Payroll and Financial Abbreviations
Payroll / Financial Abbreviations with Meanings & Definitions
If you struggle with abbreviations from SAP, SSP, LEL, to RTI, NI, CTC etc then we can help.
Payroll Services Outsourced want to make Payroll and Financial Abbreviations in the UK as clear as possible and shown below are the most common ones.
BA = Bereavement Allowance
BACS = Bankers Automated Clearing Services and this is a payment scheme for the electronic processing of financial transactions.
BP = Bereavement Payment.
CHB = Child Benefit. You can normally qualify for Child Benefit if you have children under the age of 16 and you live in the United Kingdom. The age may increase slightly to under 20 if in certain types of training or education.
CT = Corporation Tax. This is a tax on the taxable profits of limited companies and other institutes including associations, societies, clubs and other unincorporated bodies.
CTC = Child Tax Credit. If you have a new baby, or if you are responsible for any children under the age of 16 then you could obtain Tax Credits.
ET = Earnings Threshold. This is the amount you can earn before you have to pay income tax , ie upto £10,000, then 20 % , 40 % & 45 % after that.
FA = Finance Act.
FSA = Financial Services Authority
Gross Pay = This is the total earnings for the employee before tax and other deductions, this can include commission, bonuses, overtime and other misc payments.
HMRC = Her Majesty`s Revenue and Customs. This is a department of the government who are responsible for the collection of taxes.
LEL = Lower Earnings Limit. This is the amount you can earn before National Insurance deductions are made by your employer.
Nett Pay = This is the amount that the employee actually takes home after tax and other deductions.
NI = National Insurance. Need to know the latest National Insurates Rates?
NIC = National Insurance Contributions.
NMW = National Minimum Wage. The National Minimum Wage is the minimum pay per hour almost all workers are entitled to by law. Need to know the latest National Minimum Wage rates?
PAYE = Pay As You Earn. This is where tax is deducted from employee`s by the employers for the HMRC. Need to know the latest income tax rates for 2014-2015, see our PAYE and National Insurance Rates For 2014 – 2015
PC = Pension Credit. This is an income benefit which is made up of 2 parts – Savings Credit & Guarantee Credit.
- Guarantee Credit tops up your weekly income if it’s below a certain amount for single people or couples. The rates can be found on the gov.uk website.
- Savings Credit is an extra payment for people who have saved some money towards their retirement via a a pension. Please note that you don’t pay tax on pension credit.
PILON = Payment in Lieu of Notice.
PILOR = Payment in Lieu of Remuneration.
PP = Personal Pension. This is where you make monthly or lump sum payments to a pension provider.
PSA = PAYE Settlement Agreement.
RTI = Real Time Information
SAP = Statutory Adoption Pay.
SEE = Small Earnings Exception.
SHP = Staheholder Pension.
SPP = Statutory Paternity Pay. This is pay that your employer might have to pay you by law whilst you are on paternity leave.
SSP = Statutory Sick Pay. This is paid to employees when they are unable to work for a given reason.
SMP = Statutory Maternity Pay. Female employees expecting a baby will be entitled to ordinary maternity leave and additional maternity.
SS = Social Security.
TCO = Tax Credit Office.
TY = Tax Year. This is a year which is reckoned for taxation
VAT = Value Added Tax.
WPA = Widowed Parent`s Allowance.