ICB’s Payroll Policy Advisor, Ian Holloway of i-Realise, breaks down nearly 300 payroll acronyms and terms...

Bookkeeping, payroll and HR departments in the United Kingdom are faced on a daily basis with a multitude of forms, terminology, initialisms and acronyms.  This is something that we have to get used to.  Professionals will use these without thinking that not everyone actually understands what they mean!

So, in an attempt to demystify the bookkeeping, payroll and HR world, the ICB has compiled a list of common ‘jargon’.  Whilst we do not attempt to cover or explain these in detail, we have included some links which we hope are helpful.

You can also download the guide here.

A-Z Terminology

Acronym/
Term

Meaning

Comment

480

Expenses and benefits – A tax guide

The HMRC collection of P11D processing guides, now housed online

490

Employee travel – A tax and NICs guide for employers

The HMRC collection covering tax and NICs on employee travel

ABAB

Admin Burdens Advisory Board

The HMRC group to look at the burdens of payroll administration and how to manage or reduce them

ACAS

Advisory, Conciliation and Arbitration Service

In Great Britain only

AE

Auto-Enrolment

The process whereby all eligible jobholders have to have a pension scheme made available to them, unless they opt out.  Now known as “workplace pensions”

AEO

Attachment of Earnings Order

A specific type of court order

AFR

Advisory Fuel Rates

Regarding company cars.  The rates HMRC say it is OK to reimburse for business travel (or for the employee to pay for the private use of the company car)

AL

Apprenticeship Levy

The 0.5% contribution that large employers are required to make through the payroll

ALM

Apprenticeship Levy Manual

HMRC’s internal guidance about the AL, available online

APP

Appropriate Personal Pension

A personal pension scheme

AML

Additional Maternity Leave

The 26-week statutory entitlement that follows Ordinary Maternity Leave (OML)

AML

Anti-money Laundering

For some businesses in the financial sector who may need to register with an anti-money laundering scheme

APL

Additional Paternity Leave

Now abolished

 

 

ARE

Auto Re-Enrolment

If a worker opts out of AE, ARE is the process whereby they are enrolled back into a pension scheme after a period

Arrestable

Re Court Orders in Scotland

Arrestable earnings are the earnings on which certain Scottish Court Orders are calculated

Attachable

Re Court Orders in Great Britain

Attachable earnings are the earnings on which certain Court Orders in England, Wales and Northern Ireland are calculated

ATP

Re apprenticeships in England, an Apprenticeship Training Provider

An organisation that is a provider of apprenticeships and eligible to receive government funding to train apprentices

AUST

Apprentice Upper Secondary Threshold

Re NICs.  If the employee is classed as a “relevant apprentice”, the employer does not have to pay NICs until the earnings exceed the AUST threshold

AVC

Additional Voluntary Contribution

In respect of pension – where the employee chooses to pay more into their pension scheme

AWE

Average Weekly Earnings

A calculation relevant for determining eligibility and rate of payment for statutory payments (SSP, SMP etc)

Bacs

Formerly Bankers' Automated Clearing Services (BACS) now Bacs Payment Schemes Limited

The organisation that clears funds from one bank to another

BEIS

The Department for Business, Energy and Industrial Strategy

Formed in July 2016 as a result of the merger of BIS and the Department of Energy and Climate Change (in Great Britain)

BIS

Department for Business, Innovation and Skills

Government department for economic growth – abolished July 2016

BPT

HMRC’s Basic PAYE Tool

A free piece of HMRC payroll software that allows employers to run payroll, calculate payroll deductions and report in real time

BR

Basic Rate

In relation to income tax, a tax code indicating that all income is to be taxed at the basic rate (for rUK taxpayers)

Bremain

In relation to Britain staying in the EU, as per the referendum on 23 June 2016

The UK and Gibraltar voted for Brexit rather than Bremain on 23 June 2016

Brexit

In relation to Britain leaving the EU, as per the referendum on 23 June 2016

The UK and Gibraltar voted for Brexit rather than Bremain on 23 June 2016

BSP

Basic State Pension

The BSP is a regular payment from the government if State Pension age (SPa) is reached before 6 April 2016.  Applies to:

 

Men born before 05 April 1951

Women born before 05 April 1953

 

CA37

Simplified National Insurance Tables

For some employers where HMRC have advised them to operate simplified PAYE

CA38

Standard Rate National Insurance Contributions (NICs) Tables

For letters A, H, J, M and Z

CA40

NICs Tables for employee-only Contributions

For use when authorised by HMRC

CA41

NICs Tables for reduced rate and over State Pension age (SPa)

For letters B and C

CA42

NICs Tables for mariners

For letters G, P, Q, R, T, W and Y

CA44

NICs guidance for company directors

As company directors can pay NICs using an annual threshold rather than on a per-pay-period basis

CAO

Conjoined Arrestment Order

An Arrestment issued in Scotland

CBR

(Cymru) Basic Rate

In relation to income tax, a tax code indicating that all income is to be taxed at the basic rate (applying to Welsh taxpayers)

CEST

Check Employment Status for Tax tool

Re IR35, the HMRC tool for determining employment status for tax

CHAPS

Clearing House Automated Payment System

A real-time gross settlement payment system used for sterling transactions in the United Kingdom

CCV

Childcare Vouchers

A form of Employer-Supported Childcare with tax and NICs relief.  Closed to new entrants from the 4th of October 2018 but still operated for those in the scheme at this time 

CIS

Construction Industry Scheme

A taxation system for construction workers (different to PAYE for employees)

CJEU

Court of Justice of the European Union

Also known as the European Court of Justice or "ECJ", is the supreme court of the European Union in matters of European Union law

 

CJRS

Coronavirus Job Retention Scheme

A UK-wide HM Treasury / HMRC scheme to cover some of the costs of employment when an employee is furloughed as a result of COVID-19

Class 1

In relation to NICs

This is the only NICs that can be collected through the payroll as part of the PAYE process

Class 1A

In relation to NICs

Secondary NICs on benefits-in-kind

Class 1B

In relation to NICs

Secondary NICs payable on the value of benefits and tax under a PSA

Class 2

In relation to NICs

The flat rate Primary NICs payable by the self-employed

CMA

Conjoined Maintenance Arrestment

An Arrestment issued in Scotland

CML

Compulsory Maternity Leave

The first two weeks after the birth of the baby (four if the woman works in a factory environment) when the woman is not allowed to work.  It is part of OML

COMPS

Contracted Out Money Purchase Scheme

A pension scheme arrangement – now abolished

COP

Computerisation of PAYE

The previous HMRC PAYE system, now NPS

COSR

Contracted-Out Salary Related

A pension scheme arrangement – these would probably not exist following the abolition of Contracting Out from 06 April 2016

CPD

Continuing Professional Development

An activity where an individual undertakes a task that contributes to their continuing learning in a profession

CPI

Consumer Price Index

Some payroll rates and allowances are increased by looking at the value of CPI

CTAEO

Council Tax Attachment of Earnings Order

Issued for non-payment of Council Tax

CWG2

Employers’ Further Guide to PAYE and NICs booklet

HMRC manual with more in-depth information for employers

CWG5

Class 1A National Insurance contributions on benefits in kind, termination payments and sporting testimonials

A guide for employers

DAS

Debt Arrangement Scheme

A debt management tool (only in Scotland)

DExEU

Department for Exiting the European Union

Formed in July 2016 after the UK’s vote to leave the EU.  Closed 31 January 2020 when the UK left the EU

DEL

Department of Employment and Learning

In Northern Ireland only, abolished 06 May 2016

DEO

Deduction from Earnings Order

Issued for child maintenance (not Scotland)

DfC

Department for Communities

In Northern Ireland, covering education, employment and LRA

DfE

Department for the Economy

In Northern Ireland, covering recruitment and benefits

Dispensation

Dispensation

Pre 06 April 2016 mechanism where an employer could apply to pay some benefits free of tax and NICs and without declaration on the P11D

D0

With regards tax codes

D signifying that tax is to be taken at one of the higher rates (with S and C prefixes for Scottish and Welsh taxpayers)

DP

Data Protection

As per the UK Data Protection Act 2018

DWP

Department for Work and Pensions

The UK body responsible for welfare, pensions and child maintenance policy – mainly Great Britain

EA

Earnings Arrestment

An Arrestment issued in Scotland

EAS

Employee Alignment Submission

Abolished from 2018/19 tax year.  The RTI submission at the very start to align an employer’s records with those held at HMRC 

EAT

Employment Appeals Tribunal

The appeal court after the Employment Tribunal in Great Britain. 

ECON

Employer Contracted-Out Number

A number employers used to have to quote pre-06 April 2016 when Contracting-Out was abolished

ECOS

Employee Car Ownership Scheme

A “tax efficient scheme” where the employee owns their vehicle from day one

EDI

Electronic Data Interchange

A method of file transfer, now abolished

EEA

European Economic Area

An area that provides for free movement that includes EU countries and non-EU countries like Norway

EFRBS

Employer-Financed Retirement Benefit Schemes

An HMRC unapproved pension scheme.  Also called FURBS

EFTA

European Free Trade Association

A regional trade organisation and free trade area for the promotion of free trade and economic integration for 4 countries (Iceland, Liechtenstein, Norway and Switzerland)

EHIC

European Health Insurance Card

Replacing forms E111 and E128 allowing and individual to be insured by / covered by a social security scheme of the EEA countries.  Valid until expiry, at which time renewal will be via the GHIC

EIM

Employment Income Manual

HMRC’s internal guidance on ITEPA 2003, available online

EPAO

Re apprenticeships, an End-Point Assessment Organisation

An independent organisation (separate from the ATP and employer) that conducts the final assessment of apprentices

EPS

Employer Payment Summary

The RTI submission that declares, amongst other things, recoveries that an employer can make for SMP, SAP etc.

ERA

Employment Rights Act (1996)

The major piece of employment legislation in Great Britain

ERO

Employment Rights Order (1996)

The major piece of employment legislation in Northern Ireland

ESA

Employment Support Allowance

A benefit paid by Job CentrePlus in Great Britain and the DFC in Northern Ireland

ESC

Extra Statutory Concession

ESCs exist to exempt some items from a tax liability – for example, payment of long service awards can be exempt from tax because of an existing ESC

ESC

Employer-Supported Childcare

A mechanism whereby employers can help employees with childcare costs, commonly provided via the CCV.  Abolished for new entrants on or after the 4th of October 2018

ESFA

Education and Skills Funding Agency

Agency, sponsored by the Department for Education in England, accountable for funding education and skills for children, young people and adults

ET

Employment Tribunal – from an employment law perspective

The first court that will hear employment-related disputes in Great Britain

ET

Earnings Trigger – from an AE and ARE perspective

If the other criteria are met, once earnings reach or exceed the ET, the worker becomes eligible for AE or ARE

EU

European Union

The collective term for the 27 Member States

 

EU Exit

Exiting the European Union

The UK Government terminology for the process of exiting the EU (as per the vote in the UK and Gibraltar on the 23rd of June 2016)

EWC

Expected Week of Childbirth

Aka Expected Week of Confinement, however, confinement is a dated term

EYU

Earlier Year Update

An RTI submission that is used to adjust a previous tax year’s figures when the tax year has closed

FBI

File by Internet

A method of file transfer via the Government Gateway in XML format

FET

Fair Employment Tribunal

In Northern Ireland, this could be said to be the equivalent of the EAT in Great Britain

FPCS

Fixed Profit Car Scheme

A scheme allowing car owners to claim a standard rate for business mileage.

FPS

Full Payment Submission

The main RTI submission reporting details of what has been paid in that pay period (plus YTD values)

FOI

Freedom of Information

As per the FOI Act 2000 (UK)

FSAVC

Free-Standing Additional Voluntary Contribution

AVCs that are free standing from the employer, therefore, generally refer to contributions made to personal pension schemes

FURBS

Funded Unapproved Retirement Benefit Scheme

A retirement option aside from occupational pension that may be set by an employer for employees

Furlough

In relation to COVID-19 and the CJRS

An employment status where the employer and individual mutually-agree that no work will be performed under the contract of employment

GAYE

Give As You Earn

An employer-provided mechanism whereby an employee has deductions made free of tax, donated to charity

GB

Great Britain

England, Scotland and Wales, also known as the UK mainland

GDPR

General Data Protection Regulation

An EU data protection Regulation governing the processing of personal data and the free movement of such data.  Effective the 25th of May 2018

GHIC

Global Health Insurance Card

Post EHIC expiry, the card which, upon issue, gives an individual the right to access state-provided healthcare during a temporary stay in the EU

GMP

Guaranteed Minimum Pension

Broadly, the minimum pension which a UK occupational pension scheme has to provide employees who were contracted out of SERPS between the 6th of April 1978 and 5th of April 1997

GPGR

Gender Pay Gap Reporting

From 2017, the 6 “reports” or 14 pieces of separate information designed to expose whether women are paid less than men in a company

GPP

Group Personal Pension

A type of occupational pension arrangement

HMCS

Her Majesty’s Courts Service

Until the 1st of April 2011 it was responsible for the administration of civil, family and criminal courts in England and Wales.  Replaced by HMCTS

HMCTS

Her Majesty’s Courts and Tribunal Service

Created 1st of April 2011 and responsible for the administration of the courts of England and Wales, the Probate Service and tribunals in England and Wales and non-devolved tribunals in Scotland and Northern Ireland

HMRC

Her Majesty’s Revenue and Customs

Created in 2006 following a merger of the Inland Revenue with HM Customs and Excise

HMT

Her Majesty's Treasury

Commonly known as the Exchequer or, simply, The Treasury

ICO

Information Commissioner's Office

Dealing with DP and FOI issues, mainly for England, Wales and Northern Ireland

ICTA

Income and Corporation Taxes Act 1988

The foremost UK Act of Parliament concerned with personal taxation (now in ITEPA 2003 and ITA 2007)

IFATE

The Institute for Apprenticeships and Technical Education

An employer-led organisation in England with the remit for apprenticeships and technical education (T Levels)

ISDN

Income Support Deduction Notice

A type of court order

IT

Industrial Tribunal

Vaguely, the equivalent of the GB Employment Tribunal in Northern Ireland

ITA

Income Tax Act 2007

The primary Act of Parliament concerning income tax paid by UK earners 

ITEPA

The Income Tax (Earnings and Pensions) Act 2003

One of the main governing pieces of taxation legislation

ITT

Invitation to Tender

Terminology that would be used when an organisation invites 3rd party providers to supply documentation in an attempt to win a contract

JSA

Jobseeker’s Allowance

Paid by Job CentrePlus

KIT

Keeping in Touch (day)

Where an employee can work for up to 10 days during their maternity or adoption leave periods

KPI

Key Performance Indicators

An employer may monitor an employee or department’s performance by setting KPIs

LEL

Lower Earnings Limit

The first threshold of NI’able earnings that must be recorded

LGPS

Local Government Pension Scheme

The statutory public service pension scheme

Linking

In relation to SSP

Linking is where two or more PIWs are separated by a period of 56 days or less

List 3

With regard to approved professional organisations and learned societies

HMRC’s publication detailing professional bodies approved for tax relief on fees and subscriptions

LRA

Labour Relations Agency

The ACAS equivalent in Northern Ireland

MA

Maternity Allowance

An allowance that might be paid if the woman does not qualify for SMP.  Paid by Job CentrePlus in Great Britain and DFC in Northern Ireland

‘Managed’

In relation to a service offered by a 3rd party

A term that relates to the type of service a client may request from a provider.  A managed service may be part-managed or fully managed

Micro

As in Micro Employer

The general definition of a micro business is a business with less than 10 employees

MLP

Maternity Leave Period

The period a woman is entitled to or utilising her maternity leave entitlement

MPP

Maternity Pay Period

The period during a woman is entitled to receive or is receiving SMP

MW

Matching Week

The SAP equivalent of the EWC – the week in which the child is expected to be placed with the adoptive parents

NI

Northern Ireland

A separate country in the UK

NICs

National Insurance Contributions

The monetary value of Social Security contributions (either through or outside payroll)

NICO

National Insurance Contributions Office

Part of HMRC in Newcastle

NIM

National Insurance Manual

HMRC’s internal guidance on the NICs system, available online

NINO

National Insurance Number

The unique reference number issued by the DWP via Job CentrePlus

NIRS2

National Insurance Recording System (2nd version)

Part of the NPS

NPS

National Insurance and PAYE Service

A merger of COP and NIRS2

NLW

National Living Wage

Effective April 2016, the minimum rate that must be paid to workers over 23 (from April 2021) 

NMW

National Minimum Wage

The minimum rate that must be paid to workers under 23 (from April 2021)

NSP

New State Pension

The new UK State pension system for individuals reaching SPa on or after the 6th of April 2016.  The NSP is payable for:

 

  • a man born on or after 6th April 1951
  • a woman born on or after 6th April 1953

 

NVR

NINO Verification Request

Another RTI submission

OAL

Ordinary Adoption Leave

The first 26 weeks

OML

Ordinary Maternity Leave

The first 26 weeks of maternity leave, including CML

OAP

Occupational Adoption Pay

An enhancement to SAP

OMP

Occupational Maternity Pay

An enhancement to SMP

OPP

Occupational Paternity Pay

An enhancement to SPP

OPRA

Optional Remuneration Arrangements

Where an employee has the option to take a BIK in place of remuneration.  There are two types:

Salary sacrifice / exchange schemes

Cash alternative arrangements

OSP

Occupational Sick Pay

An enhancement to SSP

OTS

Office of Tax Simplification

An HMT department charged with looking at the tax and NICs system with a view to simplifying it

 

 

‘Outsourced’

With regard to payroll processing

An arrangement where an employer arranges to have their payroll processed by an external provider (rather than doing it in-house)

P2

In-year tax code notification to individuals

Showing how the tax code is calculated by HMRC

P6

In-year tax code notification to employers

Showing only the tax code and basis

P6T

Tax information guidance following a Budget

For reference only

P9

Start of year tax code notification to employers

The employee will receive any notification of a change of tax code via the P2

P9D

Return of employee’s expenses payments and benefits paid during the tax year

Where the employee earned at a rate of less than £8,500 in the tax year.  Abolished 6th of April 2016

P9X

Global tax code uplift notification to employers

Details of which tax codes employers must change and how to change them ready for the new tax year on 6th of April

P11D

Return of employee’s expenses payments and benefits paid during the tax year

Issued to employee and HMRC on or before the 6th of July following the end of the tax year

P11D(b)

Return of Class 1A NICs due

Class 1A NICs are due on certain benefits declared on the P11D.  The total Class 1A NICs are declared on the P11D(b)

P11D (INT)

HMRC form to advise on the average and official rate of interest

For beneficial loan and accommodation purposes

P14

End of year PAYE and NICs reconciliation form – one per PAYE employee

Now largely obsolete - this can only be used for the small number of employers that are not obliged to operate RTI.  The P35 used to be the accumulation of all of the P14s

P30B

HMRC form

The payslip used for sending payments to HMRC’s Accounts Office

P30BC

HMRC booklet

The booklet that contains the 13 P30B payslips

P32

The form that can be used to record the monthly / quarterly payments due to HMRC’s Accounts Office

Employers will often refer to a “P32 report” that is generated by payroll systems.  This is also known as the “yellow book report” (as the P30BC is yellow in colour)

P35

End of year PAYE and NICs reconciliation form – one per PAYE reference number

Now largely obsolete - this can only be used for the small number of employers that are not obliged to operate RTI

P38/P38A

Supplementary P35 returns

Now largely obsolete - this can only be used for the small number of employers that are not obliged to operate RTI

P45

Leaver statement of pay and tax

3-part form given to an employee when they leave a job to be given to the new employer (parts 1A, 2 and 3).  Part 1 is filed by payroll software to HMRC

P46

Starter declaration when an employee starts without a P45

Now totally obsolete and replaced by the Starter Checklist of the employer’s own version

P46(Car)

Notification to HMRC of new or changed company car details for an employee

Quarterly form so that HMRC can make any changes to the tax code

P575

Re transfer of tax allowances

Completed to request a transfer of surplus income tax allowances (married and blind persons) between spouses

P64-8

Agent authorisation

The form used by employers to authorise their agent

PAYE

Pay As You Earn

The system by which HMRC collect the annual tax liability on a per-pay-period basis

PAYE Regs

The Income Tax (Pay As You Earn) Regulations 2003

One of the definitive pieces of taxation legislation that define how PAYE will work in practice

PENP

Post-Employment Notice Pay

A statutory formula to work out notice due in connection with termination 

PGL

Post Graduate Loan

New from April 2019, the PGL is a Student Loan product in England and Wales

PGL1

Re PGLs

The “start” or “change” notice issued by HMRC

PGL2

Re PGLs

The “stop” notice issued by HMRC

PIE

Personal Incidental Expenses

The taxation regime that allowed certain expenses to be reimbursed free of tax up to certain limits.  Now called “incidental overnight expenses”

PILON

Payment in Lieu of Notice

Where an employer wants to make a payment in lieu of the employee actually working out their notice period

PIW

Period of Incapacity for Work

4 days of continuous sickness that must be formed before any entitlement to SSP is considered

Plan 1

Re Student Loans

A type of Student Loan issued, repayable through the payroll

Plan 2

Re Student Loans

A type of Student Loan issued, repayable through the payroll

Plan 4

Re Student Loans

A type of Student Loan issued for Scottish borrowers, repayable through the payroll

PPF

Pension Protection Fund

A statutory UK fund intended to protect members if their defined benefits pension fund becomes insolvent.

PPP

Paternity Pay Period

The period for which SPP is payable

Primary

In reference to National Insurance

Primary NICs are the ones payable by the employee

PRP

Profit-Related Pay

Where an element of pay is linked to performance and there are tax benefits

PSA

PAYE Settlement Agreement

Where the company enters into an arrangement with HMRC to meet the tax on a benefit-in-kind provided to an employee

PTS

Percentage Threshold Scheme

In relation to SSP, the scheme which allowed employers to recover SSP (abolished 5th of April 2014)

QD

Qualifying Day

In relation to SSP, payment can only be made if the sickness is on a QD

QE

Qualifying Earnings

The band of earnings on which and employee and employer must make minimum pension contributions under AE and ARE

QEB

In relation to AE and ARE, this stands for Qualifying Earnings Band.  There are two QEBs:

 

Lower and

Upper

 

The Lower QEB is the starting point for the QE and the Upper is the point of earnings at which minimum contributions are no longer payable by employee and employer.  As at 2017/18, the QEB values are aligned with the LEL and UEL.

QUALEC

Qualifying Low Emission Car

A car where the CO2 emissions are 75g/km or less

QW

Qualifying Week

In relation to SMP and SPP, the QW is the 15th week before the EWC

RoATP

Register of Apprenticeship Training Providers

A list of organisations eligible to receive government funding to train apprentices

RoEPAO

Register of End-Point Assessment Organisations

An ESFA document detailing organisations assessed as suitable to conduct independent End-Point assessment of apprentices and be in receipt of public funds

ROPs

Recognised Overseas Pensions List

A list of schemes that have told HMRC they meet the conditions to qualify for tax relief on transfers in and out of the UK 

RPI

Retail Price Index

Some payroll and employment law rates and allowances are inflated by reference to the RPI

RTI

Real Time Information

The process by which HMRC are information of earnings and deductions on a per-pay-period basis rather than annually.  RTI feeds into DWP which regulates an individual’s entitlement or non-entitlement to UC

rUK

Rest of the UK

Relevant for Income Tax and introduced in 2016/17 tax year when Scotland had its own tax regime, Wales following in 2019.  The remaining tax regime applies in the rest of the UK (i.e., England and Northern Ireland)

S2P

State Second Pension

Aka the Additional State Pension which replaced SERPS on the 6th of April 2002.  It was abolished on the 6th of April 2016

SAL

Statutory Adoption Leave

The employee’s statutory right to take time away from the workplace as a result of adoption

SAP

Statutory Adoption Pay

An in-work State benefit paid by the employer to the primary adopter

SAP1

In terms of SAP

This is the form that is given to an employee when they reach the end of their eligibility for SMP payment by the employer (or are not entitled at all).  Note that the versions in Great Britain and Northern Ireland are the same

SAYE

Save As You Earn

An employer-provided savings mechanism for the eventual purchase of shares

SBR

(Scottish) Basic Rate

In relation to income tax, a tax code indicating that all income is to be taxed at the basic rate (applying to Scottish taxpayers)

SC2

Re Statutory Sick Pay

Employee’s statement of sickness (not mandatory)

SC3

Re Statutory Paternity Pay

Employee’s notice to start SPP in birth cases (not mandatory)

SC4

Re Statutory Paternity Pay

Employee’s notice to start SPP in adoption cases (not mandatory)

SC5

Re Statutory Paternity Pay

Employee’s notice to start SPP in adoption cases when adopting from abroad (not mandatory)

SC6

Re Statutory Adoption Pay and Leave

Employee’s notice to start SAP and Leave in adoption cases when adopting from abroad (not mandatory)

SCON

Scheme Contracted-Out Number

Pre the abolition of Contracting-Out, this was the number allocated to a Contracted-Out pension scheme that had to be declared for each employee

SDS

Status Determination Statement

Re IR35, the SDS is a statement from the client declaring a contractor’s deemed employment status following IR35 assessment plus the reasons for reaching the conclusion

Secondary

In relational to National Insurance

Secondary NICs are the ones payable by the employer

SER

Small Employers’ Relief

In relation to making a reclaim for statutory payments where Class 1 NICs total £45,000 or less in the previous tax year

SERPS

State Earnings Related Pension Scheme

A UK Government pension arrangement to which employees and employers contributed between 6th April 1978 and 5th April 2002

SI

Statutory Instrument

Legislation often takes the form of an Act and require SIs to make the Act work in practice

SIT

Scottish Income Tax

As per the Scotland Act 2016, the tax sharing regime that replaced SRIT for Scottish Taxpayers

ShPL

Statutory Shared Parental Leave

The statutory entitlement to share some of the partner’s SML or SAL

ShPP

Statutory Shared Parental Pay

The statutory entitlement to share some of the partner’s SMP or SAP

SL

Student Loan

For an ex-student who is now an employee and has a SL to repay through the payroll

SL1

In relation to Student Loans

The “start” or “change” notice from HMRC

SL2

In relation to Student Loans

The “stop” notice from HMRC

SLD

Student Loan Deduction

The deduction made for a Student Loan

SLM

Student Loans Manual

HMRC’s internal manual about their role in the collection of SLs

SME

Small and Medium-sized Enterprises

The usual definition of a SME is a business with fewer than 250 employees

SML

Statutory Maternity Leave

An individual’s statutory right to take time away from the workplace as a result of maternity

SMP

Statutory Maternity Pay

An in-work State benefit paid by the employer if the woman qualifies

SMP1

In terms of SMP

The form given to an employee when they reach the end of eligibility for payment of SMP (or are not entitled at all).  Note there are different versions in GB and NI (where it is issued by the DfC))

SPa

State Pension age

65 for men, gradually increasing from 60 to 65 for women by 2020 and then increases to 66 and 67

SPBL

Statutory Parental Bereavement Leave

A statutory entitlement in Great Britain from 2020

SPBP

Statutory Parental Bereavement Pay

The statutory payment associated with SPBL, if eligible

SPL

Statutory Paternity Leave

The statutory 2-week entitlement

SPM

Statutory Payments Manual

HMRC’s internal guidance about the operation of all statutory payments, available online

SPP

Statutory Paternity Pay

The statutory payment for the statutory leave

SPP1

Re SPP

This is the form that is given to an employee when they reach the end of their eligibility for SPP payment by the employer (or are not entitled at all).  Note that the versions in Great Britain and Northern Ireland are the same

SPP (a)

Statutory Paternity Pay (adoption)

The 2 weeks in-work State benefit paid to the secondary adopter in paternity adoptions

SRIT

Scottish Rate of Income Tax

The tax regime for Scottish Taxpayers, abolished 5th of April 2017

SPP (b)

Statutory Paternity Pay (birth)

The 2 weeks in-work State benefit paid to the “father” in paternity births

SRP

Statutory Redundancy Pay

The minimum amount payable for redundancy situations, as governed by employment law

SSP

Statutory Sick Pay

An in-work State benefit paid for a maximum of 28 weeks in any PIW or series of linked PIWs

SSP1

In terms of SSP

This is the form that is given to an employee when they reach the end of their eligibility for SSP payment by the employer (or are not entitled at all).  Note that there are different versions between Great Britain and Northern Ireland (where it is issued by the DFC)

ST

Secondary Threshold

Re NICs.  The ST is the value of an employee’s earnings at which time the employer starts to pay Contributions

TAS

Taxed Award Scheme

Similar to a PSA but where a 3rd party meets the tax liability rather than an employer

Tax Tables

The collective phrase used for a number of booklets that will help an employer manually calculate or check a payroll system is operating correctly:

 

Pay Adjustment Tables (Tables A)

Taxable Pay Tables (manual only)

  • Nominal taxable pay / Free of Tax tables (Tables G)

 

The Taxable Pay Tables are also known as Tables B-D because of the way that table B represents the tax calculation at the Basic rate, C at the Higher and D at the Additional

TFC

Tax-Free Childcare

Government childcare scheme introduced throughout 2017, eventually replacing ESC

TMA

Taxes Management Act 1970

Another of the governing pieces of taxation legislation

TOIL

Time Off in Lieu

An arrangement where an individual works extra hours but is given time off rather than payment

TPR

The Pensions Regulator

Charged with looking after occupational pensions, particularly AE and ARE

TUPE

Transfer of Undertakings (Protection of Employment)

From the Regulations of the same name

UAP

Upper Accrual Point

Not applicable from the 6th of April 2016.  Previously, a NICs threshold associated with the accrual of the S2P

 

UC

Universal Credit

The welfare credit to replace a number of in-work and out of work benefits.  The UC is regulated by the information that the DWP receive via RTI submissions

UEL

Upper Earnings Limit

Re NICs, this is the point of earnings above which NICs are no longer payable to the highest rate of deduction

UK

United Kingdom

The united Kingdoms of Great Britain and Northern Ireland

UST

Upper Secondary Threshold

Re NICs.  If the employee is under 21 on payday, there is no requirement for the employer to pay NICs until the employee’s earnings exceed the UST.  The value is linked to the value of the UEL

WBD

Week Baby Due

For SMP purposes, the WBD is the Sunday to Saturday surrounding the day in which the baby is due to be born.  This is the same as the EWC

WD

Waiting Day

Re SSP, a WD is one of the first 3 QDs in a PIW

WRIT

Welsh Tax, as per Wales Act 2014

A power that lets the Welsh Government share tax raising powers with Westminster for Welsh Taxpayers (from April 2019)

WRA

Welsh Revenue Authority (or Awdurdod Cyllid Cymru)

The public body that will collect taxes that are devolved from Westminster to Cardiff Bay in April 2018

WTD

Working Time Directive

An EU Directive on conditions such as working hours and rest breaks for workers.  This was interpreted in Great Britain as the Working Time Regulations and Working Time Regulations (Northern Ireland)

WTR

Working Time Regulations

Could be the 1998 version in Great Britain or the 2016 version in Northern Ireland

YTD

Year to Date

 

Generally, in respect of an accumulation of the value of a pay element paid in the tax year – e.g., “YTD taxable pay” would mean that this is the value of taxable pay that has been paid in the tax year.

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