PAYE73026 - PAYE operation: simplified deduction schemes: increase in pay above PAYE threshold (Action Guide)
Where you receive notification of an increase in pay above
the threshold for PAYE, follow steps 1 - 7 below.
For details of how to access any of the COP functions use the
[Index of Functions] button on the left of the screen.
- Use COP Function TI to look for the main source taxpayer record
- If you find it, use COP Movements Function MA (as though you
had form P45(3)) to move responsibility for the record
- If you do not find it, use COP Movements Function MS to set up
a taxpayer record
- Complete deduction card P12. (The Employer section will have prepared a card P12 and sent it to the PAYE section if they have set up the scheme for this employee)
- Enter the code. Use code suffix ‘T’
- Enter the Week 1 or Month 1 free pay for the code
- Strike through the quarters that have entirely expired
- Use COP Function CD to set the signals
- MCOEMP
- TSFX (to ensure the code suffix ‘T’ is not changed by the computer)
- POTA
- If the employer has other liable employees
- Send deduction card P12 to the employer by first class post
- If the employer does not have other liable employees (the Employer section will have set up the scheme because this employee has started employment)
- Pass the completed card P12 to your Employer section
- To issue by first class post
- To include form P16 (guidance on how to complete the P12, and the Simplified Tables)
