On receipt of a P46(IB) for a revised award, follow steps 1 - 8 below. The guide is presented as follows
| 5. |
If Incapacity Benefit has been coded out as there is another live source of income |
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- If a secondary employment is not already held (This text has been withheld because of exemptions in the Freedom of Information Act 2000) insert a secondary employment
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- Update CONTACT HISTORY in accordance with PAYE105020 and enter the new rate of Incapacity Benefit using the SEES Notes Paster for coding Incapacity Benefit
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- Issue a revised code see step 6
Note: Before issuing a revised tax code consider the individuals employment history and the previous tax codes operated during the year, see PAYE61205
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| 6. |
View the IABD LANDING screen |
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- Calculate the ‘actual’ amount of Incapacity Benefit which will be received in CY, and enter the figure into the TAXABLE SOCIAL SECURITY BENEFITS screen [Save], see PAYE130075
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- [Submit] the IABD LANDING screen
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- Review the TAX CODE DETAILS screen, see PAYE11130 and [Submit]
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- Review the EDIT EMPLOYMENT ALLOCATION screen to consider the basis of operation for the tax code(s) to be issued, see PAYE13115 and [Submit] to issue the revised tax code(s)
Note: You must always ensure that you update CY+1 IABD with 52 weeks of the new weekly rate received however, make no attempt to anticipate future changes in the rate of benefit before 5 April
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| 7. |
If Incapacity Benefit was coded out but all other sources have now ceased |
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- If the primary employment is not already held (This text has been withheld because of exemptions in the Freedom of Information Act 2000) [Insert] a primary employment or, if an existing secondary employment is held (This text has been withheld because of exemptions in the Freedom of Information Act 2000), amend the ‘Employment Type’ in the EMPLOYMENT DETAILS screen from secondary to primary and select [Save]
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- Update CONTACT HISTORY in accordance with PAYE105020 and enter the new rate of Incapacity Benefit using the SEES Notes Paster for coding Incapacity Benefit
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- Issue a revised tax code, see step 8
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Note: Before issuing a revised tax code consider the individuals employment history and the previous tax codes operated during the year, see PAYE61205 |
| 8. |
View the IABD Landing screen |
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- Remove the Incapacity Benefit from the TAXABLE SOCIAL SECURITY BENEFITS screen, select [Save], see PAYE130075
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- Enter the individuals Employment Estimated Earnings for Incapacity Benefit as ‘1’, see PAYE130045 and select [Save]
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- [Submit] the IABD LANDING screen
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- Review the TAX CODE DETAILS screen, see PAYE11130 and [Submit]
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- From the EDIT EMPLOYMENT ALLOCATION screen issue the tax code on a week 1 / month 1 basis (This text has been withheld because of exemptions in the Freedom of Information Act 2000), see PAYE13115 and [Submit] to issue the revised tax code
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