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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 XP (Action Guide)

To take the appropriate action when you are told that a business ceases having employees but employs at least one subcontractor instead, follow steps 1 - 27 below. This Guide is presented as follows

Steps 1 - 13

Steps 14 - 23

Steps 24 - 27

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

Scheme changed during previous year

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

  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

  2. Review any

  1. Use EBS Function PROSPECTIVE / STARTER PACK and
  • Select the Existing Employer radio button
  • Enter the Employer Reference Number
  • Select scheme type XP 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 (if issued)
  • That they must forward forms P35 and attachments plus monthly CIS returns for the previous tax year (if not already forwarded)
  • That they only need to forward monthly CIS returns from the current tax year
  1. Use Function AMEND EMPLOYER TRADE & SCHEME DETAILS to change the scheme type to XP for the current year

  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’ of 6 April for the current tax year

  2. 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

  3. Use EBS Function AMEND EMPLOYER INDICATORS to set the POST indicator on the employer record

  4. Use Function AMEND EMPLOYER NOTES to record your actions and make a note that an XP new employer pack must be issued to the employer at 6 April

  5. B/F the employer papers until 6 April, then go to step 24

Scheme changed within current year

  1. If the Effective Date of the scheme type change is 6 April
  • Use Function AMEND EMPLOYER TRADE & SCHEME DETAILS to change the scheme type directly to XP for the current year

 If the Effective Date is later than 6 April

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

  2. Use EBS Function PROSPECTIVE / STARTER PACK and 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. Use EBS Function AMEND EMPLOYER TRADE & SCHEME DETAILS to change the scheme type to XP for CY+1

  2. Use EBS Function AMEND EMPLOYER INDICATORS to set the POST indicator on the employer record

  3. Use Function AMEND EMPLOYER NOTES to make a note that an XP new employer pack must be issued to the employer at 6 April

  4. Issue a letter to advise the employer

  • That you have updated the employer record as required
  • The reason for the change
  • That they must use their revised new employer pack (if issued) for CY
  • That they must forward forms P35 and CIS monthly returns for the current tax year
  • That they only need to forward CIS monthly returns from the following tax year
  1. Send a priority eForm to the Customer Operations CIS team based in Newry starting the date the employer will engage subcontractors from or the date you were notified

  2. BF the employer papers until 6 April

 

At 6 April Newry will

  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. Use Function AMEND EMPLOYER SEGMENTATION to change the Segmentation Band and the Status
  • Select the year to be amended
  • Select ‘EXCLUDED’ in the Revised Segmentation Band field
  • Select ‘Scheme Type Excluded’ in the Status field
  • Select the [Amend] button and if correct select the [OK] button
  1. Use Function AMEND EMPLOYER INDICATORS to remove the POST indicator on the employer record

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