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HMRC internal manual

PAYE Manual

HM Revenue & Customs
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Employer records: set up employer record: XP scheme - contractor only (no employees)

You will need to set up a new employer record with an XP scheme type when a contractor in the construction industry makes payments to a subcontractor under a contract relating to construction operations.

A contractor’s responsibilities will be

  • To decide whether the subcontractor is self employed or is an employee taxable under PAYE
  • To check how the subcontractors should be treated for tax purposes by inspecting his certificate or registration card

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

XP schemes will not be able to join RTI at anytime.