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HMRC internal manual

PAYE Manual

PAYE operation: simplified deduction schemes: increase in pay above PAYE threshold (Action Guide)

Note: DOME schemes became standard P schemes from 6 April 2014. This guidance refers to all years up to and including 2013-14.

Where you receive notification of an increase in pay above the threshold for PAYE, follow steps 1 - 6 below.

1. Use the PAYE Service In Year Forms Data Capture screen to create the employment on the individuals account
   
2. Complete deduction card P12. (The Employer section will have prepared a card P12 and sent it to the PAYE section if they have set up the scheme for this employee)
  * Enter the code. Use code suffix ‘T’
  * Enter the Week 1 or Month 1 free pay for the code
  * Strike through the quarters that have entirely expired
3. Use the PAYE Service to set the Manual Correspondence to employer indicator on the Edit Employment Details screen. For more information refer to PAYE64010 
4. Use the PAYE Service EDIT EMPLOYMENT ALLOCATIONS screen which follows the Tax Code Details screen to set the drop down suffix to ‘T’ for the employment
5. If the employer has other liable employees
  * Send deduction card P12 to the employer
6. If the employer does not have other liable employees (the Employer section will have set up the scheme because this employee has started employment)
  * Pass the completed card P12 to your Employer section
  * To issue
  * To include form P16 (guidance on how to complete the P12, and the Simplified Tables)