PAYE21056 - employer records: maintain employer record: dormant employer records (Action Guide)

To make an employer record dormant or when reviewing dormant employer records follow steps 1 - 26 below.

Note: You must not set the Dormant indicator on the same day an employer record is created.

The Guide is presented as follows

Making an employer record dormant	Steps 1 - 18
Removing dormant indicator	Step 19
Review of dormant records	Steps 20 - 26

For details of how to access any of the Employer Business Service functions use the [Index of Functions] button on the left of the screen.

Making an employer record dormant

1. Check that the information provided satisfies the criteria for making an employer record dormant. That is, a limited company

And / or

Note: The Dormant indicator is only appropriate where the scheme type is ‘P’ (refer to PAYE20135) and the employer is a limited company

Before setting the Dormant indicator checks should be made on the following to ensure the company is not active

And

BROCS checks

2. Use Function VIEW BROCS (Format 3 POSTINGS SUMMARY) to check that no payments of tax / NIC have been made for the current year

Where payments are shown on the BROCS record

3. Use Function VIEW EMPLOYER NOTES and check the employer record pad to review the information recorded

The action you take next is dependent on whether the payment was correctly allocated

If the payment has been allocated correctly - go to step 4

Correct payment on BROCS

4. Advise the employer that an Employer Annual Return is required for that year and establish the future intentions of the company and take the appropriate action

Payment on BROCS in error

Where the payment has been incorrectly allocated, obtain details to re-allocate the payment

5. Use Function OVERPAYMENT DISPOSAL or form P565 to inform Banking Operations how to re-allocate the payment. Further guidance can be found in the ‘Overpayment Notification’ Action Guide PAYE47061

When this information has been successfully updated on BROCS (the posting has been removed) - go to step 6

Where no payments are shown on the BROCS record

6. Use Function VIEW BROCS (Format 6 Actions) to check whether there is any indication that the employer has ceased

Class 1A NIC Employer Indicator

7. Use Function VIEW BROCS (Format 9 Designatory Data For ASN) to check that the Class 1A NIC EMP Indicator is not set

COTAX checks

8. Use COTAX Function VTPR to check whether there is a date held against either

Or

If a date is entered in either of these

9. Use Function AMEND EMPLOYER SCHEME HISTORY to enter this date as the cessation date

Note: Where the scheme type is PSC or XP you must enter a ‘Date Notified’, which is the date you received the information or select one of the following check boxes

Or

If an Intent to Strike off or Struck off date is not held - go to Step 10

EBS checks

10. Use EBS Function VIEW EMPLOYEES, Live Employees, to check whether there are any employees attached to the employer record

Where no live employees are shown on the employer record

11. Use EBS Function AMEND EMPLOYER SCHEME HISTORY to enter a cessation date of 31 March of the previous year

Note: Where the scheme type is PSC or XP you must enter a ‘Date Notified’, which is the date you received the information or select one of the following check boxes

Or

Note: If the Dormant indicator is held against the previous year follow the Action Guide ‘Cessation & Dormancy’ PAYE21026.

Where live employees are shown on the employer record

12. Ascertain whether any employees are directors (Y held against Dir in the View Employees screen)

Your next action will depend on whether any directors are shown

All live employees are PAYE employment basis only

13. Forward each employee’s name & NINO to the relevant PAYE sections WAM and request that a Date Of Leaving of 31 March of the previous year is entered onto the employee record

Your next action will depend upon whether there are any live employee records

If there are no live employee records

14. Use EBS AMEND EMPLOYER INDICATORS to remove the Post Indicator

Notes:

15. Where the scheme type is PSC or XP you must enter a ‘Date Notified’, which is the date you received the information or select one of the following check boxes

Or

16. If the Dormant Indicator is held against the previous year, follow the Action Guide ‘Cessation & Dormancy’

Live employees are a mixture of PAYE employment only and PAYE employment with a Y against director

17. For all live employees with a PAYE employment only basis forward each employees name and NINO to the relevant PAYE sections WAM and request that a Date Of Leaving of 31 March of the previous year is entered onto the employee record then go to step 16

All live employees are PAYE employment basis with a Y held against director

18. Use EBS Function AMEND EMPLOYER SCHEME HISTORY to set or re-set the Dormant indicator and set the review year to CY+2

Note: The Review Year will be set automatically to CY+4 unless you specify an earlier year.

Removing dormant indicator

When the employer advises that payments of earnings to employees are liable to PAYE and / or NIC, take the following action to remove the Dormant indicator and reopen the subsequent accounts years

19. Use Function AMEND EMPLOYER SCHEME HISTORY to enter the year the employer record is to become active in the Active From Year field

Note: Where the scheme type is PSC or XP you must enter a ‘Date Notified’, which is the date you received the information or select one of the following check boxes

Or

Review of dormant records

On receipt of the annual review list you must establish whether the Dormant indicator should remain on the employer record.

The list must be reviewed in conjunction with forms P225(T). The following steps inform you of the action required when

20. If the form P225(T) is completed and returned

21. The action to take is dependant on the information provided on the completed form P225(T)

Where the P225(T) shows

Note: Where the scheme type is PSC or XP you must enter a ‘Date Notified’, which is the date you received the information or select one of the following check boxes

Or

22. If the form P225(T) is not returned

23. Use the following methods to obtain further information to decide whether the employer record should remain dormant

24. If the form P225(T) is returned RLS

25. Where a new address is traced, reissue the form P225(T) and follow the ‘Maintain Employer Address’ Action Guide PAYE21161
    
26. Where a new address is not traced

Note: For every employer record where the Dormant indicator is not reset the computer will automatically remove the indicator at the following 6 April