SolvedPAYE21131 | Employer records: maintain employer record: insolvency of employer (Action Guide)
From HM Revenue & Customs · PAYE Manual
The following action guide is primarily for use by Employer Unit staff.
If you receive information that an employer is insolvent follow steps 1 - 8 below as appropriate.
The guide is presented as follows
Steps 1 - 2
Steps 3 - 4
Steps 5 - 7
Step 8
For details of how to access any of the Employer Business Service functions, use PAYE057.
On receipt of form VAS 8
1. Use Function EMPLOYER SET UP to create a new employer record
Enter 'Voluntary Arrangement' in Employer Notes
2. Use Function AMEND EMPLOYER SCHEME HISTORY for the existing employer record to enter the date prior to the approval of the Voluntary Arrangement as the cessation date
Note: 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
On receipt of form AD 8
3. Use Function EMPLOYER SET UP to create a new employer record
Enter 'Administration Period' in Employer Notes
4. Use Function AMEND EMPLOYER SCHEME HISTORY for the existing employer record to enter the date prior to the approval of the company administration as the cessation date
Note: 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
On receipt of form INSOL238
5. Use Function AMEND EMPLOYER SCHEME HISTORY to enter the relevant date as the cessation date
Note: 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
If you are prevented from entering the cessation date due to live employees
6. Use Function VIEW EMPLOYEES to list the employees
Forward the list of employees to the PAYE section and ask for a date of leaving of either the relevant date or date prior to Voluntary Arrangement to be entered onto all the employee records
Use Function AMEND EMPLOYER INDICATORS to set the post indicator
B/F the papers
At B/F
7. Use Function VIEW EMPLOYEES to check there are no live employees
Where there are no live employees
Use Function AMEND EMPLOYER SCHEME HISTORY to enter the cessation date
On receipt of form INSOL219
8. Use Function EMPLOYER SET UP to create a new employer record
Use Function EMPLOYER NOTES to enter one of the following as appropriate
Bankrupt
Liquidation
Administration receivership
Note: Under no circumstances must Voluntary Arrangement be entered into the employer name and / or address.