PAYE21016 - Employer records: maintain employer record: cancellation of an employer record (Action Guide)

To cancel an employer record opened in error, follow steps 1 - 16. The Guide is presented as follows

Checks to be made before cancellation Steps 1 - 3
EDI indicators present Steps 4 - 5
Linked employee records Steps 6 - 14
CIS deductions Step 15
Clerical action Step 16

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.

Checks to be made before cancellation

1. Review the information provided to satisfy yourself that the employer record can be cancelled
  If any of the following payments appear on the BROCS record any action to cancel an employer record will be rejected by Banking Operations
 
  • Income Tax
 
  • National Insurance Contributions
 
  • Student Loan deductions
 
  • CIS deductions
 
  • Incentive payments
2. To avoid this use Function VIEW BROCS (Format 3) to check no payments appear on the BROCS record
3. If payments are shown on the record follow the Action Guide ‘Cessation Or Cancellation Rejected By Banking Operations’ PAYE48051 

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EDI indicators present

  If you have attempted to cancel an employer record but the following error message is presented ‘EDI indicators prevent cancellation of employer record’ you must
4. Put the case to one side for 5 days to await action by EDI Live Service Team to clear the case from the ‘EDI Cess/Canc Exceptions’ work list
5. After 5 days (if the EDI Live Service Team have not been in contact with you to discuss the next action to take)
 
  • Use Function AMEND EMPLOYER SCHEME HISTORY to attempt to set the cancellation date again
 
  • 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
 
  • Enter an ‘Effective Date’ which must be the date the contractor stopped making payments to their subcontractors. This date must be established with the contractor. Where that is not possible use an ‘Effective Date’ of 6 March for the last year for which a P35 return was received
 
  • Send a priority WAM to the Customer Operations CIS team based in Newry, stating the date the employer no longer engaged subcontractors (if known) or the date you were notified
 
  • If the cancellation date is accepted go to step 16
  Otherwise
 
  • If you are still unable to set the cancellation date, contact the Online Services Helpdesk, and
 
    • Explain that you have been unable to enter a cancellation date on the employer record because EDI indicators are already set
 
    • Agree with the EDI Live Service Team what action should now be taken

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Linked employee records

  A cancellation date cannot be entered if there are linked employee records attached to that employer record
  Take the following action only when you receive the following error message advising you that linked employee records exist at the employer record you want to cancel 'You cannot enter a cancellation date. Employments attached to this employer record'
6. Consider if alternative action is required to update the employer record (for example you may need to cease the employer record instead of cancelling it)
 
  • Otherwise, if the employer record was set up in error 
7. Use Function VIEW EMPLOYEES
 
  • Select 'Linked Employees'
  Where exceptionally, more than 10 employee records are attached to the employer record
 
  • Do not cancel the employer record
 
  • Use Function AMEND EMPLOYER SCHEME HISTORY to enter a cessation date of 31 March of the previous year then go to step 16
 
  • 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
 
  • Enter an ‘Effective Date’ which must be the date the contractor stopped making payments to their subcontractors. This date must be established with the contractor. Where that is not possible use an ‘Effective Date’ of 6 March for the last year for which a P35 return was received
 
  • Send a priority WAM to the Customer Operations CIS team based in Newry, stating the date the employer no longer engaged subcontractors (if known) or the date you were notified
  Otherwise
8. Review each entry on your list
 
  • Where there are no tax credit basis employments
 
    • Use Function AMEND EMPLOYER SCHEME HISTORY to enter a cessation date of 31 March of the previous year
 
And then
 
    • Use Function AMEND EMPLOYER INDICATORS to set the COYO Indicator to clear any intervening year(s)
 

For all entries with a Tax Credit Employment Basis
 
  • Telephone the employer immediately 
  Note: Tax Credit Employment basis will only be linked to an employer record up to 5 April 2006
9. Advise the employer that you are unable to cancel the employer record because tax credit employee(s) have been attached to it. Confirm for each employee identified whether the employer
 
  • Has paid the employee(s) identified under a different payroll. If so go to step 10
 
  • Does not know the employees listed. If so go to step 11
 
  • Has paid tax credits. If so go to step 13
 

Employees under a different payroll
10. Establish the correct employer reference
 
  • Use NTC Function AMEND PVE DETAILS to transfer the entire PVE award to the correct employer reference then go to step 16
 

Employees not known by employer
  If the employer does not know the employee(s) listed
11. Use form TC681 to notify the Employer Liaison Team (ELT) at the TCO that the applicant's NTC record is not known the employer
12. Use Function AMEND EMPLOYER SCHEME HISTORY to enter a cessation date of 31 March 2006 then go to step 16
 
  • 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
 
  • Enter an ‘Effective Date’ which must be the date the contractor stopped making payments to their subcontractors. This date must be established with the contractor. Where that is not possible, use an ‘Effective Date’ of 6 March for the last year for which a P35 return was received
 
  • Send a priority WAM to the Customer Operations CIS team based in Newry, stating the date the employer no longer engaged subcontractors (if known) or the date you were notified
 

Tax Credits Paid
13. Advise the employer to complete and submit form P35 and form(s) P14 for the year
14. Use Function AMEND EMPLOYER SCHEME HISTORY to enter a cessation date of 31 March or the previous year, then go to step 16
 
  • 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
 
  • Enter an ‘Effective Date’ which must be the date the contractor stopped making payments to their subcontractors. This date must be established with the contractor. Where that is not possible, use an ‘Effective Date’ of 6 March for the last year for which a P35 return was received
 
  • Send a priority WAM to the Customer Operations CIS team based in Newry, stating the date the employer no longer engaged subcontractors (if known) or the date you were notified
  If there is an intervening year for 2003-2004
 
  • Follow the Action Guide ‘Nil returns - up to 2004’ in ‘Capture employer return - up to 2004’ PAYE42026 to process a proforma nil return
  If there is an intervening year for 2004-2005 or 2005-2006
 
  • Follow the Action Guide ‘Nil returns - 2005 onwards’ in the ‘Capture employer return - 2005 onwards’ PAYE43031 to process a proforma nil return. For this situation only set RSI 2 when recording receipt of the return

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CIS deductions

  If the employer record holds details of CIS deductions an attempt to set a cancellation date will result in the error message 'You cannot enter a cancellation date. CIS Dedns held on the record' and you will be unable to set a cancellation date. You must
15. Review the papers held to establish that the employer has ceased. Further Guidance can be found in the Action Guide ‘Cessation of an employer record' PAYE21031 in this section of the Manual

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Clerical action

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

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