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HMRC internal manual

Statutory Payments Manual

Paying and Recovering - SMP/SAP/SPP/ShPP: agents

A number of small companies may not calculate or maintain their own wage records but employ the services of a third party or agent to do it for them. As a consequence they may not register for a PAYE scheme in their own right but use the scheme of the agent.

The agent would calculate and pay all tax and NICs to Accounts Office under one PAYE scheme.

The agent or the employer must calculate the gross Class 1 NICs liability for the business concerned to establish what SP/NICs compensation they can recover. The Agency will calculate and record the recovery due and claim it back through their normal payments to Accounts Office.