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HMRC internal manual

PAYE Manual

Employer records: set up employer record: TAS scheme - taxed award scheme (Action Guide)

When you become aware that the need arises to set up an employer record with a TAS scheme type, follow steps 1 - 11 below.


  1. Taxed Award schemes are set up by the Incentive Award Unit at Waterview Park, Washington

  2. If you are not this office you must refer any requests to set up a new Taxed Award Scheme to the Incentive Award Unit

  3. Only one employer record is required for each provider regardless of the number of contracts they sign

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

The guide is presented as follows

Steps 1 - 2

Initial action

Steps 3 - 4

Set up employer record

Steps 5 - 7

Long name

Steps 8 - 10

Clerical action

Steps 11

New employer pack

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

  1. 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 Incentive Scheme, not the contract name. For example, ‘Renault (Incentive Scheme) Ltd’
  • Business Address (you must select the [Search] button to access the Function ADDRESS SEARCH to trace and store an address on the employer record)
  • 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

  1. Make a note of the computer generated employer and Accounts Office reference

Long name

If the award scheme name is too long to fit the maximum space available in Function EMPLOYER SET UP an abbreviation must be shown

  1. Enter the abbreviated name on the screen

  2. Select the field (box) Employers Name has been abbreviated in Function EMPLOYER SET UP

  3. Send a memo to Banking Operations to

  • State the office number, Accounts Office / PAYE employer references
  • Inform them that the abbreviated name signal has been set
  • State the full scheme name

Clerical action

For each new scheme take the following action

  1. Use Function EMPLOYER NOTES to record your actions and place a copy in the employer record pad. Ensure you include the following details
  • Name of Taxed Award Scheme. Include the words ‘Incentive Scheme’, but not the name of the individual contract
  • Name of contract
  • The dates that contract was signed and expires
  • Name of the provider
  • Date you will issue P35(TAS)
  • Number of forms P440 you will issue
  1. Complete the Linked Schemes box in the MORE DETAILS screen in Function EMPLOYER SET UP with the employer reference of the linked employer record
  • Send a memo to responsible organisational unit for the linked employer record advising them that your record is linked to theirs
  1. Issue form P24N-1 to notify the provider of the employer and Accounts Office reference

New employer pack

  1. You must manually issue the new employer pack

To see what literature the new employer pack contains

  • Use PAYE056
  • In the Forms Index select ‘New Employer Packs’, and then
  • Scroll to the new employer pack for this scheme type