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HMRC internal manual

PAYE Manual

PAYE operation: specific employments: first aid - part time lecturers and instructors


The British Red Cross Society (BRCS) and St. John Ambulance Association (SJAA) provide courses and lectures to teach First Aid and to promote health and safety at work. Each BRCS and SJAA County Branch that arranges a course, engages and pays the instructors.

The instructors may be

  • Doctors or similar professional people who normally pay tax under Self Assessment
  • Nurses or others who normally pay tax under PAYE

The payments, which include a fee and travelling expenses (see below), are liable to tax under PAYE and the BRCS and SJAA are responsible for operating it.

Mileage payments

BRCS and SJAA will only operate PAYE on mileage payments where

  • The mileage payment is made for travel between home and the usual place where duties are performed
  • The rate paid for each mile is greater than the HMRC approved mileage amount

Payments included in business accounts

Payments to some instructors may fall within the arrangements described in the Employment Income Manual (EIM) at EIM03004. If so, they will be included in the trading income accounts.

It is for the Accounts Inspector to decide on this point.

Modified PAYE system operated by BRCS and SJAA

Each branch of BRCS and SJAA asks instructors whether they are

  • Self-employed
  • Employed elsewhere, and if so, where
  • Unemployed and receive Jobseeker’s Allowance, and if so, where last employed


  • Unemployed and not receiving Jobseeker’s Allowance

Instructors are not obliged to give these facts and the BRCS and SJAA should make this clear when asking the questions.

The BRCS and SJAA should send a form P46 or P45(3) for each instructor together with any known details of other employment or self-employment, and

  • Deduct tax using tax code BR from payments to instructors who

    • Have other employment
    • Are receiving Jobseeker’s Allowance
    • Are self-employed
    • Fail to give the facts requested
  • Operate any tax code you send for an instructor
  • Deduct no tax from payments to instructors who are otherwise unemployed and not receiving Jobseeker’s Allowance
  • Keep records of dates and amounts of payments and make returns on forms P14 and P35, or P38A as appropriate
  • Issue form P45(1) only if a tax code is in use, and

    • The instructor is unlikely to take up any further engagements
    • The branch does not intend to engage the instructor again
    • The branch has made no payment to an instructor in two successive tax years

Action on receipt of P46 / P45(3): self employed instructor

Take the action set out below according to the facts of the case.

Type of case

  • BRCS income and SJAA income to be included within SA


1. Tell the BRCS or SJAA to stop deducting tax
2. Refund any tax deducted in the current year
3. Include the payments on form P38A at the end of the year
4. Send details of the income to the relevant SA office

Type of case

  • BRCS and SJAA income to be dealt with under PAYE


1. Send the BRCS or SJAA a tax code

Action on receipt of P46 / P45(3): instructor unemployed / not receiving Jobseeker’s Allowance

Where this applies, take the following action

1. Do not set up a record
2. Accept P46 or P45(3)
3. Check from the facts you hold that the instructor is unemployed and not liable to tax
4. Enter the BRCS or SJAA branch on the P38 list
5. When you have the P38A or P38, check that the instructor is still not liable

If you find later that tax is due or repayable, set up a primary source record and send BRCS or SJAA details of pay and tax with the code to be operated.

Action on receipt of P46 / P45(3): instructor has another PAYE source or fails to give facts needed

Where this applies, take the following action

1. Set up a secondary source record
2. Issue a tax code
3. Send BRCS or SJAA any revised code needed

See above where the individual is self employed or unemployed and not receiving Jobseeker’s Allowance.