Succession to a Business
If there is a change in the proprietor of a business but the employees continue to work in the same employment, the employment continues for PAYE purposes so that the P45 procedures will not apply. Under the Income Tax (Pay As You Earn) Regulations 2003, reg. 102, the new employer takes over the responsibility to do anything which the employer before the change would have been liable to do if the change had not taken place. However, the previous employer must provide the new employer with all the information he needs to enable him to operate PAYE, and the previous employer will remain accountable to the collector for all deductions from earnings before the change.