PAYE73025 - PAYE operation: simplified deduction schemes: increase in pay above PAYE threshold

When you receive notification of an increase in pay above the threshold for PAYE, you must pass details to the Employer section if the employer has no other liable employees, for them to set up a new employer scheme.

Instructions for Employer sections is given in ‘DOME Scheme - Domestic (Simplified Deduction Scheme) (Action Guide)’ at PAYE20086.

When there is an employer scheme, you must

• Obtain or create the taxpayer record
• Complete the coding record and set the necessary signals
• Prepare a deduction card P12 and pass it to your Employer section to issue by first class post, together with form P16 (guidance on how to complete the P12, and the Simplified Tables) if the employer has no other liable employees

Or, if the employer does have other liable employees

• Prepare and issue card P12 to the employer by first class post

Instructions on what to do are given in ‘Increase In Pay Above PAYE Threshold (Action Guide)’ at PAYE73026.