PAYE77040 - PAYE operation: incapacity benefit: form P46(IB)

Form P46(IB) is used to notify new and revised awards.

The form shows the

• Weekly taxable rate of Incapacity Benefit (IB)
• Date of commencement or change
• Type of award

The types of award are

• First Award - means a new award
• Revised Award - means a change in the rate of IB paid
• Uprated Award - refers to the CY+1 rate where the form was issued after the annual uprating process has taken place

The rate of IB can change due to

• A move from Short Term Higher to the Long Term rate
• A change in personal circumstances (for example, marriage)
• Withdrawal of IB for a period (for example, because the claimant goes into hospital or leaves the UK)

For cases dealt with outside Leics and Northants (IBTO), the form has the following advisory message

How the Incapacity Benefit is to be taxed: Tax will not be deducted by the Department for Work and Pensions. Take the Incapacity Benefit into account in claimant’s code.