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HMRC internal manual

PAYE Manual

From
HM Revenue & Customs
Updated
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Employer records: maintain schemes: change scheme type - P to PSC (Action Guide)

To take the appropriate action when you are told that a business with employees takes on at least one subcontractor for the first time, follow steps 1 - 8 below. This Guide is presented as follows

Steps 1 - 3

Initial action

Steps 4 - 8

Clerical action

 

Initial action

  1. Use Function AMEND EMPLOYER TRADE & SCHEME DETAILS to change the scheme type to PSC

  2. 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
  1. Enter an ‘Effective Date’, which must be the date the contractor started making payments to their subcontractors

Note: Where you are changing the scheme type from an earlier year, you must enter the true effective date for the earliest year of the change and use the same date for each subsequent year

For example effective date 01/09/2009

  • Year 2010 enter effective date of 01/09/2009
  • Year 2011 enter effective date of 01/09/2009
  • Year 2012 enter effective date of 01/09/2009

Clerical action

  1. Use EBS Function PROSPECTIVE / STARTER PACK
  • Select the Existing Employer radio button
  • Enter the Employer Reference Number
  • Select the appropriate scheme type to arrange for the relevant pack to be issued
  1. Issue a letter to advise the employer
  • That you have updated the employer record with effect from (date)
  • The reason for the change
  • That they must use their revised new employer pack
  • That they must forward forms P35 and attachments for the previous year
  • That they need to forward monthly CIS returns as well as a P35 and attachments from the current tax year
  1. Use EBS Function VIEW EMPLOYER SUMMARY to see if there is a mandation date, relating to the tax year 2012-13, held in the RTI box

Where the employer has a mandation date, send an email (This content has been withheld because of exemptions in the Freedom of Information Act 2000) to advise them the

  • Title of the email - RTI scheme type change P to PSC for 2012-13
  • Employer Name
  • Employer PAYE Reference
  • Accounts Office Reference
  • Effective date of change from ‘P’ to ‘PSC’
  1. Send a priority eForm to the Customer Operations CIS team based in Newry stating the date the employer will engage subcontractors from or the date you were notified

  2. Use Function AMEND EMPLOYER NOTES to record your actions and then file the papers in the employer record pad