Employers who no longer need their PAYE scheme can avoid non-filing Generic Notification Service (GNS) messages and penalties by ensuring that they make their final submission correctly.
The actions for employers to take will depend on what type of final submission they are sending, and for what tax year:
2014 to 2015
- Full Payment Submission (FPS) - when making their final FPS for 2014 to 2015 employers should:
- run their final payroll
- complete the 'Final submission because scheme ceased' and 'date scheme ceased' boxes on their FPS for the pay period
- enter a leaving date on each employee's payroll record
- Employer Payment Summary (EPS) - if they have already sent all their payroll information, employers should just complete the 'Final submission because scheme ceased' and 'date scheme ceased' boxes on the EPS.
This will ensure that HMRC's systems are updated to record the PAYE scheme as ceased.
There's more information, and details of the other actions that employers should take when their business ceases, in the PAYE if your business closes or changes guidance.
2013 to 2014 (PAYE reported in real time)
Employers who have already received an interim penalty warning letter, but who:
- stopped paying people in 2013 to 2014; and
- have already submitted all of their payroll information
should follow the EPS actions for 2014 to 2015 above to stop a penalty.
However, if there is PAYE information still outstanding they should also send an Earlier Year Update (EYU) to make a final submission for the year.
EYUs and EPSs may be available through payroll software. However, if this doesn't have an EYU or EPS facility employers can use the most appropriate version of HMRC's 2014 to 2015 Basic PAYE Tools
Download HMRC's Basic PAYE Tools (Opens new window)
Employers should send their final 2013 to 2014 submission as soon as possible to limit any penalty that is due. For full guidance read:
PAYE - final submission for the year and end-of-year tasks
2013 to 2014 (PAYE not reported in real time)
If the employer was not reporting PAYE in real time before it ceased, they should contact the Employers Helpline.
