You need to let HMRC know when your business stops employing people.
If you’re closing your business or you are no longer employing people through PAYE in your business, you need to let HMRC know that you are no longer an employer.
If you temporarily stop employing people (stop employing people for less than a whole tax year) your PAYE scheme should continue. Instead of closing your PAYE scheme, just let HMRC know when there are periods where you are not paying anyone. You can do this by filing a ‘nil’ EPS (Employer Payment Summary) in each of those periods. You don’t need to give anyone in your team a P45, you can leave them on your payroll.
If you are closing your business and/or PAYE scheme, you need to make sure that you mark all of your team members as ‘leavers’, enter a leave date on their payroll records and issue everyone with a P45. You then need to let HMRC know the cessation date of your PAYE scheme – this should be after your final submission to HMRC, where you are notifying them that your team are leavers.
If you start employing anyone in the same or next tax year, you can reopen your PAYE scheme by running payroll and submitting payroll files using your old PAYE reference. Using your old PAYE reference to do this will reopen your scheme at HMRC.
For more info on closing a PAYE scheme on Paycircle, see our support article Closing a PAYE scheme on Paycircle.