Changing to a Different PAYE Reference

HMRC might require you to start reporting some of your employee population under a new PAYE Scheme reference from start of the next tax year.

Oracle recommends as a best practice of doing this as at the start of a new tax year. All tax year-to-date balances are set to zero, and P45 previous pay and previous tax values are not an issue.

Depending on the complexity of your implementation requirements, here are a few scenarios:

• Move the whole PAYE reference to a new, previously unused PAYE reference

  If HMRC instructs you to report all your employees that are currently reported under one PAYE reference to a new PAYE reference that you haven't used, then you can update the TRU’s registration information effective from that start date. It is recommended not to take this option if you need to leave some employees in the original TRU, or if the new TRU is already in use in your organization.

• Late payments or retrospective payments on the original TRU

  You need create a new TRU referring to the new PAYE reference. Create assignments on the new TRU. Create a new Statutory Deductions card linked to the new TRU. Associate the new assignments to the new PAYE and NI components of the Statutory Deductions Card. Close the old assignments on the old TRU as at LSED, this is sufficient to trigger a P45.

  Running the P45 process will produce a P45 for the old PAYE component (even on 05 April). You may choose to discard this and not give it to the employee. If you choose not to give the P45 to the customer, you should be careful not to send the automated email to employees informing them of the P45.

  Running the P60 process will generate a P60 for an employee, if the PAYE component is active on 5-Apr. The customer can give this to the employees.

  If the employee had multiple assignments on the old TRU, and for example only one was moving to new TRU, then no P45 will be generated on the old TRU.

  The FPS will report a termination on the old TRU, and new hire on the new TRU through the PAYE component new starter record.

  Absences, and accruals, if held at TRU level, would need consideration and migration. Note, if held at the assignment level, the application will refund the accrued absences on old assignment, and the new assignment will start at zero.

  The refund would have to be stopped and the accruals migrated to the new assignment.

  Other associations to the old TRU, for example, court orders and student loans, pensions and other deductions, would need careful consideration for migration.

• No late payments or retrospective payments on the original TRU

  Create a new TRU referring to the new PAYE reference. End date the association of the assignments from the original card. Date effectively associates the assignments to the new card on the next day

  This triggers a P45 from the old TRU.

  The previous Pay and Tax values from the P45 should be entered into the new PAYE component.

  Again, absences, accruals, court orders, student loans, pensions, and other deductions would need careful consideration for migration.

  Note: For more information, see FPS and Assignment updates to a new TRU with retro changes to the original TRU.