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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 - PSC to P (Action Guide)

To take the appropriate action when you are told that a business engaging both employees and at least one subcontractor no longer engages subcontractors, follow steps 1- 12 below. This Guide is presented as follows

Steps 1 - 6

Steps 7 - 12

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 P for the current year

 Note: Leave the previous year as PSC.

  1. Enter a ‘Date Notified’ which is the date you received the information, or select one of the following checkboxes
  • ‘Date Not Known’ - where the date the information was received is not known, 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 stopped making payments to their subcontractors

  2. Write to the employer and advise them

  • That you have updated the employer record with effect from (date)
  • The reason for the change
  • That they will need to submit completed forms P35, forms P14 and any outstanding CIS returns for the previous year (if not already done)
  • That for subsequent years they will only need to submit a completed P35 and forms P14
  1. Send an eForm to the Customer Operations CIS team based in Newry, stating the date the employer no longer engaged subcontractors (if known) 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

 

Scheme changed within current year

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

Note: The scheme type amendment will be passed straight through to CISR but the update will not be applied to EBS until 6 April in CY+1.

  1. Enter a ‘Date Notified’ which is the date you received the information, or select one of the following checkboxes
  • ‘Date Not Known’ where the date the information was received is not known, or
  • Date Not Applicable’ where the update is being made from information not received from the employer
  1. Enter an ‘Effective Date’ which is the date the contractor made their last payment to a subcontractor

  2. Write to the employer and advise them

  • That you have updated the employer record with effect from (date)
  • The reason for the change
  • That for this year they will need to submit forms P35 and forms P14 plus any outstanding CIS returns (if not already done)
  • That for subsequent years they will only need to submit a completed P35 and forms P14
  1. Send a priority eForm to the Customer Operations CIS team based in Newry stating the date the employer no longer engaged subcontractors (if known) 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