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

HMRC internal manual

PAYE Manual

Employer records: set up employer record: SICK pay scheme (Action Guide)

When you become aware that the need arises to set up an employer record when a third party is responsible for paying sick pay, follow steps 1 - 11 below.

Setting up new employer records. Action should be taken within 2 days of notification that a new record is required.

Note: You cannot set up a SICK scheme type with a start date after 5 April 2013.

The guide is presented as follows

Initial action Steps 1 - 2
Set up employer record Steps 3 - 5
Long name Steps 6 - 8
Clerical action Steps 9 - 11

For details of how to access any of the Employer Business Service functions, use PAYE057.


Initial action

1. Collect and review all the information provided. PAYE20040 provides full details of the information needed
2. Satisfy yourself this type of scheme is required. More detailed advice is available at PAYE20020

Set up employer record

3. Use Function EMPLOYER SET UP to create a new employer record
  The function has been designed to follow a logical sequence and will not allow you to move on until all the mandatory fields have been completed
  The fields you must complete (as a minimum requirement) are
  * Employer Name. Enter the name of the employer followed by ‘Sick Pay Scheme’
  * Business Address (by selecting the [Search] button to use Function ADDRESS SEARCH to trace and store an address in this protected field)
  * Nature of Business
  * Trade Prefix
  * Trade Classification
  * Scheme Type
  * Scheme Start Date
  * Responsible Office
  However, you must record all relevant information held relating to the new employer to ensure that the employer record is as complete as possible. For further guidance see PAYE20040
4. Note the employer reference (the company for whom the sick pay scheme is operated) as a linked scheme in the More Details screen of Function EMPLOYER SET UP
5. Make a note of the computer generated employer and Accounts Office reference

Long name

  If the name is too long to fit the maximum space available in Function EMPLOYER SET UP an abbreviation must be shown
6. Enter the abbreviated name on the screen
7. Select the field (box) Employers Name has been abbreviated in Function EMPLOYER SET UP
8. Send a memo to Banking Operations to
  * State the office number, Accounts Office / PAYE employer reference
  * Inform them that the abbreviated name signal has been set
  * State the employer’s full name

Clerical action

9. For each new employer take the following action
  * Issue form P24N-1 to notify the new employer of his or her employer and Accounts Office reference
  * Use Function EMPLOYER NOTES to record your actions and place the post in the employer record pad
  * Use Function AMEND EMPLOYER TRADE & SCHEME DETAILS to note details of the linked scheme
10. If you have received form P510 from the SA section or the CT office, follow instructions on the form P510 then use Function EMPLOYER NOTES to record your actions and place a copy in the employer record pad
11. Otherwise prepare form P510 and send this to the SA section or CT office
  * When the form P510 is returned, review it for any new information. For instance, a Unique Taxpayer Reference, use Function EMPLOYER NOTES to record your actions then dispose of the paper in an appropriate manner