PAYE77270 - PAYE operation: employment and support allowance: claim ceases

Where a P45(1)ESA is received and the live primary source is an occupational pension / retirement annuity and the live secondary source is ESA, the PAYE Service will compare the amount of ESA received on the P45 to the amount of ESA deduction in the live primary tax code.

Where the amount in the tax code is more than the amount on the P45(1), the PAYE Service will amend the deduction in the live primary tax code to equal the amount on the P45(1).

Where the amount in the tax code is less than the amount on the P45(1), the PAYE Service will not automatically amend the CY live primary tax code to include the actual amount of ESA shown on the P45(1). Instead, the PAYE Service will record the actual amount in accordance with the P45 in Employment Maintenance and will reconcile the case at the end of the year.

Where ESA has ceased in CY, the PAYE Service will reduce the CY+1 ESA amount to zero.