PAYE70020 - PAYE operation: aspects of PAYE operation - employer: pay below NIC earnings threshold but above lower earnings limit

If an employee's rate of pay is below the Earnings Threshold for National Insurance contributions (NICs) but above the Lower Earnings Level, the employer must 

• Prepare a Deductions Working Sheet entering NI in the code space and contribution table letter
• Use the Deductions Working Sheet to record pay and National Insurance contributions only. Pay must be totalled on the Deductions Working Sheet at the end of the year or when the employee leaves
• Complete and submit a form P14