PAYE63040 - employment maintenance: filing online: employers: automatic record update for new pensioners

This subject is presented as follows

General

Tracing an existing record

Creating a new record

Exceptions

Information entered automatically on the record

Coding record

Last Year cleared

General

This process does not apply to the State Retirement Pension. It covers pensions paid by insurance companies and former employers.

New pension notifications, which are sent online, take the place of paper forms P46, P45(3) or P160. The pension payer sends the following details

• Previous Tax District Number
• Previous Employer Reference
• National Insurance Number (NINO)
• Taxpayer name

And

• Date of leaving
• Code at date of leaving

And

• Week 1 / Month 1 indicator
• Week / Month Number
• Total Pay to date
• Total Tax to date
• New Tax District Number
• New Employer or Pension Payer reference
• Date of commencement
• Pension number
• Taxpayer’s Address
• Date of Birth
• Code in use

And

• Week 1 / Month 1 indicator
• Job title (pensioner)
• Gender Indicator (M / F)
• New Widow Indicator
• Annual Pension amount

Some of these items will only apply to P46 cases and others only to P45(3) cases.

Any failures in processing the above details result in an exception report, printed as Early Morning Output (EMO). In these circumstances no further processing takes place. Such cases will have to be handled clerically using the normal COP functions. All the information which the pension payer has submitted will be printed out.

The processes work as follows

Tracing an existing record

The details submitted are checked against the National Tracing Service (NTS). If a record is found

• The record will be updated automatically

And

• Transferred if necessary
• The OCCPEN signal is set

And

• Form P161 or P161W issued if appropriate

Creating a new record

If a record is not found on NTS and the weekly amount of the pension is

• More than the PAYE threshold a main source (GCD) record will be created
• Less than the PAYE threshold and tax is being deducted a sub source record will be created

Exceptions

A record will not be created if

• The NINO given by the pension payer is invalid

Or

• The NINO is not present
• A main source record already exists in the same Region
• A P204 record already exists under the same employer reference
• A record for the same taxpayer already exists at the same employer reference with the same pension (works) number
• A taxpayer record for the same taxpayer already exists at the same employer reference and either the incoming record or the existing record has no pension (works) number
• The taxpayer name is too long to be entered on the COP record

If any of the above exceptions apply, then a report is printed as Early Morning Output (EMO) and no further processing takes place.

Information entered automatically on the record

For all pension notifications sent in online the OCCPEN signal will be entered on the record which has been created or updated.

In the Nature of Employment field the amount of annual pension will be entered automatically as follows

• ’PENSIONER ESTPAY £’

Followed by

• The annual amount of the pension

Coding record

For the current year (CY) the code type will be shown as ’SU’ and the record will be set as follows

• Allowances

And

• Code for a single person on a Week 1 / Month 1 basis

This will reflect what the payer is already operating.

For CY+1, if the Annual Main Coding Review has taken place, the code type will be shown as ‘SU’ and the record will be set as follows

• Allowances

And

• Code for a single person

If Annual Coding Main Review has not taken place, the code type will be shown as ‘B/F’ and the record will be set as follows

• Allowances applicable to a single person

Last Year cleared

The year before the year of commencement will normally be cleared. Processing takes different actions depending on whether the main source record is found or not.

If a main source record is found on NTS which has a date of leaving, the record is

• Transferred
• The OCCPEN signal is set
• Form P161 is issued unless one has been issued within the previous 3 months. Note: If the New Widow Indicator is present on the online record then form P161W is issued instead

If the record found on NTS does not have a date of leaving, then processing checks if tax is being deducted from the new pension payment. If tax is being deducted

• A new sub source record is created
• The OCCPEN signal is set

And

• A printout is produced at the Processing Office responsible for the main source record

If tax is not being deducted processing checks the amount of the pension being paid.

If the annual amount is more than £1000

• A new sub source record is created
• The OCCPEN signal is set

And

• A printout is produced at the Processing Office responsible for main source record

If the annual amount is less than £1000 a printout is produced at the Processing Office responsible for the main source record so that the pension can be coded out.

If a main source record is found at same reference as the pension payer a check is made to see if the OCCPEN signal is already set on the record.

If the OCCPEN signal is already set

• A printout is produced for review

If the OCCPEN signal is not already set

• The OCCPEN signal is set
• Form P161 is issued unless one has been issued in the previous 3 months. Note: If the New Widow Indicator is present on the online record form P161W is issued instead

If no main source record is found then processing checks the annual amount of the pension shown on the online submission. The action taken depends on the amount.

If the annual amount is more than the PAYE threshold (this is equivalent to the single person’s allowance)

• A main source record is created
• The OCCPEN signal is set

And

• Form P161 is issued. Note: If the New Widow Indicator is present on the online record form P161W is issued instead

If the annual amount is less than the PAYE threshold then processing checks to see if tax is being deducted.

If tax is being deducted

• A sub source record is created
• The OCCPEN signal is set

And

• Form P161 is issued. Note: If the New Widow indicator is present on the online record form P161W is issued

If tax is not being deducted the information is discarded and not processed.