PAYE27033 - employer records: maintain schemes: change scheme type - P to XP (Action Guide)
To take the appropriate action when you are told that a business ceases having employees but employs at least one subcontractor instead, follow steps 1 - 18 below. This Guide is presented as follows
| Scheme changed during previous year | Steps 1 - 7 |
| Scheme changed within current year | Steps 8 - 12 |
| Action at 6 April | Steps 13 - 18 |
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.
Scheme changed during previous year
- Use Function AMEND EMPLOYER TRADE & SCHEME DETAILS to change the scheme type to PSC for the previous year and XP for the current year
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
- ‘Date Not Known’ - where you do not know the date you received the information
Or
- ‘Date Not Applicable’ – where the update is being made from information not received from the employer
- In all cases you must enter an ‘Effective Date’, which is the date the contractor started / stopped making payments to their subcontractors.
This date must have been established with the contractor and you must not enter a date of 6 April unless you are certain that is the established date
- Review any
Error message relating to CIS deductions
Or
Advisory message relating to employer segmentation Scheme type change affects employer Segmentation. Check Segmentation details
- If the change was advised by a fax from NESI go to step 6.
Otherwise
- Send a fax to NESI Helpline (01355 358112) giving the details of the change
Note: On receipt of the change, NESI will update their database
- In all cases
- Attach a covering letter to advise the employer
- That you have updated the employer record with effect from (date)
- The reason for the change
- That they must use their revised starter pack
- That they must forward forms P35 and CIS36 for the previous tax year (if not already forwarded)
- That they only need to forward form CIS36 from the current tax year
- That they will not be able to file form CIS36 online (if they previously used this method for the P35)
- Use Function AMEND EMPLOYER NOTES to record your actions and then file the papers in the employer record pad
Scheme changed within current year
- Use Function AMEND EMPLOYER TRADE & SCHEME DETAILS to change the scheme type to PSC for the current year
Note: You will not be able to amend the scheme type to XP until CY+1, therefore
- Use Function AMEND EMPLOYER INDICATORS to set the POST
indicator on the employer record
- Use Function AMEND EMPLOYER NOTES to make a note that the
scheme type requires amendment on the employer record after next 6
April to
XP
- In all cases
- Attach a covering letter to advise the employer
- You cannot update the employer record as required, until the following 6 April
- The reason for the change
- That they must use their revised starter pack
- That they must forward form P35 for the previous tax year (if not already forwarded)
- That they must forward forms P35 and CIS monthly returns for the current tax year
- That they only need to forward form CIS monthly returns from the following tax year
- BF the employer papers until following 6 April
Action at 6 April
- Obtain the employer papers
- Use Function AMEND EMPLOYER TRADE & SCHEME DETAILS to
change the scheme type to
XP for the current year
- Use Function AMEND EMPLOYER SEGMENTATION to change the Segmentation Band and the Status
- Select the year to be amended
- Select ‘EXCLUDED’ in the Revised Segmentation Band field
- Select ‘Scheme Type Excluded’ in the Status field
- Select the [Amend] button and if correct select the [OK] button
- Use Function AMEND EMPLOYER INDICATORS to remove the POST
indicator on the employer record
- Use Function AMEND EMPLOYER NOTES to delete the note concerning
scheme change, if applicable
- Use Function AMEND EMPLOYER NOTES to record your actions and then file the papers in the employer record pad
