PAYE77043 - PAYE operation: incapacity benefit: form P46(IB): revised award (Action Guide)

On receipt of a P46(IB) for a revised award, follow steps 1 - 8 below. The guide is presented as follows

Initial action Steps 1 - 2
Incapacity benefit is latest source of income Steps 3 - 4
Incapacity benefit is coded out Steps 5 - 8

Initial action

1. Select the EMPLOYMENT SUMMARY screen to view the relevant employment
2. Before proceeding review CONTACT HISTORY to check previous actions taken

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Incapacity benefit is latest source of income

3. If Incapacity Benefit is the only source of income as there are no other live sources
 
  • If 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]
 
  • Update the CONTACT HISTORY screen in accordance with PAYE105020 and enter the new rate of Incapacity Benefit using the SEES Notes Paster for coding Incapacity Benefit
 
  • Destroy the P46(IB)
4. If Incapacity Benefit was previously the only source of income but a new employment has commenced
 

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Incapacity benefit is coded out

5. If Incapacity Benefit has been coded out as there is another live source of income
 
  • 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
 
  • Update CONTACT HISTORY in accordance with PAYE105020 and enter the new rate of Incapacity Benefit using the SEES Notes Paster for coding Incapacity Benefit
 
  • 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 
6. View the IABD LANDING screen
 
  • 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 
 
  • [Submit] the IABD LANDING screen
 
  • Review the TAX CODE DETAILS screen, see PAYE11130 and [Submit]
 
  • 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
 
  • Scrap the P46(IB)
7. If Incapacity Benefit was coded out but all other sources have now ceased
 
  • 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]
 
  • Update CONTACT HISTORY in accordance with PAYE105020 and enter the new rate of Incapacity Benefit using the SEES Notes Paster for coding Incapacity Benefit
 
  • Issue a revised tax code, see step 8
  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
 
  • Remove the Incapacity Benefit from the TAXABLE SOCIAL SECURITY BENEFITS screen, select [Save], see PAYE130075 
 
  • Enter the individuals Employment Estimated Earnings for Incapacity Benefit as ‘1’, see PAYE130045 and select [Save]
 
  • [Submit] the IABD LANDING screen
 
  • Review the TAX CODE DETAILS screen, see PAYE11130 and [Submit]
 
  • 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
 
  • Scrap the P46(IB)

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