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HMRC internal manual

PAYE Manual

HM Revenue & Customs
, see all updates

Employer records: maintain employer record: dormant employer records

With effect from 3 September 2010, employer records must no longer be made dormant.

The only exception to this is where ‘Dormant’ is set, then removed the following day to deal with a mismatch of data between IT systems.

Where a limited company employer or their agent notifies you that they are not currently trading and that

  • They did not operate in CY-1 and will not in CY


  • Do not intend to operate in CY or CY+1

You must now cease the employer record in the last year the employer was liable to PAYE. See EO SPD 1 and / or EO SPD 2.

RTI mandation date on employer dormant records

Due to the gradual wind down of the dormant process for employer records a decision was made to include dormant schemes in the RTI mandation process. ETMP therefore has an expectation of a Full Payment Submission (FPS) or Employer Payment Summary (EPS). As an FPS or EPS has not been submitted, ETMP has created specified charges.

All dormant schemes which have not joined RTI have been sent an RTI400 letter.

Where an employer notifies you that they are in receipt of an RTI400 letter and they do not intend submitting any RTI submissions for 2013-14, cease the scheme from 31 March 2013.

Using the cessation date of 31 March 2013 will reverse all the 2013-14 specified charges raised on ETMP. If, at a later date, the employer wants to restart the scheme they can do so by submitting an FPS or EPS for 2013-14. If the employer intends to submit a return for a year later than 2013-14 they will need to have a new scheme set up.

Review of dormant employer records

Until all existing dormant employer records have been reviewed when their dormancy period is due to expire, there will still be an annual review of dormant employer records. However forms P225(T) will no longer be issued to employers. Instead the PAYE Employer Office will review each dormant employer record on the annual review list to determine if the employer record should be ceased or reactivated as appropriate.