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HMRC internal manual

PAYE Manual

From
HM Revenue & Customs
Updated
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Employer records: maintain schemes: maintain DOME schemes

Note: DOME schemes became standard P schemes from 6 April 2014. This guidance refers to all years up to and including 2013-14.

This subject is presented as follows

P12 deduction cards received during the year

An employer of personal or domestic employees must send you the P12 deduction card when

  • An employee leaves
  • A new P12 is received showing an amended code

When you receive a P12 during the year you will need to do the following

  • Check the quarterly totals on the card
  • Total all the figures
  • Send the pay and tax details to the section responsible for the individual. (They should follow the guidance at PAYE72000 onwards)

Cessation of a Dome scheme

When you have established that an employer no longer has any employees they are required to send you the P12 card(s) for the year of cessation. You should not ask them to complete form P37 for this tax year.

You will need however to

  • Prepare a pro-forma P37
  • Prepare pro-forma forms P14
  • Compare the totals of tax and NIC due with those paid
  • Advise the Debt Management Office accordingly

Annual review of P12 deduction cards received during the year

During the first week in February each year P12 deduction cards for the current tax year that have been received from employers (that are not held in the ‘Pro-forma P37 range’) will need to be reviewed to determine which employers no longer have employees.

Where this has been established you will be able to close the DOME scheme and so avoid issuing a form P37 annual return unnecessarily to a ceased employer.

All cases need to be listed and entered in the employer related electronic file ‘Pro-forma P37 prepared’.

Note: All P12 deduction cards that are received after your review has taken place but are still in year will need to be reviewed on receipt.

Completion of a pro-forma P37

When the cessation of a DOME scheme is appropriate you will not request a P37 annual return from the employer. You will however need to prepare a pro-forma P37 from the P12 cards received from that employer for the year of cessation.

The completion of the pro-forma P37 should be made in green ink and will indicate

  • Name of each employee
  • Total tax and NIC with a breakdown for each employee
  • Total Statutory Sick Pay (SSP) recovered
  • Total Statutory Maternity Pay (SMP) recovered
  • Total Student Loan deductions
  • NIC compensation on SMP
  • NIC Holiday claimed. (For years up to 2005-06)

And from tax year 2003-04

  • Total Statutory Paternity Pay (SPP) recovered
  • NIC compensation on SPP
  • Total Statutory Adoption Pay (SAP) recovered
  • NIC compensation on SAP

And from tax year 2011-12

  • Total Ordinary Statutory Paternity Pay (OSPP) recovered (previously SPP)
  • NIC compensation on OSPP (previously SPP)
  • Statutory Shared Parental Pay (ShPP) recovered
  • NIC compensation on ASPP

This information will then be used to compare against the payments that have been made by the employer that will be indicated on the BROCS record.

PAYE Online for Employers - Internet

Employers are able to use the Internet, (formerly known as FBI) to complete and file online forms P12 and P37 for tax year 2002-2003 onwards.

An employer who has registered to file online can be identified by the Intent to File indicator using Function AMEND EMPLOYER INDICATORS or VIEW EMPLOYER INDICATORS.

The filing of a DOME return using this facility will result in the

  • P12 data being converted to forms P14 and transmitted automatically to NICO which when processed will be passed through to the PAYE Service and generate a microfiche of forms P14
  • P37 data being processed automatically onto EBS, with the exception of those containing an entry for Statutory Sick Pay (SSP)

    • If a return contains an entry for SSP a work item exception will be produced. Follow ‘Filed online capture exception (Action Guide)’ at PAYE53036
  • e-Services Filestore retaining details of the converted P14 and P35 information. The P35 will have ‘DOME’ displayed on e-services Filestore

Changes to tax codes

For domestic schemes, the Manual Correspondence to Employer indicator will be set on the individual’s employment record and you must issue a P12 for DOME scheme with a revised tax code and free pay. On the Tax Code details screen for P6 / P9 issue, select ‘Manual issue’ from the drop down in the Issue Forms section and ‘Submit’. Record a Contact History note that a P12 has been issued manually.

On receipt of the new P12 the employer will

  • Make an ‘in-year’ submission of the previous P12 online
  • Commence to use the new information online

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Employee leaves

If an employee leaves, the employer must

  • Enter a ‘date of leaving’

And

  • Submit the completed form P12 online

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The PAYE Service individual record will be updated automatically.

Cessation of the scheme

If an employer ceases, the employer must

  • Enter the date of cessation

And

  • Submit the completed form(s) P12 and P37 online. These forms can be submitted in-year from 2005-2006 and the details will be converted to form(s) P14 and P35 and displayed in e-services Filestore. The information will not be passed to EBS until after the year-end

An employer who simply wishes to cease using PAYE Online for Employers - Internet, but who is continuing as an employer of personal or domestic employees, must print-off and submit to the PAYE Employer Office with a covering letter

  • The forms P12 that they are currently completing online

And

  • Any in-year forms they have submitted online for that year

The employer must immediately start to use manual form(s) P12 and submit a manual form P37 at the end of the tax year.

End of year

The employer must

  • Enter the final weeks / months details for each employee
  • Submit forms P12 and P37 online
  • Send payment for the final quarter to Banking Operations
  • Use PAYE Online for Employers - Internet to print a P60 to give to all employees who were in employment at 5 April