Payroll Surgery Frequently Asked Questions

Q: A student has joined the company what shall I do?

A: Ask him to complete form P38S, which you retain until the year-end, when you then submit it to the Inland Revenue, along with the P14's etc. Once you have signed the form you can then use the NT tax coding. National Insurance is only payable if the student's pay rises above the Upper Earnings Limit.

Q: A new employee has joined us part - time and also has other employment. Do I have to deduct Tax and National insurance ?

A: Yes and you should operate the basic rate tax coding as his allowances would be used by the other employer. If the combined amount is high enough, National Insurance might be overpaid in which case a deferment could be obtained.

Q: What do I do if an employee does not have a National Insurance number?

A: Complete a trace or ask him to go to his nearest Contributions Agency and apply for one. This is VERY important , as any payments tax could be lost!

Q: How do I calculate a day's pay?

A: Take the annual salary and divide by 260. The "260" represents 52 weeks x 5 days for a full time person.