INCOME TAX REPORT 3
OUTCOME 1 - UK INOCME TAX SYSTEM
OUTCOME 2 - PAY AS YOU EARN (PAYE)
Introduction 4
Procedures 4
UK employment status 5
1. Employment status 5
2. Criteria of differentiate employment and self-employment 5
Right of Control 5
Financial Risk 6
Equipment 6
Work performance and correction 6
Holidays and sickness 6
Exclusivity 6
3. Concusions 6
UK income TAX 7
1. Taxable person 7
2. Tax year 7
3. Self assessment 7
4. Payment dates 8
5. Procedures involved in application of surcharges, interests and penalties 8
ADMIN OF PAYE SYSTEM 9
1. Basis Of Assessment 9
2. Tax Codes 10
3. Operation Of The Paye System 10
4. Paye Forms Used 11
Introduction
The report has been compiled for the purpose of given an information and familiarisation with HMRC rules about the UK Income Tax. Also to give Kate an advice is she should be register under self-employment rules or rather she might have been hire as an employee in the company.
Procedures
The information presented in this report was gathered from:
Allan Melville, 'TAXATION-Finance Act 2012' 11 Edition
HMRC website
Notes
UK employment status
Income Tax (Earnings and Pensions) Act 2003 shows the rules and explain how tax is charged from income of employment. First, we have to realise the differences between employment and self-employment.
1. Employment status
The certain rules and conditions must be met to make a decision, if the person is employed or self-employed, and that means it is not the matter of choice. The main distinction between them two is if the person who works for someone else performs work under the contract of service or contract for service. The thing that matters is reality of relationship.
If we want to consider the Katy's status as an employee or self-employment we can use the general questions from the HMRC website, and if the answers will be 'yes' it means that in this situation Katy is an employee.
A. Does she has to do the work herself? Yes, Katy has to do the
OUTCOME 2 - PAY AS YOU EARN (PAYE)
Introduction 4
Procedures 4
UK employment status 5
1. Employment status 5
2. Criteria of differentiate employment and self-employment 5
Right of Control 5
Financial Risk 6
Equipment 6
Work performance and correction 6
Holidays and sickness 6
Exclusivity 6
3. Concusions 6
UK income TAX 7
1. Taxable person 7
2. Tax year 7
3. Self assessment 7
4. Payment dates 8
5. Procedures involved in application of surcharges, interests and penalties 8
ADMIN OF PAYE SYSTEM 9
1. Basis Of Assessment 9
2. Tax Codes 10
3. Operation Of The Paye System 10
4. Paye Forms Used 11
Introduction
The report has been compiled for the purpose of given an information and familiarisation with HMRC rules about the UK Income Tax. Also to give Kate an advice is she should be register under self-employment rules or rather she might have been hire as an employee in the company.
Procedures
The information presented in this report was gathered from:
Allan Melville, 'TAXATION-Finance Act 2012' 11 Edition
HMRC website
Notes
UK employment status
Income Tax (Earnings and Pensions) Act 2003 shows the rules and explain how tax is charged from income of employment. First, we have to realise the differences between employment and self-employment.
1. Employment status
The certain rules and conditions must be met to make a decision, if the person is employed or self-employed, and that means it is not the matter of choice. The main distinction between them two is if the person who works for someone else performs work under the contract of service or contract for service. The thing that matters is reality of relationship.
If we want to consider the Katy's status as an employee or self-employment we can use the general questions from the HMRC website, and if the answers will be 'yes' it means that in this situation Katy is an employee.
A. Does she has to do the work herself? Yes, Katy has to do the