ECH9055 - Open Year Irregularities: New Schemes (Previously Pseudo Schemes)

Where you are undertaking a compliance check

• for a new scheme which has been set up by RIS

then every year for which returns are due but still outstanding

• is an open year.

Where an irregularity is discovered you should

• explain to the employer how to prepare the necessary current year records
• advise the employer to forward the amount underpaid to HMRC
• recover the PAYE, NIC and interest for earlier years via Class 6 settlement, and
• consider penalties in accordance with ECH21020 and ECH21025.

Note:

If the scheme was opened and closed immediately to facilitate RIS you should

• arrange for the scheme to be reopened.