PAYE20020 - employer records: set up employer record: checks prior to setting up

When an employer or contractor wishes to open an employer record you will normally be advised by either

• A telephone call to NESI (who will set up new employer record)
• Sending their new employer details to NESI through the New Employer Helpline email facility

Or

• The following contact with the responsible processing office

Notes:

1. Any employer, contractor or agent who telephone the responsible processing office should be asked to contact the New Employer Helpline at NESI by either

Or

unless the scheme type required is one of those shown at PAYE20170, where the Responsible Office deal with setting up the record

2. Any written notification, either by post or by fax, must be dealt with at the responsible processing office
   
3. If you receive a form 64-8 (Authorising Your Agent) you must send a copy of the form together with form 64-6A to the Central Agent Authorisation Team (CAAT) who will enter the details on to EBS and other systems

Normally the information provided is sufficient for you to be able to set up a new employer record. If it is not, you will need to either telephone or write to the employer, contractor or agent and obtain the information before you proceed. See PAYE20040 for further details.

The information provided by the employer, contractor or agent determines which scheme type will be appropriate to the employer record you are setting up and also what returns, demands, reminders or forms are then sent to them.

Notes:

It is important that prior to setting up a new employer record you ensure that an employer record does not already exist for that employer or contractor.

When setting up a new XP or PSC scheme you must enter a ‘Date Notified’ which is the date you received the information to create the employer record

Requirement for a PAYE Scheme

A PAYE scheme is only required where one or more of the following occurs / arises

• Payments at or above the lower earnings limit are made to directors / employees
• Payments are made to a director / employee who receives payments from another job or pension
• Benefits and / or expenses are provided to a director / employee
• Payments are made to subcontractors

Or exceptionally

• When a limited company intend to claim a refund of CIS deductions suffered only

Note: If none of the above occur it is not necessary for the employer / contractor to have a PAYE scheme.

Responsibilities

You will need to ensure that the new business falls within your office’s geographical area of responsibility. Usually an office will be responsible for setting up all new employer records falling within their geographical area.

Ensure that any correspondence relating to setting up a new employer record is treated as priority and the new employer record is set up within 2 days of receipt.