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HMRC internal manual

PAYE Manual

From
HM Revenue & Customs
Updated
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Employment maintenance: cease employment: work item 50 - update to specialist record - maintain (Action Guide)

To clear work item 50, Residency CRT staff should follow steps 1 - 6 and Expat Unit staff should follow steps 7 - 12 below. This Guide is presented as follows

Residency CRT staff

  Step 1
   
  Step 2
  Step 3
  Step 4
  Step 5
  Step 6

Personal Tax International staff initial action

  Step 7
   
  Steps 8 - 10
  Step 11
  Step 12

 

 

Residency CRT staff initial action

1. Review the EMPLOYMENT SUMMARY screen to see whether the work item has been created because
   
  * Employment has changed - go to step 2
  * Employment has ceased - go to step 3
  * Additional employment - go to step 4
  * New pension source - go to step 5

If the work item is the result of a change of employment

2. Review the INDIVIDUAL INDICATORS screens and see if they include an amount of FRE

  | || |   | ### If FRE is not present | |   | * Update work item to show ‘no FRE’ | |   | * Close the work item in accordance with PAYE110075 | |   | ### If FRE is present and the employment is the same type | |   | * Leave the full years expenses in the code | |   | ### If FRE is present but the employment is not the same type | |   | * Remove current expenses from the code
 
Or | |   | * Replace current expenses with expenses due for the new employment |

If the work item is a result of a cessation of the employment

3. Note the work item ‘employment ceased’
   
  * Close the work item in accordance with PAYE110075

If the work item is a result of an additional employment

4. Note the work item ‘additional employment’
   
  * Close the work item in accordance with PAYE110075

If the work item is a result of a new pension source

5. View the personal address through the ADDRESS SUMMARY screen
   
  * Review the Double taxation digest manual (on Knowledge Management (KM)) to check whether the pension can be exempted under the DTA
  ### If the person is living in a Double Taxation Agreement (DTA) country
  * Write to the individual and send a DTA claim form
  * Note the work item ‘DTA form issued (date)’
  * If a revised code needs to be issued see step 6
  * If a revised code is not required close the work item in accordance with PAYE110075
  ### If the person is not living in a Double Taxation Agreement (DTA) country
  * Note the work item ‘DTA not due’
  * If a revised code needs to be issued see step 6
  * If a revised code is not required close the work item in accordance with PAYE110075

Review the tax code on the record

  Note: Before issuing a revised code consider the individuals employment history and the previous tax codes operated during the year, see PAYE61205.
   
6. View IABD LANDING screen
  * Enter the individuals Employment Estimated Earnings, see PAYE130045 and [Submit]
  * Review the TAX CODE DETAILS screen, see PAYE11130 and [Submit]
  * Only issue P2 and P6 if calculated code differs from code shown on work item and [Submit]
  * Review the EDIT EMPLOYMENT ALLOCATION screen to consider the basis of operation for the tax code(s) to be issued, see PAYE13115 and [Submit] to issue the revised tax codes

Personal Tax International staff initial action

7. Review the EMPLOYMENT SUMMARY screen to see whether the work item has been created because
   
  * Employment has changed - go to step 8
  * Employment has ceased - go to step 11
  * Additional employment - go to step 12
  * New pension source - go to step 8
  Where the work item was not created following an employment update - go to step 9

If the employment has changed

8. Review the MAINTAIN INDICATOR screen to see whether the Specialist Business Area indicator case is still EXPAT
   
9. If the EXPAT indicator is present and still appropriate
  * Review the IABD BENEFITS and IABD EXPENSES screens
  * If the code number is impacted update the code via the IABD LANDING screen
  Note: For details on the completion of IABD and issuing codes see action guide tax40002.
  * Review whether the employment impacts Modified / Tax Equalised benefits (TEBEN)
  * If it does update the ‘Modified’ and / or ‘Tax Equalised Benefit’ indicator through the MAINTAIN INDICATOR screen
  * Check whether the Last Return Year Signal is set in SA and if so unset it
  * Close the work item in accordance with PAYE110075
10. If the EXPAT indicator is present but no longer appropriate
  * Remove the EXPAT indicator through the MAINTAIN INDICATOR screen
  * Deselect the case from the segment - transfer file and SA record to appropriate Customer Operations Office
  * Close the work item in accordance with PAYE110075

If the work item is a result of a cessation of the employment

11. Close the work item in accordance with PAYE110075
   

If the work item is a result of an additional employment

12. Update the secondary code number using the IABD LANDING screen
   
  * Close the work item in accordance with PAYE110075