PAYE11125 - Coding: codes: how they are used and calculated: indicators
It is essential that all relevant indicators are
- Set on the record as soon as the need for them arises
- Deleted from the record as soon as they become redundant
The system will automatically set some indicators.
The table shows the indicators that can be set. For details of how to set or unset an indicator see ‘Indicators’ at PAYE103065.
|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 in non resident cases, see PAYE81750, or where an SA customer tells us that they do not want any allowances set against their PAYE income, see PAYE11105. 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.Notes: Where this indicator is set or applies part way through a year it may also be necessary to set the Inhibit Auto Reconciliation indicator, as no allowances will be included in the reconciliation.The No Allowances indicator should not be used where you are attempting to move allowances between employments. See PAYE13115.At migration the No Allowances indicator will have been set where only a secondary employment exists and the code at the secondary employment is BR, 0T or D prefix.|
|P2 to AgentNote: P2’s are no longer being sent to agents whether this indicator is set or not||Previously when an NPS record had a live agent entered the agent received a copy of the customer’s P2. From now on no P2’s will be sent to agents, instead a note will appear on the customer’s P2 advising them to show their agent the P2 if they have one.|
|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 (now S811 ITA 2007)||This indicator is set to prevent Coding from creating a K code for a non resident who has been non resident for a complete tax year. 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.|
|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.|