Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

PAYE Manual

From
HM Revenue & Customs
Updated
, see all updates

Employer records: set up employer record: introduction

This introduction is presented as follows

Requirement for a PAYE Scheme

A PAYE scheme is only required where one or more of the following occurs / arises

  • Payments at or above the lower earnings limit are made to directors / employees
  • Payments are made to a director / employee who receives payments from another job or pension
  • Benefits and / or expenses are provided to a director / employee
  • Payments are made to subcontractors

Or exceptionally

  • When a limited company intend to claim a refund of CIS deductions suffered only

Note: If none of the above occur it is not necessary for the employer / contractor to have a PAYE scheme.

The employer record

The PAYE Employer Office must keep a record (computer and paper) for each employer or contractor from whom an annual return of deductions is due.

When an employer or contractor is first required to operate PAYE they will normally advise us in one of the following ways

  • A telephone call to the New Employer Helpline at East Kilbride
  • Sending their new employer details to the New Employer Helpline through their email facility, or
  • The following contact with the PAYE Employer Office
    • Written or verbal notification from an employer, contractor or agent
    • Notification from an HMRC Enquiry Centre
    • Notification from either the CT or Self Assessment section on form P510

Notes:

  1. Any employer, contractor or agent who telephone the PAYE Employer Office should be asked to contact the New Employer Helpline at East Kilbride by either
  • A telephone call on 0300 200 3211, or
  • Sending their new employer details through the New Employer Helpline email facility

Unless the scheme type required is one of those where the PAYE Employer Office deal with setting up the record.

  1. Any written notification, either by post or by fax, must be dealt with at the PAYE Employer Office.

The information provided by the employer or contractor determines what returns, payslips, reminders and forms are sent to the employer.

Responsibilities

There should normally be only one employer record for any employer who operates PAYE.

Each new employer has a system allocated employer reference that is protected on the record. Prior to June 2000, the employer reference was allocated manually.

How to set up a new employer record

In order to set up a new employer record you will need to be allocated the user role EBS Employer Maintainer. The computer record can then be set up using Function EMPLOYER SET UP.

Effect of setting up a new employer record

As a result of setting up a new employer computer record details are entered on screen on a work list, which will be updated daily. This will be accessed using Function WORKLISTS. The list itself will show the OU number then for each work item

  • Employer Reference
  • Employer Name
  • Date Set Up

Notes:

  1. When a new scheme has been set up on EBS you must ensure that a record has been created on BROCS before you proceed with any other action, such as COYO and so on. This will normally be the next working day but may sometimes be longer.

  2. When setting up a new XP or PSC scheme you must enter a ‘Date Notified’ which is the date you received the information to create the employer record.

  3. All employers registering for ‘P’ and ‘OCCA’ schemes from 6 November 2012 will have the option of joining RTI immediately. See PAYE5011 for more details.

View access to employer records

A view facility is available for employer records. To use this you will need to be allocated the user role Employer View. This will enable you to access Function VIEW EMPLOYER SUMMARY, which allows access to various view functions for the employer record.

Note: You must only view an employer record if there is a business need to do so.

Wider access

The Employer Business Service (EBS) has been designed to allow staff with the appropriate role to be able to view and / or set up and maintain an employer record irrespective of whether that office is the responsible organisational unit for that employer record.

Please note that any unauthorised or inappropriate accesses will be considered for action under the Department’s Conduct and Discipline rules, and may constitute a criminal offence.

PAYE Employer Office

During 2010 and until March 2011, Employer work has been moved from various employer units throughout the country into one central PAYE Employer Office at Benton Park View, Newcastle.

Data Protection Act

The provisions of the Data Protection Act 1998 (DPA) apply to employer records in the same way as they apply to taxpayer records held on other HMRC computer systems.