Election for a separate PAYE scheme: form P350

If you need a different employer PAYE reference for different groups of employees, you must use the P350 form to make a formal election.

Prior to 6 April 2022, 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.

However, 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. E.g. 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.