employees

    • What do employers need to do when employing staff for the first time?
    • When are employers required to operate PAYE?
    • What is the Real Time Information programme?
    • What are the different PAYE codes?

    Expenses Payments

    • What are the rules for claiming tax relief on expenses?
    • What are expenses payments?
    • How should employers record expenses payments for tax purposes?
    • What are the rules on the tax treatment of travel expenses?
    • What are the tax-free mileage rates for vehicles used for work?

    Benefits in Kind

    • How do you calculate tax on employees' company cars?
    • How do you calculate the tax charge on employees' company vans?
    • What is the tax treatment for employer-supported childcare?
    • What relocation expenses and benefits can employees claim?
    • What tax-free benefits are available to employees?

    Sarah Laing is a Chartered Tax Adviser. She has been writing professionally since 1998 when she joined CCH Editions as a Senior Technical Editor, contributing to a range of highly regarded publications including the British Tax Reporter. She became Publishing Manager for the tax and accounting portfolio in 2001 and later went on to help run CCH Seminars (including ABG Courses and Conferences).

    Sarah originally worked for the Inland Revenue in Newbury and Swindon Tax Offices, before moving out into practice in 1991. She has worked for both small and Big 5 firms, and now works as a freelance author providing technical writing services for the tax and accountancy profession.

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