Close a PAYE scheme

Solution Properties

Solution ID:

200427112312686

Last Modified Date:

Tue Sep 17 15:55:36 UTC 2024

Taxonomy Path:

Case category//How do I...//governmental/legislative compliance

Author:

[email protected]

Close a PAYE scheme

Description

If your company ceases trading, it's important that you complete your final payroll tasks correctly and notify HMRC.

You can't close a scheme for a future date, it has to be on or before your processing date.

NOTE: Closing a PAYE scheme because your company's changed status? Visit our guide on this process for further help Change your company status >

Cause

Resolution

If you haven't processed any payments in the current tax year you can't complete Step 5 below.

To resolve this, follow our current tax year isn't available in payroll year-end process guide. After you complete this, return to this guide and begin from Step 1 - Complete your final pay run below.

NOTE: You can only notify HMRC in Step 5 if your cessation date is today or before. If the cessation date is in the future, wait until this date then complete the submission.

1 - Complete your final pay run

Complete your final pay period and update records as normal. Process your payroll >

2 - Process your employees as leavers

Their leave date needs to match the date you're closing the PAYE scheme. Processing a leaver >

3 - Submit your final full payment submission (FPS)

Submit the FPS as normal. Submit the full payment submission (FPS) >

4 - If required, submit an employer payment summary (EPS)

If you need to tell HMRC about any adjustments to your monthly or quarterly payment, you must submit an EPS. When to submit an Employer payment summary (EPS) >

5 - Notify HMRC

Go to Payroll then select Change Process Date.
Enter the date that you're closing your PAYE scheme then select OK.
On the taskbar, select Tasks then Payroll Year End.
Go to Payroll Year End then select Yes.
Go to Choose Tax Year and select the correct Tax Year.
In Cessation Date, enter the date that you're closing your PAYE scheme.
Select OK then go to Internet Submissions.
Select Continue.
Select Submit, then select Submit.
Go to the Click here to view and print the submission log option, then select Print.
Select the correct printer, then select Print.
Select Close then, Close.

Processed after closing date

If you've processed one or more periods and sent the FPS by accident after the date the scheme should close, you need to correct this >

Rollback the payments incorrectly processed. Correct a previous payroll run.
Set the process date to match the Last FPS date.
TIP: This is the most recent period incorrectly sent to HMRC.
Enter a payment as £0. If a tax rebate calculates change the tax code to 0T Week1/Month1.
Update records with net pay as £0.
Complete an FPS adjustment to remove the incorrect liability from HMRC's system. Submit a full payment submission adjustment.
You can now complete the normal process to close a PAYE scheme, starting from the process your employee's as leavers step.

Steps to duplicate