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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 - XP to P (Action Guide)

To take the appropriate action when you are told that a business no longer has at least one subcontractor but takes on employees, or that the status of the subcontractors has changed to employees, follow steps 1 - 26 below. This Guide is presented as follows

Steps 1 - 9

Steps 10 - 18

Steps 19 - 26

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

  3. 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

Enter an RTI PAYE liability effective date, which must be the date the business switched to sub contractors only

Use Function VIEW EMPLOYER SUMMARY to check an RTI mandation date is set. If a mandation date is not present use Function MAINTAIN EMPLOYER RTI DETAILS to add a mandation date

  1. Use Function AMEND EMPLOYER SEGMENTATION to change the status and the segmentation band
  • Select the year to be amended
  • Select ‘0-49’ in the Revised Segmentation Band field
  • Select ‘Non Appeal Change’ in the Status field
  • Select the [Amend] button and if correct select the [OK] button
  1. Review whether a fresh new employer pack is required. If so
  • 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. 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 must forward completed forms P35 and any outstanding CIS returns for the previous year (if not already forwarded)
  • That from the current year they only need to forward a completed P35 and attachments
  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 where the employer had subcontractors for part of this tax year

  1. Use Function AMEND EMPLOYER TRADE & SCHEME DETAILS to change the scheme type to PSC for the current year, this will also update CY+1 to PSC

Note: Make sure you ‘OK’ the change.

  1. Use Function AMEND EMPLOYER TRADE & SCHEME DETAILS to change the scheme type from PSC to P for the current year, this will also update CY+1 to P

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 must be the date the contractor stopped making payments to their subcontractors

Enter an RTI PAYE liability effective date, which must be the date the business switched to sub contractors only

Use Function VIEW EMPLOYER SUMMARY to check an RTI mandation date is set. If a mandation date is not present use Function MAINTAIN EMPLOYER RTI DETAILS to add a mandation date

  1. Review whether a fresh new employer pack is required. If so
  • 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 Function AMEND EMPLOYER SEGMENTATION to change the status and the segmentation band
  • Select the year to be amended
  • Select ‘0-49’ in the Revised Segmentation Band field
  • Select ‘Non Appeal Change’ in the Status field
  • Select the [Amend] button and if correct select the [OK] button
  1. 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 must forward completed forms P35 and any outstanding CIS returns for the previous year (if not already forwarded)
  • That from the current year they only need to forward a completed P35 and attachments
  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 where the employer did not have any subcontractors for the year

  1. Use Function AMEND EMPLOYER TRADE & SCHEME DETAILS to change the scheme type to P for the current year, this will also update CY+1 to P

  2. 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’, of 6 April for the current year

Enter an RTI PAYE liability effective date, which must be the date the business switched to sub contractors only

Use Function VIEW EMPLOYER SUMMARY to check an RTI mandation date is set. If a mandation date is not present use Function MAINTAIN EMPLOYER RTI DETAILS to add a mandation date

  1. Review whether a fresh new employer pack is required. If so
  • 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 Function AMEND EMPLOYER SEGMENTATION to change the status and the segmentation band
  • Select the year to be amended
  • Select ‘0-49’ in the Revised Segmentation Band field
  • Select ‘Non Appeal Change’ in the Status field
  • Select the [Amend] button and if correct select the [OK] button
  1. 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 must forward any outstanding CIS returns for the previous year (if not already forwarded)
  • That from the current year they only need to forward a completed P35 and attachments
  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