PAYE13091 - Coding: coding: general principles: estimated pay (Action Guide)
When the coding involves estimated pay, follow steps 1 - 3 below. This Guide is presented as follows
| More than one coded source | Steps 1 - 2 |
| Manually amended amounts | Step 3 |
For details of how to use any of the PAYE Service functions, access the system help.
Note: An individual who is employed will have a record of their employment for each tax year. Every employment that is live at some point during the tax year should have a value of estimated pay recorded against it on income, allowances, benefits and deductions. For example if an individual had a period of employment that ended during the tax year, a period of employment that commenced during the tax year and a period of employment covering the entire tax year, then there will be three records with estimated pay.
If the employments that have started and ended within the tax year are both primary employments then the system will add both of those figures together to provide a single estimated pay for the latest live primary employment.
If the continuous employment is a secondary employment then the estimated pay will be used in the tax code calculation for that employment only.
More than one coded source
| 1. | Enter the estimated pay for each coded source (where there is no evidence of the level of earnings enter £15,000 for the primary employment and £5,000 for each secondary employment(s) in income, allowances, benefits and deduction) |
| 2. | The system will calculate the allowance restriction needed to collect the correct amount of PAYE tax |
Manually amended amounts
| 3. | If the system generated pay needs to be changed manually each year you must |
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