The following Employment Tax guidance note by Tolley in association with Vince Ashall provides comprehensive and up to date tax information covering:
Employers may operate more than one payroll for a variety of reasons. These may include:
Usually these payrolls will be encompassed within the same PAYE reference, but occasionally an employer may have more than one PAYE reference to cover its various payrolls.
Where an employer decides to operate more than one payroll within a PAYE scheme, there is no requirement to inform HMRC of this. Be aware, however, that this may require the submission of more than one FPS (Full Payment Submission) in order to meet the ‘on or before’ RTI requirement (see the RTI ― reporting ‘on or before’ time of payment guidance note). This will certainly be the case if the different payrolls represent differing pay frequencies.
Where reimbursement of statutory payments is being claimed, only one EPS is submitted, ie it is one EPS per PAYE scheme regardless of the number of payrolls.
The action to be taken by the employer when transferring employees between payrolls within the same PAYE scheme depends on whether the employee’s payroll / works number (this has various names) has changed and whether this has been notified to HMRC on previous FPS submissions.
HMRC refers to the payroll / work’s number as the ‘Payroll ID’ and this terminology will be used in the remainder
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