Chapter PAYE13055

Published date13 April 2016
Record NumberPAYE13055
CourtHM Revenue & Customs
IssuerHM Revenue & Customs

This subject is presented as follows

General
System action
Work items
Using percentage increase for following year

General

State pensions and benefits are increased in April each year. The DWP supplies the uprating details on magnetic tape, which gives the revised details for

  • Only those pensioners within the uprating service
    And
  • All cases where the code includes a deduction for employment and support allowance or incapacity benefit

When the uprating details are available, the computer carries out the Automatic state pension / benefits coding. The system

  • Reviews records which include a state pension / benefits in coding
    And
  • Revises the deduction

The review usually takes place towards the end of January, after the Annual Coding Main Review. The Annual Coding Business Guidance Note (BGN) gives the exact dates each year.

The system reviews all live and leaver records which include a deduction in the coding for state pension / benefits and incapacity benefit. It ignores those records where the deceased indicator is set.

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System action

The system identifies cases where the following year’s coding includes a deduction for state pension / benefits or incapacity benefit.

Where an individuals tax code contains more than one benefit type NPS will only allow one benefit type to be carried forward to CY+1.

To do this NPS will use the following priority order to determine which benefit should remain

  • 1 State Pension will be coded above Employment and Support Allowance and Incapacity Benefit
  • 2 Employment and Support Allowance will be coded above Incapacity Benefit
  • 3 Incapacity Benefit will be coded where no other benefits are held

When the benefit to be carried forward has been determined

  • The deduction will be revised

    • Using the new annual rate on the DWP uprating tape
      Or by
    • Increasing it by the correct percentage increase announced by the Government
    • It will not update cases which have the static state pension / benefits indicator

Automatically sets

* The actual state pension / benefits indicator or the actual employment and support allowance or the actual incapacity benefit indicator, where it uses the DWP uprating amount
                 Or
                * The estimated state pension / benefits or estimated employment and support allowance or estimated incapacity benefit indicator, where it uses the percentage amount
                

You can set both these indicators manually during day to day work in the income, allowances, benefits and deductions area.

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Work...

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