PAYE13015 - Coding: coding: general principles: work item 184 - annual coding - update IB - NIB shown (Action Guide)
Work item 184 is generated when the DWP file shows incapacity benefit to be updated but the individual’s record has state pension / benefits 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 184 follow steps 1 - 12 below. This guide is presented as follows
Step 1 |
|
Steps 2 - 10 |
|
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 |
|
|
|
|
|
|
Update the record
2. |
Check Contact History and other notes for information about why state pension / benefits is coded |
3. |
Check whether the state pension / benefits coded relate to ‘Other Benefits’. Where the state pension / benefits relate to ‘Other Benefits’ you should follow the guidance at PAYE130075 and remove the state pension / benefits from the CY and CY+1 income, allowances, benefits and deductions (IABD). For information about how to enter details and submit for a code calculation refer to PAYE130020 |
4. |
Update the annual amount of incapacity benefit for CY+1 in IABD |
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 the state pension / benefits coded do not relate to ‘Other Benefits’ you should check if a P45 (IB) or a P45 (IBO) has been received. 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 |
|
|
|
|
8. |
Where the state pension / benefits do not relate to ‘Other Benefits’ and no P45 (IB) or P45 (IBO) has been received, issue a letter to the individual to determine which benefit is being received and the current weekly amount. Trigger the CY+1 tax code using the ‘Calculation Only’ option and do not make any changes to the amounts already held in IABD |
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 |
