PAYE12013 - Coding: coding deductions and expenses: work item 149 - BEN/EXP - primary source code NT (Action Guide)

Work item 149 is generated when an individual's record is coded NT at the primary source code for these in CY or CY+1.

To clear work item 149, follow steps 1 - 7 below. This guide is presented as follows

Initial action in all cases Step 1
Update the record Steps 2 - 5
Close the work item Steps 6 - 7

For details of how to use any of the PAYE Service functions access the system help.

Initial action in all cases

1. Review
 
  • The individual’s record on the PAYE Service
 
  • Indicators set on the record
 
  • Any relevant notes
  Note: The benefit / expenses information for this work item is stored on income, allowances, benefits and deductions (IABD).

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Update the record

2. Review the reason for tax code NT
  Where the individual is non resident and is not performing any duties in the UK, benefits in kind are not taxable from the date the duties started abroad. Only the proportion of any benefits in kind relevant in the period whilst the individual was liable to UK tax should remain on the IABD record for the year of leaving or returning to the UK; enter the proportioned amount in IABD. Zero should be entered in IABD for full years where the individual is outside the UK
  For Bankruptcy cases full benefits in kind still apply to any existing or new employments and the rules for pre and post bankruptcy should be followed as normal
3. If NT code is valid and if no personal allowances are due make sure that the ‘No Allowances’ indicator is present in Maintain Individual area. For more information about indicators see PAYE103065 
 
  • Once IABD has been updated correctly, trigger the tax code calculation
     
    And
 
  • If code NT is being issued for the first time to the relevant employment and a potential underpayment is being introduced into the tax code, issue a P2 manually using SEES Coding Assistance P2 (do not include the potential underpayment)
 
  • Select manual issue from the drop down in the Issue Forms section for the P2 on the Tax Code Details screen and ‘Submit
 
  • If code NT has already been issued to the relevant employment and there is no change required, cancel the issue of the P2 and P6 / P9 by selecting not issue from the drop downs in the Issue Forms section on the Code Details screen and ‘Submit’
4. If tax code NT is not appropriate
 
  • If personal allowances are due make sure that the ‘No Allowances’ indicator is unset in Maintain Individual area. For more information about indicators see PAYE103065 
 
  • If employee’s tax allowances are allocated to secondary sources, consider reallocating the allowances. For more information see PAYE13070 
 
  • Cancel the ‘Manual Code’ indicator in Maintain Individual area. For more information about indicators see PAYE103065 
 
  • In IABD trigger tax code calculation. For information about how to enter details and submit for a code calculation on IABD refer to PAYE130020 
 
  • On the Code Details screen ‘Submit’ to issue the tax code
5. Update Contact History

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Close the work item

6. Complete work item notes
7. Close the work item

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