Topic 12 - Earnings Flashcards
1
Q
What must everyone who works pay?
A
- income tax
- NI contributions
2
Q
What does income tax + NI contributions go towards?
A
- gov. to spend on health + pensions etc.
3
Q
What does NMW stand for?
A
National minimum wage
4
Q
What is the NMW?
A
- lowest hourly wage an employee can be paid
5
Q
What are some exceptions to the NMW?
A
- voluntary workers
- ppl on work experience who aren’t trainees (interns)
- trainees on some gov. schemes
- prisoners
- members of armed forces
6
Q
What is the max hours an employer can work?
A
- 48hrs per week
7
Q
What working time regulations are employees entitled to?
A
- at least 11 consecutive hours’ rest
- I day off a week
- 20min break if working day > 6hrs
- if working 5 days/week = 5.6 weeks paid holiday
8
Q
Working time regulations don’t apply to
A
- armed forces
- emergency services
- domestic workers in private households
9
Q
How is income tax paid?
A
- according to how much an individuals income is
10
Q
What is a personal allowance?
A
- income an individual receives before paying income tax
11
Q
What does a tax code tell u?
A
- how much u can earn before paying income tax
12
Q
What is a personal savings allowance?
A
- taxpayers earn certain amounts in savings interest tax free
- basic rate = £1,000
- higher rate = £500
13
Q
Who doesn’t have to pay NI contributions?
A
- young apprentices
14
Q
What does the amount of NI contributions depend on?
A
- employment status + income
15
Q
How are workers income tax + NI paid?
A
- by employer to HMRC through PAYE scheme
