PAYE13019 - Coding: coding: general principles: work item 402 - annual coding - update ESA - NIB shown (Action Guide)
Work item 402 is generated when the DWP file shows employment and support allowance (ESA) 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 employment and support allowance at the same time, therefore the CY+1 tax code should only contain one of these deductions.
To clear work item 402 follow steps 1 - 15 below. This guide is presented as follows
Step 1 |
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Steps 2 - 13 |
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Steps 14 - 15 |
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 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 ESA 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 14 and 15 |
7. |
Where the state pension / benefits coded do not relate to ‘Other Benefits’ you should check if ESA leaving details have been received. 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 |
8. |
Update the annual amount of state pension / benefits for CY+1 in IABD |
9. |
On the Code Details screen ‘Submit’ to issue the tax code |
10. |
Update Contact History and go to steps 14 and 15 |
11. |
Where the state pension / benefits do not relate to ‘Other Benefits’ and no ESA leaving details have 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 |
12. |
On the Code Details screen ‘Submit’ to issue the tax code |
13. |
Update Contact History and go to steps 14 and 15 |
Close the work item
14. |
Complete the work item notes |
15. |
Close the work item |
