Employment income overview

In this lesson

1. 0:00 Employment income overview and assessment
2. 2:21 HMRC factors for employment status
3. 6:06 Tax rates and National Insurance basics
4. 8:23 Car benefits and pension provisions

About this lesson

This lesson covers the factors HMRC considers when determining employment status, the basis of assessment, employment benefits, allowable deductions, and how the pay-as-you-earn system works. Understanding these foundations is essential for the Taxation paper, as employment income forms a core part of the income tax computation you'll encounter throughout your studies and in the exam. The lesson walks you through the practical factors that distinguish an employee from a self-employed individual, including control over how work is done, provision of equipment, payment basis, and the number of clients. You'll see how these factors are weighed together rather than applied as a single test, and why this distinction matters for both income tax and National Insurance purposes. The video also introduces the tax rates and National Insurance thresholds that apply to employment income, including employee and employer contributions, setting up the framework you'll use in real tax calculations.

Duration: 9m