Closing a payroll PAYE scheme in QuickBooks Online

Learn how to close your PAYE scheme, depending on which payroll product you use. In this article, we'll walk you through the steps you need to take to close your PAYE scheme in QuickBooks Online.

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

Understanding the basics

• PAYE Scheme:
  • 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.

If you use 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. Go to Reports (Take me there).
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.

If you use Standard Payroll

If you use Standard Payroll, you'll need to notify HMRC through their Basic PAYE Tool. This is not a feature that is currently supported by Standard Payroll.

The tool is an online form that allows you to close your PAYE scheme. You'll need to provide your PAYE reference number, the date you want the scheme to be closed, and the reason for closing the scheme. Once you've submitted the form, HMRC will process your request and send you a confirmation email.