PAYE27036 - employer records: maintain schemes: change scheme type - XP to P (Action Guide)


To take the appropriate action when you are told that a business no longer has at least one subcontractor but takes on employees, or that the status of the subcontractors has changed to employees, follow steps 1 - 21 below. This Guide is presented as follows


Scheme changed during previous yearSteps 1 - 7
Scheme changed within current yearSteps 8 - 15
Action after 6 AprilSteps 16 - 21

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 and P for the current 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
  • ‘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
  1. 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.
  1. Use Function AMEND EMPLOYER SEGMENTATION to change the Segmentation Band and the Status
  • Select the year to be amended
  • Select ‘0-49’ in the Revised Segmentation Band field
  • Select ‘Non Appeal Change’ in the Status field
  • Select the [Amend] button and if correct select the [OK] button
  1. If the change was advised by a fax from NESI go to step 6. Otherwise

  2. 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 and send a revised starter pack
  1. Write to the employer and advise them
  • 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 P35 from the current tax year
  • That they will be able to file their return online from the current tax year if they wish
  1. Use Function AMEND EMPLOYER NOTES to record your actions and then file the papers in the employer record pad

Scheme changed within current year

Note: You will not be able to amend the scheme type to P until CY+1, therefore
  1. Use Function AMEND EMPLOYER INDICATORS to set the POST indicator on the employer record

  2. Use Function AMEND EMPLOYER TRADE & SCHEME DETAILS to change the scheme type to PSC for the current 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
  • ‘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
  1. Use Function AMEND EMPLOYER NOTES to make a note that the scheme type requires amendment on the employer record after next 6 April to P

  2. Arrange for the ‘Inactive Indicator’ to set on New CIS for the period up to the end of the current tax year

  3. If the change was advised by a fax from NESI issue the letter at step 14. Otherwise

  4. Send a fax to NESI Helpline (01355 358112) giving the details of the change from 6 April

  5. Write to the employer
  • Advise them
  • 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 CIS monthly returns for the current tax year
  • That they only need to forward form P35 from the following tax year
  • That they will be able to file their return online from the following tax year if they wish
  1. BF the employer papers until following 6 April

Action after 6 April

  1. Obtain employer papers

  2. Use Function AMEND EMPLOYER TRADE & SCHEME DETAILS to change the scheme type to P for the current 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

  • ‘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
  1. Use Function AMEND EMPLOYER SEGMENTATION to change the Segmentation Band and the Status
  • Select the year to be amended
  • Select ‘0-49’ in the Revised Segmentation Band field
  • Select ‘Non Appeal Change’ in the Status field
  • Select the [Amend] button and if correct select the [OK] button
  1. Use Function AMEND EMPLOYER INDICATORS to remove the POST indicator on the employer record

  2. Use Function AMEND EMPLOYER NOTES to delete the note concerning scheme change, where applicable

  3. Use Function AMEND EMPLOYER NOTES to record your actions and then file the papers in the employer record pad

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