PAYE75010 - PAYE operation: PAYE direct payment: ending PAYE direct payment arrangement
When a Direct Payment scheme is to be closed
- Advise the Employer section of the
- Taxpayer's name
- Banking Operations Accounts Office Reference
- Employer reference of the Direct Payment scheme
- The date of cessation
Where the employment is continuing
- Set up an SA record for the taxpayer or arrange for the SA section to set up the record
- Issue a letter based on the drafts below
Taxpayer not responsible for own NIC
‘As you no longer wish to operate PAYE for yourself /
As it appears you have failed to operate PAYE properly for yourself
…
… the PAYE Direct Payment Arrangements have now been
ended. After 5 April you will receive a Self Assessment
return.’
Taxpayer responsible for own NIC
‘As you no longer wish to operate PAYE for yourself /
As it appears you have failed to operate PAYE properly for yourself
…
… the PAYE Direct Payment Arrangements have now been
ended. After 5 April you will receive a Self Assessment return.
You are however still required to calculate your own National
Insurance contributions by reference to the National Insurance
Contributions tables sent to you and to pay the amount to Banking
Operations every quarter. You should also enter NI in the tax code
space on the Deductions Working Sheet and should continue to use
the sheet to record the amount of the National Insurance
contributions.’
