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HMRC have issued clarification of the requirements of operating annual PAYE schemes in the real-time information (RTI) system.
The Revenue is unable currently to process requests from employers hoping to move to paying annually and register as an annual scheme, or to change their payment frequency. The publish a message on its website when the issue has been fixed.
For a PAYE scheme to be considered annual, it must meet the following requirements.
HMRC have issued clarification of the requirements of operating annual PAYE schemes in the real-time information (RTI) system.
The Revenue is unable currently to process requests from employers hoping to move to paying annually and register as an annual scheme, or to change their payment frequency. The publish a message on its website when the issue has been fixed.
For a PAYE scheme to be considered annual, it must meet the following requirements.
- All the employees are paid annually;
- all the employees are paid at the same time/same date; and
- the employer is only required to pay HMRC annually
If the criteria are not met, the employer must report PAYE on or before the time the employee is paid using a full payment submission (FPS).
If a scheme is registered as annual but the employer submits more than one FPS in the year, HMRC will automatically cancel the annual payer status for the year and following years.
If an existing annual employer changes the date of payment to its employees, it should complete an FPS for the month the payment is made. On receipt of the submission, the Revenue’s systems will change the annual payment/filing month to the new month.
Once a business is registered as an annual scheme, an employer payment summary (EPS) is not required for the 11 months of the tax year in which no payments are made to employees.
Schemes not registered as annual schemes should submit a ‘nil EPS/period of inactivity EPS’ for each month.
This also applies to schemes in which employers or agents intend to apply for a scheme to become annual. They will need to submit a nil EPS/period of inactivity EPS until the registration has been accepted as an annual scheme.
