Close your PAYE scheme

Close your PAYE scheme if you've ceased as an employer or you're paying employees for the last time. Xero will notify HMRC in your final Employer Payment Summary (EPS).

How it works

  1. End employment for your employees.
  2. Post a final pay run for the current tax month. If you no longer have any employees to pay, process a pay run for nil payments.
  3. Set a PAYE scheme cease date. You need to select a date that falls within the current tax month, and enter it before the start of the next tax month.
When you set a cease date, Xero records it in your EPS. It'll submit the EPS to HMRC between the 12th and 19th of next month. Once you've set a cease date, you can't add a new PAYE scheme to the same organisation or post another pay run.

Set PAYE scheme cease date

  1. In the Settings menu, select Payroll Settings.
  2. Under Scheme Cease Date, select the date you’ll pay your employees for the last time and cease to be an employer.
  3. Click Save.
  4. Click Confirm.

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