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HMRC internal manual

PAYE Manual

PAYE Manual: recent changes

Below are details of the amendments that were published on 1 February 2013 (see the update index for all updates)

Only important changes for dissemination to staff are listed in the table below. The content of other pages within this Manual may have required a minor change because of an update to the originating subject(s) listed or to correct spelling mistakes or links, or to change page presentation. You are reminded that any page printed from this Manual is uncontrolled and may not be the latest version. It is recommended you always refer to guidance online.


Page Details of update

Left bar content

PAYE001 (Available to internal users only) ‘Business Calendar’ - Updated. Entries for January 2013 removed and entries for January 2014 added.
PAYE055 ‘Glossary of terms’ - Entry for ‘Employer reference’ updated.
PAYE058 (Available to internal users only) ‘Index of Work Items’:
The entries for these work items have been updated - 045, 056, 128, 237, 238, 239 and 240.


PAYE5011 ‘Real time information (RTI): new employers joining RTI from November 2012’ - Subject updated.


PAYE11010 ‘Codes: how they are used and calculated: cases where you should use code NT’ - Under sub heading ‘Double Taxation Agreements’, first bullet updated.
PAYE11121 ‘Codes: how they are used and calculated: amending code NT (Action Guide)’ - Action Guide removed as it has been replaced by SPD 6c.2.
PAYE11125 ‘Codes: how they are used and calculated: indicators’ - In the table, the ‘Notes’ column for the ‘Higher Rate’ indicator has been updated.
PAYE13050 ‘Work item 237 - manual work item - coding’ - Subject updated.
PAYE13100 ‘Coding: general principles: higher rate individuals’ - Under sub heading ‘The higher rate indicator’, text updated.
PAYE14010 ‘Adjustments to collect tax: coding out outstanding debts’ - ‘Note’ added above the sub headings.

Employer records

PAYE20001 ‘Set up employer record: introduction’ - Under sub heading ‘Effect of setting up a new employer record’, ‘Note 3’ has been updated.
PAYE21020 ‘Maintain employer record: cancelled one year only (COYO)’ - Under sub heading ‘When to COYO’, final sentence added.
PAYE21025 ‘Maintain employer record: cessation where the employer record is dormant’ - Title updated - previously called ‘Cessation and dormancy’.
PAYE21026 ‘Maintain employer record: cessation where the employer record is dormant (Action Guide)’ - Title updated - previously called ‘Cessation and dormancy (Action Guide)’. Steps 7 to 10 updated.

Employer returns

PAYE49021 ‘Issue / cancel employer returns: non receipt of employer return (Action Guide)’ - Under sub heading ‘No credits held’, steps 3 and 4 updated.

Employment maintenance

PAYE61196 ‘Create employment: capture form P92 (Action Guide)’ - Under sub heading ‘Update record’, step 6 updated.
PAYE64045 ‘Work item 45 - online input tax table discrepancy’ - Subject updated.
PAYE64046 ‘Work item 45 - online input tax table discrepancy (Action Guide)’ - Action Guide removed as this work item should no longer be generated to create a BF.
PAYE64063 ‘Work item 239 - manual work item - employment maintenance’ - Subject updated.

PAYE operation

PAYE80010 ‘Review of claims and deductions: expenses / P87’ - Under sub heading ‘Repayment’, text updated.
PAYE80012 ‘Review of claims and deductions: hotel and meal expenses (Action Guide)’ - Action Guide updated.
PAYE80013 ‘Review of claims and deductions: other expenses (Action Guide)’ - Action Guide updated.
PAYE80014 ‘Review of claims and deductions: vehicle and mileage allowances (Action Guide)’ - Action Guide updated.
PAYE80026 ‘Review of claims and deductions: income from property (Action Guide)’ - Under sub heading ‘Initial action’, step 2 updated. Under sub heading ‘Reply received’, step 6 updated.
PAYE80032 ‘Review of claims and deductions: gift aid (Action Guide)’ - Action Guide updated.
PAYE80033 ‘Review of claims and deductions: loan (Action Guide)’ - Action Guide updated.
PAYE80034 ‘Review of claims and deductions: OCCP - where OCCP is coded out (Action Guide)’ - Action Guide updated.
PAYE80035 ‘Review of claims and deductions: PPR (Action Guide)’ - Action Guide updated.
PAYE80036 ‘Review of claims and deductions: PSUBS (Action Guide)’ - Action Guide updated.
PAYE80037 ‘Review of claims and deductions: RAR (Action Guide)’ - Action Guide updated.
PAYE80038 ‘Review of claims and deductions: taxed savings (Action Guide)’ - Action Guide updated.
PAYE81585 ‘International employments: short term visitors treated as provisionally not resident’ - Sub heading for ‘Visiting teachers’ renamed ‘Visiting teachers and foreign language assistants’ and corresponding text updated.

Reconcile individual

PAYE91021 ‘Overpayments: end of year reconciliation: early repayments and form P11D (Action Guide)’ - Step 2 updated.
PAYE91051 ‘Overpayments: record repayment (Action Guide)’ - Action Guide removed as it has been replaced by SPD 70.13.
PAYE91070 ‘Work item 128 - manual WI - recalculate REPT’ - Subject updated.
PAYE93031 ‘Work item 238 - manual work item - reconciliation’ - Subject updated.
PAYE94015 ‘In-year reconciliation: automatic in-year reconciliation checks’ - Under sub heading ‘Unable to process claim?’, final bullet updated.
PAYE94021 ‘In-year reconciliation: special circumstances (Action Guide)’ - Under sub heading ‘Statutory Maternity Pay received’, step 4 updated.
PAYE94045 ‘In-year reconciliation: trivial commutation payments’ - Under sub heading ‘P53 issued at the end of the tax year’, text updated.
PAYE94086 ‘Work item 130 - repayment P45(1) now received (Action Guide)’ - Under sub heading ‘Papers in a different location’, step 14 updated.
PAYE94091 ‘In-year reconciliation: state pension deferral lump sum payments (Action Guide)’ - Action Guide removed as it has been replaced by SPD 7a.

Individual records

PAYE103006 ‘Work item 56 - amend taxpayer details - further information needed’ - Subject updated.
PAYE103010 ‘Maintain individual details: date of birth’ - First bullet updated.
PAYE103015 ‘Maintain individual details: date of death’ - Under heading ‘Verified date of death incorrect’, first bullet updated.
PAYE103025 ‘Maintain individual details: address’ - Opening text, prior to the sub headings, updated.
PAYE103060 ‘Maintain individual details: marriage and civil partnership’ - First bullet updated.
PAYE103065 ‘Maintain individual details: indicators’ - In the table, the ‘Description’ column for the ‘Higher Rate’ entry has been updated.
PAYE105501 ‘BF policy: introduction’ - Under sub heading ‘How a BF is created’, text updated.
PAYE105510 ‘BF policy: core principles’ - List of bullets updated.
PAYE105520 ‘BF policy: how to create a BF’ - Subject updated.
PAYE105521 ‘BF policy: how to create a BF (Action Guide)’ - Action Guide and Examples updated.

Work management

PAYE110010 ‘PAYE work management system: creation of a work item’ - New sub heading and corresponding text added for ‘Manual creation of work items’.
PAYE110080 ‘PAYE work management system: create a work item’ - Subject removed as it is out of date.

PAYE Service income, allowances, benefits and deductions

PAYE130035 ‘IABD: earnings’ - Under sub heading ‘Non coded income’, the second and third bullets have been updated. Under sub heading ‘Casual earnings’, text updated.
PAYE130075 ‘IABD: taxable social security benefits’ - Under sub heading ‘Other Benefits’, and heading ‘Up to November 2009’, text updated.