PAYE70020 - PAYE operation: aspects of PAYE operation - employer: pay below NIC primary threshold but at or above lower earnings limit

If an employee's rate of pay is below the Primary Threshold for National Insurance contributions (NICs) but at or above the Lower Earnings Limit, the employer must 

• Prepare a Deductions Working Sheet entering NI in the code space and contribution table letter
• Use the Deductions Working Sheet to record pay and National Insurance contributions only. Pay must be totalled on the Deductions Working Sheet at the end of the year or when the employee leaves
• Complete and submit a form P14