Close a PAYE scheme

Summary

Follow the five steps to close a PAYE scheme in Sage 50 Payroll and notify HMRC.

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 article on this process for further help Change your company status

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 article. After you complete this, return to this article and begin from Step 1 - Complete your final pay run below.

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. For help with doing this, follow the submit the FPS article.

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.
NOTE: You can only submit your cessation date to HMRC if it's today or before. If the cessation date is in the future, wait until this date then complete the submission.
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.

TIP: If you need to submit more payroll data after the cessation, check with HMRC if the scheme can still accept submissions. If so, remove the cessation date and complete your submissions, then re-enter it if applicable.

Processed after closing date

If you've processed 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. Start from the process your employee's as leavers step.

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Solution Properties

Solution ID: 200427112312686
Last Modified Date: Fri Apr 17 13:46:59 UTC 2026
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