Avoid common PAYE mistakes

Introduction

Special deductions and payments checklist
As an employer, you have to collect PAYE income tax from your employees. It is also your responsibility to make special payments to employees who qualify for them, for example:

• Statutory Sick Pay (SSP) - see our guide on pay: an overview of obligations
• Statutory Maternity, Paternity and Adoption Pay (SMP, SPP, SAP) - see our guide on maternity, paternity and adoption: an overview
• Working Tax Credit (WTC) - see our guide on how to manage tax credits
• Student loans - see our guide on how to manage student loans, payroll and other deductions - you may also have to make deductions owed by an employee.

This checklist will also help to ensure that you have not left anything out:

• Check your calculations for statutory payments - SSP, SMP, SPP, SAP. It's a good idea to get someone else to check the figures too.
• For SSP - don't forget to allow for waiting days, and make sure the number of qualifying days is right.
• Keep track of any "notices to stop" on student loan repayments so that you don't carry on deducting for too long or stop too soon.
• If the code is on a "week 1" or "month 1" basis, make sure the cumulative basis has not been used.

Subjects covered in this guide
Introduction
Employed or self-employed
Forms checklist
Calculations checklist - does it all add up?
Special deductions and payments checklist

Print options - What are my print options
Print guide now
Add guide to my print portfolio (print later as PDF)
Email options - What are my email options
Tell a friend about this page
Send me an email alert when this guide changes
HM Revenue & Customs Employers Orderline
0845 7 646 646

HM Revenue and Customs Employer Helpline
08457 143 143

HM Revenue and Customs New Employer Helpline
0845 60 70 143

Actions
Get forms from HM Revenue & Customs Employers Orderline at the HM Revenue & Customs website
Download the guide to the Working Tax Credit paid with wages (WFTC/E6) from the HM Revenue & Customs website (PDF)
Get payroll guidance at the HM Revenue & Customs website
View local and national events linked to this topic
Also on this site
PAYE: the basics
Maternity, paternity and adoption - an overview
Pay - an overview of obligations
Manage student loans, payroll and other deductions
This guide developed with:

HM Revenue & Customs Feedback | Copyright | Disclaimer | Privacy policy |Accessibility| Help with PDF files
Local

Subjects covered in this guide

• Introduction
• Employed or self-employed
• Forms checklist
• Calculations checklist - does it all add up?
• Special deductions and payments checklist

 Print This Page

Source - Business Link; Crown Copyright.