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HMRC internal manual

PAYE Manual

PAYE operation: payments for PAYE purposes: principal civil service pension scheme

Information about the Principal Civil Service Pension Scheme is available on the HR ‘Pensions’ web pages.

Pensions for both widows and children are assessable as pension income (see Employment Income Manual at EIM74000 onwards).

The payer of pensions to widows and children of civil servants should send a Starter Declaration to HMRC. Tax is deducted on the emergency code until a correct code is sent. You must issue a correct code as soon as possible.

In some cases responsibility for payment of pensions depends on the arrangements between the employer and the pension scheme. Sometimes the employer may pay

  • Short term pensions
  • Initial pensions to widows with rights to continuing pensions

In these cases normal PAYE procedures apply. Where there is a right to a continuing pension which is to be paid by the pension scheme, the employer will complete form P45, sending

  • Part 1 details to HMRC on a Full Payment Submission
  • Parts 2 and 3 to the pension scheme, not the individual

The pension scheme must use the code shown on form P45 on a Week 1 / Month 1 basis. When the widow’s or orphan’s records are received, the cumulative basis should be restored if possible.