Closing a payroll PAYE scheme in QuickBooks Payroll

Learn how to close your PAYE scheme when you’re finished running payroll in QuickBooks Online.

This article is for customers who use QuickBooks Core Payroll.

PAYE (Pay As You Earn) is HMRC’s system for collecting Income Tax and National Insurance from employee wages. Closing your PAYE scheme means you’re no longer employing staff and no longer need to report payroll information to HMRC.

Before you begin

Before you close your PAYE scheme:

• Review HMRC’s guidance on closing a PAYE scheme.
• Make sure you’ve submitted all required returns and paid any outstanding PAYE or National Insurance contributions.
• Have your PAYE reference and the date you want the scheme to close ready.

See the official guidance from HMRC for more information.

Close your PAYE scheme

If you use QuickBooks Core Payroll, you’ll need to close your PAYE scheme directly with HMRC. Core Payroll doesn’t currently support this feature within QuickBooks.

To close your scheme:

1. Go to HMRC’s Basic PAYE Tools.
2. Enter your PAYE reference number.
3. Enter the date you want the scheme to close.
4. Select a reason for closing the scheme.
5. Submit the form.

HMRC will process your request and send a confirmation email once your scheme is closed. 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.