I just hanged to Ltd Company. HMRC advised to tick PAYE Scheme Ceased on Sole Trader scheme.
I believe I may need to generate P45s before doing this?
On P45 it asks Reason for Leaving. As employees are simply moving to a new legal entity, old job/employer no longer exists, therefore should I choose Redundancy or Dismissed as nearest option? I'm worried if I choose the wrong option it could cause difficulties for me or for the employees!
I can understand the concern of selecting the wrong leaving reason. In terms of how it would affect your QuickBooks the reason for leaving isn't particularly important and is more for your own reference on the system. Each of the options will still mark the employee as a leaver allowing the P45 to be generated.
As far as I am aware, the only thing that would be affected would be the P45 itself but this would only show as the reason for leaving and will not affect the numbers at all. I would however recommend double checking with HMRC to see if they would have any issue in selecting a particular leaving reason however the numbers and employee details on your QuickBooks will not be affected based on the leaving reason.
Let me know if you have any queries. Or, if you'd like to go through this over the phone, you can call our dedicated team who will be happy to assist you. Our contact details can be found here along with our opening hours.