MJMaths LiBF Unit 2 Topic 8 Key Words

A form of tax on earned income paid by employees, employers and self-employed people. Money raised for NHS and Pensions.

The form that all employees receive at the end of the tax year, telling them how much tax was deducted.

A form of tax on all incomes received by an individual. Usually charged at 20%, 40% or 45% depending on income.

Certain benefits, given to an employee by an employer, which are treated as income.

Someone who does not work for an employer but has set up their own business.

What we have left after income tax and NI had been deducted.

Every individual is allowed to receive a certain amount of income before they have to pay tax.

Her Majesty's Revenue & Customs

In business terms, total income for the tax year

The way that income tax is collected from employees. Their employer deducts tax each time they are paid.

Income that is subject to tax deductions

The system by which self-employed people and others declare their income for tax purposes.

The form that employees receive when they change jobs. It states how much they earned and how much tax they paid.