There are a few steps you need to take when you stop being an employer. Make sure you also familiarise yourself with HMRC and Pensions Regulator rules, which are linked below.
This is a simple guide and only refers to ending employment in Shape and ceasing your PAYE scheme. All businesses are different and you may need to review further areas like pensions, company benefits, P11ds etc. You should seek further guidance from an accountant, bookkeeper, payroll professional or HR consultant to make sure you have met all requirements.
Making your employees leavers
If you still have employees and you are making a last pay run you need to do the following:
End employment for all employees: Follow the normal process here if you need to pay them again: How to process leavers and end an employment.
Complete Final Pay Run: Make sure you pay all outstanding amounts to your employees including holiday pay or redundancy.
Send FPS and EPS if required: Send any final FPS and EPS to HMRC.
Give your employees their payslips and P45: You need to send your employees their final payslips and P45. The P45 should be available at the bottom of the employee's details page. If you find your employees have disappeared from the Employees page, select the Filter and choose Leavers.
Pay employees, HMRC and Pensions: Make sure you pay everyone. HMRC won't let you close your PAYE scheme if you owe them money.
End your PAYE scheme
Once you have completed the above, you should be ready to tell HMRC you no longer wish to have a PAYE scheme. You need to create a Scheme Ceased EPS. This date cannot be in the future. Find out more about creating here: Scheme Ceased EPS.
Cancel your Shape Subscription
HMRC require you to keep records for a minimum of 3 years plus the current tax year. If you have a Shape subscription, you can cancel it and you will be downgraded to a free account, where you will still have access to your records, but you have reduced features. To cancel your subscription, go to My Account - Billing.