Further to our Blog of 4th July HMRC have now confirmed that they have a fix in place to deal with the requests they have received from employers since April 2013 requesting to change their PAYE scheme to annual.
All requests that have been made since April will be accepted and those schemes changed to annual schemes. Employers will NOT be notified when that change has been made.
An annual scheme must meet the following criteria:
If you are making an annual payment to an employee using BrightPay remember to tell BrightPay the payment frequency for the FPS is annually, if you have any queries please phone the BrightPay Support Team.
When a business is registered as an annual scheme, the employer is not required to submit an Employer Payment Summary (EPS) for the 11 months of the tax year where no payments are made to the employees.
If an employer that is registered as an annual scheme pays an employee or employees and submits a Full Payment Submission (FPS) for more than a single month in the year HMRC will automatically cancel the annual payer status for that year and the following years and will write to the employer to advise them of same.
Full details can be found on the HMRC Website, http://www.hmrc.gov.uk/news/annual-schemes.htm