The Simplified PAYE Deduction Scheme (SPDS) provides an alternative to standard PAYE for non-business employers being used by employers engaging domestic staff, and (often) elderly/disabled individuals engaging carers within their own home. It was intended to offer a simpler manual system. But now employer responsibilities under SPDS differ little to those of employers under standard PAYE so HM Revenue & Customs (HMRC) will be closing the scheme in two stages.
Stage 1 will inhibit entry to the scheme to any new employers from 6 April 2012, with all new employers going straight onto standard PAYE. Phase 2 will be the complete closure of the scheme on 5 April 2013 with all existing SPDS employers at that date being supported to move to standard PAYE and Real Time Information (RTI) reporting on 6 April 2013.
Assuming your employer is already operating a SPDS, they are not obliged to do anything until next April. But as suggested above, it is unlikely they will experience any major changes; since the standard PAYE scheme and SPDS have grown to be so similar over the years.
By Jo Nockels
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