PAYE11125 - Coding: codes: how they are used and calculated: indicators

Manual correspondence

The individual requires manual correspondence only

Manual correspondence to employer

The employer requires manual correspondence. This indicator is set or unset by editing the individual’s employment details

No allowances

This indicator will inhibit the inclusion of Personal allowance and Married Couple’s allowance in coding and end of year reconciliation. Generally this will be for tax codes NT or in CAR Residency cases or where no Personal allowances and Married Couple’s allowance are due to the individual - for example where an SA customer tells us that they do not want any allowances set against their PAYE income.

There may be some cases migrated across from COP to the PAYE Service that will have the No Allowances indicator automatically set - where no allowances are included in the latest code at migration (from all current employments) then the No Allowances indicator will have been set.

P2 to Agent

This indicator is set where the P2 or P2x is to be sent to the agent. It can only be set where there is a live agent for the individual. If there is not a live agent then an advisory message is displayed to the user.

SVR

This signifies if an individual is eligible to qualify for the Scottish variable rate.

Modified

This indicator is set to prevent Auto coding and P2/P6/P9 issue to individual or employer. Personal allowance will be present in the code and any benefit in kind will be limited to £1. The individual will be an EXPAT record.

Tax equalised benefits

This indicator is set to prevent Auto coding and P2/P6/P9 issue to individual or employer. The individual will be an EXPAT record.

S128

This indicator is set to prevent Coding from creating a K Code in CAR Residency cases. Where normal Coding calculates a K Code the default Code 0T will be applied.

Manual Code

This indicator is set where automatic coding issue is to be inhibited. For example where bereavement allowance is being received, where an in year cessation repayment has been made. Where this indicator is set any amendments to daily coding will default the P2 issue to not issue. Where a P2 is to be issued, change not issue to issue.

Higher Rate

This indicator has been migrated from the COP system and is set where the individual is liable or potentially liable to pay higher rate. If this indicator is set the system will use the higher rate of tax in any code calculation. For example secondary source records will be coded D0. In day to day work where you are including full income details in income, allowances, benefits and deduction area then cancel this indicator. The system will then use the income details to calculate the coding allowances and adjustments.

Do not set the Higher Rate indicator for new cases.

Penal

This indicator is set by the system where a targeted review form is outstanding. The indicator is cancelled when a date of receipt is recorded on the system for the outstanding form.