PAYE93059 - Reconcile individual: end of year reconciliation: work item 233 - EOYR - NT code held (Action Guide)

Work item 233 is created if a positive amount of Occupational, Forces or Public Service pension is shown in IABD and a form P14 has been submitted with a tax code of NT.

In the case of a multiple year reconciliation, for cases where NT coded forms P14 are received for more than one year, work item 233 will display the year associated to the earliest P14. Where this is so you will need to review all relevant years within the multiple year reconciliation and apply the instructions below to all appropriate years.

To clear work item 233 follow steps 1 - 10 below.

The guide is presented as follows

Check to see whether or not code NT is correct Step 1
Review and correct the CY codes Steps 2 - 7
Reconcile CY-1 Steps 8 - 10

Check to see whether or not code NT is correct

1. Review Contact History along with any other available paper notes to determine whether or not code NT is correct, that is, to see whether or not the pension in question is covered by a Double Taxation Agreement or, otherwise exempt from tax (see EIM74302)
 
  • If code NT is correct - go to step 2
 
  • If code NT is not correct - go to step 3

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Review and correct the CY codes

2. If code NT is correct no further coding action is required and you should
 
  • Update the work item notes to the effect that code NT is applicable
 
  • Close the work item
 
  • Go to step 8
3. If the pension is not one where code NT should have been applied, review the CY code of the primary source to establish whether or not it includes a deduction of OCCP, FP or PSP applicable to the NT coded pension source
 
  • If so - go to step 4
 
  • If not - go to step 5
4. Where the allowances in the primary code refer to the NT coded pension
 
  • If the allowances are currently shown as OCCP, FP or PSP, revise the CY tax code to allocate balance of allowances. This is shown on the P2 as ‘other earnings (or pension)’
 
  • Remove the OCCP, FP or PSP as appropriate from IABD
 
  • Update the tax code at the secondary source (the previously coded NT source) to show the appropriate balance of allowances
 
  • Update the work item with details of the action taken
 
  • Close the work item
 
  • Go to step 9
5. Where the NT coded pension has not been accounted for in the primary code, calculate whether or not a balance of allowances is due against the NT coded pension
 
  • If so - go to step 6
 
  • If not - go to step 7
6. Where a balance of allowances is available against the NT coded pension
 
  • Update the primary source tax code to show the appropriate balance of allowances. This is shown on the P2 as ‘other earnings (or pension)’
 
  • Update the tax code at the secondary source (the previously coded NT pension) source to show the appropriate balance of allowances
 
  • Update the work item with details of the action taken
 
  • Close the work item
 
  • Go to step 9
7. Where a balance of allowances is not available against the NT Coded pension
 
  • Decide which tax code (BR or D0) is appropriate to the pension
 
  • Update the tax code at the secondary source with details of the appropriate tax code allocated
 
  • Update the work item with details of the action taken
 
  • Close the work item
 
  • Go to step 9

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Reconcile CY-1

8. If code NT is correct, no tax is due in respect of the pension P14 and you should reconcile the case as ‘Reconciled - Balanced’
9. Where the CY-1 code included a deduction of OCCP, FP or PSP
 
  • Remove the amount concerned using IABD
 
  • Go to step 10
10. Reconcile the case to include the NT pension P14

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