Closing a payroll PAYE scheme in QuickBooks Advanced Payroll

Learn how to close your PAYE scheme in QuickBooks Online Advanced Payroll. This article shows the steps to submit a final Employer Payment Summary (EPS) to HMRC.

This article is for customers who use QuickBooks Online Advanced Payroll.

Understanding PAYE basics

PAYE stands for Pay As You Earn. It's HMRC's system for collecting Income Tax and National Insurance contributions from employee wages. Closing a PAYE scheme means you're ceasing to employ people and therefore no longer need to report payroll information to HMRC.

Before you start, we recommend reading the official guidance from HMRC.

In Advanced Payroll

If you're using Advanced Payroll, you'll need to record the ceasing of the scheme through an Employer Payment Summary (EPS). To do so, follow these steps:

1. Follow this link to complete the steps in product
2. Under HMRC reporting, select Employer Payment Summary (EPS).
3. Choose the tax year and then select Run report.
4. Select Submit EPS.
5. Select the tax period that you are submitting for.
6. If this is your final EPS because the business has ceased, tick Final EPS because the PAYE scheme has ceased.
7. Select the date the scheme ceased on.
8. Select Submit EPS.

After you close your scheme, keep payroll and PAYE records for at least three years, as HMRC requires. If you need to reopen a PAYE scheme later, contact HMRC for guidance.