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HMRC internal manual

PAYE Manual

HM Revenue & Customs
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PAYE operation: simplified deduction schemes: new employee (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 form P16A from the employer, follow steps 1 - 5 below.

1. Use the PAYE Service EMPLOYMENTS SUMMARY screen to INSERT EMPLOYMENT DETAILS to create a record for the employment
  * Set creation source as ‘user’
  * Tick the manual code to employer [MCOEMP] indicator
  * Update the CONTACT HISTORY screen to show record created from P16A
2. Prepare deduction card P12
  * 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. Update IABD Landing screen to trigger a tax code calculation for the individual
  * Select Issue against P2
  * Select Manual Issue against P6/P9 [submit]
4. Use EDIT EMPLOYMENT ALLOCATIONS screen to set basis of operation and change suffix indicator to ‘T’ for the employment
  * Issue P2 to employee
5. Send deduction card P12 to the employer