Chapter DMBM520020
| Published date | 29 April 2016 |
| Record Number | DMBM520020 |
| Court | HM Revenue & Customs |
| Issuer | HM Revenue & Customs |
When an employer or contractor, who is required to operate PAYE and/or CIS contacts the New Employer Helpline by phone or by email to request a new PAYE scheme, a new record is opened on our computer systems reflecting the scheme type they will operate.
The details are captured on to EBS (Employer Business Service) and a new Employer reference and Accounts Office reference will be generated by EBS.
If the employer intends to pay benefits/expenses, this information is passed to ECS (Employer Compliance System) in anticipation of the P11D(b) and Class 1A Charge.
Prior to RTI (Real Time Information), once an employer or contractor record was opened on EBS and an Accounts Office reference allocated, a BROCS (Business Review of the Collection Service) record was subsequently created.
From 15 October 2012, BROCS is no longer responsible for the PAYE and NIC accounting of employers who have an RTI starting date in 2012-13 onwards. From this date, all accounting records for RTI employers were transferred from BROCS to the Enterprise Tax Management Platform (ETMP).
From 5 November 2012, all customers registering as new employers joined RTI and have their accounting records dealt with through ETMP.
All remaining employers, with a few exceptions, joined RTI in April 2013 and their accounting records were transferred from BROCS to ETMP.
Scheme type ‘P’ (code 70)This scheme is for employers who have employees who are liable for deductions of Tax and NIC.
Further information can be found at PAYE20135.
P Type Schemes can also include payment card reward schemes and pseudo schemes.
Payment card reward schemesA payment card company, bank or building society to tax payments of cash made to an employee or third party retailer who passes this onto their employee as a reward for the recovery of a lost or stolen credit or bank card sets these up.
Tax is deducted at basic rate, and no NICs are payable.
There is no requirement to complete forms P14, P45 or P46 as the employer gives the recipient a statement of tax deducted.
Payments are paid over to HMRC in the normal way.
Further information can be found at PAYE20065.
Pseudo schemesThese are set up to register an Employer Compliance Review or inspection of an employer who has no PAYE scheme. The scheme is cancelled the day after it is opened. BROCS and/or ETMP will not show that this is a Pseudo scheme, but EBS notes will.
From 1 April 2009, Pseudo schemes can also be set up to handle penalties raised on employers who are not paying their employees the National Minimum Wage. The penalty charge will be raised on the SAFE system, but a PAYE record is needed to deal with the accounting.
Further information can be found at PAYE20070.
Scheme type ‘NI’ (code 70)This scheme is for employers who make payments to employees that are liable only to primary and secondary NIC (primary being the employee’s share and secondary being the employer’s share). The employer is responsible for setting up the scheme and paying over the NIC deductions to HMRC. If the employee has UK tax liability, this will be paid through Self Assessment, or a DPGEN scheme.
More information can be found...
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