Basic Tools and PAYE succession

Basic Tools and PAYE succession

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This is not for me but for a friend and I mentioned I might be able to find an answer (from some of you reading this!) – how do you sort PAYE succession in Basic Tools?

This is for the succession from a sole trader to a new company (with a new employer reference already obtained) keeping the same employees.

From HMRC … with bullet points comments that I have put in.

Employees moving to a new payroll under a different employer reference

  1. Transfer the payroll records to the new employer reference.
  • That’s okay. Can do that by changing the sole trader employer information to company information.

  • Or … if a new company employer is set up in basic tools, there seems to be no way to pull the employees across from the old sole trader employer. Is that right?

  1. Under the old employer reference send in an FPS with leaving details, including the year to date pay and tax figures. You do not need to prepare forms P45 for employees affected by this change, although you will need to ensure they are provided details of their total pay and deductions up to the date they moved payrolls.
  • If the employer information is updated (item 1 bullet point 1), then the old employer information has been overwritten. This means the old employee information has to be put in again in order to send a FPS.

  •  Additionally, there seems to be no way to put a leaving date in without the employee joining a list of leavers; this information then can’t be transferred to the new company employer. The employee would have to be set up again from scratch. Is that right? Seems to be a long winded way to do it.

  1. Under the new employer reference send an FPS restarting the year to date figures from zero. Include the full starting details for the each employee on the FPS for the new reference, use:
    • the start date for the new payroll
    • starter declaration C for codes 0T, BR or codes starting with a D prefix
    • starter declaration B for any other code

             It would be nice to get to this stage!

        Any help would be appreciated.

         

        Regards

        Ralph


        Replies (1)

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        By RalphTrader
        23rd May 2015 10:59

        Not possible on BPT

        Finally, got a successful contact with HMRC (via their new chat service) and  it seems that a smooth electronic transfer of employees' information  from one entity to another is not possible in Basic Tools. The old PAYE scheme has to be ceased and a new one for the new entity started. This means that all employee information has to be re-entered manually.

        The guidance quoted above from a HMRC website is generic and does not apply to BPT.  Shame the guidance doesn't say that.

        Anyway, my friend now can spend the bank holiday weekend manually transferring lots of PAYE information. Maybe I could help him ... or maybe not ... what's the weather going to be like?!

        Thanks (0)