HMRC issued a notice on their website in October stating that with effect from 28 October 2013, they will be issuing letters to employers, (RTI206), to advise that they have closed their PAYE scheme. This will have been due to a period of inactivity meaning that they (HMRC)  believe that the scheme is not required.

Any PAYE schemes set up since 5 April this year will be shut down automatically if the employer has not made any RTI submissions, paid subcontractors or paid HMRC within 120 days of it being set up.

Schemes registered as annual PAYE schemes will not be affected.

Employers are reminded that to close a scheme down, they will need to make a final RTI submission and tell HMRC that the scheme should be closed where it is no longer required. This will avoid unnecessary penalties being issued and unnecessary correspondence and calls to HMRC to correct their records where they are chasing for returns and payments which are not due.

If you have received a letter and you believe your scheme is still required, then you will need to contact HMRC. You may also need advice on how to manage your scheme. Please contact us for advice and assistance.