Guide to merging or changing company name

If the company has ceased trading only: Guide to insolvency or if you have ceased trading

If PAYE-refrence stays the same:

If the PAYE PAYE or Pay as you earn is an HM Revenue and Customs’ (HMRC) system to collect Income Tax and National Insurance from employment.-refrence stays the same, you have an simple task. Change the employer Name and address and continue to pay the employees as normal. You may need to update the new employer name with your pension provider and other organisations.

If you are given a new PAYE-refrence:

  1. Log into IRIS Every Payroll.

  2. Select the employer name.

    Add Employer

  3. Choose Add Employer.

  4. Select Defaults.

  5. Go to Copy from and choose the original company name.

    Employer defaults screen with the copy from highlighted

  6. Select the items you want to copy.

  7. Select Update.

  8. Open the original company.

  9. Export the employee records.

    Before you import, remove the year to date figures from:

    Gross
    Tax
    Student Loan A government loan that students can use to help pay for their education. Recovered
    Postgrad Loan Recovered
    Employee NI
    Employer NI
    NI Gross Earnings
    NI Earnings to LEL Lower Earnings Limit (LEL) This is the minimum a person must earn in order to qualify for any state benefits or statutory payments. If an employee's earnings reach or exceed this level, but do not exceed the Primary Threshold, they will not pay NICs but will be treated as having paid NICs when claiming state benefits.
    NI LEL to PT The Primary Threshold is an amount set each year by HMRC at which employees start paying National Insurance.
    NI PT to UEL Upper Earnings Limit is an amount set each year by HMRC at which employees start paying lower rate National Insurance.
    Pension Contribs (Net Pay Arrangment)
    Pension Contribs
    SMP Statutory Maternity Pay is the pay an employer must give to female employees on maternity leave, for up to 39 weeks.
    SPP Statutory Parental Pay refers to the pay an employer must give to an employee who takes time off to care for their child, or surrogate's child, for up to 2 weeks.
    SAP SAP or Statutory Adoption Pay. If an employee is adopting a child with a partner, one of them may be entitled to SAP and the other may be entitled to Ordinary Statutory Paternity Pay (OSPP). SAP usually follows the same basis as SMP in terms of amounts of length of time.
    ShPP ShPP or Shared Parental Pay. A person claiming SMP or SAP may end their leave early and the remainder used by another parent, this leave will be ShPP.
    SPBP Statutory Paternity Pay is the pay an employer must give to an employee who takes time off to care for their partner, for up to2 weeks.
    Take Home Pay

    Then enter the P45 A P45 is a document issued by an employer to an employee when they leave a job. It shows details about the's employment, including their start and end dates, how much they were paid, and how much tax they paid during their employment. The is made up of four parts: Part 1 is sent to HM Revenue & Customs (HMRC), Part 1A is kept by the employer, and Parts 2 and 3 are to the employee as a record of their earnings and tax paid. The P45 is an important document that employees need to give to their new employer when they start a new job as it provides information about their tax code and previous earnings, which helps the employer calculate their tax and National Insurance contributions. figures (unless the employee is on a Week 1 / Month 1 tax code The week 1 / month 1 basis, usually used as an emergency tax code for new starters, gives a proportion of any allowances and rates of tax for each pay period. However, it differs from the cumulative basis in that it ignores previous pay and tax. In effect, all payments are taxed as though it was week 1 or month 1 of the tax year. The aim being to prevent the employer making heavy deductions or giving any refund.)

    P45 Gross
    P45 Tax

  10. Make each employee a leaver in the original company.

    This can be done in bulk

  11. Do not issue P45's to the employees.

    If you use payroll automation, you will need to turn this off or employees will receive a P45.

  12. Complete the payroll as usual and send the FPS Full Payment Submission is an RTI online submission to be sent on or before each payday. This informs HMRC about the payments and deductions for each employee..

  13. Go to RTI Real Time Information is the current method for reporting PAYE to HMRC, comprising FPS and EPS submissions., select EPS Employer Payment Summary is an RTI online submission sent monthly if, you are reclaiming statutory payments, claiming Employment Allowance (EA is only reported once per tax year), reporting Construction Industry Scheme (CIS) deductions or reporting how much Apprenticeship Levy is due. The EPS is also used to report if no employees will be paid for a whole tax month or longer. and Create New EPS.

  14. Select Final Submission.

  15. Select Scheme ceased and enter the Date Ceased.

  16. Select Create.

    create eps screen with the ceased settings listed in the insructions above highlighted

  17. Select Submit EPS.

    Once submitted, this action can not be reversed.

  18. Open the company we copied earlier.

  19. Import the employees.

    You can import employees from multiple companies when merging as long as the payroll code is changed.

Good to know...