PAYE63040 - Employment maintenance: filing online: employers: automatic record update for new pensioners
There are two distinct processes associated with a P46(Pen) transaction, specifically
- Previous employment details
- New pension details
This subject is presented as follows
Automatic issue of P161 or P161(W)
General
This process does not apply to the State Retirement Pension. It covers pensions paid by insurance companies and former employers.
P46(Pen) notifications, which are sent online, take the place of paper forms P46, P45 part 3 or P160.
The processes work as follows
Previous employment details
The P46(Pen) transaction contains the following details relating to the previous employment if appropriate
- PAYE reference number
- Date of leaving
- P45 part 3 pay and tax
- P45 part 3 code
When a P46(Pen) transaction is received the PAYE Service will automatically try to match the previous employment details to an existing employment held on the individual’s record.
If the previous employment details are successfully matched to a live period of employment the individual’s record will be updated to show it has potentially ceased.
If the previous employment details cannot be matched to an employment on the individual’s record a matching period of employment will be created and potentially ceased.
A primary record will be created on the individual’s record displaying
- PAYE reference number
- Creation source - PENNOT
- Date of leaving
- Potentially ceased indicator
The employment start year will be determined by the employment end date and recorded as the tax year commencing. For example, an employment which commenced between 6 April 2008 and 5 April 2009 will be recorded as 2008.
New pension details
The P46(Pen) will contain the following details relating to the new pension
- PAYE reference number
- Date of commencement
- Works number
- New widow indicator
When a P46(Pen) is received the system will try to match the new occupational pension details with an existing pension held on the individual’s record. If no matching pension record is held the system will insert a new primary record when
- No live primary employment exists
- No live secondary employment exists
Or
- A secondary employment exists but it cannot be matched to the P46(Pen)
- Occupation pension
The new primary record will be populated with
- PAYE reference number
- Works number
- Pension start date
- Creation source - PENNOT
- OCPN indicator will be set
The employment start tax year will be determined by the employment start date and will be recorded as the tax year ended. For example, an employment which commenced between 6 April 2008 and 5 April 2009 will be recorded as 2009.
A new secondary record will be created if the new PAYE reference cannot be matched to a live primary or secondary employment but a live primary employment already exists.
The new secondary record will be populated with
- PAYE reference number
- Works number
- Pension start date
- Creation source - PENNOT
- Occupational signal will be set
Note: Contact History will automatically be updated for each P46(Pen) transaction that is successfully processed through Create employment.
Automatic issue of P161 or P161(W)
When a PENNOT is received and either a primary or secondary record is created, the P161 or P161(W) indicator will be automatically set and
- A P161 will be issued if the NEW WIDOW indicator is not set on the PENNOT
- A P161(W) will be issued if the NEW WIDOW indicator is set on the PENNOT transaction
When a PENNOT transaction successfully matches a current pension record
- A P161 or P161(W) will be issued if the PENNOT was matched to an existing record and the P161 or P161(W) indicator was not set
Work items
Work items are created following the P46(Pen) transaction to manage the return of the issued P161 or P161(W) to enable the individual’s code to be reviewed and potentially updated.
Work item 38 is created when a P46(Pen) transaction triggers the issue of P161 or P161(W) see PAYE61150.
Work item 39 is created when a P46(Pen) transaction is matched to a live primary or secondary record and the P161 indicator is already set see PAYE61155.
