Introduction to Income tax and NICs

Chartered Institute of Payroll Professionals
Course summary
7 hours
384 - 484 GBP excl. VAT
Full time
Professional Training
Next available date: 01/11/2021 - Birmingham
Course Dates
Online courses
384 GBP

484 GBP

484 GBP

484 GBP

Course description

This course would also suit those in HR and finance roles who require a more detailed understanding of the mechanics of PAYE and NICs than taught on the payroll for non-payroll professionals course.

To equip you with the knowledge and skills to calculate PAYE income tax and National Insurance Contributions correctly.

  • Calculate gross income
  • Calculate PAYE and NIC liabilities
  • Handle payments for starters and leavers correctly
  • Sequence the required calculations correctly
  • Outline the correct process for systems output
  • Calculate net pay

Outcome / Qualification etc.

Beginning with calculating gross pay and establishing the different categories of deductions, this course moves to cover in-depth the rates, thresholds and methodologies for manually calculating income tax and NICs using both manual and table methods. By the end of the day, you will be able to perform a gross to net calculation, understand the extra considerations required for calculating pay for starters and leavers and the information required on a pay statement.

This course forms part of the face-to-face delivery option for the Payroll Technician Certificate. But can also be attended as a stand-alone course.

The course is suitable for delegates that have the following suggested roles:

  • Payroll administrators
  • Payroll coordinators
  • HR administrators
  • HR coordinators
  • Payroll supervisors

And you may be working in either:

  • A payroll bureau
  • Accountancy firm
  • In-house payroll team

Training Course Content

Ascertaining gross pay

  • Classifying taxable and NICable pay elements
  • Calculating pay apportionments correctly

Processing deductions

  • Ascertaining what makes a deduction from pay lawful
  • Classifying the three types of deductions
  • Distinguishing deductions which affect taxable and NICable pay
  • Overview of tax relief methods for pension contributions

           National Insurance Categories

  • Listing the NI category letters currently in use
  • Identifying the correct NI category letter for employees
  • Awareness of proof required to apply certain category letters

         Calculating National Insurance Contributions

  • Recognising the names and current amounts of NIC thresholds
  • Listing the current rates of NICs for each category letter
  • Calculating NICs using the Exact Percentage method
  • Calculating NICs using the Table method

         Identifying different tax codes

  • Identifying circumstances which warrant “emergency tax codes”
  • Categorising different tax codes
  • Distinguishing Scottish tax codes

         Calculating income tax

  • Identifying the different allowances available
  • Navigating through Pay Adjustment Table A
  • Calculating income tax using the table method
  • Calculating income tax using the manual method
  • Awareness of circumstances where tax refunds may be processed

Completing gross to net calculations

  • Identifying the correct order to calculating gross to net figures
  • Performing gross to net calculations

Awareness of payslip obligations

  • Awareness of deadlines and eligibility for a payslip
  • Outlining the minimum information required on payslips

Administering starters & leavers correctly

  • Listing information required for processing starters & leavers
  • Completing forms P45 and New Starter Checklist correctly


Prices for this course are as below;

Non-members price: £384.00 +VAT

Members price: £284.00 +VAT

About provider

The Chartered Institute of Payroll Professionals (CIPP)

           Leading the profession through education, membership and recognition Established in 1980 as an official industry body, the Chartered Institute of Payroll Professionals (CIPP) is the only Chartered institute for payroll, pensions and reward professionals in...

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Chartered Institute of Payroll Professionals

Goldfinger House
245 Cranmore Boulevard, Shirley
B90 4ZL Solihull

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