The question is, when do you need to TUPE your staff? It needs to be done when changing from one entity to another: whether a sole trader to a Limited company, or from one Limited to another Limited.
PAYE schemes cannot be transferred and so a new one, for the new entity, will need to be set up.
What do you need to do to get this in place?
Planning is key. It is best to have the PAYE scheme set up before you officially tell staff, and make sure it’s approved by HMRC. It takes time (and often patience) for a scheme to be opened up by HMRC so it’s best to have that piece of paper in your hand before starting the transfer.
Keeping staff informed is key and your HR department should be able to support you with paperwork and contractual information. This should all happen before the transfer takes place. Keep staff in the loop with key dates and consultation periods; the latter being important to allow staff to ask questions.
I don’t know anyone who is not using software now to run payroll and you’ll need to contact your provider to see what the next steps are. For those that use integrated software such as Xero or Quickbooks, you’ll need to ask for their advice as timings can be crucial. I’ve been running one in Xero myself and know that there is a two-step process with the RTI being a cut off in the middle. Missing this date can mean that there is a delay in TUPE’ing staff over to the new entity, so it is important that you know what they are and what steps you need to take at each touch point.
However, there will always be small niggles when changing over and our advice is always to Plan, Communicate, Plan again and keep everyone in the loop. If you’d like to chat over the implications of TUPE and what they mean for your organisation, get in touch.