PAYE for employers: telling HMRC that a business has ceased
Employers who no longer need their PAYE scheme can avoid non-filing Generic Notification Service (GNS) messages and penalties by ensuring that they make their final submission correctly. HMRC have issued guidance in respect of the above. Issue 48 of the Employer Bulletin is also available. Aimed at employers and agents, it contains important information and news about topics which may affect payroll obligations to HMRC.
The actions for employers to take will depend on what type of final submission they are sending, and for what tax year:
2014–2015
- Full Payment Submission (FPS) – when making their final FPS for 2014 to 2015 employers should:
- run their final payroll
- complete the ‘Final submission because scheme ceased’ and ‘date scheme ceased’ boxes on their FPS for the pay period
- enter a leaving date on each employee’s payroll record
- Employer Payment Summary (EPS) – if they have already sent all their payroll information, employers should just complete the ‘Final submission because scheme ceased’ and ‘date scheme ceased’ boxes on the EPS.
This will ensure that HMRC’s systems are updated to record the PAYE scheme as ceased.
More information and details of the other actions that employers should take when their business ceases is contained in the PAYE if your business closes or changes guidance.