PAYE70040 - PAYE operation: aspects of PAYE operation - employer: when it is not practical to operate PAYE

Occasionally you will find circumstances where there is

  • Income assessable as PAYE income
But
  • There is no employer to operate PAYE or it is considered impractical to operate PAYE

In such cases, follow the advice below

  • Contact the Employer to discuss whether it is possible for them to operate PAYE

If the Employer cannot operate PAYE

  • Consider if Direct Payment (this is where the taxpayer operates PAYE for himself or herself) is appropriate. See 바카라 사이트˜PAYE direct payment바카라 사이트™ at PAYE75000 onwards

If Direct Payment is not appropriate, the only alternative is to bring the taxpayer into self assessment

  • Ask the taxpayer if they are to be responsible for their own National Insurance Contributions (NICs)
  • If the taxpayer is in any doubt, explain that they will have to take the matter up with the National Insurance Contributions Office

If the taxpayer is to be responsible for his or her own NICs

  • Ask your Employer section to
  • Set up a DCNI scheme
  • Enter the scheme details in the 바카라 사이트˜DC and DP Cases바카라 사이트™ employer-related electronic file. The employer-related electronic file is then used in early March each year to control the issue of National Insurance Contribution material to the taxpayer
See 바카라 사이트˜DCNI scheme - direct collection (employee only NIC) (Action Guide)바카라 사이트™ at PAYE20091 
  • Issue manually to the taxpayer the employer starter pack, as detailed in 바카라 사이트˜DCNI scheme - direct collection (employee only NIC)바카라 사이트™ at PAYE20090 
  • Pass the papers to the Self Assessment team, to bring the taxpayer into self assessment

If the taxpayer is not to be responsible for his or her own NIC

  • Pass the papers straight to the Self Assessment team, to bring the taxpayer into self assessment