PAYE77020 - PAYE operation: incapacity benefit: automatic uprating: date of increase

Incapacity Benefit (IB) is normally increased from the Thursday following the first Monday after 6 April.

The uprating calculation performed by the computer is based on whole weeks, rounded in the taxpayer's favour. It is applied to the CY rate of benefit in force at the time of the Budget announcement.

In years when 6 April falls on a Monday, Tuesday or Wednesday, the computer uses 50 weeks at the new rate plus two weeks at the old rate. Otherwise it takes 51 weeks at the new rate plus one week at the old rate.

If you need to know the actual weekly amount of the new taxable rate

• Refer to form P242

Or

• Work back from the actual yearly figure of IB (IBACT) remembering to deduct one or two weeks at the old rate, which should be shown in essential notes in COP Function NO