PAYE13020 - Coding: coding: general principles: work item 403 - annual coding - update NIB - primary EMPT live at ESA source (Action Guide)

Work item 403 is generated when the DWP file shows state pension / benefits to be updated but the individual's primary employment is live at (This content has been withheld because of exemptions in the Freedom of Information Act 2000).

Note: An individual cannot receive state pension / benefits and employment and support allowance (ESA) at the same time therefore the CY+1 tax code should only contain one of these deductions.

To clear work item 403 follow steps 1 - 12 below. This guide is presented as follows

Initial action in all cases Step 1

Update the record Steps 2 - 10

Close the work item Steps 11 - 12

For details of how to use any of the PAYE Service functions, access the system help.

Initial action in all cases

1. Review

  • The individual’s record on the PAYE Service
  • Indicators set on the record
  • Any relevant notes

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Update the record

2. Check Contact History and other notes for information about why the primary employment source is ESA

3. Where it is valid for state pension / benefits to be coded and (This content has been withheld because of exemptions in the Freedom of Information Act 2000) is no longer the primary employment source, update the employments details in maintain employments. For information about maintaining employments refer to PAYE64001

4. Update the state pension / benefits with the annual amount for CY+1 in the income, allowances, benefits and deductions (IABD). For information about how to enter details and submit for a code calculation refer to action guide tax80002

Note: If CY+1 IABD contains a deduction for ESA this should be reduced to ‘0’ (zero).

5. On the Code Details screen ‘Submit’ to issue the tax code

6. Update Contact History and go to steps 11 and 12

7. Where it is valid for the state pension / benefits to be coded and (This content has been withheld because of exemptions in the Freedom of Information Act 2000) is the primary employment source

  • In the EMPLOYMENT SUMMARY screen, select the Edit Record icon next to the ESA employment
  • Set the potentially ceased indicator and select [Save]

8.  Update the state pension / benefits with the annual amount for CY+1 in the income, allowances, benefits and deductions (IABD). For information about how to enter details and submit for a code calculation refer to action guide tax80002

9. On the Code Details screen ‘Submit’ to issue the tax code

10. Update Contact History and go to steps 11 and 12

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Close the work item

11. Complete the work item notes

12. Close the work item