HMRC internal manual

PAYE Manual

PAYE48240 - Employer returns: enterprise tax management platform (ETMP): RTI cessations

An RTI employer will have the ability through the Full Payment Submission (FPS) or Employer Payment Submission (EPS) to notify HMRC that they have stopped trading, closed the business or ceased employing staff by completing a Ceased Indicator checkbox. This action sets a potential cessation date in ETMP and creates a bespoke report to be used as a work list, see PAYE48214.

The purpose of the potential cessation date is to allow DMB to put a halt to the employers PAYE / NIC obligations from that date forward and to cancel any recovery work for outstanding returns from that date.

The actual setting of a cessation date has not changed with RTI. The cessation of an employer has to be investigated, confirmed and then set in EBS in the normal way, see PAYE21030.