PAYE scheme closure check for limited companies
Check what is needed to close the company's employer PAYE scheme.
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How it works: PAYE scheme closure check
Find your company
Search by name or number. We fill in the public details.
Answer the questions
Answer only what the register cannot tell us.
Pay by card
Approve the details and pay the total shown.
We check the closure
We check the closure evidence and list any steps left.
About this filing
To close a PAYE scheme, send HMRC a final Full Payment Submission (FPS) or Employer Payment Summary (EPS) marked 'Final submission because scheme ceased'. HMRC charges no fee; our check costs £4.99.
HMRC expects to be told straight away when a limited company stops employing people. Our service reviews where your company stands against HMRC's closure steps.
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We check the final submission, leavers, P45s, outstanding tax and expenses and benefits returns, and tell you what is still left to do. This request alone does not close the scheme, and we do not run your payroll.
What HMRC needs before the scheme closes
There is no separate HMRC form. GOV.UK says the scheme is closed with a final FPS or EPS from your payroll software, with 'Final submission because scheme ceased' selected and a 'Date scheme ceased' that is not in the future. A normal last pay run without that marker does not close the scheme.
PAYE closure checklist
- Pay each employee and director for the last time through payroll, and report it on an FPS as usual.
- Enter a leaving date on each employee's payroll record.
- Give each employee a P45 on their last day. Most payroll software produces these.
- Send the final FPS or EPS with 'Final submission because scheme ceased' selected and the 'Date scheme ceased' filled in.
- Deduct and pay any outstanding tax and National Insurance. GOV.UK says to do this within 17 days, or 14 if you pay by cheque.
- Send your expenses and benefits returns (P11D and P11D(b)) if the company provided taxable expenses or benefits.
- If the company has an employment related securities (ERS) scheme, tell HMRC you are closing it as well.
- Keep the HMRC acknowledgement or payroll submission report for the final return with the company's records.
What we need from you
SimpleFilings must have the right HMRC agent access before acting for you, and your company must authorise us through the route HMRC needs. Never send us your Government Gateway password.
- Your employer PAYE reference, which normally looks like 123/AB456.
- The date the company stopped employing people. It cannot be a future date.
- Whether the final FPS or EPS has been sent, and whether it was marked 'scheme ceased'.
- If it has been sent: the date, and the HMRC receipt or payroll submission report.
- The name and contact details of your payroll provider or accountant, who can supply records or finish outstanding payroll work.
- Whether leaving dates and P45s are done, whether tax or National Insurance is still owed, and whether expenses and benefits returns are still due.
- Whether the company has an ERS scheme, and whether you expect to employ anyone again this tax year.
Expenses and benefits returns when you close a PAYE scheme
If the company gave employees or directors taxable expenses or benefits that were not payrolled, it needs a P11D for each person and a P11D(b) for the Class 1A National Insurance. If all benefits were payrolled, a P11D(b) is still needed for the Class 1A National Insurance.
These forms can normally only be sent online after the end of the tax year. If the company has stopped trading, GOV.UK says you can send paper versions with a covering letter saying the company stopped trading in the current tax year. They go to P11D & P11D(b), HM Revenue and Customs, BX9 1WE.
Stopping for a while instead of closing
If the company will stop paying staff for less than a whole tax year, such as a seasonal business, the PAYE scheme carries on. You do not close it, and you do not need to give P45s to staff you keep on the payroll.
If you will not pay staff for 3 months or more, put 'Yes' in the 'Irregular payment pattern indicator' on the last FPS before the break. Then use an EPS to tell HMRC about months with no pay: 'No payments due' for the current and last tax month, or 'Period of inactivity' for gaps in the next 12 months.
If you close the scheme and then start employing someone again in the same or next tax year, GOV.UK says to reopen it by sending an FPS with your existing PAYE reference. Mergers and changes of ownership follow different rules.
What happens after you ask us to check your PAYE closure
You answer the questions and upload the final submission receipt if you have one. We check it against HMRC's closure steps before taking payment, and tell you about anything missing, such as a final return without the 'scheme ceased' marker, P45s not yet issued, or tax still owed.
Any payroll work that remains is done by you, your payroll provider or your accountant. The scheme is closed by HMRC when the correct final submission is received. We cannot promise when HMRC will update its records.
Common PAYE closure mistakes
- Sending the last FPS without ticking 'Final submission because scheme ceased', or with a future 'Date scheme ceased'.
- Forgetting the P11D and P11D(b), or leaving tax and National Insurance unpaid after the final pay run.
- Applying to strike off the company before payroll is finished. Close the PAYE scheme first as part of closing the company.
See also: how to close a PAYE scheme, step by step
Close PAYE yourself or get the closure checked
Your payroll provider completes the final payroll submissions and closure steps. Our service checks the evidence and identifies what remains.
| Question | You and your payroll provider | Use SimpleFilings |
|---|---|---|
| Cost | No fee | £4.99 (no HMRC fee) |
| Who fills in the form | You or your payroll provider send the final FPS or EPS and complete the other HMRC closure steps. Official guidance | We check final submission evidence and closure requirements. Preparing or correcting payroll is outside this service. |
| Approval | You submit it yourself | You approve a closure check. This request alone does not close the PAYE scheme. |
What this request covers
We review the closure requirements. HMRC normally needs a final FPS or EPS marked 'scheme ceased'. We tell you about any remaining payroll steps before closure can be completed.
Before you start
- SimpleFilings must have the appropriate HMRC agent registration, account and service access before acting for you.
- Your company must authorise us through the HMRC route required for this service. We will tell you if another step is needed.
- Do not send us your Government Gateway password. We use our own agent access.
What is not included
Preparing or correcting payroll, issuing P45s, expenses and benefits returns, ERS closure, or settling liabilities. This request alone does not close the scheme.
Fees
£4.99 SimpleFilings service fee. HMRC does not charge a fee to close a PAYE scheme. Outstanding PAYE tax, National Insurance, Class 1A National Insurance and any penalties are separate. The service does not include preparing or correcting payroll, issuing P45s, expenses and benefits returns, closing an employment related securities (ERS) scheme or paying what the company owes.
£4.99 SimpleFilings service fee. There is no HMRC application fee. Tax, penalties and other outstanding amounts are separate.
Total: £4.99. There is no HMRC fee for this request.
Step by step
- Find your company. Find your company by name or number. We fill in its public details from the Companies House register, such as the registered office, officers and people with significant control.
- Answer the questions. Answer only the questions we cannot fill in from the register, add any documents asked for and give the email address for your receipt and filing updates. Confirm that you are authorised to arrange the request and that you have checked and approve the details.
- Pay by card. Approve the details and pay the total shown by secure card payment. We check your answers before preparing the filing. There is no HMRC fee for this request.
- We check the closure. We review the closure evidence and tell you about any remaining payroll steps. This check does not submit or correct an FPS or EPS, issue P45s or close an ERS scheme. Your payroll provider handles outstanding submissions; payment is not confirmation that HMRC has closed the scheme.
PAYE scheme closure check: common questions
What does the PAYE closure check look at?
Your final FPS or EPS and its 'scheme ceased' marker and date, leaving dates and P45s, any tax or National Insurance still owed, and expenses and benefits returns. We then tell you what is left. Our guide to closing a PAYE scheme explains each step if you are doing it yourself.
Is there a fee to close a PAYE scheme?
No. HMRC does not charge to close a PAYE scheme. If you use SimpleFilings to review your closure, the charge is the £4.99 SimpleFilings service fee. Tax, National Insurance and any penalties the company owes are separate.
Can I close a PAYE scheme with an EPS if nobody was paid in the final month?
Yes. GOV.UK says the final payroll return can be either an FPS or an EPS. Whichever you send, it must have 'Final submission because scheme ceased' selected and the 'Date scheme ceased' entered.
Do I need to close my PAYE scheme before striking off my company?
GOV.UK's strike off guidance says that before you apply, you must tell HMRC the company has stopped employing people, and pay any outstanding tax. In practice, close the PAYE scheme and finish payroll as part of closing the company, before it is dissolved.
What if I start employing someone again?
If it is in the same or next tax year, reopen the scheme by sending an FPS with your existing PAYE reference. If you only stop paying staff for part of a tax year, you do not need to close the scheme at all.
Does this service close the scheme for me?
No. We review your closure against HMRC's steps and tell you what is left. The scheme closes when HMRC receives the correct final FPS or EPS from your payroll. Preparing or correcting payroll is outside this service.