PAYE12031 - Coding: coding deductions and expenses: automatic codes for expenses: arrangements (Action Guide)

To make the arrangements to use the batch function to update codes for expenses, follow steps 1 - 9 below

1. Obtain the technical specification booklet from Personal Tax Product & Process (PT P & P), Shipley and let the employer have a copy
2. Discuss the arrangements with the employer and obtain the employer's agreement
3. Ask PT P & P, Shipley to arrange a run date with our IT partner
4. Determine the amount of flat rate expenses (FRE) or job expenses (EXP) relief due
5. Where relief is due for earlier years
 
  • Calculate the repayment and supplement for each year separately
 
  • Add the amount of repayment supplement - to avoid long and complicated calculations, give supplement up to the end of the year in which the coding adjustment is made
 
  • Convert to an Earlier years coding adjustment (EYA)
6. Advise the employer of the details calculated in step 4 and 5, which are needed for the tape to be provided by the employer
 
  • The amount of relief due for the current year and whether it is FRE or EXP
 
  • The amount of the coding adjustment (EYA) for each earlier year
7. The technical specification booklet asks the employer to agree what order the tape should be in, alphabetical by surname or National Insurance number and let PT P & P, PAYE Technical, Shipley know the order agreed on
8. The PAYE Regulations require that a paper copy of magnetic tape code changes are provided to employers. Advise PT P & P, Shipley, the address to which this paper copy should be sent as no employer label will be automatically produced on this occasion
9. Ask if the employer is willing to exclude employees earning below the PAYE limit for whom no form P45(3) or P46 has ever been submitted. If employer agrees advise the employer not to include on the tape

Home | Main Contents | Manual Contents
Previous Page | Next Page | Top | Menu