PAYE23036 - Employer records: employer types: school funding arrangements (Action Guide)

If you are required to open a PAYE scheme for a LEA school that has opted to hold the funds for its own payroll, follow steps 1 - 3 below.

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.

1. If you receive notification that a school has opted to hold the payroll funds, and pay their staff direct you must consider whether your office is responsible for the Local Education Authority (LEA). If necessary, use COP Function EI to trace the responsible office

• If your office is not responsible, forward the correspondence to the appropriate office immediately
• If your office is responsible for the LEA go to step 2

2. Use Function EMPLOYER SET UP to open a new employer record. For more information see PAYE20136 
3. Write to the school and advise them

• That a new employer record has been opened
• The office number and references allocated
• That details of the employees affected should be forwarded, with any form(s) P45(3) held