What if a company PAYE scheme ceases under RTI?

11281

What if a company PAYE scheme ceases under RTI?

6th April 2018

IRIS Payroll Business, IRIS Bureau Payroll

My company/client PAYE scheme has ceased, how do I report this to HMRC under RTI?

If a company PAYE scheme ceases, the Ceased Trading date will be used by either the EPS or FPS process for identifying the final submission.

This will report to HMRC that the PAYE scheme has ended. If the company resumes paying PAYE employees in the future you may be able to reactive the PAYE reference with HMRC or a new PAYE scheme may be needed. THIS WILL NOT INFORM THE HMRC THE COMPANY AS AN ENTITY HAS CEASED TRADING, ONLY THAT THE PAYE SCHEME HAS CEASED.

The process for ceased trading submission depends on whether you have to complete an EPS or not. The <DateSchemeCeased> indicator can be included on either the FPS or the EPS:

• If you are submitting an EPS, the Ceased Trading date should be set after you have submitted the FPS.
• If you do not have to submit an EPS, set the Ceased Trading date before you send the final FPS.

After saving a ceased trading date your next RTI submission (EPS or FPS) will be flagged as the “Final submission for the tax year“.

The ceased trading date cannot be entered directly on the EPS or FPS submission wizard, this need to be saved first at the company level:

To set the ceased trading date:

• Go to the “Company” tab > then “Company Details”
• Open the “HMRC” tab.
• Record the ceased trading date in the field.
• Click “OK” , the following message will be displayed:
• “Entering a date in the Ceased Trading date field will assign a leaving date of xx/xx/xxxx to all your employees. This means that you will not be able to pay any of the employees again“
• Click ‘Yes’ to issue leaving dates to all employees.
• Proceed to send your final FPS/EPS submission and make sure the option “Final Submission for the year” is ticked.

New PAYE Scheme Reference

If the company is going to continue but under a new PAYE scheme reference, your best option is to run the copy company for receivership option from the admin mode of the software.

For details click here.