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When an employee receives additional earnings, from a PAYE perspective it is important to recognise whether the payments are to be made at the same time as other normal earnings (salary etc). Also where the sums are paid as arrears of pay, further considerations arise on the timing of PAYE.

This article outlines the situations where PAYE procedures may have to be modified on payment of additional earnings. However in such cases, standard NIC procedures do not usually have to also be modified. The default position is that NIC is calculated on the total sums paid in the employee's relevant earnings period (see E8.249), and this does not change if there is more than one payment in that earnings period. As regards arrears of pay (unlike PAYE, which is due the earliest of the date a payment is due or is received, see E4.1109), NIC is simply due at the time of payment (see E4.118A).