Thank you for your posting. Please would you, and anyone else reading this who has encountered problems with annual schemes, send details with employer name and reference to firstname.lastname@example.org so we can send them to HMRC who will investigate whether anything went wrong at their end and if so devise a fix. HMRC inform us that to date they have found that the cases that they have seen are not following the appropriate guidance and have been submitting more than one FPS in the year, thus resulting in HMRC’s systems switching off the annual flag.
Following issues with annual schemes last summer, resulting in HMRC putting in place a fix, HMRC issued guidance on annual schemes which we publicised in one of our news items. We would draw attention to the following:
An annual scheme must meet all of the three conditions below:
Once a business is registered as an annual scheme, neither a NIL payment nor a period of inactivity employer payment summary (EPS) is required for the 11 months of the tax year where no payments are made to the employees.
If an employer submits FPS for more than a single month in the year, HMRC will automatically cancel the annual payer status for that year and following years. They will issue a letter to the employer advising the status cancellation and the debt management processes will revert to expecting filing of RTI returns and payment on a monthly basis.
Schemes not registered as annual schemes should submit a NIL payment EPS/period of inactivity EPS in respect of each month in which no payments are made to employees. This applies also to schemes where the employer/agent intends to apply for a scheme to become an annual scheme but has not yet done so – in which case they need to submit a NIL payment EPS/period of inactivity EPS for the months in which no payments are made to employees until the registration has been accepted as an annual scheme.
To register a PAYE scheme as annual call HMRC’s Payments Helpline on 0300 200 3401. You will need your Accounts Office reference.