Coding: codes: how they are used and calculated: viewing tax code history
To access the Coding History of an individual, in the left hand side of the PAYE Service
- Select Tax Coding, then
- Select Coding History
The Tax Code Calculations screen will be displayed.
The Tax Code Calculations screen will display the history of tax code calculations for all employments for the individual. The screen will display a summary of each calculation in date order with the most recent calculation at the top of the screen. Each row will display a single Tax Code calculation for all employments at the time of that calculation. The date of issue recorded is the date that the tax code was calculated, see the table below for details about Notice to Individual / Agent (P2) and Notice to Employer (P6 / P9). The P2 and P6 / P9 columns will show whether the P2 and / or P6 / P9 have been issued. Contact History will display the date the P2 and P6 / P9 was issued. To the right of each row is a link that navigates the user to the Tax Code Details screen to display details about that tax code. Below the rows is an action link that will take you to the Employment Summary. Help about the fields and buttons is available in System help.
The Tax Code Calculations screen can display top level details of up to 10 tax codes and when there are more to view for the year the [back] / [forward] buttons on the bottom left of the screen can be used to access the top level details of (up to) a further 10 tax codes. Where you do this and you view the Tax Coding Details screen of a code, at the point at which you cancel out of the Tax Coding Details screen you are returned to the Tax Code Calculations screen for the set of 10 cases you accessed the details screen from.
Note. Where the Scottish Rate of Income Tax is applicable it will include an S Prefix to the tax code, for example, S1100L, SBR, S0T. Further information is given at PAYE100035
The Tax Code Details screen will display the tax code with the following information.
|Tax Year||The tax year that the code relates to. For example 2008-09 is the year 6 April 2008 to 5 April 2009|
|Net coding allowances||A tax free amount that is the result of total allowances and relief’s minus deductions and adjustments|
|Tax Code||The tax code for example 358L, S358L|
|Basis of operation||The basis that the code is operated for example|
|Week 1/ Month 1|
|Week 1/ Month 1 Not Operated|
|Cumulative Not Operated|
|Potential Underpayment (prior 2 July 2017)||The calculated amount of any potential underpayment|
|Total In Year Adjustment (from 2 July 2017)||The calculated amount of any in year underpayment (the extra tax due in CY)|
|In Year Adjustment in CY+1 (from 2 July 2017)||The amount underpaid in the current tax year which is going to be collected in CY+1|
|Date of issue||The date the coding was calculated or effective date under the Budget P7X or Annual Coding P9X procedures. If the basis of operation is Not Operated the P6 / P9 is not issued to the employer. Contact History will display the actual date that the system issued the P2 or P6 / P9|
|Penal||Where the penal indicator is set the word PENAL will be displayed|
|Employer||The name of the employer / pension provider / DWP office|
|Employer reference||The PAYE reference|
|Works No.||The payroll / pension number provided by the employer or the code of the DWP office|
|Code Type||When a tax code is generated a code type is recorded with one of the following types|
|Automatic Code Change - The system has automatically calculated the tax code|
|Manual Code Change - An operator has generated a tax code calculation|
|Annual Coding - The code has been calculated in the automatic annual coding process|
|Budget Coding - The code has been calculated in the automatic Budget coding process|
|Budget Coding (Not yet issued) - The code has been calculated in the automatic Budget coding process but has not yet been issued. The code will be finalised after the Budget final review|
|Budget Coding P7X - The code has been calculated in the automatic Budget coding process, the employer will use the P7X procedures. No P2 / P6 issued|
|Annual Coding P9X - The code has been calculated in the automatic Annual coding process, the employer will use the P9X procedures. No P2 / P9 issued|
|SA Autocoding - The code has been calculated in the automatic Self Assessment coding process|
|Estimated Pay||The amount of the estimated pay used in the code calculation for the particular employment|
|Estimated Tax||The amount of the estimated tax that the tax code at that particular employment|
|Allowances||Details of the allowances and reliefs present in an individual’s code. For Personal Pension Relief and Charitable Donation Payments where there is no higher rate liability the source amount will be populated with the amount paid and the allowance amount will be zero. The P2 will not print these notes where the individual is not higher rate|
|Deductions||Details of the deductions and adjustments present in an individual’s code|
From 2 July 2017 a new In Year Adjustment deduction type is being introduced.
The source amount is the underpayment calculated in CY.
|The deduction is the restriction calculated to collect the underpayment in CY.|
|Notice to Individual / Agent (P2)||If a digital preference is set via an online account the drop down will function as follows:|
|Digital Notice - A digital notice has been issued|
|Manual Issue - would allow the issue of a paper output. Use the SEES tool to issue a manual P2|
|Issue - An error message would appear advising that a digital preference is set and would not allow a paper issue|
|Not Issue - Nothing would be issued|
|If a digital Preference is not set:|
|Digital Notice - An error message will appear advising that a digital preference is not set and will not allow a digital notice to be issued|
|Manual Issue - Would require the user to issue a paper P2, use the SEES tool to issue a manual P2|
|Issue - would issue a paper output|
|Not Issue - Nothing would be issued|
|Contact History will display the actual date that the system issued the P2 or P6/P9|
|Notice to Employer (P6 / P9)||The drop down will display one of the following:|
|Issue - a P6 / P9 has been issued by the system from an automatic coding review for example Annual, Budget, auto coding ECS benefits or from a user triggered code calculation|
|Not Issue - a P6 / P9 has not been issued|
|Manual Issue - a P6 / P9 has been issued manually by a user|
|Contact History will display the actual date that the system issued the P2 or P6 / P9|
For Primary codes on the Tax Code Details screen are links to calculations used in determining the tax code
- View IABD - an estimate of the allowances and deductions
- View Total Liability calculation - an estimate of the total tax to be paid based on PAYE income, benefits and kind, non-coded income and investment income
- View Adjusted Net Income calculation - an estimate of the income used in the calculation of age related allowances
- View Employment Liability calculation - an estimate of the PAYE tax to be paid on the PAYE employment income
- View Employment Summary - takes you to the Employment Summary screen for the year you are reviewing
For Personal Pension Relief, Charitable Donation Payments and Higher rate adjustment a link to the right of allowance will display the coding calculation screen of the selected item.
The calculations are provided for illustrative purposes only to help with coding enquiries. The calculations are based on estimated figures; the correct tax liability will be reviewed at the end of the tax year when actual income details are known through the end of year reconciliation (PAYE93001) or Self Assessment tax return.
The notes printed on the individual’s notice of coding (form P2) can be displayed using the Notes button.