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HMRC internal manual

PAYE Manual

HM Revenue & Customs
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Employer records: set up employer record: EPA scheme - company in liquidation and earnings paid

An EPA scheme type is set up and closed on instructions from a Debt Management Office.

It is used to record PAYE tax and National Insurance due on earnings paid to employees of companies in receivership, for example

  • Holiday pay
  • Arrears of pay arising before the receivership took place

The Receiver is required to deduct tax and NIC from these payments which he or she must then remit to the Debt Management Office responsible for the main PAYE scheme for the employer.

Debt Management Offices are responsible for all existing and new schemes in respect of this type of payment and will pursue any underpayment or outstanding return.

Separate arrangements exist where the DTI Redundancy Payments Office (RPO) pay claims through their paying agent CSL Group Ltd made under the Employment Rights Act 1999 (ERA) (previously Employment Protection Act 1978).

Employment Rights Act 1999 (ERA)

A single ‘P’ Scheme has been set up to deal with all payments made under the ERA where the DTI Redundancy Payments Office (RPO) pays claims through their paying agent CSL Group Ltd. (except Northern Ireland).

The single ERA scheme is the responsibility of the Employer Office.