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 - 27 below. This Guide is presented as follows

Scheme changed during previous year	Steps 1 - 13
Scheme changed within current year	Steps 14 - 23
At 6 April Newry will	Steps 24 - 27

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

1.	Use Function AMEND EMPLOYER TRADE & SCHEME DETAILS to change the scheme type to PSC for the previous year
2.	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
3.	Enter an ‘Effective Date’, which must be the date the contractor started making payments to their subcontractors
4.	Review any
	Error message relating to CIS deductions (Word 25KB)
	Or
	Advisory message relating to employer segmentation Scheme type change affects employer Segmentation. Check Segmentation details (Word 27KB)
5.	Use EBS Function PROSPECTIVE / STARTER PACK and
	Select the Existing Employer radio button
	Enter the Employer Reference Number
	Select scheme type XP to arrange for the relevant pack to be issued
6.	Issue a 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 new employer pack (if issued)
	That they must forward forms P35 and attachments plus monthly CIS returns for the previous tax year (if not already forwarded)
	That they only need to forward monthly CIS returns from the current tax year
7.	Use Function AMEND EMPLOYER TRADE & SCHEME DETAILS to change the scheme type to XP for the current year
8.	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
9.	Enter an ‘Effective Date’ of 6 April for the current tax year
10.	Send a priority WAM to the Customer Operations CIS team based in Newry stating the date the employer will engage subcontractors from or the date you were notified
11.	Use EBS Function AMEND EMPLOYER INDICATORS to set the POST indicator on the employer record
12.	Use Function AMEND EMPLOYER NOTES to record your actions and make a note that an XP new employer pack must be issued to the employer at 6 April
13.	B/F the employer papers until 6 April, then go to step 24

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Scheme changed within current year

14.	If the Effective Date of the scheme type change is 6 April
	Use Function AMEND EMPLOYER TRADE & SCHEME DETAILS to change the scheme type directly to XP for the current year
	If the Effective Date is later than 6 April
	Use Function AMEND EMPLOYER TRADE & SCHEME DETAILS to change the scheme type to PSC for the current year
15.	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
16.	Enter an ‘Effective Date’, which must be the date the contractor started making payments to their subcontractors
17.	Use EBS Function PROSPECTIVE / STARTER PACK and select
	The Existing Employer radio button
	Enter the Employer Reference number
	Select the appropriate scheme type to arrange for the relevant pack to be issued
18.	Use EBS Function AMEND EMPLOYER TRADE & SCHEME DETAILS to change the scheme type to XP for CY+1
19.	Use EBS Function AMEND EMPLOYER INDICATORS to set the POST indicator on the employer record
20.	Use Function AMEND EMPLOYER NOTES to make a note that an XP new employer pack must be issued to the employer at 6 April
21.	Issue a letter to advise the employer
	That you have updated the employer record as required
	The reason for the change
	That they must use their revised new employer pack (if issued) for CY
	That they must forward forms P35 and CIS monthly returns for the current tax year
	That they only need to forward CIS monthly returns from the following tax year
22.	Send a priority WAM to the Customer Operations CIS team based in Newry starting the date the employer will engage subcontractors from or the date you were notified
23.	BF the employer papers until 6 April

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At 6 April Newry will

24.	Use EBS Function PROSPECTIVE / STARTER PACK
	Select the Existing Employer radio button
	Enter the Employer Reference number
	Select the appropriate scheme type to arrange for the relevant pack to be issued
25.	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
26.	Use Function AMEND EMPLOYER INDICATORS to remove the POST indicator on the employer record
27.	Use Function AMEND EMPLOYER NOTES to record your actions and then file the papers in the employer record pad

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