Page 46 - LITRG_PA-final-2018

National A National Insurance number is a personal reference number for the whole
Insurance UK system of National Insurance and state benefits. This number ensures the
number National Insurance contributions a person pays are noted on their record with
HM Revenue and Customs.

National The National Living/Minimum Wage sets the minimum hourly rates that
Living/ employers must pay their employees in the UK. HM Revenue and Customs
Minimum enforces the rules.
Wage (NLW/
NMW)

Pay As You This is a system of collecting and paying income tax and National Insurance
Earn (PAYE) contributions. If you are an employee, your employer deducts income tax and
National Insurance contributions from your income, and pays them to HM
Revenue and Customs for you.

Payslip A payslip is a statement which contains details of an employees pay and any
tax and National Insurance contributions deducted.

P11D Form P11D is used at the end of the year to report expenses and benefits
given to an employee.

Self- This is the system for giving details of income and gains to HM Revenue and
assessment Customs. It involves completing tax returns.

Self-employed If you set up your own business and take responsibility for its success or
failure, you might be self-employed.

Statutory SMP is an earnings replacement to help a mother take time off around the birth
Maternity Pay of her baby. Employers are liable to pay this to their employees who take time
(SMP) off when having a baby, as long as they satisfy all the qualifying conditions.

Statutory When you take time off because your partner’s having a baby or adopting a
Paternity Pay child you might be eligible for 1 or 2 weeks paid Paternity Leave.

Statutory Sick SSP is an earnings replacement for employees who are sick. Employers are
Pay (SSP) liable to pay this to their employees who are off work due to sickness, as long
as they satisfy all the qualifying conditions.

Student loan Payments an employer deducts from an employee’s pay to repay their
deductions student loan.

Tax code A code number representing the tax-free part of an employee’s income, for
use by employers in calculating the tax to be deducted under the PAYE system

Tax year The tax year is from 6 April in one year to the following 5 April. You might
see the tax year written as ‘2018/19 tax year’. This means 6 April 2018 to
5 April 2019.

Year to date The total of all payments made during the tax year so far (from 6 April).

page 46 Taking on a personal assistant – a basic guide • Glossary