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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: inaccuracies: pay practice avoids or reduces NIC

Employers may set up payment methods which reduce or avoid NIC whether intentional or not.

For example

  • most weekly payments are below the LEL but some payments are very large and take the average payment above the ET
  • employees work for each of several associate companies and the pay from some companies is below the ET
  • employees receive low weekly/monthly pay but receive regular large payments for example bonuses or commission.

You should

  • familiarise yourself with NIM08000 onwards and
  • check that no abnormal pay practice exists which reduces or avoids NIC.