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HMRC internal manual

Compliance Operational Guidance

From
HM Revenue & Customs
Updated
, see all updates

Supporting Guidance: employer compliance: guidance by subject: commencing the compliance check: when to complete a deductions working sheet (DWS)

The lower earnings limit (LEL) is the point at which employees start to build up entitlement to contributory benefits.

The earnings (or primary) threshold (ET) represents the point from which payment of NIC arises.

Where an employee is paid

  • less than the ET, but
  • equal to or more than the LEL

the employer is required regardless of whether any NICs or PAYE have been deducted

  • to complete a DWS (recording the pay)
  • to complete and submit a form P14 for the employee at the year end (up to and including 2012-13)
  • to include the employee on a Full Payment Submission (from 6 April 2013).

This will protect the employee’s entitlement to contributory benefits.

You should make sure that the employer is accurately recording the

  • NI number or
  • date of birth, and
  • correct contribution letter.