PAYE11025 - coding: codes: how they are used and calculated: P2 notes for codes with no allowances or deductions


There are a number of notes that will be printed on a customer’s P2X where the code is BR, 0T, D0, NT or FT with no allowances or deductions, mainly for sub source records.

Where a sub source record is for an Incapacity Benefit or Jobseeker’s Allowance claim the system will read the ‘EMPLOYER NAME’ as that of a Benefit office and the explanatory note printed on the P2X will refer to the Benefit office.

The table below gives a list of the circumstances and the P2X explanatory note.

CircumstanceP2X explanatory note
Code BR where the record is for a sub source employment.We have asked [EMPLOYER NAME] to use code BR for this year, which means you will pay tax at [BASIC RATE %] on your [EMPLOYER NAME] income.
Code BR where the record is for a sub source Incapacity Benefit claim.We have asked [EMPLOYER NAME] to use code BR for this year, which means you will pay tax at [BASIC RATE %] on your Incapacity Benefit.
Code BR where the record is for a sub source Jobseeker’s allowance claim.We have asked [EMPLOYER NAME] to use code BR for this year, which means tax is due at [BASIC RATE %] on your Jobseeker’s allowance, but the Jobcentre Plus, who pay it to you, cannot take tax off the payments. We will let you know how we plan to collect the tax that is due when you come off the allowance, or 5 April [TAX YEAR END DATE], if sooner.
Code 0T where the record is for a sub source employment.We have asked [EMPLOYER NAME] to use code 0T for this year which means you will pay tax on your [EMPLOYER NAME] income as follows
  • at [LOWER RATE %] on the first [LOWER RATE BAND]
  • at [BASIC RATE %] on the next [BASIC RATE BAND]
  • at [HIGHER RATE %] on anything over [LOWER RATE BAND + BASIC RATE BAND].
Code 0T where record is for a sub source Jobseeker’s allowance claim.We have asked [EMPLOYER NAME] to use code 0T for this year which means tax is due on your Jobseeker’s allowance as follows
  • at [LOWER RATE %] on the first [LOWER RATE BAND]
  • at [BASIC RATE %] on the next [BASIC RATE BAND]
  • at [HIGHER RATE %] on anything over [LOWER RATE BAND + BASIC RATE BAND].

The Jobcentre Plus who pay it to you cannot take tax off the payments. We will let you know how we plan to collect the tax that is due when you come off the allowance, or 5 April [TAX YEAR END DATE], if sooner.

Code D0 where record is for a sub source employmentWe have asked [EMPLOYER NAME] to use code D0 for this year which means you will pay tax at [HIGHER RATE %] on your [EMPLOYER NAME] income.
Code NT where customer is in employmentWe have asked [EMPLOYER NAME] to use code NT for this year, which means they will not deduct any tax, from your [EMPLOYER NAME] income.
Code FT where the customer is a farm worker employed under a hiring contract.We have asked [EMPLOYER NAME] to use code FT for this year, which means [EMPLOYER NAME], will take off tax on your income on a special basis. We will check the amount of tax paid at the end of the year.