PAYE20001 - Employer records: set up employer record: introduction

This introduction is presented as follows

Requirement for a PAYE Scheme
The employer record
Responsibilities
How to set up a new employer record
Effect of setting up a new employer record
View access to employer records
Wider access
PAYE Employer Office
Data Protection Act

Requirement for a PAYE Scheme

A PAYE scheme is only required where one or more of the following occurs / arises

  • Payments at or above the lower earnings limit are made to directors / employees
  • Payments are made to a director / employee who receives payments from another job or pension
  • Benefits and / or expenses are provided to a director / employee
  • Payments are made to subcontractors
Or exceptionally
  • When a limited company intend to claim a refund of CIS deductions suffered only

Note: If none of the above occur it is not necessary for the employer / contractor to have a PAYE scheme.

The employer record

The PAYE Employer Office must keep a record for each employer or contractor from whom an annual return of deductions is due.

When an employer or contractor is first required to operate PAYE they will normally advise us in one of the following ways

  • A telephone call to the New Employer Helpline on 0300 200 3211
  • Apply online at www.gov.uk/register-employer
  • The following contact with the PAYE Employer Office
    • Written or verbal notification from an employer, contractor or agent
    • Notification from an HMRC Enquiry Centre
    • Notification from either the CT or Self Assessment section on form P510

The information provided by the employer or contractor determines what returns, payslips, reminders and forms are sent to the employer.

Responsibilities

There should normally be only one employer record for any employer who operates PAYE.

Each new employer has a system allocated employer reference that is protected on the record.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Data Protection Act

The provisions of the Data Protection Act 1998 (DPA) apply to employer records in the same way as they apply to taxpayer records held on other HMRC computer systems.