PAYE14015 - coding: coding functions: function CD: allowances
This subject is presented as follows
Allowances
Description of allowances on form P2
Allowances
The table shows allowances. The allowances are carried forward to the next year unless stated otherwise. P202 charts are available to help you.
| Allowance | Abbreviation and Notes |
| ALLOWANCES ALLOCATED HERE | AAH. Shown as BALANCE OF TAX ALLCES on P2. |
| BENEFICIAL LOAN INTEREST | BNLI. Enter the amount of interest qualifying for relief. |
| BLIND PERSON'S RELIEF | BPR. |
| CHARITY HIGHER RATE | CHR. An entry is valid only for CY and is not carried forward to CY+1. The POTA signal is automatically set. |
| CONCESSIONAL | CR. The POTA signal is set. |
| DOUBLE TAXATION | DTR. The POTA signal is set. See PAYE10040. |
| ENTERPRISE INVESTMENT SCHEME RELIEF | EIS. Relief is only due at 20 per cent. Describe the relief as ENTERPRISE INVESTMENT SCHEME and let the taxpayer know how you have calculated the figure of relief. The allowance is not carried forward to the following year. |
| ESTIMATED INCOME | ESTINC. If the taxpayer
or his wife will become 75 in CY+ 1 do not adjust the allowances
for CY+1 to take account of increased age related allowances before
Annual Coding Initial Review.
The computer will do this automatically if the date of birth is on the taxpayer record. |
| EXPENSES OTHER THAN FLAT RATE EXP | See PAYE12035. |
| FLAT RATE EXPENSES FRE | See PAYE12040. |
| FOREIGN PENSION ALLOWANCES | 10% FPA. |
| FRIENDLY SOCIETY SUBSCRIPTION | FS. See PAYE10035. |
| LOAN ETC INTEREST (PAID) | LOAN. |
| LOSS RELIEF | LOSS. The POTA signal is automatically set. The allowance is not carried forward to the following year. |
| LOWER RATE ADJUSTMENT
[In use up to 5 April 2008, not used from 6 April 2008] | LRA. Use where, exceptionally, it is necessary to code a sub source BR but the taxpayer is only liable at the lower rate. Make the adjustment at the main source. The SUB signal must be present. |
| MAINTENANCE PAYMENTS | MP. Cancel MPD if withdrawing the allowance. Check that it is there if amending the allowance. See also PAYE10055. |
| MARRIED COUPLE'S
ALLOWANCE (65-74)
Or MARRIED COUPLE'S ALLOWANCE (75+) | MAA. (Date of marriage
prior to 5 December 2005).
MAE. (Date of marriage prior to 5 December 2005). Use the appropriate abbreviation when the allowance is given in the wife's code (WAA, WAE). If you think an allowance will be due for CY+1, enter a provisional amount. For example 1500 / 1500. If you do not, the allowance will not be carried forward. If there is an entry of ESTINC on the screen, this is the figure used to determine the amount of reduced age related allowances due. Provided MCODE (with DOM in year of coding) is not present the computer will calculate reduced age related allowances from ESTINC and DOB/SDOB. |
| MARRIED COUPLE'S ALLOWANCE | MCCP. (Date of marriage /
civil partnership on or after 5 December 2005).
One of couple / civil partner was born before 6 April 1935. Can only be set where DOM, DOB and SDOB are present on the record. |
| PERSONAL ALLOWANCE
Or PERSONAL ALLOWANCE(65-74) Or PERSONAL ALLOWANCE(75+) | PA.
PAA. PAE. Give this allowance in full. Use AAE if any balance of allowances is given to a subsource. If there is an entry of ESTINC on the screen, this is the figure used to determine the amount of reduced age related allowances due. Provided MCODE (with DOM in year of coding) is not present the computer will calculate reduced age related allowances from ESTINC and DOB/SDOB. |
| PERSONAL PENSION PLAN RELIEF - including Free-standing Additional Voluntary Contributions | PPR. The POTA signal is set automatically. See also PAYE10065. |
| PROFESSIONAL SUBSCRIPTIONS | PSUB. See PAYE12035. |
| RETIREMENT ANNUITY RELIEF | RAR. |
| TRADE UNION SUBSCRIPTION | TUS. Shown as DEATH & SUPN BENEFIT on P2. See also PAYE10070. |
| WIDOWS & ORPHANS | WO. Shown as DEATH & SUPN BENEFIT on P2. See also PAYE10035. |
| WIFE'S MARRIED ALLOWANCE | WMA. This shows the
amount of MA transferred to the wife under a form 18 election. The
only permitted entries are one half or the whole of the amount of
MA due for the year.
The allowance is carried forward automatically until the election is withdrawn or varied. |
Description of allowances on form P2
The table tells you
- The abbreviations to be entered on the coding record
- What the computer prints on the form P2
| Abbreviation | P2 Description |
| AAH | BALANCE OF TAX ALLOWANCES |
| BPR | BLIND PERSONS ALLOWANCE |
| CHR | GIFT AID PAYMENTS |
| CR | CONCESSIONAL RELIEF |
| DTR | DOUBLE TAXATION RELIEF |
| EIS | ENTERPRISE INVESTMENT SCHEME RELIEF |
| ESTINC | ESTIMATED INCOME |
| EXP | JOB EXPENSES |
| FPA | FOREIGN PENSION ALLOWANCE |
| FRE | FLAT RATE JOB EXPENSES |
| FS | DEATH, SICKNESS OR FUNERAL BENEFITS |
| LOAN | LOAN INTEREST |
| LOSS | LOSS RELIEF |
| LRA | STARTING RATE ADJUSTMENT |
| MAA | MARRIED COUPLE'S ALLOWANCE |
| MAE | MARRIED COUPLE'S ALLOWANCE |
| MCCP | MARRIED COUPLE'S ALLOWANCE |
| MAT | MARRIED COUPLE'S ALLOWANCE TRANSFERRED TO YOUR WIFE |
| MP | MAINTENANCE PAYMENTS |
| PA | YOUR PERSONAL ALLOWANCE |
| PAA | YOUR PERSONAL ALLOWANCE |
| PAE | YOUR PERSONAL ALLOWANCE |
| PSUB | PROFESSIONAL SUBSCRIPTIONS |
| PPR | HIGHER RATE TAX RELIEF ON PENSIONS YOU'RE PAYING INTO |
| RAR | PAYMENTS TOWARDS A RETIREMENT ANNUITY |
| TUS | DEATH/SUPERANNUATION PAYMENTS |
| WAA | MARRIED COUPLE'S ALLOWANCE FROM YOUR HUSBAND |
| WAE | MARRIED COUPLE'S ALLOWANCE FROM YOUR HUSBAND |
| WMA | MARRIED COUPLE'S ALLOWANCE |
| WO | DEATH, SICKNESS OR FUNERAL BENEFITS |
