PAYE operation: simplified deduction schemes: increase in pay above PAYE threshold
Note: DOME schemes became standard P schemes from 6 April 2014. This guidance refers to all years up to and including 2013-14.
When you receive notification of an increase in pay above the Lower Earnings Limit, you must pass details to the Employer section if the employer has no other liable employees, for them to set up a new employer scheme.
When there is an employer scheme, you must
- Create the employment on the individuals account
- Complete the coding record and set the necessary indicators
- Prepare a deduction card P12 and pass it to your Employer section to issue, together with form P16 (guidance on how to complete the P12, and the Simplified Tables) if the employer has no other liable employees
Or, if the employer does have other liable employees
- Prepare and issue card P12 to the employer
Instructions on what to do are given in ‘Increase in pay above PAYE threshold (Action Guide)’ at PAYE73026.