PAYE130020 - PAYE service income, allowances, benefits and deductions: IABD: recording and submitting information (Action Guide)

Initial action

Step 1

Recording the information

Steps 2 -5

Submitting the information

Steps 6 - 10

1.

Access Individual Summary screen

• Ensure you have the correct record

• Select IABD. This will display

• • IABD Landing

• • • • And

• • IABD Summary

• Select IABD Landing

2.

Select the

• Form Type

• Relevant Tax Year

3.

The date of form receipt will default to today’s date, if an earlier date is displayed on the system this will be the date a form was recorded from the bulk logging, see PAYE79060 

Select the Edit Record icon at the right hand side for the first Input Form Data Area

• The current amount details will be displayed and are read only

• Enter the revised amount in the New Amount field

• It is possible for amounts to be carried forward across tax years if you do not have sufficient information to amend the new amount

• These will be identified by ‘c/f’ displayed after the current amount figure

• The c/f amount is used in the coding calculation for the following year

4.

Where relevant further information can be viewed on the Details screen

• Select the Edit Record icon at the right hand side

• • Enter the new information appropriate for that area

5.

If the information has ceased you will need to

• Enter the end date on the details screen if applicable

• Ensure the year of cessation holds the correct amount
   
  And

• Review all later years to ensure any amount recorded is reduced to zero

• Enter the amount in whole pounds unless you are advised otherwise

Targeted Review forms

When recording the receipt of a Targeted Review form (TRF), if the date of receipt of the form is already recorded with a date prior to the current date, the form has been logged as received through the Bulk Capture of Targeted Review Forms.

If no date is displayed, once you have entered the date of receipt, and submitted the Landing page the system will automatically update Targeted Review forms. If the form is a Targeted Review form it will also check and remove the penalty coding indicator. For more information, see PAYE79001 onwards.

When capturing a TRF, until April 2010 the date received might be pre-populated by a date recorded against an earlier years form. You should proceed to update the information on IABD

SA

Individuals in Self Assessment with tax returns SA100 and SA200 and with a PAYE source, will have their tax code automatically calculated following the capture of return information on Computerised Environment for Self Assessment (CESA).

Certain return information will be sent from CESA through an interface to the PAYE Service and stored in IABD, resulting in a tax code calculation and the issue of a notice of coding (P2) to the individual and a coding notification (P6/P9) to the employer. For further information on this, see PAYE13150.

If you need to record any information onto the PAYE Service from an SA return to ensure the correct coding calculation is issued, you should ensure you update CY and CY+1 from the information received for CY-1 only.

Do not update a CY or CY+1 code using details from a CY-2 or earlier tax return. This would prevent the code from being updated automatically with more recent information by the SA auto-coding process. SA auto-coding will not override any manually updated income in IABD, but will update any entries which have not been manually changed since annual coding.

Note: When making an update under no circumstance should you select SA from the drop down menu in IABD. This is because if SA is chosen it will not bring the IABD elements you have saved into the tax code calculation. The introduction of SA auto-coding has made selecting SA from the drop down menu in IABD obsolete.

In all instances you should

• Select Form Type ‘Other’

• Enter the figures from the SA return

• Make a Contact History note

If, in your day to day work you find that the tax code has not taken account of an entry in IABD it should be re-entered in case a user has mistakenly entered it as SA

• Go back to the Landing screen

• Select form Type ‘Other’

• Re-enter the figures in IABD

• Select the Submit [button]

You should be prompted to re-issue the tax code as normal

Form P161

If you receive details of the total income but not on a completed form P161, you should ensure you record this as a P161 and make a Contact History note. This will ensure if reduced age allowance is due, it is calculated correctly.

Yearly based forms

When you are recording information from a form you need to ensure you select the correct ‘Year’ and ‘Form Type’ and record the new amount which will be the actual amount for that year. This will ensure that the correct figure is used in the End Of Year reconciliation.

If you then need to update subsequent years this will not be the actual amount but an estimate. For these cases, you must select the correct year but you should not select the actual ‘Form Type’ but select ‘Other Form’.

For example form P810 received for CY-1 displaying untaxed interest £300

• Select Form Type - ‘P810’

• Select Tax year for this Form - ‘CY-1’

• Enter Date of Form Receipt if not populated from Targeted Review screen

• Select Investment Income

• Enter the amount on the Details screen

• Follow step 7 below

• • When completing Contact History you will need to select the Document Type as ‘P810’

Review CY IABD and Code

• Select Form Type - ‘Other Form’

• Select Tax year - ‘CY’

• Date of Form Receipt will default to today’s date

• Select Investment Income

• Enter the amount on the details screen

• Follow step 7 below

• • When completing Contact History you will need to select the Document Type as ‘Other’, see PAYE105030 

Form R27

Prior to recording the receipt of a form R27 see PAYE94021 for further information.

Form P11D

If for any reason you are unable to capture a P11D in ECS you will need to capture this on the PAYE Service, see PAYE130040 for more information.

P50 / P52

You cannot enter the date of claim of a form P50 Unemployment / P52 unless you select the correct form type. See PAYE94000 onwards for more information on in-year repayments.

P53A / B

These forms have now been combined into the P53 and it is available on SEES, there are two versions, an in-year and end-of-year version. If a form P53 is received you should record an in-year repayment as a P53A and an end-of-year repayment as a P53B. For more information see PAYE93080.

Calculation only

‘Calculation only’ can only be selected from the form type for CY or CY+1. This should be used to issue a code when no other changes are required to be made to the individual record.

6.

You must save the information

• For each Input Form Data Area

• A year at a time before going onto the next year

Once all the information has been saved you will be presented with the IABD Landing screen.

7.

You must now [submit] all the changes for the system to update the record

8.

You must complete Contact History see PAYE105000 onwards when prompted to do so

The system will then automatically review all the new information and determine if

• An in-year reconciliation is required, see PAYE94001 onwards, or end of year reconciliation is required, see PAYE93000 onwards. If the tax year has already been reconciled the following advisory message will be displayed
   
  ‘Tax Year has already Reconciled. Please Consider Re-Reconciliation’ 
   
  Or

• An amended code is required. For more information see PAYE11120 

If you make a change or add any new information and select the [Cancel] button before selecting the [Save] button, a warning message will be displayed.

9.

If the following message is displayed

‘Please correct the following entries and try again.

Cannot perform a Coding Calculation for CY+1 prior to Annual Coding’ 

This is not an error message just a warning message and you should follow steps 7 and 8 above. Annual Coding will ensure the correct amounts are included in the CY+1 code.

10.

You should always review the information held in IABD for CY+1, however, IABD for CY+1 should only be updated when

• The ‘new’ amount of Allowances or Deductions differs from the ‘current’ amount of Allowances or Deductions in IABD for CY+1

• It becomes apparent that the current estimated pay figure needs amending because, for example, the individual’s rate of pay has altered as a result of a change of job or retirement

Note: If you are satisfied that the CY amount is already correctly included in IABD for CY+1, you do not need to [Save] the same amount again in CY+1, annual coding will correctly carry this forward