PAYE61211 - Employment maintenance: create employment: work item 251 - P14 creates pension/first PAYE interest (Action Guide)

To clear work item 251 follow steps 1 - 16 below. This guide is presented as follows

Initial action Steps 1 - 8
If a live SA record is held Steps 9 - 10
If SA record is not held compare the P14 to the individuals employment record Steps 11 - 14
Issue revised code Steps 15 - 16

Initial action

1. Review whether the individuals full name and address is held on the individuals record
 
  • If full details are shown, see step 2
 
  • If full details are not shown
 
    • Review TBS and / or telephone the employer to ask for missing details so the record can be updated and then see step 2
2. Note the PAYE reference for the work item P14 so it can be compared to the record
3. Review the CONTACT HISTORY screen to view notes and to check previous actions taken
4. Select the EMPLOYMENT P14 SUMMARY screen to view the year the P14 relates to
 
  • Note employment references shown, works number, pay and tax
5. Select the PAY AND TAX SUMMARY screen to check that all forms P14 received have been run on the individuals record
6. Select the EMPLOYMENT SUMMARY screen to review what employments are held with a creation source other than P14 and which employments were created from P14
7. If a pension employment was created from the P14, select the Edit Record icon next to the pension employment and set the OCPN indicator [Save] and see step 9 if SA or step 11 if not SA
8. If an employment was created from the P14, see step 9 if SA or step 11 if not SA
  Note: For the purposes of this guidance ‘employment’ is used to describe a period of employment or occupational pension employment.

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If a live SA record is held

9. If the PAYE Service record is linked to the SA record
 
  • Use the RECONCILIATION SUMMARY screen to set the Reconciled SA signal
 
  • Trigger reconciliation, see PAYE93000 onwards
     
    If the year was not previously reconciled it will now automatically be cleared ‘Reconciled SA’
 
  • Review the current code(s) in operation, see step 14
10. If the PAYE Service record is not linked to SA but the SA record is live
 
  • Use the RECONCILIATION SUMMARY screen to unset the Inhibit Automatic Reconciliation signal
 
  • Manually set the Reconciled SA indicator
 
  • Review the current code(s) in operation see step 14

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If SA record is not held compare the P14 to the individuals employment record

11. Review whether the work item P14 has created a period of employment and this is the only employment held in the year with this PAYE reference
 
  • If this is the only period of employment in the year, see step 13
 
  • If this is not the only period of employment in the year, see step 12
12. Review whether the work item P14 has created a period of employment and there are other live PAYE references in the year with the same PAYE reference. If there are
 
  • Review whether the P14 created period of employment matches an existing employment held in the same tax year
 
    • If the P14 does match to an existing employment, see guidance at PAYE64011 and then follow the next bullet
 
  • Review whether the employment status for each employment in CY should be primary or secondary
 
    • If an occupational pension employment is held, see PAYE76089 to determine which period of employment should be primary and update as required and then see step 13
 
    • If this is not the only period of employment and the individual does not have a period of occupational pension but one of the sources of income is Job Seeker’s Allowance see PAYE78032, Incapacity Benefit see PAYE77042, or Employment Support Allowance see PAYE77240, and then see step 13
 
    • If this is not the only period of employment and the individual does not have a period of occupational pension, Job Seeker’s Allowance, Incapacity Benefit or Employment Support Allowance, consider which live period of employment has the largest P14 pay to determine which period of employment should be primary and update as required, see PAYE64011 and then see step 11
 
  • If no employments are held in the year with matching PAYE reference(s), see step 13
13. When you have the employments for the P14 tax year in the correct position, review the following
 
  • CY to establish whether a Pennot or P45 part 1 has created a period of employment in the current year which matches the P14 created employment. If it does see PAYE64011, steps 15 - 18
 
  • Do not amend the works numbers shown for each employment unless the works number field is blank. If the works number field is blank enter the works number as shown on the P14 matching that period of employment
 
  • Review P14 Summary screen for earlier years to see whether an earlier years P14 has a date of leaving which can be matched to an existing employment with a creation source other than P14 which still remains live. If it does see PAYE64011 
14. When employments have been updated and are in the correct position see step 15

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Issue revised code

  Notes:
a. Before issuing a revised code, consider the individual’s employment history and the previous tax codes operated during the year, see PAYE61205 
b. A coding calculation for CY should still be performed even if it is too late to issue the tax code.
15. View IABD LANDING screen
 
  • If the individual is state pension age and no state pension has been included in individuals tax code
 
    • Update IABD to include basic state pension for CY-1, CY and CY+1, see SPD 6g.3
 
  • If you have coded state pension for the first time and the individual is liable in CY and / or CY+1, issue P161
     
 

Note: Before you issue a P161, check to see if one has already been issued, see PAYE79062, and if so take no further action. If you need to issue a P161 you should follow the guidance at PAYE79042 
 
  • If they are NNL do not issue a P161
 
  • Do not issue P173
 
  • Enter the individuals Employment Estimated Earnings for CY, see PAYE130045 and [Save]
  Notes:
a. If a P14 has been received use the P14 pay as the ESTPAY. If an employment is held which commenced in CY enter ESTPAY in accordance with PAYE13090 
 
  • Review the EDIT EMPLOYMENT ALLOCATION screen to consider the basis of operation for the tax code(s) to be issued, and [Submit] to issue the revised tax codes
 
  • If coding more than one secondary source see PAYE13115 
  You should not issue a P2 for a secondary ESA employment under PAYE reference (This text has been withheld because of exemptions in the Freedom of Information Act 2000) 
b. When a taxpayer is due reduced age-related allowances, they should usually be set up in Self Assessment so that an annual review of the allowances due can be made. The exception to this rule is where the taxpayer’s only source of income is one PAYE source and state pension which is within the DWP up-rating service.
  Once IABD is in the correct position for CY-1 you should consider reconciliation, see PAYE93000 onwards
16. Close the work item in accordance with PAYE110075 

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