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PAYE21215 | Employer records: maintain employer record: re-starting an employer record

From HM Revenue & Customs · PAYE Manual

It is possible to re-start an employer record which was previously ceased.

From 6 April 2011 an employer record can only be restarted in the year it was originally ceased or in the following year.

Examples of when a ceased employer record can be re-started include

  • The business now has employees liable to Income Tax and / or National Insurance

  • The business has recommenced trading

  • The scheme was ceased in error

Prior to re-starting an employer record for years 2008 onwards, you must contact CIS to enable them to review whether to issue CIS monthly returns and penalties for the intervening years if appropriate.

Following the re-start of an employer record, a full review should be made. This must include

  • Employer indicators on the Employer Business Service (EBS) and ECS. For example, where indicators were set prior to cessation do these still apply and are they in line on both computers

  • Scheme type

  • Intervening years cancelled one year only, ensuring that any outstanding employer annual returns are issued if appropriate

Re-start date entered in error

A re-start date cannot be amended. If circumstances arise where a date was entered incorrectly, or the employer did not re-start

  • Cease the employer record

  • Use a cessation date of 31 March in the year immediately prior to the re-start date. For example, incorrect re-start date 15-06-2003, use a cessation date of 31-03-2003

  • Review the years automatically cancelled one year, and where appropriate, use Function AMEND EMPLOYER INDICATORS to cancel the COYO indicator for any appropriate tax years

  • Review ECS to ensure that indicators (signals) are in line on both computers and make any changes to ECS where they are not

Note: You cannot re-start a cancelled employer record. For more information about cancelled employer records, see subjects ‘Cancellation Of An Employer Record’ PAYE21015 and ‘Reopening An Employer Record’ PAYE21205.

Manual re-start of an RTI employer record

In some cases you may need to manually re-start an employer record. Follow guidance at emp80092 to re-start an employer scheme that has previously been ceased in error.

Auto re-start of an RTI employer record

If a Full Payment Submission (FPS) is received for a pay period after the date of cessation, providing it relates to year of cessation or the following year, it will automatically re-start the employer record. An Employer Payment Summary (EPS) will re-start an employer record if it relates to the tax year following the date of cessation.