ECH17010 - Directors: PAYE and NIC
Employers have a legal obligation to deduct and account for PAYE and NIC and must
- deduct the correct amount of PAYE from directors pay
- work out the correct primary and secondary NIC which are due on directors earnings and
- pay the PAYE and NIC to HMRC.
Compliance action should therefore be directed at the employer
and not the director, even though in practice it may appear that
the two are same.
Where PAYE and NIC have not been accounted for on a
director's employment income you should
- calculate the PAYE and
- calculate the NIC ( ECH17015)
- agree a Class 6 settlement, inclusive of interest and penalties where appropriate and
- consider ECH17045.
You should also remain aware of alternative methods of recovery when faced with the relevant circumstances:
