PAYE76090 - PAYE operation: pensioners: P161: state retirement pension and employment (Action Guide)
Where there is continuing employment follow steps 1 - 7
below, as appropriate. The guide is presented as follows
| Initial action | Step 1 |
| Taxpayer due MAA, MAE, or MP | Steps 2 - 4 |
| Taxpayer not due MAA, MAE, or MP | Steps 5 - 7 |
Initial action
- Review the coding for the year in which the pension is first received
Taxpayer due MAA, MAE, or MP
- Calculate estimated liability and check if there is a balance
of allowances or taxpayer has non-repayable tax credits (dividends)
- If there is a balance of non-repayable tax credits and it is greater than £100
- Allocate the balance of allowances (using AAE) to sub source
- Complete form P46(DWP)(Slip) or P173 to include the case in the Department for Work and Pensions (DWP) Uprating Service
Taxpayer not due MAA, MAE, or MP
- Calculate estimated liability and check if there is a balance
of allowances
- If the balance of allowances is greater than £400
- Allocate the balance of allowances (using AAE) to sub source
- Complete form P46(DWP)(Slip) or P173 to include the case in the DWP uprating service
