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HMRC internal manual

PAYE Manual

HM Revenue & Customs
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PAYE operation: incapacity benefit: automatic uprating: date of increase

Incapacity Benefit is normally increased from the Thursday following the first Monday after 6 April.

The uprating calculation performed by the computer is based on whole weeks, rounded in the individual’s favour. It is applied to the CY rate of benefit in force at the time of the Budget announcement.

In years when 6 April falls on a Monday, Tuesday or Wednesday, the computer uses 50 weeks at the new rate plus two weeks at the old rate, otherwise it takes 51 weeks at the new rate plus one week at the old rate.

If you need to know the actual weekly amount of the new taxable rate

  • Refer to the annual coding BGN memo


  • Refer to form P242


  • Work back from the actual yearly figure of Incapacity Benefit remembering to deduct one or two weeks at the old rate, which should be shown on the CONTACT HISTORY screen