PAYE13018 - Coding: coding: general principles: work item 401 - annual coding - update NIB - ESA shown (Action Guide)

Initial action in all cases

Step 1

Update the record

Steps 2 - 14

Close the work item

Steps 15 - 16

1.

Review

• The individual’s record on the PAYE Service

• Indicators set on the record

• Any relevant notes

2.

Check Contact History and other notes for information about why ESA is coded

3.

Check if ESA leaving details have been received on the employment summary screen and / or contact history

4.

Where ESA leaving details have been received CY, update the CY+1 tax code in the income, allowances, benefits and deductions (IABD) to remove the ESA 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 15 and 16

7.

Where ESA leaving details have not been received CY

• In the EMPLOYMENT SUMMARY screen, select the Edit Record icon next to the ESA employment

• Set the potentially ceased indicator and select [Save]

8.

Calculate the ESA to the day before state pension / benefits commences. Update CY IABD with the apportioned amount of ESA

9.

Update the annual amount of state pension / benefit for CY+1 in IABD

10.

On the Code Details screen ‘Submit’ to issue the tax code

11.

Update Contact History and go to steps 15 and 16

12.

If the state pension / benefits commencement details are not known

• Issue a P161 to the individual

• Enter the standard yearly amount of state pension / benefits in CY+1 IABD

13.

On the Code Details screen ‘Submit’ to issue the tax code

14.

Update Contact History and go to steps 15 and 16

15.

Complete the work item notes

16.

Close the work item