PAYE93025 - taxpayer end of year: reviewing liability at year end: dormant schemes

When an employer scheme is marked as ‘Dormant’ there are likely to be a number of associated employee records that may need to be reviewed. The employee records for these schemes are likely to relate to directors who may still be voted remuneration and for whom a live PAYE record is still required.

COP will review records linked to dormant employer records at week 12 each year. Where there are no P14 details posted for CY-1, these records are cleared ‘N’ unless

• There is an overpayment brought forward
• An underpayment was coded for CY-1
• The taxpayer started at the dormant employer reference during CY
• The taxpayer is a JSA case at the employer reference
• A PUP arises for CY-1
• There is an asterisk (*) in the O/P U/P B/F field for CY-2

When reviewing these cases you should assume that any directorships are still live. Where the DIR signal is set on the COP record you should ensure that a check has been made for any main source PAYE employment.