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HMRC internal manual

PAYE Manual

Employer records: maintain schemes: change scheme type - XP to PSC (Action Guide)

To take the appropriate action when you are told that a business employing at least one subcontractor takes on employees for the first time as well, follow steps 1 - 5 below. This Guide is presented as follows

  Steps 1 - 2
  Steps 3 - 5

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

Initial action

1. Use Function AMEND EMPLOYER TRADE & SCHEME DETAILS to change the scheme type to PSC
  Enter an RTI PAYE liability effective date, which must be the date the business takes on an employee
2. 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
  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

Clerical action

3. 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
4. Write to the employer to advise them
  * 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 CIS returns for the previous year
  * That they need to forward monthly CIS returns as well as a P35 and attachments for the current tax year
5. Use Function AMEND EMPLOYER NOTES to record your actions and then file the papers in the employer record pad