Vocabulary
Income
Hourly Wage
Commission
Bonus
Overtime


Deductions
Income Tax
National Insurance
Pension Contributions
Superannuation

Income - Deductions = Net Pay
Total Income = Gross Pay
Commission
Commission is extra money normally paid to sales people as a percentage of the value of goods that they sell.
Overtime
Overtime is wages paid for extra hours worked outwith normal contract hours.
Overtime is normally paid at a higher rate eg: double time or time and a half.
Income Tax
Tax is payable on all earnings over your personal allowance.

Your personal allowance is roughly calcualted by multiplying your tax code by 10.

Tax is variable - the more you earn, the higher rate you will have to pay.
Rate of Tax
Eg:  If you earn £16000 and your personal allowances add up to £5400.  Tax is payable at 12% up to £15000 and at 20% thereafter.

Income 
£5400 - no tax
£9600 @ 12% = £1152
£1000 @ 20% = £200

Total tax paid will be £1352.00  
Borrowing
Personal Loans
Credit Cards
Mortgages
APR - Annual Percentage Rate = actual cost of borrowing