The EAS must include any leaver and starter information where the employee has started or left employment in the current tax year.
You must not submit an FPS for part of your payroll if you have not submitted the corresponding EAS.
REGISTERING AN ANNUAL SCHEME WITH HMRC
24 April 2013
We have heard from members about some problems that have been encountered when attempting to register an annual scheme with HMRC. HMRC are aware of this issue and a fix will be implemented on 17 May 2013. In the meantime guidance has been produced to assist employers who have encountered delays. Guidance on HMRC’s website explains how to register an annual scheme. It goes on to say that employers who have registered annual schemes with HMRC do not need to submit nil EPS for the eleven months during which no-one is paid. However, we are hearing from members who have tried to follow this guidance and encountered problems. We have raised this with HMRC who has confirmed that the process is working as intended for schemes already registered as annual, but there is an issue with the registration process which was communicated to HMRC contact centres on 16 April. A fix will be implemented on 17 May. If the annual payment month falls between June 2013 and March 2014 then employers and agents have two options until the fix is implemented: o either register the scheme and complete an EPS showing a period of inactivity, then contact HMRC after 17 May to get the scheme changed to annual status, or o if the PAYE scheme does not exist then hold off from registering it until after 17 May. If the annual payment month is April or May, register the scheme, submit the FPS for payments made in April or May and a nil EPS for the other month. HMRC has kept a record of the employers/agents who have already contacted it to record the request to change to an annual scheme and will action these cases once the fix is implemented. HMRC has also noticed an increase in the number of employers/agents requesting that schemes are registered as annual schemes. However, some of these requests do not meet the requirements for an annual scheme. Remember that an annual scheme is one where: In the meantime the following guidance should be followed:
All the employees are paid annually
All the employees are paid on the same date, and The employer is only required to pay HMRC annually (ignore Class 1A NIC).
If the payment month is changed, then the full payment summary (FPS) should be completed for the new month in which the payment is made to the employee(s) and the annual payer details completed and HMRC’s systems will automatically change the annual date to the new month.
NUMBER OF PAYE SCHEMES REPORTING IN REAL TIME REACHES 1 MILLION
CIPP Policy News Journal
16/04/2014, Page 329 of 519
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