This course would also suit those in HR and finance roles who require a more detailed understanding of the mechanics of PAYE and NICs than taught on the payroll for non-payroll professionals course.

Please note: Materials for this course will be made available via an online platform, however a selection of this materials will need to be printed off and brought with you on the day. Login details for the online platform will be sent to you 10 days before the course start date. If you have any problems or questions, please email

Why should I attend?

PAYE income tax and National Insurance Contributions are the largest source of remittances all employers must accurately deduct and forward to HMRC on time. Calculating these correctly is a fundamental skill for all in payroll.

Beginning with calculating gross pay and establishing the different categories of deductions, this course moves to cover in-depth the rates, thresholds and methodologies for manually calculate income tax and NIC’s using both manual and table methods. By the end of the day, delegates will be able to perform a gross to net calculation, understand the extra considerations required for calculating pay for starters and leavers and the information required on a pay statement.

What will I learn?

To equip delegates with the knowledge and skills to calculate PAYE income tax and National Insurance Contributions correctly.

  • Calculate gross income
  • Calculate PAYE & NIC liabilities
  • Handle payments for starters and leavers correctly
  • Sequence the required calculations correctly
  • Outline the correct process for systems output
  • Calculate net pay


Course content

  • Ascertaining gross pay
    • Classifying taxable and NICable pay elements
    • Calculating pay apportionments correctly
  • Processing deductions
    • Ascertaining what makes a deduction from pay lawful
    • Classifying the three types of deductions
    • Distinguishing deductions which affect taxable & NICable pay
    • Overview of tax relief methods for pension contributions
  • National Insurance Categories
    • Listing the NI category letters currently in use
    • Identifying the correct NI category letter for employees
    • Awareness of proof required to apply certain category letters
  • Calculating National Insurance Contributions
    • Recognising the names and current amounts of NIC thresholds
    • Listing the current rates of NICs for each category letter
    • Calculating NICs using the Exact Percentage method
    • Calculating NICs using the Table method
  • Identifying different tax codes
    • Identifying circumstances which warrant “emergency tax codes”
    • Categorising different tax codes
    • Distinguishing Scottish tax codes
  • Calculating income tax
    • Identifying the different allowances available
    • Navigating through Pay Adjustment Table A
    • Calculating income tax using the table method
    • Calculating income tax using the manual method
    • Awareness of circumstances where tax refunds may be processed
  • Completing gross to net calculations
    • Identifying the correct order to calculating gross to net figures
    • Performing gross to net calculations
  • Awareness of payslip obligations
    • Awareness of deadlines and eligibility for a payslip
    • Outlining the minimum information required on payslips
  • Administering starters & leavers correctly
    • Listing information required for processing starters & leavers
    • Completing forms P45 and New Starter Checklist correctly


Further development

Introduction to Statutory Payments:
Covering in detail the core statutory payments (SSP, SMP, SAP & SPP) as well as introducing Shared Parental Leave & Pay, completing this course will further a payroll administrator’s essential skill set.

Essential Additions to Payroll Basics:
This course directly follows from this syllabus to cover a broad range of other subjects which all payroll administrators must competently grasp such as Student Loan Deductions, Court Orders, Auto-Enrolment, Real-Time Information, Year-End obligations and an introduction to Director’s NIC’s.

Revision Day 1:
It takes practice to achieve competence with gross to net calculations. This course applies the learning gained from this syllabus in a variety of scenarios, enabling the delegate to fully comprehend the key principles and apply them in the workplace with confidence.

Payroll for Scottish Employees :
With different rates & thresholds, Scottish Income Tax has become a distinct discipline which the UK payroller must master if they have Scottish employees on their payroll(s). This course covers the definition of Scottish taxpayers, numerous gross to net calculation examples and the other ramifications Scottish tax has on the administration of UK payroll.

Booking information

For more information please email or call us on 0121 712 1063. 

Closing date for bookings is two weeks prior to the course date.

In-house delivery

The CIPP can offer in-house delivery on most training courses.

In-house delivery can be very attractive for organisations as they can train large numbers of employees* at a reduced rate, without the additional associated costs, such as travel and 'lost time'.

Click here for more information.

*Minimum number of delegates apply