I have been notified by a company that their employee who has reached state pension age in September has deferred the pension.
I have been told to carry on the payroll as normal.
My question is that I have a P6 change of tax code from 11th January 2012 from 855L to 792L. The previous bookkeeper has written on this retirement date for state pension 06/09/2012.
Would I apply the P6 for month 6? If so is there a certain way of doing this in sage payroll or do I just change the tax code in the employment tab.
You have to operate the coding notice issued by HMRC. If Month 6 has already been processed then apply the new code from Month 7.
To go the extra mile, I would make quite certain that HMRC know that the pension has been deferred. Do this by asking the employee for their P2 Notice of Coding. This contains a breakdown of how the code is arrived at, which your P6 doesn't.
When you have the P2 have a look if there any mention of a pension. If not, then HMRC would appear to know it has been deferred, but you could get the employee to ring and tell them anyway.
Hopefully, someone will come along and let you know the precise keystrokes to change a tax code in Sage.
