Paying HMRC what was taken from pay
Tax and National Insurance taken from wages do not belong to the business. Work out what is owed to HMRC and when it is due.
This path is practice in how the records and the sums work. It is not tax advice. Any rate or allowance in a question is an example for that question, so check GOV.UK for the current figures.
Task 1What is owed4 questions
Money deducted from wages is held for someone else. Tax, National Insurance and student loan repayments go to HMRC. Pension contributions go to the pension provider.
The employer's own National Insurance is paid to HMRC in the same payment.
| Item | Amount |
|---|---|
| Gross pay | 10,800.00 |
| Income tax | 1,450.00 |
| Employees' National Insurance | 500.00 |
| Student loan repayments | 36.00 |
| Employees' pension contributions | 500.00 |
| Other voluntary deductions | 64.00 |
| Net pay | 8,250.00 |
| Employer's National Insurance | 1,260.00 |
| Employer's pension contributions | 300.00 |
Task 2When it is due3 questions
Task 3The payment in the books2 questions