From October 2013 where HMRC have been contacted to set up a new PAYE employer scheme, if there has been no activity on the scheme after 120 days it will be automatically reviewed to see if it can be cancelled.
A scheme will be considered as having no activity on it where
• you have made no submissions using PAYE in Real Time
• you have not made any payments to HMRC
• you are not an annual payer
• there is no evidence that you want to claim CIS Deductions Suffered
• you have not received an advance from HMRC
• you have not had any periods of Construction Industry liability
• there is no evidence that you have had any employees
• there is no evidence that Class 1A NIC is due.
Where none of these conditions apply your employer scheme will be cancelled and a letter issued to your business address to advise you of the action taken. Once the scheme has been cancelled you will not be able to submit any PAYE submissions in Real time. If your scheme should not have been cancelled the letter covers who you should contact in HMRC to request that your scheme is reopened.
