PAYE Scheme on Incorporation of Partnership

PAYE Scheme on Incorporation of Partnership

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A partnership will be incorporating in 3 months. Am I right in thinking that there should be a new PAYE scheme for the company and P45s issued with re-start in the company? (I assume that TUPE would apply so employment rights etc would continue and the partners do not want to disadvantage their staff). Many thanks

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Euan's picture
By Euan MacLennan
04th Apr 2016 10:42

Change Registration Details

I am not in the office and so, cannot check, but I believe that if you have the client's User ID and password, you can log in (or failing that, he can log in) and provided that the 'Change Registration Details' service has been activated, you can change the legal entity and name of the existing scheme.  [EDIT] I was getting confused with VAT.  For PAYE, I think the only option is to register for a new PAYE scheme, but you may get the option to state that it is just a change of legal entity and to state the existing PAYE scheme reference.

Failing that, set up a new scheme for the company and write to HMRC Employers Office and ask them to treat the new scheme as a succession, in which case they will transfer all the existing employees to the new scheme without the need for any forms P45.  The company will then produce forms P60 at the end of the tax year including all the gross pay and tax from the partnership as 'current employment' and not 'previous employment'.

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