Chapter PAYE130067

Published date13 April 2016
Record NumberPAYE130067
CourtHM Revenue & Customs

Please note that the following guidance only relates to state pensions.

To enter or update widowed parent’s allowance or bereavement allowance you should continue to follow the guidance at Action guide tax40161

Care should always be taken when entering or updating state pension details in IABD. In your day to day work there will be times when state pension is being introduced into the tax code in a later tax year than it commenced, or you need to update state pension details already on the record. It is important that state pension details are always entered correctly to

  • Ensure that the tax code is correct
  • Ensure that annual coding calculates the correct amount of state pension for CY+1
  • Ensure that the end of year reconciliation includes the correct amount of state pension
State pension commences CY

Where you are updating IABD for the first time with state pension details you should follow the guidance in Action guide tax40160.

Revision to CY first year state pension information

Where you are notified within the first year of state pension commencing of a change to the state pension details held in IABD, you must amend IABD as follows

  • Amend the start date if necessary

Note: If you have received information that suggests the original state pension start date is incorrect and the actual state pension start date is earlier than CY (06/04/CY), you should follow the guidance below under ‘State pension commences earlier than CY’.

  • Enter the revised weekly amount
  • Select ‘weekly’ as the frequency of payment, ensuring that the frequency of payment is not recorded as ‘annually’
  • Select ‘estimated’ or ‘actual’ as appropriate

The 52 weekly amount should be automatically calculated for CY+1 and populated in IABD, where this hasn’t occurred you should enter the 52 weekly amount in IABD for CY+1.

Two different rates of state pension received within the same tax year

It is possible that two different rates of state pension may be received in the same tax year, for example, due to the death of a spouse. To ensure that both the tax code and reconciliation are correct, you should follow the guidance under ‘Exceptional circumstances’ in action guide tax40160 when updating IABD.

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State pension commences earlier than CY State pension commences CY-1

Update IABD for the year state pension commences as follows

  • Enter a start date

Note: Not entering a start date will result in state pension being incorrectly calculated in CY.

  • Manually calculate and...

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