PAYE76085 - PAYE operation: pensioners: P161

The action to take depends on the information given on the form P161.

Remember two important points

• The payer of an occupational pension will be operating a Week 1/Month 1 basis code
• Deal promptly with the case at all stages if you need to code out a state retirement pension for the first time

Prompt and correct action means that any underpayment should be limited to the period from the date of retirement to the date the new code is first used. This avoids complaints and possible hardship.

Note: Unless you have already done so, do not give age related allowances until you have either

• Received a completed form P161

Or

• Been given the necessary information to be able to calculate the age related allowances