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PAYE13152 | Coding: coding: general principles: work item 423 - SA auto coding - manual code indicator set (Action Guide)

From HM Revenue & Customs · PAYE Manual

Work item 423 will be generated where the manual code indicator is set on the PAYE record. The tax return information will relate to CY-1 but the work item will display as the CY tax year.

To deal with the work item follow steps 1 - 7 below. The guide is presented as follows

Update the record Steps 2 - 5

For details of how to use any of the PAYE Service functions, access the system help.

Initial action in all cases

1. Review

  • The individual’s record on the PAYE Service

  • Indicators set on the record

  • Any relevant notes

Update the record

2. Review the relevant notes for information about the reason why the manual code indicator has been set. Cancel the manual code indicator where the indicator is no longer required

Where a Contact History note ‘Manual Code indicator updated during annual coding YY-YY’ is held and there are no other reasons for the ‘Manual Code’ indicator to be set, you should cancel the indicator

Note: IABD will be populated with information received from CESA, however where the work item is triggered

  • The values for non-PAYE income will not be restricted

  • The maximum 50% K code will not have been calculated

You should refer to action guide tax80002, and reduce the non-PAYE deductions where required before proceeding to the next step.

3. If you are working this work item during the annual coding process (January to March)

  • Update any entry in CY+1 IABD relating to the ‘manual code indicator’ reason and [submit] a tax code calculation for CY+1. If an annual code has not yet been processed the information will be stored on IABD for the Annual Coding process to pick up and issue a tax code

For more information about how to enter details on IABD and submit for a tax code calculation refer to action guide tax80002

4. If you are working this work item outside the annual coding process (April to December)

  • Update any entry in CY IABD relating to the ‘manual code indicator’ reason and [Submit] a tax code calculation

To issue the P6, follow the guidance for ‘CY P6 issue’ at PAYE13025

For more information about how to enter details on IABD and submit for a tax code calculation refer to action guide tax80002

5. Update Contact History

Close the work item

6. Complete the work item notes

7. Close the work item