PAYE70250 | PAYE operation: specific employments: fire fighters - part time

Payments

Part-time fire fighters are paid a retaining fee plus service fees, which are usually under the minimum PAYE income limit. They are also paid a bounty at various stages of service.

Long service bounty arrangements

Fire authorities provide HMRC with lists before the start of each tax year showing

• The name, address and National Insurance number of each part time fireman who will qualify for a bounty payment in the coming year

And

• An estimate of the bounty payable to each where this is over £50 (see the Employment Income Manual (EIM) at EIM63620)

• Details of each recipient's HMRC office and reference if known.

This is to avoid underpayments arising and to enable tax codes to be issued where necessary.

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HMRC action

Amend the relevant individual’s tax code where

• A fire fighter's total earnings plus fees and any bounty payment exceeds the minimum PAYE income limit

The fire authority should use the code specified for emergency use if

• It has not received a coding notice at the time bounty payment falls due

And

• The total earnings from fire fighting for the year are above the minimum PAYE income limit.