PAYE31041 - employer records: employer record work lists: scheme type review (Action Guide)


To take the appropriate action when there is an entry on the ‘Scheme Type Review’ Work List follow steps 1 - 29 below. It is presented as follows

Scheme type XPSteps 1 - 11
Scheme type ELECT, EXAM, TAS and PSSSteps 12 - 20
Scheme type DCNI, DPGEN and DPNISteps 21 - 29

Scheme type XP

The following procedures must be followed when dealing with employer records that have scheme type XP and live employees.

Initial Review - type XP

  1. Use EBS Function AMEND TRADE AND SCHEME DETAILS to ascertain the scheme type held against the current year

  2. Where the scheme type against the current year is P or PSC no further action is required

  3. Where the current year is not shown, use EBS Function VIEW EMPLOYER SCHEME HISTORY to determine whether there has been a cessation, cancellation, transfer or merger, then take the appropriate action below
  • Cessation or cancellation date is shown, no further action is required
  • Transfer or merger and your office remains responsible for the employer record, use the following procedures to review the new employer record
  • Transfer or merger out and your office is no longer responsible for the employer record, forward a request to the new office to use the following procedures to review the new employer record

Procedures - type XP

  1. Use EBS Function VIEW EMPLOYEES to determine if there are ‘live’ employees

  2. Where there are no ‘live’ employees, no further action is required

  3. Where there are ‘live’ employees note the basis that these employees are linked by
  • PAYE only
  • PAYE only with a date of leaving in the future
  1. Where any or all of the live employees show ‘PAYE only’ ascertain whether there is a corresponding COP record for each employee

  2. No further action is required if all the employees are either
  • PAYE only without a corresponding COP record

Or

  • PAYE only with a date of leaving in the future
  1. For all other cases determine whether there is a separate employer record with scheme type P or PSC by using one or all of the following
  • EBS Function VIEW EMPLOYER AND TRADE SCHEME DETAILS (linked scheme)
  • COP Function EI
  1. Where there is a separate P or PSC scheme
  1. Where there is not a separate employer record with scheme type P or PSC
  • Use EBS Function AMEND TRADE AND SCHEME DETAILS to amend the scheme type to PSC for the current year by following the guidance at PAYE27037

Scheme type ELECT, EXAM, TAS and PSS

The following procedures must be followed when dealing with ELECT, EXAM and PSS scheme cases with live employees

Initial review - type ELECT, EXAM, TAS and PSS

  1. Use EBS Function AMEND TRADE AND SCHEME DETAILS to note whether a scheme type is held against the current year

  2. Where the current year is not shown, use EBS Function VIEW EMPLOYER SCHEME HISTORY to determine whether there has been a cessation, transfer or merger, then take the appropriate action from the list below
  • Cessation or cancellation date is shown, no further action is required
  • Transfer or merger and your office remains responsible for the employer record, use the following procedures to review the new employer record
  • Transfer or merger and your office is no longer responsible for the employer record, forward a request to the new office to use the following procedures to review the new employer record
  1. Use EBS Function VIEW EMPLOYEES to identify whether there are any ‘live’ employees

  2. Where there are no ‘live’ employees, no further action is required

  3. Where there are ‘live’ employees note the basis that these employees are linked by
  • PAYE only
  • PAYE only with a date of leaving in the future

Procedures - type ELECT, EXAM, TAS and PSS

  1. For each employee that has a PAYE only basis, check that there is a corresponding COP record

  2. No further action is required if all the ‘live’ employees are either
  • PAYE only without a corresponding COP record

Or

  • PAYE only with a date of leaving in the future
  1. For all other cases, identify the linked employer record with scheme type ‘P’ by using one or all of the following
  • EBS Function VIEW EMPLOYER AND TRADE SCHEME DETAILS (linked scheme)
  • COP EBS Function EI
  1. Complete Employer Segmentation and Live Employees Stencil 1 with the details of all the live employees with PAYE basis and a corresponding COP record to request the PAYE section to move the employee record(s) to the main employer reference

Scheme type DCNI, DPGEN and DPNI

The following procedures must be followed when dealing with DCNI, DPGEN and DPNI scheme cases with more than one live employee.

Background

An employer record is created with a scheme type of DCNI, DPGEN and DPNI to enable an employee to deduct their own tax and / or NIC. There must only be one ‘live’ employee linked to this employer record. The ‘live’ employee and the employer name must be the same.

If two individuals work for a company with no UK presence, each individual is responsible for deducting their own tax and/or NIC. Consequently, an employer record is required for each individual.

If an individual who is deducting their own tax and / or NIC starts to employ someone and the payments are above the lower earnings limit or their total PAYE exceeds the PAYE threshold, an employer record, with scheme type P, must be opened so that PAYE can be correctly operated.

The following review and procedures will help you determine whether

  • Further action is required
  • The employer record has the correct scheme type
  • The employer record has live employees that require merging
  • The employer record has live employees that are correctly linked
  • There should be a PAYE scheme in addition to the DP / DC scheme
  • There should be a DP / DC scheme for each live employee

Initial Review - Scheme type DCNI, DPGEN and DPNI

  1. Use EBS Function AMEND TRADE AND SCHEME DETAILS to ascertain and note the scheme type held against the current year

  2. Where the scheme type against the current year is other than DCNI,DPGEN and DPNI, no further action is needed

  3. Where the current year is not shown, use EBS Function VIEW EMPLOYER SCHEME HISTORY to determine whether there has been a cessation, cancellation, transfer or merger
  • If a cessation or cancellation date is shown, no further action is required
  • If a transfer or merger has occurred and your office remains responsible for the employer record, use the following procedures to review the new employer record
  • If a transfer or merger has occurred and your office is no longer responsible for the employer record, forward a request to the new office to use the following procedures to review the new employer record

Procedures - Scheme type DCNI, DPGEN and DPNI

  1. Use EBS Function VIEW EMPLOYEES to determine if there are any live employees

  2. Where there are no live employees, no further action is required

  3. Where there is one live employee and this corresponds with the employer name, no further action is required

  4. For all other cases use the following to determine whether the correct scheme type has been allocated to the current year
  • EBS Function VIEW EMPLOYER AND TRADE SCHEME DETAILS
  • EBS Function EMPLOYER NOTES
  1. If the scheme type has been incorrectly allocated, use EBS Function AMEND TRADE AND SCHEME DETAILS to amend the scheme type for the current year

  2. If the scheme type has been correctly allocated, use EBS Function VIEW EOY RETURNS HISTORY to determine and note how many forms P14 have been submitted with the latest return, then select the appropriate action from the list below

If one P14 submitted with the latest return and there are more than two different live employees

If one form P14 submitted with the latest return and there are two live employee records for the same individual

  • Forward a request to the appropriate PAYE section asking them to merge the taxpayer records

Where all the following match – two (or more) forms P14, two (or more) live employees and the employer name includes the two (or more) individuals names

  • Use EBS Function EMPLOYER NOTES to determine whether each individual is responsible for their own tax, and if so
  • Use EBS Function EMPLOYER SET UP to create a new scheme allocating scheme type DCNI, DPNI or DPGEN for one of the individuals
  • Use EBS Function AMEND EMPLOYER SUMMARY to update the employer name on the original employer record
  • Arrange for the employee record to be moved to the corresponding employer record
  • Advise the individuals of the actions you have taken

Where forms P14 have been submitted for live employees who are employed

  • Use EBS Function EMPLOYER SET UP to create a new employer record with scheme type P
  • Complete Employer Segmentation and Live Employees Stencil 1 asking the PAYE section to move the employee record(s) to the new scheme, apart from the employee record that corresponds with the employer name of the existing scheme
  • Contact the employer to explain the actions you have taken

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