PAYE12046 - Coding: coding deductions and expenses: expenses (Action Guide)
When the coding involves expenses, follow steps 1 - 13 below. This Guide is presented as follows
Actors and other theatrical performers
Steps 1 - 2
Expenses which cover two or more sources
Steps 3 - 4
Steps 5 - 7
Step 8
Jobseeker’s Allowance claimants
Steps 9 - 10
Steps 11 - 13
For details of how to use any of the PAYE Service functions, access the system help.
Actors and other theatrical performers
1. Allow relief for fees paid to licensed agents, co-operative societies and agencies as job expenses. (See Employment Income (EIM) Manual at EIM62800)
2. Make a note of any estimated figures used in arriving at the amount of job expenses in Contact History
Expenses which cover two or more sources
3. Operationally make sure that there is evidence of sufficient income from the relevant employment to deduct expenses from. Restrict the amount of expenses if necessary. EIM31655 has more information about allowing expenses where there is more than one source of employment
4. Give the relevant amount of expenses in income, allowances, benefits and deductions (IABD). For more information about how to enter details and submit for a code calculation on IABD refer to action guide tax80002
EYA coding adjustment
5. Agree the amount of expenses due
6. Agree the number of years expenses claimed for
7.Calculate the earlier year’s adjustment and any current year’s job expenses in IABD
Gang leaders
8. Do not give any allowance to the leader of a gang or squad for wages paid to gang members
Jobseeker’s Allowance claimants
When an individual first claims Jobseeker’s Allowance
9. Continue to give any flat rate expenses or professional subscriptions for the length of the claim in the first year. Where the claim continues into a second year, remove the flat rate expenses.
10. Review any other job expenses and revise the allowance and the code if needed
Local government councillors
If an expense allowance is due and the councillor elects to have tax deducted from the net payments you should
11. Set the manual correspondence to employer in Maintain Individual area
12. Make a note in Contact History on the individual record using these words Manual correspondence to employer DISREGARD (AMOUNT*) EACH WEEK (or MONTH)
13. Tell the council the amount to be deducted from the payment each week or month before code BR is applied. This is the amount the council will disregard each week or month for estimated expenses