Contact Us

Pay-as-you-earn (PAYE) schemes that have been inactive for a minimum of 120 days will be automatically cancelled, according to HM Revenue and Customs (HMRC).
 
The tax authority has announced that an RTI206 letter will be issued to an employer whose scheme is due to be shutdown, following an automated review of Revenue records.
 
HMRC believes the new approach to shut down inactive schemes will allow officials to identify at a much earlier point that no returns are due – removing the obligation to make real-time submissions and subsequent tax returns and payments.
 
HMRC will consider a PAYE scheme as 'inactive', and therefore not needed, if all of the following apply:
 

  • You’ve made no PAYE returns in real time.

  • You haven’t made any payments to HMRC.

  • You haven’t registered with HMRC that you pay your employees annually and pay HMRC annually.

  • There’s no evidence that you want to claim Construction Industry Scheme (CIS) deductions suffered.

  • You haven’t received an advance from HMRC.

  • You haven’t had any periods of CIS liability.

  • There’s no evidence that you’ve had any employees.

  • There’s no evidence that you’ve paid any expenses or benefits.

 
It will not be possible to send PAYE submissions once a PAYE scheme has been cancelled. The RTI206 will include an explanation of how to reopen a scheme that was closed erroneously.
 
HMRC will be automatically closing inactive schemes that were opened on or after April 2013. The authority is also manually monitoring schemes, shutting down those it believes are inactive.
 
Registered annual schemes will be closed by neither the automatic or regular manual process.

Date published 29 Oct 2013 | Last updated 29 Oct 2013

Choose the right accounting firm for you

Running your own business can be challenging so why not let TaxAssist Accountants manage your tax, accounting, bookkeeping and payroll needs? If you are not receiving the service you deserve from your accountant, then perhaps it’s time to make the switch?

Local business focus icon

Local business focus

We specialise in supporting independent businesses and work with 100,000 clients. Each TaxAssist Accountant runs their own business, and are passionate about supporting you.

Come and meet us icon

Come and meet us

We enjoy talking to business owners and self-employed professionals who are looking to get the most out of their accountant. You can visit us at any of our 409 locations, meet with us online through video call software, or talk to us by telephone.

Switching is simple icon

Switching is simple

Changing accountants is easier than you might think. There are no tax implications and you can switch at any time in the year and our team will guide you through the process for a smooth transition.

See how TaxAssist Accountants can help you with a free consultation

020 3941 2011

Or contact us