PAYE76025 - PAYE operation: pensioners: deciding who should be the main office
Note:
Retirement Annuity Contracts (RACS) are taxed in PAYE as pension
income but they are not classed as ‘occupational
pensions’. Treat a RAC as any other PAYE source for the
purposes of deciding which source is the main office.
Once the facts are known use the following to decide who
should be the main office.
Where the taxpayer receives a forces retired pay and
pensions the main office will be in South Wales
However, if the retired pay or pension is small (under £2500) and there is a substantial source of income elsewhere, the office that deals with the other income will be the main office
Where the taxpayer has a main source occupational pension and a new occupational pension commences
- If the new annual occupational pension is £1000 greater than the current main source occupational pension MA the record and advise the previous office to set up a SUB record
- If the new annual occupational pension is less than £1000 greater than the current main source occupational pension set up a SUB record
Where there is one or more occupational pensions notified at the
same time the office dealing with the largest occupational pension
will be the main office
Where there is a continuing source of employment or PAYE
income and one or more occupational pension, the decision as
regards the main office should be made as follows
- If the largest occupational pension is below £2500 and the employment or PAYE income is above £2500 the main office should be the employer’s office. The employer’s office should not include OCCP as a deduction in the main source.
Use Coding Assistant which will show if there is a balance of allowances from the main source. Tell the office(s) dealing with the sub source occupational pension(s) the amount of any allowances to allocate with the coding abbreviation AAH.
Use AAE at the main source to show the amount of allowance allocated at the occupational pension sub source(s). If these allowances are split between 2 occupational pensions make an ENOTE to show how the allowances have been split
- If the largest occupational pension is above £2500 the main office should be the occupational pension office.
Use Coding Assistant to allocate personal allowances less any deductions for example State pension (NIB). If there is a balance of allowances available after taking into account the main source occupational pension and any deductions tell the office(s) dealing with the sub source employment or PAYE income and / or occupational pension(s) the amount of any allowances to allocate with the coding abbreviation AAH.
Use AAE at the main source to show the amount of allowance allocated at the employment and / or occupational pension sub source(s). If these allowances are split between 2 occupational pensions make an ENOTE to show how the allowances have been split
Where the current main source is at Leicester and Northants (This text has been withheld because of exemptions in the Freedom of Information Act 2000)new office must always become the main source
- MA the record
- If reference
(This text has been withheld because of exemptions in the
Freedom of Information Act 2000)commenced in CY use Eform to
request Leicester and Northants set up a SUB record
