Guidance
When and how an employee operates PAYE on their employment income
Information about direct collection and direct payment schemes, used to collect tax or National Insurance contributions (NICs), or both.
Class 1 National Insurance contributions can sometimes be payable where there is either no:
- PAYE Income Tax liability
- secondary (employer鈥檚 share) National Insurance liablity
Types of schemes
| Scheme type | Circumstances |
|---|---|
| Direct Collection (employee only NICs) | Set up by an employee where direct payment of is due |
| Direct Collection (Income Tax only) | Set up by an employee where is due |
| Direct Payment (Income Tax and NICs) | Set up by an employee where direct payment of is due |
How to register
You should register by phone or post
Contact HM Revenue and Customs - they鈥檒l arrange for someone to call you back to help you register.
What to report
When sending a Full Payment Summary (FPS) where earnings are subject to NICs only, you must:
- report the 鈥楪ross earnings for NICs in this period鈥� and all appropriate NICs data
- enter zeros in the 鈥楾axable pay鈥� and associated tax fields
- enter code NT in the 鈥楾ax code鈥� field on the FPS as this is a mandatory field
If you realise that you have made a mistake and you have included details in the taxable pay and tax fields you should correct the error by entering zeros in the taxable pay and associated tax fields on your next FPS.
Help and advice
Contact the Employer helpline or Customer Operations Employer Office
Updates to this page
Published 22 September 2014