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New and Existing Employers

Employment Histories

Information about the Payroll Cleanse Service

When do I start deducting NICs from my employee’s earnings?

NICs should be deducted from an employee’s gross earnings providing:-
They are age 16 or over;
They are under State Pension age; and
Their earnings are above the Earnings Threshold (ET)

How do I calculate the NICs that are due?

Either by using the exact percentage method or by using the National Insurance tables supplied in the Employer’s Pack. The tables calculate NICs for both weekly and monthly paid employees. Alternatively, you can use the calculators supplied on the Employer’s CD-ROM.

An Employer’s Pack can be obtained by telephoning the Annual Pack Orderline on 0845 7646 646 or you can order one by visiting the Online Order Form.

Where do I send the money? When must I send it?

Payment of NICs are made along with income tax to the Inland Revenue Accounting and Payment Services. The day your payment needs to reach us depends on the payment method you use.

If you are a large employer (250 or more employees) you must make your payments to us electronically. Your payment must reach our account no later than the 22nd of the month. (Where the 22nd falls on a weekend or is a Bank Holiday, your payment must reach us on the previous bank working day).

If you are a medium sized employer (between 50 and 249 employees), or a small employer (fewer than 50 employees) and you pay electronically, your payment is also due on the 22nd of the month.

Further information can be found in booklet MP2 – Online filing and electronic payment handbook.

If you are not subject to the mandatory electronic payment rules and continue to pay by post, the cleared payment must reach us by no later than 19th of the month.

What detailed information is available to help me get the NICs right?

Detailed guidance can be found in the Employer’s Pack, Employer’s CD-ROM, or by visiting the employer’s website.

You can also obtain further help from the Employer’s Helpline, telephone number 0845 7143 143.

How long do I need to keep payroll records for?

You have to keep the current tax year’s records and the three previous tax years.

Do I complete two P14s for the same employee if they worked for me at the start of the year, left and then came back again?

Yes. A P14 is required for each period of employment.

I pay my employee calendar monthly but they will reach State Pension age during the month. Which category of NICs do I use?

Category letter “C” (employer only NICs) There is no liability for employee’s NICs once an employee reaches State Pension age.

Employment Histories

What are they?

An employment history is a record of a person’s employment details. We can provide a list of employers names and the tax years in which the employment fell, however, specific dates cannot be given.

What are they for?

Generally requested by solicitors as supporting evidence for compensation claims for:

  • Industrial injury
  • Medical Negligence
  • Serious road traffic accidents
  • Claims against the tobacco industry

From 1 October 2003, employment histories can also be provided for:

  • Any personal injury
  • Any criminal injury (claims of this nature should continue to be made via the Criminal Injuries Compensation Authority – CICA)
  • Wrongful imprisonment
  • Litigation cases
    Abuse in care homes/child abuse
  • Hardship (for example – a person may be able to prove a period of employment and claim monies paid into company pension schemes)
  • Redundancy

Information about the Payroll Cleanse Service

What is Payroll Cleanse?

Payroll Cleanse is a free service offered by the Inland Revenue. It is the systematic checking of employee details from your payroll against NICs records. For further information, see leaflet CA89, the CA89 is in PDF format. To view a PDF document you must have Adobe Acrobat Reader installed on your computer.

What are the benefits to me?

The accuracy of your records should be improved allowing you to provide better quality of data on End of Year Returns.

There should also be less contact with us on matters such as errors on P14s.

Do I inform my employees that a payroll cleanse is being performed?

We may need to contact your employees if we find a discrepancy and strongly recommend that you tell them that you have submitted information about them to the Inland Revenue for the purposes of Payroll Cleansing. This will allow you to meet your obligations under the Data Protection Act. In addition, if we find an overlap between any employment and benefits we are obliged to pass these details to the DWP.

What information do you need from me to enable you to do a Payroll Cleanse?

To do a Payroll Cleanse we need the following information from you:

  • NI Number
  • Surname
  • Forename(s)
  • Title
  • Date of Birth
  • Staff Number
  • Address
  • Postcode
  • NI Category letter
  • Start Date of Employment
  • End Date of Employment
  • Number of Hours Worked (if part time)

How will I receive the results of the Payroll Cleanse?

You can decide how you want to receive the feedback. It can be by letter or Excel spreadsheet or, providing there is no information personal to employees, by email.

What information will I receive?

You will receive details of any National Insurance number we have either found or correctly traced for your employees. Due to Data Protection laws, we cannot pass on any changes in name, date of birth, marriage or address details. However, we tell your employees that they need to inform you of any details that are different to ensure the NICs paid are correctly recorded on their National Insurance account at the end of the year.

What happens to the payroll data sent to us?

Unless you specifically request the return of the payroll data, we automatically destroy the information 6 months following completion.

National Insurance number information for Employers

If you require information on National Insurance numbers for your employees, please refer to the employers section of the Inland Revenue website, under the heading “I want to: Trace a National Insurance number”

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