PAYE10026 - coding: coding allowances and reliefs: charges and CHR (Action Guide)

To give relief in the coding, follow steps 1 - 6 below

For details of how to access any of the COP functions use the [Index of Functions] button on the left of the screen.

1. Use form P202 or the SEES Coding Assistant to work out the allowance
   
2. Use the descriptor CHR
   
3. Remember CHR is a carry forward allowance. You must therefore enter the amount on which you expect relief to be due for CY+1 if this differs from the CY figure. For example, if giving relief for a one-off payment of £500 in CY, enter 500/0

A taxpayer may ask you to extend the basic rate band wholly against pay. You may accept such a request.

Do this as follows

4. Take the gross payments and ignore investment income
   
5. Use this figure with the form P202 to work out the coding allowance
   
6. Collect the higher rate tax due on investment income by an HRA in the code and / or through the self assessment calculation