PAYE13014 - Coding: coding: general principles: work item 183 - annual coding - update NIB - IB shown (Action Guide)
Work item 183 is generated when the DWP file shows state pension / benefits to be updated but the individual’s record has incapacity benefit in the CY+1 tax code.
Note: An individual cannot receive state pension / benefits and incapacity benefit at the same time, therefore the CY+1 tax code should only contain one of these deductions.
To clear work item 183 follow steps 1 - 12 below. This guide is presented as follows
Step 1 |
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Steps 2 - 10 |
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Steps 11 - 12 |
For details of how to use any of the PAYE Service functions, access the system help.
Initial action in all cases
1. |
Review |
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Update the record
2. |
Check Contact History and other notes for information about why incapacity benefit is coded |
3. |
Check if a P45 (IB) or a P45 (IBO) has been received |
4. |
Where a P45 (IB) or a P45 (IBO) has been received CY, update the CY+1 tax code in the income, allowances, benefits and deductions (IABD) to remove the incapacity benefit deduction. For information about how to enter details and submit for a code calculation refer to PAYE130020 |
5. |
On the Code Details screen ‘Submit’ to issue the tax code |
6. |
Update Contact History and go to steps 11 and 12 |
7. |
Where a P45 (IB) or a P45 (IBO) has not been received CY, calculate the incapacity benefit to the day before state pension / benefits commences. Update CY IABD with the apportioned amount of incapacity benefit |
8. |
Update CY+1 IABD to remove incapacity benefit and include the annual amount of state pension / benefits |
9. |
On the Code Details screen ‘Submit’ to issue the tax code |
10. |
Update Contact History and go to steps 11 and 12 |
Close the work item
11. |
Complete the work item notes |
12. |
Close the work item |
