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HMRC internal manual

PAYE Manual

PAYE operation: employment and support allowance: introduction

Employment and Support Allowance (ESA)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

The Department for Work and Pensions (DWP) introduced a new benefit from 27 October 2008, Employment and Support Allowance (ESA) which replaces Incapacity Benefit (IB).

The ESA benefit details are submitted to HMRC from DWP electronically using the DWP Jobseeker’s Allowance Payment System (JSAPS). This means that the way in which we deal with ESA information will be different to the way in which we deal with IB.

For National Insurance purposes, details of the ESA award will be sent to the National Insurance and PAYE Service (NPS) electronically using the daily interface between JSAPS and NPS. Any IB awards will continue to be sent to NPS using the daily interface between Pension Service Computer Service (PSCS).

There may be occasions where a record has more than one live ESA claim or a live ESA claim and another live DWP benefit, for example, Jobseeker’s Allowance, which is shown on EMPLOYMENT SUMMARY screen. Where this is found you should follow the guidance in Action guide tax40003.