Beta This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

PAYE Manual

PAYE service income, allowances, benefits and deductions: IABD: trusts, settlements and estates

This information is used by the system when calculating the total income calculation for coding purposes only. It is included in the end of year reconciliation and is treated as Non-coded income.

Item Carried Forward
   
Trusts, Settlements and Estates at Trust Rate NO
Trusts, Settlements and Estates at Basic rate NO
Trusts, Settlements and Estates at Lower Rate NO
Trusts, Settlements and Estates at Non-payable Dividend Rate NO

 

Enter any new information on the Details screen which will display

 

  • The item selected
  • Trust, Settlements and Estates Amount
  • Trust, Settlements and Estates tax deducted

Income entered in box 4.10 and 4.11 of the R40 should be entered in IABD in the field ‘Trusts Settlements and Estates income at the basic rate’.

Note: The gross amount of income should be entered in the relevant income fields.

Trusts, Settlements and Estates at Savings rate

There is no specific field to enter Trusts, Settlements and Estates income at the savings rate. Any trust income

  • Which is taxed at the savings rate

And

  • Qualifies for the starting rate for savings

    • Must be entered in the individual’s investment income as bank and building society interest see PAYE130060 and select the ‘Calculate’ option

Note: Trust income which has been paid without tax deducted at source, should be  entered as Untaxed Interest.

You must

  • Enter the gross, net and tax figures

And

  • Make a note in Contact History

Any trust income which is taxed at the dividend rate and is non-refundable, must be entered in the individual’s investment income as UK dividends.

You must

  • Enter the gross, net and tax figures

And

  • Make a full note in Contact History