PAYE75001 - PAYE operation: PAYE direct payment: introduction


Regulations 141 - 147 of the Income Tax (Pay As You Earn) Regulations 2003 give HMRCpowers to require taxpayers to operate a PAYE scheme for themselves. This includes

  • Issue of a Deductions Working Sheet to the taxpayer
  • Completion of the Deductions Working Sheet by the taxpayer / employee
  • Making of quarterly payments to the HMRC of any tax and National Insurance contributions (NICs) due
  • Filing of a return by the taxpayer
    • To cessation, if payments have ceased

    Or

      • For the tax year, following the end of the year
      • Provisions for HMRC to recover any tax unpaid 14 days after the quarter end

      Advice is available for Employer sections in the following

      • ‘DPNI Scheme - Direct Payment (Tax and NIC)’ at PAYE20100
      • ‘DPGEN Scheme - Direct Payment (Tax Only)’ at PAYE20095
      • ‘DCNI Scheme – Direct Collection (employee only NIC)’ at PAYE20090

      This section gives advice on how PAYE Direct Payment is operated and the procedures tobe followed on the PAYE section.