PAYE11110 - Coding: codes: how they are used and calculated: allowances and reliefs

Allowances allocated here

Where allowances have been allocated between the primary and secondary employments

Allowances allocated here

Blind Person’s Allowance

The amount of the Blind Person’s allowance due. This can include the surplus from a spouse or civil partner

Blind person's allowance

Personal allowance

The amount of the personal allowance for individuals aged under 65.

Your personal allowance

Personal allowance (aged 65-74)

The amount of the personal allowance for individuals aged 65 and 74.

If Estimated income is present then the system will determine the amount of reduced age related allowance.

Your personal allowance

Personal allowance (aged 75 and over)

The amount of the personal allowance for individuals aged 75 and over.

If Estimated income is present then the system will determine the amount of reduced age related allowance.

Your personal allowance

Married Couple’s allowance (aged 75 and over and one of couple born before 6 April 1935)

Married couple’s allowance where husband or wife are born before 6 April 1935 and one of couple are aged over 75. The date of marriage is before 5 December 2005.

Married couple's allowance

Married Couple’s allowance (one of couple born before 6 April 1935 and date of marriage or civil partnership on or after 5 December 2005)

Married couple’s allowance where husband or wife or civil partners are born before 6 April 1935. The date of marriage is before 5 December 2005.

Set the manual code indicator in these cases.

Married couple's allowance

Wife’s Married Couple’s allowance

This is the amount of Married couple’s allowance transferred to the wife under a form 18 election

Married couple's allowance

Surplus Married Couple’s allowance from husband

This is the amount of surplus Married couple’s allowance transferred from the husband

Married couple's allowance from your husband

Item

Notes

P2 Description

Concessional Relief

Relief for:

Community Investment Tax Relief (PAYE10030)

Gifts of shares or securities to Charity (PAYE10050)

Venture Capital Trust (PAYE10075)

Or other relief where no other coding item exists to give the appropriate relief.

Concessional relief

Trade Union/Friendly Society or Widows and Orphans

Death portion of subscription to Trade Union or Friendly Society (PAYE10035)

Widows and Orphans payments where the net pay arrangements are not operated.

Death, sickness or funeral benefits

Double Taxation Relief

Where foreign tax credit is to be set against income tax. For more information refer to INTM165000.

Double taxation relief

Enterprise Investment Scheme

Enterprise Investment relief (PAYE10045)

Enterprise investment relief

Earlier years adjustment

An adjustment for earlier year’s expenses.

Earlier years adjustment

Flat Rate Job Expenses

Certain employee’s can be given a flat rate expense deduction. For more information refer to EIM32700 onwards.

Flat rate expenses can only be set against earnings to which the expenses relate, EIM31655 refers.

Flat rate job expenses

Job Expenses

Employees and directors are entitled to relief for expenses which they have to incur in actually doing their job. For more information refer to PAYE12050 and EIM31610.

Employment income expenses can only be set against earnings to which the expenses relate, EIM31655 refers.

Job expenses

Professional Subscriptions

Guidance on what you can allow is at EIM32880 onwards. List 3 shows the list of approved bodies and the allowable payments.

Professional subscriptions

Foreign Pension Allowance

10 per cent of the qualifying Foreign Pension

Foreign pension allowance

Gift Aid payments

Coding allowance to give the higher rate tax relief calculated on Gift Aid payments (PAYE10025).

Gift aid payments

Personal Pension Relief

Coding allowance to give the higher rate tax relief calculated on Personal Pensions (PAYE10065)

Higher rate tax relief on pensions you're paying into

Loan Interest

Loans for purchase of plant or machinery (for example a car) used for purpose of employment.

Loans for purchasing ordinary shares in, or making a loan to close companies, or a stake in a partnership.

For more information refer to RE300 onwards.

Loan interest

Loss

An amount of agreed loss relief.

For more information refer to RE2050

Loss relief

Maintenance Payments (one of couple born before 6 April 1935)

Payments to spouse, civil partner or former spouses and payments made for children and either spouse or civil partner of the marriage was born 6 April 1935.

For more information refer to RE1095.

Maintenance payments

Retirement Annuity Payments

Payments under a pre 6 April 2006 retirement annuity contract that qualifies as a registered pension scheme.

For more information refer to RPSM05101320

Payments towards a retirement annuity