When you close down a business, you must inform HMRC, you 've closed the PAYE scheme.

You need to:

• Make your employees leavers
• Pay their final pay including redundancy where applicable
• Issue the P45's
• Inform HMRC you've closed the scheme

Steps to follow

1. If needed, Set up a redundancy payment.
2. Enter the employee finish dates.
3. Process the pay run as usual.
4. Issue the employee's P45's.
5. Submit the final Employer Payment Summary (EPS).

 NOTE: It's the final Employer Payment Summary (EPS) that confirms to HMRC you're closing the PAYE scheme.

If you already processed your final payment run, but didn't make the employee's leavers:

Follow the steps to ensure HMRC gets the required leaver information.

Perform the following steps:

• The employees’ finish dates
• The employee year-to-date pay values as of the previous pay run

To Finish:

1. Give your leavers their P45's.
2. Submit the final Employer Payment Summary (EPS).

Submit the final Employer Payment Summary (EPS):

1. Select the Year End tab.
2. Select Submit EPS.
3. Select The company has closed down the PAYE Scheme and enter the date the PAYE Scheme closed.
4. Select Next and Next again.
5. Select submit.

• Read our article Change your business status (Opens in new tab)