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HMRC internal manual

PAYE Manual

From
HM Revenue & Customs
Updated
, see all updates

Employer records: maintain employer record: insolvency of employer (Action Guide)

The following action guide is primarily for use by Employer Unit staff.

If you receive information that an employer is insolvent follow steps 1 - 8 below as appropriate.

The guide is presented as follows

Steps 1 - 2

Steps 3 - 4

Steps 5 - 7

Step 8

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

On receipt of form VAS 8

  1. Use Function EMPLOYER SET UP to create a new employer record
  • Enter ‘Voluntary Arrangement’ in Employer Notes
  1. Use Function AMEND EMPLOYER SCHEME HISTORY for the existing employer record to enter the date prior to the approval of the Voluntary Arrangement as the cessation date

Note: Where the scheme type is PSC or XP you must enter a ‘Date Notified’, which is the date you received the information or select one of the following check boxes

  • ‘Date Not Known’ - where you do not know the date you received the information, or
  • ‘Date Not Applicable’ - where the update is being made from information not received from the employer

On receipt of form AD 8

  1. Use Function EMPLOYER SET UP to create a new employer record
  • Enter ‘Administration Period’ in Employer Notes
  1. Use Function AMEND EMPLOYER SCHEME HISTORY for the existing employer record to enter the date prior to the approval of the company administration as the cessation date

Note: Where the scheme type is PSC or XP you must enter a ‘Date Notified’, which is the date you received the information or select one of the following check boxes

  • ‘Date Not Known’ - where you do not know the date you received the information, or
  • ‘Date Not Applicable’ - where the update is being made from information not received from the employer

On receipt of form INSOL238

  1. Use Function AMEND EMPLOYER SCHEME HISTORY to enter the relevant date as the cessation date

Note: Where the scheme type is PSC or XP you must enter a ‘Date Notified’, which is the date you received the information or select one of the following check boxes

  • ‘Date Not Known’ - where you do not know the date you received the information, or
  • ‘Date Not Applicable’ - where the update is being made from information not received from the employer

If you are prevented from entering the cessation date due to live employees

  1. Use Function VIEW EMPLOYEES to list the employees
  • Forward the list of employees to the PAYE section and ask for a date of leaving of either the relevant date or date prior to Voluntary Arrangement to be entered onto all the employee records
  • Use Function AMEND EMPLOYER INDICATORS to set the post indicator
  • B/F the papers

At B/F

  1. Use Function VIEW EMPLOYEES to check there are no live employees
  • Where there are no live employees
    • Use Function AMEND EMPLOYER SCHEME HISTORY to enter the cessation date

On receipt of form INSOL219

  1. Use Function EMPLOYER SET UP to create a new employer record
  • Use Function EMPLOYER NOTES to enter one of the following as appropriate
    • Bankrupt
    • Liquidation
    • Administration receivership

Note: Under no circumstances must Voluntary Arrangement be entered into the employer name and / or address.