SE12034 – Non-cash remuneration: dealing with new cases

What to do with new NIC and PAYE cases

If you see a case where an employer has sought to avoid PAYE or NIC by paying employees in non-cash form you should take the following action:

• send a report to BS Shipley providing full details of the payment (see stencil at SE12036). You should send this report whether you think the scheme succeeds in avoiding NIC and/or PAYE or not; and
• send a copy of that report to the office responsible for the other aspects of the case – for instance, if you are responsible for NIC matters send a copy to the office that deals with the employer’s PAYE, and if you are responsible for PAYE send a copy to the office dealing with the employer’s NIC.

If you do not know which office deals with the other aspects of your case:

• to find the PAYE office, access “Directories and Addresses” and enter the employer’s address
• to find the NIC office, the “Gazetteer” lists postcode areas covered by NIC offices.
• The office that first identified the case should obtain the full facts and underlying documentation – for example, company minutes and resolutions referring to the bonus award, contracts of employment or service agreements, deeds of trust, evidence that at the end of the scheme the employee received cash and so on.
• Send copies of any information to the office responsible for the other aspects of the case. Where an employer has used the same scheme in respect of several employees you should use your judgement to decide how much documentation to request – if the employer agrees, you may consider only one representative set of documents.