HMRC is the government department responsible for the collection of tax in the UK. HMRC collects tax that is paid by both individuals and businesses.
You will need a permanent NI number to join BBuffalo. Anyone over the age of 16 and a resident in the UK should have a National Insurance card, with a number printed on it. If you have lost your National Insurance card then your National Insurance number can be found on any P60, payslip, annual tax return or official correspondence you have received. If you have lost your number, you can call the NI Number Confirmation Line on 0845 915 7006.
The number is used to ensure that any National Insurance Contributions paid to the government are correctly recorded against your account. The National Insurance number is also used as a reference number for the Social Security System. You pay National Insurance Contributions in order to be entitled to certain social security benefits such as the State Pension. These contributions no longer have to be made once you reach the State Retirement Age.
National Insurance Contributions are deducted automatically by BBuffalo and paid directly to the HMRC. Both employer’s and employee’s National Insurance Contributions are deducted from your gross earnings. Full details of this are shown on the payslip you receive.
PAYE stands for “Pay as You Earn.” This is simply another method of paying income tax as you earn it rather than in one lump sum payment.
Your Tax Code tells an employer how much PAYE tax to deduct from your wages. This code consists of a letter which relates to the type of tax allowances you are entitled to and a number which shows how much in a tax year that you may earn tax free.
The BBuffalo umbrella company is your employer and therefore performs any relevant PAYE deductions. Your payslip will show how much PAYE you have paid each week.
HMRC has an extensive website of information that can be found at www.hmrc.gov.uk.
Mortgages, pensions and investments for the professional contractor.
