Change your company status

Before you set up your new company, you need to close down your existing PAYE scheme. Use our guide to close a PAYE scheme.

Print the required reports

After you close the PAYE scheme, you need to run reports to use when you add the employees to the new company. View the reports we recommend >

Before you print the reports, you need to ensure that all employees, including current year leavers appear on the employee list:

Click Criteria then, in the Excluded Employees who are section, clear the following check boxes:
- On Hold
- On Holiday
- Current Year Leavers
Click OK then click Clear then click Swap.
Click Reports then run any reports that you need. W
e recommend you print are:
- Employee Details - Banking
- Employee Details - Cumulative
- Employee Details - Deductions
- Employee Details - Loans
- Employee Details - Payments
- Employee Details - Personal
- P11 Deduction Card (NIC Details)
- P11 Deduction Card (PAYE Details)
- Payment Summary History Part 1 - By Date
- Payment Summary History Part 2 - By Date
- Payment Summary (Part 3)

For employees receiving statutory payments, pensions, or AEOs, you need to know the amounts paid to date to set up correctly in the new company. To find these in the employee's YTD Values:

Double-click the employee to open their record.
Select the Employment tab then select YTD Values.

Export your employee details

To save time, you can use the Export Data option in Sage 50 Payroll to export your employees' details. You can then import this data in the new company. Use our guide to export data from Sage 50 Payroll.

You can also export your employee P45 information as you’ll need this information for the new company.

TIP: Before you export your employees' details, ensure you only select the employees you want to set up in your new company.

Preparing the Employee Details Import File

Before you can import your Employee Details, you must remove some information that's unique to the original company.

Make sure all the information in the file is correct and up to date (for example, employees names, bank details, address etc.).

TIP: You can also amend the employee reference at this stage. Make sure the number isn’t in use if you're transferring the employees to an existing company.

RTI Payroll ID important information

The RTI Payroll ID is a unique number generated by your software for each employee when you create their record. The FPS includes this number in each FPS you send to HMRC, to identify the employee and this period of employment.

HMRC require an employee to have a new RTI Payroll ID for each new employment.

If you've exported your employee details, you must remove the payroll ID before you import your employee details to the new company. With the Payroll ID column blank in your employee details spreadsheet, your software automatically creates a new payroll ID when you import the data into the new company.

Locate then double-click the exported file.
In column AC, which holds the Payroll ID, delete all RTI Payroll IDs.
Remove any information under column AD, this is the Previous Payroll ID Status column.

You also need to amend the following:

Delete any employee reference numbers that are already in use in the company you're importing employees into.
Check the file includes only employees who are employed by the new company. If any aren't, delete their row.
If you have any directors, amend the Date Directorship Began (column AK) to the new company start date.
In Work Start Date (column AR), enter the new company start date.
If your employees are protected under Transfer of Undertakings (Protection of Employment) regulations (TUPE), you must still issue a P45 for the employee and enter the new company start date here. This ensures the correct employment periods are declared to HMRC for each PAYE reference.
In SLR From Date (column AT), enter the new company start date.
NOTE: Only do this for employees with student loan deductions.
In Sort Code, check that Microsoft Excel hasn't converted these into dates as this causes the data import to fail.
If Microsoft Excel has converted these into dates, you need to correct them in Excel before saving. Alternatively, you can delete them from Excel then re-enter them in Sage 50 Payroll after you've imported the data.
Remove any information from fields Pension 1 through to Pension 5 (columns BA to BE).
In Departments (column BV) and Cost Centre (column Bw) remove this information unless you're setting up the same Department and Cost centre in the new payroll.
NOTE: Set up the departments in the new company before you import employee details, or the import fails.
In Last Processed Date (column CC), delete the last processed dates.
If any of your employees are on statutory payments, remove any values in columns CE to EQ.
If you have any apprentices, amend the Apprenticeship Start Date (column FK) to the new company start date.
Click File then click Save.

Create a new company

You’re now ready to get started with the new company. First, you need to create the new company.

Log in to your existing company, click File then New Company.
Select the option Create a new set of data files then click Next.

TIP: If you see the New Company option greyed out, follow our guide on what to do when options aren't available to choose from menus or the Tasks panes.

Set up the new company

Import employee details

Once you've created the company, you need to add any departments and cost centres.

You're then ready to import your employees' details. For help with doing this, follow our import data guide.

If you have any directors, check their Date directorship began is correct. It's essential this date is correct, as your software uses this date to pro-rata their NI calculation.

Double-click the director on your employee list.
Go to the Employment tab, and select the YTD Values button.
Go to the Director's NIC tab and update the Date Directorship Began if required.
Click OK, then Save.
Click Close.

Enter your employees' P45 details

For each employee, you need to enter their P45 information from your old company. These values are important as your software uses them in calculations for PAYE, which are most often cumulative. Use our guide on how to enter a P45 for a new starter.

Enter any year to date values, for example, an employee loan that has deductions continuing in the new company:

On the Employee List, select the required employees.
Right-click a selected employee and click Open Employee.
Click the Employment tab, then click YTD Values.
Enter any required YTD values.
Click OK then click Save.
To enter YTD values for other selected employees, click Next.

Set up your company and payroll details

Next you need to set up your company and payroll details.

Processing implications

Statutory payments

A change of employment start date affects your employees' statutory payments. To continue processing statutory parental pay, you need to process the payments manually:

An employee is entitled to statutory sick pay (SSP) from the day they start with the company, as long as they meet the criteria. To calculate the employee's average weekly earnings (AWE) and to find out if they qualify for SSP, check HMRC's website.

If an employee was already receiving SSP in the former company, and they're transferred under TUPE, their SSP continues. They don't need to serve three waiting days in the new company, and they should receive the remaining balance of the 28 weeks total.

If the employee's AWE is above the NI Lower Earnings Limit (LEL), you can enter this in Sage 50 Payroll:

Double-click the required employee then click the Absence tab then click S.S.P..
In the 8 Weeks Average Earnings section, enter the AWE next to Auto Calc.
Click OK then click Save then click Close.

Student loans

The employee must continue repaying their student loan. You need to check that the student loan start date is correct:

Double-click the employee then click the Employment tab.
Click Student/Postgraduate Loans.
Check the Start date and Loan Type are correct.

Attachment of earnings orders (AEO)

The employee needs to continue to repay their AEO. You need to set up the AEO again, entering the remaining balance as the total attachment value. Use out guide to set up an attachment of earnings order.

Loans

If you have any loans set up in your company, you need to set them up again in the new company. Use our guide to set up employee loans.

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Your existing company