Beta This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

PAYE Manual

Employer records: movement of an employer record: RTI mergers and successions

From 6 April 2013 EBS will provide merger / succession details to the National Insurance and PAYE Service (NPS) using Function ‘EMPLOYER MOVEMENTS’ but it will no longer trigger the movement of the employments. EBS will also update the ETMP record with details of the merger / succession.

Note: From 6 April 2013 it is important to take the action on EBS as near to the date the merger / succession took place as possible to ensure the ETMP account is updated.

All employers involved in the merger/succession are operating PAYE in Real Time

You will continue to use EBS Function EMPLOYER MOVEMENTS to move the employer record on EBS and ETMP using the guidance at PAYE30011 and PAYE30045.

To move the employments on NPS the employer needs to send an FPS submission with leaving details on the old employer reference, including the year to date pay and tax figures. Under the new reference the employer needs to send an FPS submission with starting details on and restarting the year to dates figures from zero.

One or more of the employers involved in the merger/succession is not operating PAYE in Real Time

If an employer contacts you regarding a merger or succession for a year where one or more of the employers is not operating PAYE in Real Time you should contact the (This content has been withheld because of exemptions in the Freedom of Information Act 2000) for guidance on how to proceed.

Individual records

From 6 April 2013 when a merger or succession is notified to HMRC, NPS updates and records details of the ‘merged from’ and ‘merged to’ employer schemes but individual employment records will not be merged. Instead

  • All live employments which are to be merged will be automatically ‘potentially ceased’ using a cessation date of 5 April of the current tax year
  • The ‘merged / succeeded from’ employer will send a final cessation FPS submission which will change the ‘potentially ceased’ status to ‘ceased’ and add the pay and tax year to date figures to the NPS record
  • The ‘merged / succeeded to’ employer will send a starter FPS submission and, importantly, will not include previous pay and tax to date

This process ensures that the final FPS submission sent by the ‘merge to’ employer at the end of the year does not include previous pay and tax to date information proper to the ‘merge-from’ employer, avoiding any potential to duplicate pay and tax details.