Guidance on how to close a PAYE scheme. To do this, watch the video or follow the steps below. If you have multiple companies sharing a PAYE scheme, follow our guidance here.
Note: You cannot close a PAYE scheme from Paycircle if the closing date falls in a previous tax year.
Close a PAYE scheme
Click Settings, then click Payroll settings.
Click the Want to close your PAYE scheme? link and click Start.
Enter the date that you want the scheme to close. This date can be in a previous period, the ‘Current period’, or on a date in the future.
If you choose a date in the future, you will need to run the payroll as normal, up to the period that covers the closing date. Once that period has been run, the cessation of the scheme will be sent to HMRC. It is important to note that HMRC won’t allow you to submit a a cease date in the future, so you will need to run the period the cease date falls in on the cease date or later.
If you choose to close the scheme on a date in the past, you will need to ensure you have corrected all the team members’ Year to Date information before the closure is submitted. Paycircle will inform HMRC straight away (usually within 24 hours) of the cessation, so you need to ensure you enter the correct date, and make the updates as necessary, as this cannot be cancelled or undone once the cessation has been submitted.
Once the closure date has been entered, click Save.
Regardless of when you close the scheme, Paycircle will automatically mark all team members as leavers, and issue everyone with a P45 once the scheme has closed.
Cancel a PAYE scheme closure
If you entered a scheme closure date in a current or future period, you can cancel the closure if required. To do this, follow the steps below.
Click Settings, then click Payroll settings.
Click Cancel closing your PAYE scheme.
Disconnect an automated pension when the PAYE scheme has closed
If you are closing a PAYE scheme, you may also need to close a workplace pension scheme too. Each scheme is different, so contact the pension provider directly to find out what you need to do.
If the workplace pension is connected to Paycircle, you will need to disconnect it after the closure has been submitted to HMRC. To do this, follow the steps below.
Click Pensions tab and click on the relevant pension scheme.
Click the Settings tab, then within the automation options section, click Edit.
Toggle off the connection to the pension provider, then click Save.