An Employer Contracted Out Number (ECON) is the reference number allocated to a contracted-out pension scheme operated by an employer or group of companies. The ECON must be shown on the employer's P35 Employer Annual Return. A P35 must be completed for each PAYE scheme.

Employers with more than one contracted-out pension scheme for the employees included in a single PAYE scheme have a reporting problem because the P35 only has space to quote one ECON.

HMRC has set up a helpline to help employers with this problem. The helpline number is 0191 225 0264 and it is open 9am - 5pm, Monday to Thursday and 9am - 4.30pm on Friday.

From 2006/07 onwards, if an employer needs to report details for more than one ECON they must do so under separate PAYE reference numbers. Employers need to contact their local tax office for an additional PAYE reference number for each additional ECON that they need to report. HMRC's instructions are that the application must be made before the start of the new tax year.

...back to 6 April 2006

Sources:
Sending Employer's Annual Returns covering more than one Employer Contracted Out Number (ECON)

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The latest issue of Employer's Bulletin announces a new publication entitled PAYE Schemes - Protocol for requests to move, co-locate, and/or amalgamate. Employers with more than one PAYE scheme may prefer to have a scheme administered by a different tax office or amalgamated with another scheme. The procedures that an employer must follow to effect such a change are explained, including the nature of the business case that the employer must present and the factors that the Inland Revenue will take into consideration. It is also possible for the Inland Revenue to initiate a change and the circumstances under which this might occur are also explained.

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...back to 24 September 2004

Sources:
www.inlandrevenue.gov.uk/employers/empbull18.htm#c
www.inlandrevenue.gov.uk/employers/tmapaye-moves-protocol.htm