Our attached draft What’s New announcement that we plan to publish on 21 October contains more detail. We are also planning a press release about these letters on the same day. About the scheme cancellation letters (RTI206) These cancellation letters will be sent following an automatic review of the scheme’s records after a period of inactivity. This process will cancel PAYE schemes which are set up when a new business is registered after 5 April 2013, but are then never used. The aim is to reduce the administrative burden on both HMRC and employers. We understand that some external business processes are to create a PAYE scheme as normal practice when a business is set up. So to help us identify unnecessary schemes at an earlier date additional questions will be asked when a scheme is registered – see PAYE20002 . Our guidance How to register as an employer sets out when an employer should register, and also states “Please note if you register and don't file anything with HMRC for four months then your PAYE scheme will be closed and you will have to re-register”.
Unused PAYE schemes to close
22 October 2013
From 28 October HMRC will be issuing letters to certain employers whose PAYE scheme shows no activity for 120 days.
The following message was posted on HMRC’s ‘What’s New’ web page:
From 28 October 2013 HM Revenue & Customs (HMRC) will be issuing letters (RTI206) to employers to advise that, because our records indicate that they have not operated PAYE or paid any subcontractors, we have automatically closed the PAYE scheme due to inactivity. The letters are generated following an automated review of our records. The benefit of this approach is that: HMRC identify that no returns are due at a much earlier point it removes the obligation to make real time submissions and subsequent requests for both returns and payment it removes an unnecessary burden on employers and the additional cost to HMRC of maintaining and administrating their record on our systems.
For more information on the criteria HMRC apply for closing a scheme please see guidance on 'Automatic cancellation of a PAYE Scheme'.
Automatic cancellation of a PAYE Scheme
HMRC press release – 21 October 2013.
PAYE Desktop Viewer (PDV) - required update for all users
23 October 2013
HMRC has updated the PDV application. All PDV users should download and install the new version of the PDV to ensure that they can view the latest versions of these notices.
CIPP Policy News Journal
16/04/2014, Page 298 of 519
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