.png)
.png)
PAYE schemes on which there has been no activity for at least 120 days will be automatically cancelled, HMRC have announced.
A letter – an RTI206 – will be issued to an employer of a shutdown, following an automated review of Revenue records.
The department claimed the new approach will allow officials to identify at a much earlier point that no returns are due – and it removes the obligation to make real-time submissions and subsequent requests for both returns and payment.
PAYE schemes on which there has been no activity for at least 120 days will be automatically cancelled, HMRC have announced.
A letter – an RTI206 – will be issued to an employer of a shutdown, following an automated review of Revenue records.
The department claimed the new approach will allow officials to identify at a much earlier point that no returns are due – and it removes the obligation to make real-time submissions and subsequent requests for both returns and payment.
The revamped system will also remove an unnecessary burden on employers and the additional cost to HMRC of maintaining and administering their record, said the taxman.
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 have reopened a scheme was closed erroneously.
The Revenue is automatically shutting down inactive schemes that were opened on or after April 2013. The department carried out a cessation exercise last November in respect of schemes were open before April 2013.
HMRC are also manually monitoring schemes, shutting down those the tax authority it believes are inactive. PAYE set-ups established before April 2013 will be considered as part of the standard overview and shut down when appropriate.
Schemes registered as annual ones will closed by neither the automatic nor regular manual process.
