SolvedPAYE64066 | Employment maintenance: maintain employment: work item 246 - employer scheme ceased (Action Guide)
From HM Revenue & Customs · PAYE Manual
To clear work item 246 follow steps 1 - 23. This guide is presented as follows
Steps 1 - 2
Steps 3 - 6
Steps 7 - 10
Steps 11 - 18
Step 19
Step 20
Steps 21 - 22
Step 23
Initial action
1. Before proceeding check the CONTACT HISTORY screen to view Notes and to check previous actions taken
2. Review the work item and note the employer reference and the creation source
Note: If the work item shows ‘scheme ended’ and no other information, check EBS and if date of cessation held, insert date into NPS and see step 22.
Review EBS
3. View EBS employer summary screen for the PAYE reference shown on the work item
Note the employers name and address
Note the employers telephone number
4. View EMPLOYER SCHEME HISTORY
If the screen shows the scheme has transferred see step 6
If the screen shows the scheme has not been transferred note the employer cessation date and see step 5
5. View EMPLOYERS NOTES screen and note:
The date the note was made
See step 7 if the work item was created from a P14
See step 11 if the work item was created from a P45/3, P46 or P46(Pen)
See step 19 if the work item was created from a P45/1
6. Note the PAYE reference the scheme has moved to, and then
Telephone the employer to advise them of the correct PAYE reference to use in future cases, then see step 21 or 22
EBS shows PAYE cessation date and the work item is the result of a P14
7. If the employer reference is not held on EMPLOYMENT SUMMARY and the date of starting or leaving on the P14 is within the same tax year as the cessation date on EBS
And
The dates are within 1 month of each other:
Select the [INSERT] button on the EMPLOYMENT SUMMARY screen
Create a new employment by capturing the work item details using the correct PAYE reference, see action guide tax80003, using the cessation date from EBS as end date and the day prior to the end date as start date
Select the INSERT P60 PAY & TAX DETAILS screen and update the individual’s record with the P14 details, see PAYE61186
Make a Contact History note to advise that the period of employment has been created using the cessation date from EBS and also note the end date from the work item
Review whether reconciliation should be triggered, see PAYE93000 onwards
See step 23
Or
The dates are more than 1 month apart or fall within different tax years
See step 8
8. Contact the employers section and advise them of receipt of P14
Advise them P14 received giving date of leaving or date of commencement after cessation date
Ask them to review the employer record to update the cessation date or confirm cessation date is correct
9. If the employers date of cessation is correct
Update the individuals record with the cessation date confirmed by the employers section, see action guide tax80006
Update the individuals record with P14 details entering the cessation date confirmed by the employer section, see step 10 note below
Review whether reconciliation should be triggered see PAYE93000
See step 23
10. If the employers date of cessation is incorrect
Ask employers section to update the employer record
Update the individuals record with P14 details entering the cessation date confirmed by the employer section
Note: The P14 information should be entered as P60 details. For details of how to enter P60 details see PAYE61186.
Review whether reconciliation should be triggered, see PAYE93000 onwards
See step 23
EBS shows PAYE cessation date and the work item is the result of starter forms P45/3, P46 or P46(Pen)
11. Review EMPLOYMENT SUMMARY screen
If the work item has already been captured onto the record
See step 23
If the work item has not been captured onto the record
And
The date of starting is prior to EBS date of cessation
See step 21 if employment is not held
See step 22 if employment is held
Or
The date of starting is later than EBS date of cessation
See step 12
12. Telephone the employer to advise them that PAYE reference used has ceased and the date of starting / leaving on your work item is after the date of cessation on EBS, then see relevant heading below
Note: If you are unable to contact the employer by telephone, see step 20.
Employer states date on the form is incorrect and the correct date is before the employer cessation date shown on EBS
13. Note the revised date and see step 21 or 22
Employer states the cessation date shown on EBS is incorrect or they have not ceased trading
14. Contact the employers section responsible for the PAYE scheme
Ask them to review the employer’s file and update as necessary, see step 17 or 18
Employer states they are trading again
15. Ask the employer for the date they took on employees again, and then
Contact the employer section responsible for the PAYE scheme
Ask them to re-open the scheme or contact the employer for further information, see step 17 or 18
Employer states it is a different employer to which the reference relates (possible takeover)
16. Ask the employer to:
Register the PAYE scheme so a new PAYE reference can be given
Advise the employer he will be contacted in 4 weeks with the revised PAYE reference
Advise the employer the PAYE reference given should be used on future forms
BF the work item in accordance with PAYE110060 for 4 weeks
At BF date contact employer and see step 21
Employer Team Contact
17. If the employers team can update the employer record during the telephone conversation
See step 21 or 22
18. If the employers team cannot update the employer record during the telephone conversation:
Ask for a completion date
Update the CONTACT HISTORY screen to show action taken
And thenBF the work item in accordance with PAYE110060
Set the BF date given by the employers team
At BF date review EBS update, see step 21
OrContact employer team if EBS not updated
EBS shows PAYE cessation date and the work item is the result of leaver form P45/1
19. Review EMPLOYMENT SUMMARY screen
If the work item has already been captured onto the record
See step 23
If the work item has not been captured onto the record
And
The P45/1 leaving date is within 1 month of EBS cessation date
See step 21 if employment not held
See step 22 if employment held
Or
If the P45/1 leaving date is more than 1 month apart from EBS cessation date
See step 12
Contact the employer section
20. Advise the employers section of the form you have received and:
The form submitted and the date used on the form
You have been unable to contact the employer
The cessation date for the PAYE reference shown on EBS
Request that they:
Review the employer’s file to review correspondence received and establish whether the correct cessation date has been entered
Contact the employer if further information is required
Update the employer record as necessary
Advise you when their review is complete giving date to use if different from the date shown on the work item
Update the employment summary screen
21. If the employer reference in not held on EMPLOYMENT SUMMARY:
Select the [INSERT] button on the EMPLOYMENTS SUMMARY screen
Create a new employment by capturing the work item details using correct PAYE reference, see action guide tax80003
When the work item details have been captured press the [SAVE] button to insert the employment on EMPLOYMENT SUMMARY screen
If the work item is as a result of a P14, consider whether reconciliation should be triggered, see PAYE93000 onwards
Review the current code in operation, see PAYE61205
See step 22
22. If the employer reference is already held on EMPLOYMENT SUMMARY:
Close the work item
23. Close the work item in accordance with PAYE110075