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

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

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Set up the new company

Employee start date

You need to handle the start date correctly, to provide HMRC with the information they require.

When you add the employee to Sage 50 Payroll, ensure their start date is their date of transfer. This ensures that when you send your first FPS in the new company, HMRC receive the date of transfer as the start date.

After you submit the first FPS, you can amend the start date to employees' original start dates, as protected by the TUPE transfer. Your software only includes the start date on an employee's first FPS, so changing this afterwards doesn't affect HMRC's records.

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 article.

Directors

If you have any directors, check their Date Directorship Began is correct before you enter their P45 values. It's essential that this date is correct, as your software uses it to pro-rata their NI calculations.

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

Enter your employees' P45 details

You need to enter P45 information from your old company for each employee. It's not possible to import this information, so you need to enter it manually.

These values are important as your software uses them in calculations for PAYE, which are most often cumulative. For help with doing this, follow our how to enter a P45 for a new starter article.

Where required, enter any year to date values. For example, an employee loan that has deductions continuing in the new company:

1. On the Employee List, select the required employees.
2. Right-click a selected employee and click Open Employee.
3. Click the Employment tab, then click YTD Values.
4. Enter any required YTD values.
5. Click OK then click Save.
6. 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.

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Further considerations

Sage HR/Online Bureau

Where you use Sage HR Online Services, or Online Bureau for Accountants, you can upload employees once they're in the new PAYE ref. Because it's a separate PAYE reference, you can upload payslips as normal and this remains separate in the online portal.

If the employees are still in their original company in your online services, you can choose whether to leave this data. If you do, the employee can still access payslips from their former company. Where you decide to delete the employee, they no longer have access. 

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:

• Manual statutory maternity pay (SMP)
• Manual statutory paternity pay (SPP)
• Manual statutory adoption pay (SAP)

An employee's statutory sick pay (SSP) entitlement starts 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 you transfer them under TUPE, their SSP continues. They don't need to serve three waiting days in the new company, and they receive the remaining balance of the 28 weeks total.

If the employee's average earnings are above the National Insurance (NI) Lower Earnings Limit (LEL), enter this in Sage 50 Payroll:

1. Double-click the required employee then click the Absence tab then click S.S.P..
2. In the 8 Weeks Average Earnings section, enter the AWE next to Auto Calc.
3. 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:

1. Double-click the employee then click the Employment tab.
2. Click Student/Postgraduate Loans.
3. 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. For help with doing this, follow our set up an attachment of earnings order article.

Loans

If you have any loans set up in your company, you need to set them up again in the new company. Follow our set up employee loans article for help with this.

Pensions

Employees' pension schemes in a prior PAYE scheme don't automatically carry over into a new PAYE scheme.

Assess the employee for automatic enrolment in the new company and enrol them when they become eligible jobholders.

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