PAYE77035 - PAYE operation: incapacity benefit: form P45(IB)(O)
Form P45(IB)(O) is used to notify the termination of taxable
Incapacity Benefit (IB) for cases where IB has been coded out. In
addition to the date of cessation, it shows the total taxable
benefit for ‘this’ claim since 6 April.
Review the coding deduction and amend as necessary. The
reasons for benefit ceasing are normally
- Claimant passed fit for work
- Claimant reaching state pension age
- Death of claimant (when `D' is shown in the Deceased box on the form)
Note: You should always check to see if the IB is to cease because the taxpayer is reaching state pension age and will be receiving NIB. If so, you should apportion the IB to the date of cessation at the same time as entering the NIB.
