Payroll

Who needs to register PAYE?

• Only businesses with more than 10 employees

• Individuals or businesses employing one or more employees

• Only individuals working as freelancers

• Businesses with annual earnings over £10,000

What is the Lower Earnings Limit (LEL) for Class 1 NIC per week?

• £100

• £150

• £120

• £200

What happens after PAYE registration?

• The business receives a tax refund

• HMRC issues an employer reference number

• The business is exempt from taxes

• The business can hire more employees

What information is needed about the workforce during registration?

• Number of employees including Directors

• Number of part-time employees

• Number of contractors

• Number of interns

Which of the following is a voluntary deduction?

• PAYE

• Employee Pension Contribution

• Student loan repayments

• Employer NIC

What type of software might be available for employers with less than 10 employees?

• Free software

• Premium software

• Custom software

• Open-source software

For what purpose can a P60 form be used in a loan application?

• Proving income

• Proving identity

• Proving residence

• Proving employment history

Which of the following is a mandatory deduction from an employee's salary?

• Health insurance premium

• PAYE

• Charity donation

• Gym membership fee

Which document is used to summarize an employee's total pay and deductions for the year?

• P45

• P60

• P11D

• P9D

What is the primary purpose of a P45 form?

• To report annual earnings

• To provide tax code information

• To claim tax refunds

• To register for PAYE