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HMRC internal manual

PAYE Manual

HM Revenue & Customs
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Coding: coding: general principles: coding: work items 137 and 156

An individual may have more than one source of income that requires a tax code. There are some general rules to follow when dealing with more than one coded source.

If there is a surplus of allowances left after coding the primary source, a suffix code can be used at the secondary source. This is usually allocated a T suffix. If all allowances are used at the primary source, the secondary source is usually coded BR.

Where higher rates are due, the secondary source is usually coded D0. However there are exceptions to this general rule. Further advice is available at PAYE13075.

Note: These are only general rules and in certain circumstances other codes may be appropriate. Remember also that an individual may elect to use his or her reliefs and allowances against the various sources of income in any way he or she chooses.

Where there is more than one secondary source, allocate surplus allowances in the following order

    1. Reallocate the allowances as the customer requests
    1. Against largest secondary occupational pension
    1. Against secondary source with larger PAYE estimated pay

A work item will be generated where allowances are allocated from the primary source to a secondary source and the allowances do not balance or there are surplus allowances available and there is more than one secondary source.

Note: From 15 December 2010 work item 156 has been automated by the PAYE Service.

The work items are

137 - ALLCEs allocated do not balance

Generated where the allowance allocated elsewhere on primary employment does not equal the total amount of allowance allocated here shown on the secondary employments.

156 - Review code - unused allowances

Note: This work item was only generated up to and including 14 December 2010.

Generated where there are unused allowances on the primary source and there is more than one live secondary source.