PAYE78051 - PAYE operation: taxation of job seekers allowance: receipt of form P181 (Action Guide)

On receipt of a form P181, follow steps 1 - 18 below. The guide is presented as follows

Initial action Steps 1 - 5
Update the record Step 6
Benefit is for CY Steps 7 - 12
Benefit is for CY and earlier year Step 13
Benefit is for earlier year only Steps 14 - 17
Two forms received for same period Step 18

Initial action

1. If you receive two forms P181 for the same period, see step 18, then continue from step 2
2. Select the EMPLOYMENT SUMMARY screen to view the relevant employment
3. View the entries in more detail by going to the VIEW AND EDIT EMPLOYMENT DETAILS screen
4. Before proceeding check the CONTACT HISTORY screen to view Enotes and to check previous actions taken
5. Take no action if the employer has taxed all the benefit

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Update the record

6. Where benefit has not been taxed, see note below and then follow the guidance under the relevant sub heading
  Note: The term ‘matching JSA employment’ in this Action Guide, refers to a period of JSA held on employment summary with the same start date as the period from date on the form P181

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Benefit is for CY

Benefit is for CY and no matching JSA employment exists, but a live non-JSA employment exists

7.
  • View IABD LANDING screen
 
  • Update the IABD screen with the JSA figure from form P181 using ‘other benefit’ field, [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 codes
 
  • Update the CONTACT HISTORY screen to show that P181 has been received and Jobseekers Allowance has been included in the code
     
    Note: When issuing a revised code consider the individuals employment history and the previous tax codes operated during the year see PAYE61205 

Benefit is for CY and no matching JSA employment exists and no live non-JSA employment exists

8. Select the [Insert] button on the EMPLOYMENT SUMMARY screen
  And then
 
  • Use the INSERT EMPLOYMENT DETAILS screen to insert the employment from the information supplied on form P181 using
 
    • PAYE reference from P181 tax reference
 
    • Works number from P181 Jobcentre Plus reference (if shown)
 
    • Employment type, leave as secondary
 
    • P181 period from and period to as start and end dates
 
    • Start tax code as emergency code and tick Start Week 1 Month 1 indicator
 
    • Tax code in Pay and Tax details as start tax code
 
    • Taxable benefit amount as ‘Pay This Employment’
 
    • 0.00 as ‘Tax this employment’
 
    • Set the JSA indicator [Save]

Benefit is for CY and live matching JSA employment exists

9. View EMPLOYMENT SUMMARY screen
 
  • Select the Edit Record icon against the JSA employment on the EMPLOYMENT SUMMARY screen
 
  • Enter full leaving details using
 
    • ‘USER’ as cessation source
 
    • P181 period to date as ‘end date’
 
    • Start tax code as ‘In Year Leaver Pay and Tax details’ tax code, if no start tax code present use emergency code on week 1 month 1 basis
 
    • Taxable benefit amount as ‘Pay This Employment’
 
  • See step 10
10. View EMPLOYMENT SUMMARY screen
 
  • Review employment status and tax codes of any remaining live sources
 
  • Update CONTACT HISTORY to show that P181 has been received and action taken

Benefit is for CY and a live period of JSA employment exists, but period of JSA on P181 does not match and period from date is earlier than the start date of current live JSA employment

11. Follow guidance at step 8 to insert a new ceased period of JSA employment

Benefit is for CY and a live period of JSA employment exists, but period of JSA on P181 does not match and period from date is later than the start date of the current live JSA employment

12. View EMPLOYMENT DETAILS screen of current live JSA employment
 
  • Set the potentially ceased indicator and [Save]
 
  • See note below, then follow guidance at step 8 to insert a new ceased period of JSA employment
  Note: If the P Ceased period of JSA employment was primary, change employment type of newly inserted JSA employment to primary

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Benefit is for CY and earlier year

13. Deal with each year separately following relevant sub heading if period of JSA already exists, otherwise see action points below
 
  • Select IABD for earlier year
 
  • Update the IABD screen with the earlier years JSA figure from P181 using ‘other benefit’ field
 
  • Select EMPLOYMENT SUMMARY screen for CY
 
  • Insert JSA employment for CY following step 8 but use 06/04/CY as start date

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Benefit is for earlier year only

Benefit is for earlier year and matching JSA employment exists

14. Follow guidance at step 9 to cease the period of JSA employment, do not continue onto step 10, instead see step 15
15. Review the year to include the updated information, see PAYE93010 onwards

Benefit is for earlier year and no matching or other JSA employments exist

16. View IABD LANDING screen
 
  • Update the IABD screen with the taxable benefit figure from form P181, using the ‘Other Benefit’ field
 
  • Review the year to include the updated information, see PAYE93010 onwards
 
  • Update CONTACT HISTORY to show that P181 has been received and action taken

Benefit is for earlier year and no matching JSA employment exists, but other periods of JSA exist which are either live, ceased or P Ceased

17. Follow guidance at step 16

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Two forms received for same period

18. If you receive two forms P181 for the same period
 
  • Check for an entry below the address box on the forms
 
  • Use the table below to find the action to take

Entry Explanation Action
AMENDED entry on one form The paying Agency revised the Jobseekers Allowance figure Ignore the earlier form. Use the figures on the amended form
FINAL entry on one form The form included Jobseekers Allowance shown on an earlier form Ignore the earlier form. Use the total figures on the final report
No entry on either form The individual may receive Jobseekers Allowance both as a striker and as an unemployed person Use the total Jobseekers Allowance figures on both forms when you adjust the code. Do this even if the total is more than the normal maximum

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