Available for the following plans: Employment Plus, Employment Unlimited
Available for the following HR plans: Premium, Platinum
Available for the following user access levels: Admin
This article covers the steps necessary for UK - Multi PAYE orgs to transfer an employee from one PAYE scheme to another. The expectation/requirement is that there is x1 HR record, and then multiple payroll records which clearly show service at each PAYE scheme of leavers/active.
1. Terminate
- Firstly you need to terminate the employee from the org you wish to transfer them from.
Navigate to the Employee's Profile and prepare to offboard them.
Set the Leave Date: Set this to the last day of their employment under the current scheme (e.g.,
31st of May).Select Termination Type: Choose Transfer (e.g., transitioning from PAYE Scheme 1 to PAYE Scheme 2).
Complete Offboarding: Finalize the process to terminate the current payroll record.
Read more about Terminating an employee here.
2. Reactivate
- Click on People.
- Navigate to the Employee's record.
Reactivate the Record: Click reactivate on the employee's profile.
Set the New Employment Date: Set this to the first day of the new PAYE scheme—typically the day after the leave date (e.g.,
1st of June).Onboarding Checklists: Select whether or not to trigger an onboarding checklist based on preference (or select No if doing it manually).
Confirm Reactivation: Review the system prompt regarding what happens upon reactivation and proceed.
There will also be a system pop-up window that appears right before confirming reactivation to help guide users through the workflow.
Read more here.
3. Apply the continuous service date
- Change this back to the employee's original start date with the company (e.g.,
01/11/2025) to ensure continuous service is recognized.
4. Update the pay schedule/scheme
- Update Pay Schedule: Change the schedule to reflect the new PAYE scheme (e.g., changing from Monthly PAYE 1 to Monthly PAYE 2).
5. Complete error messages
Because this generates a new payroll record, specific details will clear down for compliance/accuracy and must be re-entered:
Banking Details: Re-add the employee's banking information (bank details clear down automatically in case there is a change or a gap in employment).
-
Tax and NI Details: Treat them as a new starter. Either complete a new Starter Checklist or enter the P45 details generated from the previous PAYE scheme.
Note: If using the P45 from the previous scheme, ensure the figures and the leaving date (e.g.,
31st of May) reflect the latest payroll run data.
Pension Settings: Re-apply pension settings as required for a new starter.
6: Verify the Records
Refresh the Page: Ensure all system error messages and outstanding action items have cleared.
Verify in Payroll: Check the payroll employee list. You should now see:
A Terminated Record linked to the old PAYE scheme (e.g., PAYE 1).
An Active Record linked to the new PAYE scheme (e.g., PAYE 2), ready for the next pay run.