It has been announced that HMRC plans to close down PAYE schemes if they go unused for a certain period of time.
Employers that have not used their schemes will be sent letters explaining what is happening. If the scheme opened after 5th April 2013, it will only be allowed four months of inactivity before it will be shut down; however, this new rule will not apply if it has been registered as an annual scheme.
New reporting requirements for PAYE were launched this year and almost 1.7 million schemes are being reported in real time as a result, accounting for around 46 million records in total.
HMRC has stated that it is important for businesses that schemes that are not needed are closed down. This will save money for both the businesses and the Revenue in the long term, as money that is not owed will not be pursued, and it will also save a great deal of time.
It is easy for employers to close a scheme, as they can simply make the request on their final submission. The new processes ensure that unused schemes can be identified much more quickly and removed when necessary. This rule will be applied to businesses of all sizes.
Umbrella Companies will take care of PAYE for those registered with them, so dealing directly with HMRC is never required