National Insurance and State Pensions

4. The Paperwork

4.1 You must keep records of gross pay, PAYE and NICs deducted, statutory maternity pay (see 6.4), paternity pay, adoption pay and if you wish, statutory sick pay (see 6.3).

• Keep these details on a Deductions Working Sheet, form P11, or your substitute computerised records.
• Prepare a P11 for each employee at the start of the tax year or when they start working for you.Fill out the relevant columns each pay day.
• You must also record payments on form P32 or in the payslip booklet P30BC.

4.2 File the following with your PAYE Tax Office:

• Form P14 (or substitutes), detailing each employee's total pay and deductions, by 19 May. You fill this in by adding up the total boxes on each P11 for the year.
• Form P35 by 19 May.This includes a summary of all your P14s.
• Form P11D(b) declaring and adjusting Class 1A NICs, by 6 July.

4.3 You have the following obligations when taking on new employees:

• Ask them for their P45 (given to them by their previous employer) and NI number.
• If an employee (including a part-time or casual employee) does not have a P45, and is going to work for you for more than one week, fill in a P46 and send it to the PAYE Tax Office. If the employee earns less than £105 a week, and has ticked statement B on the form, the P46 should be kept by you.
• If the employee is going to work for you for less than a week, they can contact their local Social Security Office and ask for an NI number card.
• If the employee has never had an NI number, they must personally apply for one at their local Social Security office.You must keep a record of their full name, date of birth, sex and address.
• If you are in doubt whether somebody is employed or self-employed, either speak to a professional adviser or ask your PAYE Tax Office or Contributions Office (see 7). You should deduct NICs from their pay until a decision is made.

4.4 Give all employees still working for you at the end of the tax year the following documents by the following deadlines:

• Form P60 showing how much PAYE and NICs were paid, by 31 May.
• Form P11D or P9D, showing the employees' benefits and expenses in the tax year, by 6 July.