DMBM522665 - Debt and return pursuit: PAYE: pursuit of outstanding debt and / or returns - outgoing owner

Some content of this manual is being considered for archiving. If there is content you use regularly, please email hmrcmanualsteam@hmrc.gov.uk to let us know as soon as possible.

As the new owner has agreed to complete the P35 etc for the year of succession there is no need to pursue the outgoing owner for any P35 returns etc for that particular year. You should continue pursuit for any outstanding previous year P35 returns and, in PSC schemes, CIS returns to the point of cessation of the contractor element.

But the outgoing owner remains responsible for the payment of all PAYE/CIS debt for the employees and any subcontractor deductions for all years up to the date of succession.

Normal debt pursuit should be undertaken for any outstanding debt up to the date of succession, including any penalties relating to the period prior to the succession date. Refer to DTO Campaign PAYE In Year SWI 33 Establish Debt and SWI 14/34 Transfer to Enforcement

BROCS and IDMS notes should be maintained as normal until full payment is accounted for and the scheme is ceased by PAYE Employer Office.