From October 2013, PAYE schemes will automatically be closed where

  • No real time PAYE submissions have been made
  • No payments have been made to HMRC
  • The employer is not an annual payer
  • There is no evidence that the employer wants to claim Construction Industry Scheme deductions
  • The employer has not received an advance from HMRC
  • There have been no periods of Construction Industry liability
  • There is no evidence that the employer has any employees
  • There is no evidence that Class 1A NIC is due.

HMRC’s Director General for Personal Tax, Ruth Owen, said

“Closing schemes that are no longer needed is really important for businesses and for HMRC as it means that HMRC won’t waste employers’ or taxpayers’ time and money by needlessly pursuing returns or debts when in fact none are due.

Since April, employers or agents (acting on behalf of their clients) who have set up PAYE schemes that are no longer needed can easily close the scheme by reporting this on their final submission. This new process helps further as it means we can identify and remove unnecessary schemes earlier.”

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