PAYE61171 - Employment maintenance: create employment: work item 242 - P46 - code in use is not as expected (Action Guide)

To clear work item 242, follow steps 1 - 21 below. This guide is presented as follows.

Initial action Steps 1 - 5
If the work item employment is not held on the individual’s record Steps 6 - 8
Is the date of commencement in an earlier year Steps 9 - 10
Is the start tax code operated the expected default tax code for the class of P46 received but the week 1 / month 1 indicator is not as expected Steps 11 - 12
Is the start tax code operated an expected default tax code for the year but is not the expected default code for the class of P46 received Step 13
Is the start tax code operated higher than the default tax code for the class of P46 received Steps 14 - 17
Is the start tax code operated lower than the default tax code for the class of P46 received Steps 18 - 19
Issue revised code Step 20
Close the work item Step 21

Initial action

1. Review indicators set on the record
2. Select the EMPLOYMENT SUMMARY screen to view the relevant employment
 
  • If the employment has ceased or potentially ceased, go to step 21
 
  • If the employment is still live, go to step 3
 
  • If the employment is not held, go to step 5 then to step 6
3. View the entries in more detail by going to the EMPLOYMENT DETAILS screen and note the start tax code and start week 1 / month 1 indicator for the work item employment
4. Review the TAX CODE HISTORY screen
 
  • If a tax code has already been issued to the employer, take no further action, see step 21
 
  • If a tax code has not been issued, go to step 5
5. Before proceeding check the CONTACT HISTORY screen to view notes and to check previous actions taken

Top of page

If the work item employment is not held on the individual’s record

6. Search Work Management with the individual’s National Insurance number, if a further work item is traced
 
  • Assign the work item to your work list and update the record as required, then go to step 8
7. If a further work item is not traced
 
  • Create a period of employment on the individual’s record using the work item information. For details of how to insert an employment, see PAYE61053 
 
  • Use the work item creation date as the date of commencement
 
  • Go to step 8
8. Review the start tax code and P46 box ticked as shown on work item 242
 
  • If the employment commenced in the current year, enter the start tax code as follows
 
    • Box A and tax code shown as 747L - enter the start tax code as 747L and set the week 1 / month 1 indicator
 
    • Box B and tax code shown as 747L - enter the start tax code as 747L - do not set the start week 1 / month 1 indicator
 
    • Any box and the code is not a default start tax code (747L, 747L week 1 / month 1, BR cumulative or 0T week 1 / month 1) - enter the tax code shown and set the start week 1 / month 1 indicator
  When the employment has been created, go to step 11, 13, 14 or 18
 
  • If the employment commenced in an earlier year enter the start tax code as follows
 
    • Box A and the emergency tax code for the year is shown - enter the start tax code as entered on the work item and do not set the week 1 / month 1 indicator
 
    • Box B and emergency tax code for the year is shown - enter the start tax code as entered on the work item and set the week 1 / month 1 indicator
 
    • Any box and the code is not a default start tax code - enter the tax code shown and set the start week 1 / month 1 indicator
  When the employment has been created, go to step 9

Top of page

Is the date of commencement in an earlier year

9. Review whether the start tax code is the correct default tax code for the year and class of P46 received
 
  • If it is the correct default tax code, consider whether a revised tax code is required
 
    • If a revised tax code is required, go to step 20
 
    • If a revised tax code is not required no further action is required, go to step 21
10. If the tax code is not the correct default tax code for the year, go to step 11, 13, 14 or 18

Top of page

Is the start tax code operated the expected default tax code for the class of P46 received but the week 1 / month 1 indicator is not as expected

11. If the start tax code is the same as the tax code shown on the TAX CODE HISTORY screen
 
  • If P46A was received and previous employments are shown in CY
 
    • Review whether a revised tax code can be issued, see step 20
 
  • If P46A was received and previous employments are not shown in CY
 
    • Issue emergency tax code on a cumulative basis, see step 20
 
  • If P46B was received and previous employments were shown in CY
 
    • Review whether a revised tax code is required, see step 20
 
  • If P46B was received and no previous employments were shown in CY
 
    • Issue emergency tax code on a week 1 / month 1 basis, go to step 21
 
  • If P46C was received
  Do not issue a revised tax code, go to step 21
12. If the start tax code is not the same as the tax code shown on TAX CODE HISTORY screen and
 
  • The start tax code would deduct less tax than the tax code shown on the TAX CODE HISTORY screen
 
    • Do not amend entries held in IABD
 
    • Issue a revised tax code, see step 20
 
  • The start tax code would deduct more tax than the tax code shown on the TAX CODE HISTORY screen
 
    • Do not issue a revised tax code to the employer, go to step 21

Top of page

Is the start tax code operated an expected default tax code for the year but is not the expected default code for the class of P46 received

13. Do not amend the entries held in IABD
 
  • Issue a revised tax code, see step 20

Top of page

Is the start tax code operated higher than the default tax code for the class of P46 received

14. Review EBS for the employer to see whether agreement is held with HMRC to code Flat Rate Job Expenses on commencement
15. If the employer has an agreement to include Flat Rate Job Expenses and the amount allowed added to the personal allowance equals the start tax code operated
 
  • Review the record and consider whether a revised tax code is required
 
    • If a revised code if required, see step 20
 
    • If a revised code is not required, update IABD with FRE due and see step 21
16. If this does not resolve the issue and the start tax code would deduct less tax than the tax code shown on the TAX CODE HISTORY screen
 
  • Do not amend entries held in IABD
 
  • Issue a revised tax code on a week 1 / month 1 basis, see step 20
17. If this does not resolve the issue and the start tax code would deduct more tax than the tax code shown on the TAX CODE HISTORY screen
 
  • Do not issue a revised tax code to the employer, go to step 21

Top of page

Is the start tax code operated lower than the default tax code for the class of P46 received

18. If the start tax code would deduct less tax than the tax code shown on the TAX CODE HISTORY screen
 
  • Do not amend entries held in IABD
 
  • Issue a revised tax code on a week 1 / month 1 basis, see step 20
19. If the start tax code would deduct more tax than the tax code shown on the TAX CODE HISTORY screen
 
  • Do not issue a revised tax code to the employer, go to step 21

Top of page

Issue revised code

20. View IABD LANDING screen
  Note: Before issuing a revised code consider the individual’s employment history and the previous tax codes operated during the year see PAYE61205 
 
  • Enter the individuals Employment Estimated Earnings and any FRE if appropriate, see PAYE130045 and [Save]
 
  • When IABD is completed [Submit] the IABD LANDING screen
 
  • Review the tax code, see PAYE11120 and [Submit]
 
  • Review the EDIT EMPLOYMENT ALLOCATION screen to consider the basis of operation for the tax code(s) to be issued, see PAYE13115 and [Submit] to issue the revised tax codes, go to step 21

Top of page

Close the work item

21. Update the CONTACT HISTORY screen to show action taken in accordance with PAYE105020, and then
 
  • Close the work item in accordance with PAYE110075 
  Note: Consider whether further action is required if you have identified the employer has not operated the correct tax code for the class of P46 received

Home | Main Contents | Manual Contents
Previous Page | Next Page | Top | Menu