Setting up multiple PAYE schemes: Election process in 2022-23
01 July 2022
When an employer chooses to have multiple PAYE schemes for separate groups of employees, an election has to be made. The process for elections has changed this tax year.
There is a reminder about the new election process in the latest employer bulletin:
"Previously if you wanted to request a separate PAYE scheme an election had to be made before the beginning of the tax year for which the election was to take effect. From 6 April 2022 a change has been made to Income Tax (PAYE) Regulation 98 covering ‘Multiple PAYE Schemes’ to allow employers to elect during a tax year. Under the new regulations an employer must make an election before the beginning of the tax month immediately preceding the tax month for which the election is to have effect. For example, if you want to make an election that takes effect from 6 May, you have to make the election before 6 April.
"A late election will be treated as if it had been made in relation to the tax month immediately following the tax month for which the election was to have effect. If an employer wants to cancel an election, notice of cancellation must be given before the beginning of the tax month for which the election is to be ceased. Cancellation of an election does not prevent the making of a new election for that or a later tax month. An election which has not yet come into effect may be cancelled at any time before the beginning of the tax month for which it is to have effect."
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