PAYE76125 - PAYE operation: pensioners: postponed retirements

Some taxpayers may postpone retirement

• After a pension has been awarded and form P46(DWP) issued

But

• Before payment of the pension starts

What you do depends on whether the P46(DWP)(Slip) has been processed by the Department for Work and Pensions (DWP) when the retirement is postponed.

P46(DWP)(Slip) processed before the pension is postponed

The taxpayer can be expected to appeal against the inclusion of the pension in the coding. When you receive an appeal

• Amend the coding to exclude the pension
• Make an ENOTE to record the fact that pension postponed, enter date pension will commence if known
• Issue form P173 in the usual way and enter 5 in the Designator box to remove the case from the Uprating Service

P46(DWP)(Slip) processed after the pension is postponed

The form is rejected by the DWP. When you receive an appeal against the inclusion of the pension in coding

• Amend the coding to exclude the pension

And

• Make an ENOTE to record the fact that pension postponed and enter date pension will commence, if known