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The Income Tax (Employments) Regulations 1993

Type Statutory-Instrument

Publication 1993-03-16

State In force

Department Queen's Printer of Acts of Parliament

Source legislation.gov.uk

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Made: 16th March 1993

Laid before the House of Commons: 16th March 1993

Coming into force: 6th April 1993

The Commissioners of Inland Revenue, in exercise of the powers conferred on them by sections 203, 204 and 824(5) of the Income and Corporation Taxes Act 1988[^f00001], and section 98A(1) of the Taxes Management Act 1970[^f00002], hereby make the following Regulations:

PART I — INTRODUCTORY

Citation and commencement

1

(1) These Regulations may be cited as the Income Tax (Employments) Regulations 1993.

(2) These Regulations shall come into force on 6th April 1993 immediately after the Income Tax (Employments) (No. 24) Regulation 1993[^f00003], the Income Tax (Employments) (No. 25) Regulations 1993[^f00004] and the Income Tax (Employments) (No. 26) Regulations 1993[^f00005].

Interpretation

2

(1) In these Regulations unless the context otherwise requires–

“additional pay” means the appropriate amount required by a code authorisation to be added to the emoluments paid to an employee in order to determine the taxable emoluments;

“allowable superannuation contributions” means any sum paid by an employee by way of contribution towards a superannuation fund or scheme which is allowed to be deducted as an expense under Schedule E;

“basic rate” has the same meaning as in section 832(1) of the Taxes Act;

“the Board” means the Commissioners of Inland Revenue;

“code” means any part of the tax tables in which all the amounts of free emoluments or additional pay for any period have been calculated on the basis of the same total amount for the whole year, and references to code include any designation thereof by numbers and letters, alone or in combination;

“code authorisation” means a notice specifying the appropriate code given by an inspector to an employer;

“collector” means a collector of taxes;

“cumulative additional pay”, in relation to any date, means the sum of the additional pay from the beginning of the year up to and including that date;

“cumulative emoluments”, in relation to any date, means the sum of all payments of emoluments made by the employer to the employee from the beginning of the year up to and including that date;

“cumulative free emoluments”, in relation to any date, means the sum of the free emoluments from the beginning of the year up to and including that date;

“cumulative tax” means the tax due in accordance with the appropriate tax tables in respect of any cumulative taxable emoluments at the relevant date;

“cumulative taxable emoluments”, in relation to any date, means the cumulative emoluments reduced by the cumulative free emoluments or, as the case may be, increased by the cumulative additional pay;

“deductions working sheet” means any form of record on or in which are to be kept the matters required by these Regulations in connection with an employee’s emoluments and tax, or, in regulations 20 and 104, the form issued by the inspector for the purpose of keeping that record;

“earnings-related contributions” means contributions payable under the Social Security Contributions and Benefits Act 1992[^f00006] or, in Northern Ireland, the Social Security Contributions and Benefits (Northern Ireland) Act 1992[^f00007] by or in respect of an employed earner in respect of employed earner’s employment;

“emoluments” means the full amount of any income to be taken into account in assessing liability under Schedule E after the deduction of— allowable superannuation contributions, and any sum withheld from an employee in accordance with section 202 of the Taxes Act[^f00008], and references to payments of emoluments include references to payments on account of emoluments;

“employed earner” and “employed earner’s employment” have the same meaning as in the Social Security Contributions and Benefits Act 1992, or, in Northern Ireland, the Social Security Contributions and Benefits (Northern Ireland) Act 1992;

“employee” means any person in receipt of emoluments;

“employer” means any person paying emoluments;

“free emoluments” means the appropriate amount of any emoluments of the employee which qualify for relief from income tax;

“higher rate” has the same meaning as in section 832(1) of the Taxes Act[^f00009];

“income tax month” means the period beginning on the 6th day of any calendar month and ending on the 5th day of the following calendar month;

“income tax period” means income tax quarter where regulation 41 has effect, but otherwise means income tax month;

“income tax quarter” means the period beginning on the 6th day of April and ending on the 5th day of July, or beginning on the 6th day of July and ending on the 5th day of October, or beginning on the 6th day of October and endingon the 5th day of January or beginning on the 6th day of January and ending on the 5th day of April;

“inspector” means an inspector of taxes;

“lower rate” has the same meaning as in section 832(1) of the Taxes Act[^f00010];

“the Management Act” means the Taxes Management Act 1970[^f00011];

“notice” means notice in writing;

“overriding limit” means the limit on the amount of tax to be deducted from a payment of emoluments where the tax due in accordance with the appropriate tax tables in respect of any taxable emoluments at the relevant date has been calculated by reference to additional pay, and that limit shall be an amount equal to 50 per cent. of the amount of the emoluments paid;

“pension emoluments” means any payment of emoluments comprising a pension or annuity assessable to income tax under Schedule E;

“previous cumulative tax” means the cumulative tax corresponding to the employee’s cumulative emoluments at the later of the date of the last preceding payment of emoluments or the date last treated as the occasion on which emoluments were paid;

“reliefs from income tax” includes allowances and deductions but not allowable superannuation contributions;

“tax not deducted” means tax due in accordance with the appropriate tax tables in respect of any taxable emoluments at the relevant date which as a consequence of the overriding limit has not been deducted;

“tax tables” means the tax tables prepared by the Board under section 203 of the Taxes Act, and “simplified tax tables” means such of those tax tables as are prepared by the Board for use where, under regulation 20, tax is deductible without reference to cumulative emoluments and cumulative tax;

“taxable emoluments” means emoluments reduced by free emoluments or, as the case may be, increased by additional pay;

“the Taxes Act” means the Income and Corporation Taxes Act 1988[^f00012];

“total net tax deducted”, in relation to the emoluments paid to any employee during any period, means the total tax deducted from those emoluments less any tax repaid to the employee;

“trade dispute” has the meaning given by section 27(3) of the Social Security Contributions and Benefits Act 1992 or, in Northern Ireland, section 27(3) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992;

“year” means year of assessment and “current year” shall be construed accordingly.

(2) The table below indexes other general definitions in these Regulations—

Term defined	Regulation
the minimum rate	28(2)
the prescribed place	55(3)
the reckonable date	51(3).

PART II — GENERAL PROVISIONS RELATING TO EMPLOYERS

Multiple employers

3

(1) Where an employer so elects, he shall be treated for all the purposes of these Regulations as if in respect of each group of his employees specified in the election he were a different employer, that is to say, as if each such group constituted all his employeesand in particular, but without prejudice to the generality of the foregoing—

(a) each such group shall be treated for those purposes as employed in a separate undertaking from that in which any other such group is employed, and

(b) an employee ceasing to be employed in one such group and commencing employment in another such group shall be treated for those purposes as having ceased to be employed by the employer and having commenced an employment with a new employer.

(2) An election under this regulation must be made by notice to the inspector and any such notice shall contain—

(a) such information as may be necessary to identify the groups of employees concerned,and

(b) a certificate that the employer has no employees other than those in the groups so identified.

(3) Subject to paragraph (4), an election shall have effect for the year following that in which it is made and, unless revoked, shall also have effect for any subsequent year.

(4) Where an employer acquires the whole or a part of any trade, business, concern or undertaking of another employerand within 90 days of the acquisition elects under this regulation to be treated as a separate employer in respect of the group of employees employed in the acquired trade, business, concern or undertakingand his existing employees or, where an election is already in force in respect of them, each group of his existing employees, that election shall have effect for the year in which the acquisition takes placeand any subsequent year.

(5) An election in force for any year may be revoked by notice to the inspectorand any such revocation shall have effect for the year following that in which notice of it is givenand any subsequent year, but shall not prejudice the making of a fresh election for that following or any subsequent year.

Intermediate employers

4

(1) Where an employee works under the general controland management of a person who is not his immediate employer, that person (in this regulationand in regulation 5 referred to as “the principal employer”) shall be deemed to be the employer for the purposes of these Regulations.

(2) The immediate employer shall furnish the principal employer with such particulars of the employee’s emoluments as may be necessary to enable the principal employer to comply with the provisions of these Regulations.

(3) If the employee’s emoluments are actually paid to him by the immediate employer, then—

(a) the immediate employer shall be notified by the principal employer of the amount of tax to be deducted or repaid when the emoluments are paid to the employee,and shall deduct or repay the amount so notified to him accordingly; and

(b) the principal employer shall make a corresponding deduction or addition on making to the immediate employer the payment out of which those emoluments will be paid.

Troncs

5

(1) This regulation applies where an organised arrangement exists for gratuities or service charges to be shared among two or more employees by any person (the organised arrangement being commonly known as a tronc and the person in question being commonly known and referred to in this regulation as a tronc-master).

(2) Subject to paragraph (3), where this regulation applies—

(a) every payment to an employee by way of the sharing out of gratuities or service charges by the tronc-master (including the retention by him of his own share if he is also an employee) shall be regarded for the purposes of these Regulations as a payment by him of emoluments; and

(b) to the extent of any such payment, the tronc-master shall be regarded as the employer for the purposes of these Regulations, notwithstanding regulation 4.

(3) If in any particular case the Board are satisfied that the tronc-master has failed to observe or fulfil the requirements of these Regulations or any of them and they so direct, then—

(a) any gratuities or service charges shared as mentioned in paragraph (1) and paid to the tronc-master through the principal employer shall be dealt with in accordance with regulation 4, and

(b) any share of gratuities or service charges not so dealt with shall either—

(i) be assessed under regulation 103 on the employee receiving the same, or

(ii) be taken into account under regulation 7(2)(b) by the inspector in his determination of a code,

as the Board may direct.

PART III — CODING

Deduction and repayment of tax under appropriate code

6

(1) Subject to the conditions specified in paragraph (2), every employer, on making any payment of emoluments to any employee during any year, shall deduct or repay tax in accordance with these Regulations by reference to the appropriate code.

(2) The conditions specified in this paragraph are that—

(a) a code authorisation in respect of the employee has been issued to the employer by the inspector for that year, and

(b) the appropriate code is specified in the code authorisation.

(3) The employer shall act in accordance with this regulation and shall deduct or repay tax by reference to the appropriate code, notwithstanding that that code, as determined by the inspector, may be the subject of an objection or appeal.

Determination of appropriate code by inspector

7

(1) The appropriate code shall be determined by the inspector, who for that purpose may have regard to any of the matters specified in paragraph (2).

(2) The matters specified in this paragraph are—

(a) subject to paragraph (3), the reliefs from income tax to which the employee is entitled for the year in which the code is determined, so far as his title to those reliefs has been established at the time of the determination,

(b) any income of the employee (other than the emoluments in relation to which the appropriate code is being determined)—

(i) on which the tax will be reduced by any relief for the year for which the code is to have effect, or

(ii) which is otherwise chargeable under Schedule E,

(d) any tax remaining unpaid for any previous year which is not otherwise recovered,

(e) any amount to be recovered as if it were unpaid tax under the provisions ofsection 30(1)[^f00013] of the Management Act, being an amount of tax in respect of Schedule E repaid to the employee in excess of the amount properly due to him, which is not otherwise recovered, and

(f) such other adjustments as may be necessary to secure that, so far as possible, the tax in respect of the employee’s emoluments for the year for which the code is to have effect shall be deducted from the emoluments paid during that year.

(3) Where the code is determined before the beginning of the year for which it is to have effect, the inspector shall disregard any relief such as is referred to in paragraph (2)(a) if he is not satisfied that the employee will be entitled to it for that year.

Code applicable where code authorisation is not issued or received

8

(1) Where, under regulation 7, the inspector determines that the appropriate code for any year is not different from the code for the preceding year, he shall not be obliged to issue a code authorisation to the employer.

(2) Subject to paragraphs (3) and (5), if for any year, the employer does not receive a code authorisation for an employee who was in his employment on the 5th April in the year preceding that year, a code authorisation shall be deemed to have been issued by the inspector specifying the code which was appropriate on that 5th April as the appropriate code, and the employer shall act in accordance with regulations 6(1) and 38(1).

(3) If for the year ending on 5th April 1994 the employer does not receive a code authorisation for an employee who was in his employment on 5th April 1993 and the code which was appropriate on that date is no longer valid, a code authorisation shall be deemed to have been issued by the inspector specifying as the appropriate code the code which effects deduction of tax with no personal reliefs at one or more of the rates referred to in paragraph (4), and the employer shall act in accordance with regulations 6(1) and 38(1).

(4) The rates referred to in this paragraph are the lower rate, the basic rate and the higher rate.

(5) In relation to codes for the year ending on 5th April 1995 and subsequent years, where, under regulation 13(4)(b) and (5), a code is deemed to have been determined by the inspector as the appropriate code for the following year, he shall not be obliged to issue a code authorisation to the employer for that year, but a code authorisation shall be deemed to have been issued by the inspector specifying that code as the appropriate code for that year, and the employer shall act in accordance with regulations 6(1) and 38(1).

Coding at the higher rate or where no tax is deductible

9

(1) The inspector may determine that tax shall be deducted at the higher rate from the whole of any emoluments if he has reason to believe that the employee will be chargeable at the higher rate on some part of his total income.

(2) The inspector may determine that no tax shall be deducted from any emoluments if—

(a) the emoluments will be included in an assessment under Schedule D, or

(b) the inspector is not satisfied that the emoluments will be chargeable to tax, or

(c) the inspector has reason to believe that the employee will be entitled to a deduction under section 193(1) of the Taxes Act.

(3) Where paragraph (1) or (2) applies, the inspector shall be deemed to have determined the appropriate code, and all the provisions of these Regulations which relate to objections and appeals against the inspector’s determination, or to deduction of tax by reference to the appropriate code, or to the specification of the appropriate code in any code authorisation, return or certificate, shall, with the necessary modifications, have effect accordingly.

Notice of coding

10

(1) Subject to paragraph (2), the inspector, after he has determined the appropriate code for any year, shall give notice of his determination to the employee if the code so determined is different from the code for the preceding year.

(2) Notice under paragraph (1) need not be given where the change in the code is due to an alteration or alterations in the rates of any of the personal reliefs allowable under sections 257 to 257F[^f00014] or 259 of the Taxes Act or in the tax tables, but the other matters referred to in regulation 7 are not different from those for the preceding year.

Objections and appeals against coding

11

(1) The employee may give notice of objection to the inspector stating the ground of his objection if he is aggrieved by the inspector’s determination.

(2) On receipt of the notice of objection the inspector may amend his determination by agreement with the employee, and in default of such agreement the employee, on giving notice to the inspector, may appeal against the determination.

(3) Subject to paragraph (4), the appeal shall be heard by the General Commissioners in accordance with the like rules as are contained in paragraph 3 of Schedule 3 to the Management Act[^f00015].

(4) The like provisions as are contained in section 44(2) of the Management Act[^f00016] shall apply to the appeal as they apply to appeals against assessments.

(5) On appeal, the General Commissioners shall determine the appropriate code, having regard to the same matters as the inspector may have regard to when the appropriate code is determined by him.

(6) The like provisions as are contained in section 56 of the Management Act[^f00017] shall apply to the determination by the General Commissioners.

(7) Subject to paragraph (6) and regulation 12, the determination of the General Commissioners shall be final.

Amendments of coding

12

(1) If a code is found not to be appropriate because the actual circumstances are different from the circumstances by reference to which it was determined by the inspector or the General Commissioners, the inspector may, and if so required by the employee shall, amend the previous determination by reference to the actual circumstances.

(2) Subject to paragraph (3), the inspector, after he has amended the determination of the code, shall give notice of the amended determination to the employee not later than the date on which the notice under regulation 13(1) or the code authorisation, as the case may be, is issued to the employer.

(3) Notice under paragraph (2) need not be given where the change in the code is due to an alteration or alterations in the rates of any of the personal reliefs allowable under sections 257 to 257F or 259 of the Taxes Act or in the tax tables, but the other matters referred to in regulation 7 have not changed.

(4) The provisions of regulation 11 regarding objections and appeals shall apply in relation to the amended determination as they apply in relation to the original determination.

Notice to employer of amended coding

13

(1) Where a determination of the inspector or the General Commissioners is amended after a code authorisation has been issued or is deemed under these Regulations to have been issued, the inspector shall give notice to the employer specifying the code appropriate to the employee’s case under the amended determination.

(2) On making any payment of emoluments to the employee after the receipt of the notice mentioned in paragraph (1), the employer shall deduct or repay tax by reference to that code.

(3) In relation to the year ending on 5th April 1994, where there is a change in the rates of any of the personal reliefs allowable under sections 257 to 257F of the Taxes Act, the inspector may give notice requiring the employer to amend specified codes as directed, with effect from the date specified in the notice.

(4) In relation to codes for the year ending on 5th April 1995 and subsequent years, where there is a change in the rates of any of the personal reliefs allowable under sections 257 to 257F of the Taxes Act—

(a) if the change relates to the current year, the inspector may give notice requiring the employer, with effect from the date specified in the notice, to amend specified codes as directed;

(b) if the change relates to the following year, the inspector may give notice requiring the employer to carry forward to the following year and adjust as directed specified codes for the current year.

(5) A code amended by virtue of paragraph (3), or amended by virtue of paragraph (4)(a) in respect of the current year, shall be the appropriate code for that year, and a code carried forward to the following year and adjusted by virtue of paragraph (4)(b) shall be deemed to have been determined by the inspector as the appropriate code for that year, and in any of such cases all the provisions of these Regulations which relate to objections and appeals against the inspector’s determination, or to deduction of tax by reference to the appropriate code or to the specification of the appropriate code in any code authorisation, return or certificate, shall, with the necessary modifications, have effect accordingly.

PART IV — DEDUCTION AND REPAYMENT OF TAX

Deduction oftax–general

Calculation and making of deduction or repayment

14

(1) Except where these Regulations otherwise provide, the employer shall ascertain, on the occasion of any payment of emoluments to the employee,—

(a) the cumulative emoluments of the employee at the date of the payment,

(b) the cumulative free emoluments or, as the case may be, the cumulative additional pay,

(d) the cumulative tax.

(2) If the cumulative tax together with any tax not deducted when the last preceding payment of emoluments was made exceeds the previous cumulative tax—

(a) the employer shall deduct the excess from the emoluments on making the payment in question, but

(b) the deduction shall not exceed the overriding limit.

(3) If the cumulative tax together with any tax not deducted when the last preceding payment of emoluments was made is less than the previous cumulative tax, and subject to regulation 36, the employer shall repay the difference to the employee on making the payment in question.

(4) If the cumulative tax together with any tax not deducted when the last preceding payment of emoluments was made is equal to the previous cumulative tax, no tax shall be either deducted or repaid when the payment in question is made.

First payment in the year

15

Where the payment of emoluments is the first payment in the year—

(a) the employer shall deduct the cumulative tax from the emoluments on making the payment in question, and paragraphs (2) to (4) of regulation 14 shall not apply, but

(b) the deduction shall not exceed the overriding limit.

Deductions in accordance with regulation 9

16

(1) Subject to paragraph (3), this regulation applies where, in accordance with regulation 9, the inspector determines that tax shall be deducted from any emoluments wholly at the higher rate or that no tax shall be deducted from those emoluments.

(2) Where this regulation applies, regulations 14 and 15 shall not apply, but the employer shall—

(a) deduct tax at the higher rate, or shall deduct no tax as the case may require, without regard to the employee’s cumulative emoluments or the cumulative tax, and

(b) where tax is deductible at the higher rate, record—

(i) the date of payment,

(ii) the amount of the emoluments, and

(iii) the amount of tax deducted from the emoluments.

(3) Where the inspector’s determination that no tax shall be deducted is an amended determination, the employer shall—

(a) if the inspector so directs, make any repayment of tax which may be due by reference to the employee’s cumulative emoluments and the corresponding cumulative tax, and

(b) record the particulars specified in regulation 38(3).

Deduction in special cases

17

(1) This regulation applies to—

(a) any payment of emoluments made on 4th or 5th April in a leap year or on 5th April in any other year to an employee who is paid weekly;

(b) any payment of pension emoluments in the year in which retirement takes place unless the inspector directs that regulation 14 shall apply; and

(c) any other payment of emoluments made in any year to any employee to which the inspector directs that this regulation shall apply for that year.

(2) Where this regulation applies regulation 14 shall not apply, but the employer, on making any such payment, shall deduct, by reference to the appropriate code, the amount of tax which would have been deductible if the payment had been made on the preceding 6th April.

(3) On making any such payment the employer shall—

(a) record on the deductions working sheet for that employee—

(i) the date of the payment,

(ii) the amount of the emoluments, and

(iii) the amount of tax, if any, deducted on making the payment; and

(b) either record the particulars specified in paragraph (4) on the deductions working sheet or keep such records as enable the production of those particulars.

(4) The particulars specified in this paragraph are—

(a) the free emoluments, or, as the case may be, the additional pay for the appropriate code,

(b) the taxable emoluments, and

Emoluments not paid weekly or monthly

18

Where emoluments are paid at regular intervals other than regular intervals of a week or a month—

(a) the employer shall record the actual date of every such payment, and

(b) any payment of such emoluments shall be deemed for the purposes of these Regulations to be made on the date on which it would have been made if a payment had been made in the last day of the preceding year.

Subsidiary emoluments of employee paid monthly or at greater intervals

19

(1) This regulation applies where the employer makes a payment in respect of overtime or other extra earnings to an employee whose main emoluments—

(a) are paid monthly, or

(b) are paid at intervals greater than a month,

at an earlier date than that on which the main emoluments are paid.

(2) Where this regulation applies—

(a) the employer shall not repay tax to the employee on the occasion of the payment, notwithstanding that tax may be repayable under regulation 14; but

(b) regulation 14 shall have effect as if the payment was made on the same date as that on which the main emoluments are next paid.

Employee on fixed pay

20

(1) In the case of an employee who is in receipt of a fixed salary or wage, the inspector may authorise the employer to deduct tax from each payment of emoluments which he makes to the employee by reference only to the amount of that payment, without regard to the cumulative emoluments and cumulative tax.

(2) Where the inspector has authorised the employer in accordance with paragraph (1), the employer shall—

(a) deduct tax accordingly by reference to the appropriate taxable emoluments in the simplified tax tables, and

(b) maintain a record on a deductions working sheet bearing the appropriate code, which the inspector shall issue for that purpose, of—

(i) the date of each such payment,

(ii) the amount of the emoluments,

(iii) the amount of the free emoluments,

(iv) the amount of the taxable emoluments, and

(v) the amount of tax, if any, deducted on making the payment.

(3) If an employer who has been authorised to deduct tax in accordance with paragraph (1) ceases to employ the employee in question, he shall forthwith return the deductions working sheet, duly completed, to the inspector or, if so required, to the collector.

(4) Regulations 6, 14 to 16, 23, 25, 26 and 38(1) shall not apply in cases to which this regulation applies.

Aggregation of emoluments in non-cumulative cases

21

Where under these Regulations tax is deductible otherwise than by reference to cumulative emoluments and cumulative tax, the amount of tax to be deducted in any week or income tax month shall be calculated by reference to the aggregate of the emoluments paid to the employee in that week or month.

Tax-free emoluments

22

Where the employer makes a payment to or for the benefit of the employee in respect of his income tax, the amount of the emoluments which the employer pays to the employee shall be deemed for the purposes of deduction and repayment of tax under these Regulations to be such a sum as will include the amount assessable on the employee in respect of the payment made by the employer in respect of the employee’s income tax.

Cessation of employment

23

(1) If the employer ceases to employ an employee in respect of whom a code authorisation has been issued to him, or is deemed under these Regulations to have been issued to him, he shall forthwith send to the inspector a certificate on the form provided containing the particulars specified in paragraph (2).

(2) The particulars specified in this paragraph are—

(a) the name of the employee,

(b) the employee’s national insurance number,

(d) the date on which the employment ceased,

(e) the code appropriate to the employee,

(f) the week or income tax month in which the last payment of emoluments was made to the employee, or in a case falling within regulation 18 was deemed to be so made,

(g) the cumulative emoluments at the date of the payment referred to in sub-paragraph (f) above, and

(h) the corresponding total net tax deducted.

(3) The employer shall make two copies of the certificate on the form provided, and subject to paragraph (4), shall deliver them to the employee on the day on which the employment ceases.

(4) If the employer fails to deliver the two copies of the certificate to the employee on the day on which the employment ceases and is so required under regulation 84(8), he shall deliver the two copies of the certificate to the specified office and not to the employee.

Emoluments paid after employment ceased

24

(1) This regulation applies where any payment of emoluments is made to an employee—

(a) by an employer after the employee has ceased to be employed by him, or

(b) in respect of an employment which has ceased, by a trustee in bankruptcy, a receiver, a liquidator or any other person making such a payment in respect of an obligation of a former employer,

and the payment has not been included in the certificate issued to the employee in accordance with regulation 23(3).

(2) Where this regulation applies regulation 14 shall not apply, but the person making the payment shall—

(a) deduct tax at the basic rate in force for the year in which the payment is made, and

(b) record on a deductions working sheet (which he shall prepare for the purpose unless he has already prepared one for that year)—

(i) the date of the payment,

(ii) the amount of the emoluments, and

(iii) the amount of tax deducted on making the payment.

Commencement of subsequent employment

25

(1) Immediately on commencing his next employment, the employee shall deliver the two copies of the certificate mentioned in regulation 23(3) to his new employer who, subject to paragraph (8), shall take the action specified in paragraphs (2) to (5).

(2) The action specified in this paragraph is that the employer shall—

(a) insert on one copy of the certificate—

(i) the address of the employee,

(ii) any number used to identify him,

(iii) the date on which the employment commenced, and

(iv) the code in use by the employer in respect of the employee, if other than the code contained in the certificate; and

(b) forthwith send that copy to the inspector by whom code authorisations are ordinarily issued to him.

(3) The action specified in this paragraph is that the employer shall—

(a) prepare a deductions working sheet in accordance with the particulars given on the copies of the certificate; and

(b) record on the working sheet the cumulative emoluments shown on the copies of the certificate.

(4) The action specified in this paragraph is that the employer shall record on the deductions working sheet or keep such records as enable the production of the following particulars, namely—

(a) save where the code contained in the certificate reflects additional pay, the cumulative free emoluments, the cumulative taxable emoluments and the corresponding cumulative tax as at the week or month shown on the copies ofthe certificate;

(b) where the code contained in the certificate reflects additional pay, the cumulative additional pay, the cumulative taxable emoluments and either the cumulative tax as at the week or month shown on the copies of the certificate or the total net tax deducted shown on the copies of the certificate, whichever is the less.

(5) The action specified in this paragraph is that, subject to paragraphs (6) and (7), the employer shall, on making any payment of emoluments to the employee, deduct or repay tax by reference to the appropriate code in accordance with regulation 14, and keep the records required by paragraphs (3) and (4) of regulation 38, as if the cumulative emoluments and cumulative tax shown on the deductions working sheet prepared in accordance with paragraph (3) above represented emoluments paid to the employee by the new employer and tax deducted by him.

(6) If tax is repayable on the occasion of the first such payment and the amount repayable exceeds £200, the new employer shall forthwith notify the inspector and shall not make the repayment until authorised to do so by the inspector.

(7) Where the certificate indicates that regulation 17 has been applied, references in paragraphs (3) to (5) to cumulative emoluments, cumulative free emoluments and cumulative tax shall be disregarded, and regulation 17 shall apply to payments of emoluments made by the new employer.

(8) Where the two copies of the certificate show that the last payment of emoluments was in the year preceding that in which the new employment commences, the new employer shall—

(a) if the date of the commencement of the new employment is within the first seven weeks of the year, comply with paragraphs (1) to (7) with the modification that he shall deduct or repay tax without taking into account the cumulative emoluments and cumulative tax shown on the copies of the certificate; and

(b) in any other case, comply with paragraph (2), but deduct tax from each payment of emoluments made by him to the employee, and keep records on a deductions working sheet which he shall prepare for that purpose, as if those payments had been payments to which regulation 30(2) applies.

(9) The delivery of the two copies of the certificate in accordance with paragraph (1) shall be treated for the purposes of this regulation as the issue of a code authorisation to the new employer in respect of the employee specifying the code contained in the certificate as the appropriate code.

(10) Where in relation to the year ending on 5th April 1994 the code contained in the certificate is no longer valid, the code which effects deduction of tax with no personal reliefs at one or more of the rates referred to in regulation 8(4) shall be treated for the purposes of paragraph (9) as if it was the code contained in the certificate.

(11) If the employee objects to the disclosure of his cumulative emoluments to his new employer, he may deliver the two copies of the certificate to the inspector before he commences his new employment, and the inspector may issue a code authorisation in respect of the employee to the new employer and direct that regulation 17 shall apply to all payments of emoluments which the new employer makes to the employee.

Pension emoluments

26

(1) Retirement on pension shall not be treated as a cessation of employment for the purposes of regulation 23 or of this regulation if the emoluments are paid by the same person both before and after retirement, but any such person shall—

(a) deduct tax in accordance with regulation 17 on making payments of pension emoluments to the employee after retirement; and

(b) send to the inspector within 14 days after retirement a certificate on the form provided containing the particulars specified in paragraph (2).

(2) The particulars specified in this paragraph are—

(a) the name of the employee,

(b) the employee’s national insurance number,

(d) the cumulative emoluments at the date of retirement, and

(e) the amount of pension payable weekly or monthly as the case may be.

(3) If the two copies of the certificate given to the employee in accordance with regulation 23(3) are delivered to an employer who pays or will pay pension emoluments to that employee, the employer shall—

(a) deduct tax by reference to the code shown on the certificate and in accordance with regulation 17; and

(b) complete one copy of the certificate in accordance with regulation 25(2) and send it to the inspector mentioned in that paragraph.

Death of employee

27

(1) On the death of an employee in respect of whom a code authorisation has been issued by the inspector, or is deemed under these Regulations to have been issued, the employer shall forthwith send to the inspector the certificate mentioned in regulation 23(1), or the certificate mentioned in regulation 30(4), as the case may require, together with the two copies of the certificate mentioned in regulation 23(3), and shall insert on the certificate the name and address of the personal representative of the deceased employee, if they are known to him.

(2) If the employer pays any emoluments after the date of the employee’s death in respect of the employee’s employment with him, he shall, on making any such payment, deduct or repay tax as if the deceased employee was still in his employment at the date of the payment, and—

(a) if the amount of those emoluments and the date on which they will be paid are known to him at the time he completes the certificate mentioned in paragraph (1), he shall include on the certificate the amount of the emoluments, the date on which they will be paid, and the amount of tax which will be deducted or repaid; and

(b) in any other case, he shall indicate on the certificate that a further payment of emoluments will be made by him.

Deduction of tax where appropriate code not known

Employee for whom appropriate code not known

28

(1) Subject to paragraphs (4) and (5), if the employer makes any payment of emoluments—

(a) to an employee in respect of whom he has not received a code authorisation from the inspector (and in respect of whom no code authorisation is deemed under regulation 8 to have been issued by the inspector), and that payment is equivalent to emoluments at a rate exceeding the minimum rate specified in paragraph (2), or

(b) to a new employee with other employment, or to a new employee to whom neither regulation 29 nor 30 applies, at a rate exceeding £1 a week, or £4 a month,

the employer, on the occasion of any such payment, shall, subject to paragraph (3), forthwith render a return to the inspector giving the name and address of the employee, the employee’s national insurance number, the date on which his employment commenced, and such other particulars as may be necessary to enable the inspector to determine the appropriate code in accordance with regulation 7.

(2) “The minimum rate” means—

(a) subject to paragraph (b) below, such sum as represents one fifty-second part of the relief for the time being allowable under section 257(1) of the Taxes Act, rounded to the nearest 50 pence, or

(b) in the case of an employee who is paid monthly or at longer intervals, one twelfth part of the relief for the time being allowable under section 257(1) of the Taxes Act, rounded to the nearest £1.

(3) If the employer, having rendered the return mentioned in paragraph (1), makes any subsequent payment of emoluments to the employee, he shall not be required to render any further return in the same year pursuant to that paragraph.

(4) This regulation shall not apply where—

(a) the employee has delivered two copies of a certificate received by him in accordance with regulation 23(3) to his employer immediately on commencing employment; or

(b) subject to paragraph (5), the employee is resident outside the United Kingdom and the emoluments consist of a pension.

(5) If the employer pays a pension, not being a pension arising wholly from an employment carried on abroad, to a person who is resident outside the United Kingdom in respect of whom he has not received a code authorisation from the inspector, and the payment is equivalent to emoluments at a rate exceeding the minimum rate, the employer shall, on the occasion of the first such payment, forthwith render a return to the inspector giving the name and address of the person entitled to the pension, the date on which the pension commenced, and such other particulars as may be necessary to enable the inspector to determine the appropriate code in accordance with regulation 7.

Employee taking up employment after full-time education

29

(1) This regulation applies to an employee within regulation 28(1)(a) who certifies, on a form provided by the Board, that he is taking up employment for the first time after a period of full-time education and that he has not made a claim as defined in regulation 81.

(2) If any payment made as described in regulation 28(1) is the first payment of emoluments made by the employer during the year to an employee to whom this regulation applies, and that payment is equivalent to emoluments at a rate exceeding the minimum rate, the employer, on making the payment, shall, on a deductions working sheet which he shall prepare for the purpose, enter cumulative emoluments and cumulative tax before the first payment as nil and deduct tax in accordance with regulation 14, applying the code specified by the Board as the appropriate code.

(3) On making any subsequent payment of emoluments to the employee where paragraph (2) applied to the first payment and where a code authorisation has not been issued in respect of the employee, the employer shall deduct or repay tax in accordance with regulation 14, continuing to apply the code specified by the Board as the appropriate code, and shall keep the records required by paragraphs (3) amd (4) of regulation 38.

Employee taking up only or main employment

30

(1) This regulation applies to an employee within regulation 28(1)(a), who is not within regulation 29, and who certifies, on a form provided by the Board, that the employment is his only or main employment.

(2) If any payment made as described in regulation 28(1) is the first payment of emoluments made by the employer during the year to an employee to whom this regulation applies, and that payment is equivalent to emoluments at a rate exceeding the minimum rate, the employer, on making the payment, shall deduct tax and keep records on a deductions working sheet which he shall prepare for the purpose as if the payment were one to which regulation 17 applied, applying the code specified by the Board as the appropriate code.

(3) On making any subsequent payment of emoluments to the employee where paragraph (2) applied to the first payment and where a code authorisation has not been issued in respect of the employee, the employer shall deduct tax as if such subsequent payment were one to which regulation 17 applied, applying the code specified by the Board as the appropriate code, and shall keep the records required by that regulation.

(4) Where paragraph (2) applied to the first payment of emoluments made by the employer to the employee and the employer ceases to employ the employee before a code authorisation has been issued to him by the inspector, then, unless regulation 34 has become applicable, regulations 23 and 25 shall apply, subject to the modifications that—

(a) the two copies of the certificate of the employer under regulation 23(3) shall not contain particulars of the cumulative emoluments and cumulative tax; and

(b) the new employer, instead of deducting or repaying tax by reference to the cumulative emoluments and cumulative tax, shall deduct tax and keep records in accordance with paragraph (3) as if each payment of emoluments made by him were one to which regulation 17 applied.

Other new employees

31

(1) This regulation applies to an employee within regulation 28(1) who is not within regulation 29 or 30.

(2) Subject to paragraph (3), if any payment made as described in regulation 28(1) is the first payment of emoluments made by the employer during the year to an employee to whom this regulation applies, and the payment is at a rate exceeding £1 a week or £4 a month, the employer, on making the payment, shall, on a deductions working sheet which he shall prepare for the purpose, enter cumulative emoluments and cumulative tax before the first payment as nil and deduct tax in accordance with regulation 14, applying the code which effects deduction of tax at the basic rate as the appropriate code.

(3) If the payment is a payment of pension emoluments, then, subject to regulation 28(4) and (5), the employer, on making the payment, shall deduct tax and keep records on a deductions working sheet which he shall prepare for the purpose as if the payment were a payment to which regulation 30(2) applied, and for the purposes of paragraph (4) below, regulation 30(2) shall be treated as having applied to the payment.

(4) On making any subsequent payment of emoluments to the employee where paragraph (2) applied to the first payment and where a code authorisation has not been issued in respect of the employee, the employer shall deduct or repay tax in accordance with regulation 14, continuing to apply the code which effects deduction of tax at the basic rate as the appropriate code, and shall keep the records required by paragraphs (3) and (4) of regulation 38.

Initial procedure when payments made to employee for whom appropriate code not known

32

Whenever in accordance with regulation 29, 30, or 31, the employer uses the code specified by the Board or the code which effects deduction of tax at the basic rate, a code authorisation shall, for the purposes of regulations 6, 8, 13(1), 23(1) and 27(1), be deemed to have been issued to the employer by the inspector specifying whichever of those codes applies as the appropriate code.

Subsequent procedure on issue of code authorisation

33

On making any payment of emoluments to the employee after a code authorisation has been issued in respect of the employee, the employer shall—

(a) deduct or repay tax by reference to the appropriate code in accordance with regulation 14, and

(b) keep the records required by regulation 38 and for those purposes—

(i) any cumulative emoluments notified to the employer by the inspector shall be treated as if they represented emoluments paid by the employer; and

(ii) the total net tax deducted before the first payment made in accordance with this regulation shall be taken to be the sum of the total net tax deducted, if any, notified to the employer by the inspector and any tax which the employer was liable to deduct from the employee’s emoluments under regulation 29, 30 or 31.

Subsequent procedure on presentation of copies of certificate

34

(1) This regulation applies where, after the employer has acted in accordance with regulation 29, 30 or 31—

(a) the employee delivers the two copies of a certificate received by him in accordance with regulation 23(3) to the employer, and

(b) a code authorisation has not been issued to the employer in respect of the employee.

(2) Where this regulation applies and the certificate relates to an employment in respect of which the last payment of emoluments was made in the year in which the employee delivers the copies, then, unless the employer has already ceased to employ the employee, paragraphs (1) to (7) of regulation 25 shall apply as if the employee had delivered the two copies immediately on commencing employment with the employer, and the delivery of the two copies shall be treated as if it were the issue on that day of a code authorisation tothe employer in respect of the employee specifying the code shown on the certificate as the appropriate code, except that—

(a) the employer shall not be obliged to prepare a further deductions working sheet if he has already prepared one;

(b) the cumulative emoluments and total net tax deducted immediately before the payment of emoluments following the delivery of the copies shall be taken to be the sum of such cumulative emoluments and total net tax deducted as are shown on the copies, subject to paragraphs (1) to (7) of regulation 25, and such emoluments and tax as have been paid or deducted by the employer since the commencement of the employment;

(c) regulation 25(6) shall not apply on the occasion of the payment of any emoluments to the employee by the employer after the employee has delivered the copies.

(3) Where this regulation applies and the certificate relates to an employment in respect of which the last payment of emoluments was made in the preceding year, and the employee delivers the copies—

(a) within the first seven weeks of the year, then, subject to paragraph (4), and unless the employer has already ceased to employ the employee, the employer shall comply with regulation 25(2) and the cumulative emoluments and the total net tax deducted shall be such emoluments and tax as have been paid or deducted by the employer since the commencement of the employment or 6th April whichever was the later and the delivery of the copies shall be treated as if it were the issue on that day of a code authorisation to the employer in respect of the employee specifying the code shown on the certificate as the appropriate code;

(b) after the end of the seventh week of the year, regulation 25 shall not apply.

(4) Where the certificate relates to the year ended 5th April 1993 and the code shown on the certificate is no longer valid, a code authorisation shall be deemed to have been issued on that day to the employer in respect of the employee specifying the code which effects deduction of tax with no personal reliefs at one or more of the rates referred to in regulation 8(4) as the appropriate code.

Repayment of tax

Repayment during absence from work through sickness etc.

35

(1) In the circumstances specified in paragraph (2), and on application being made in person by the employee or his authorised representative, the employer shall—

(a) make such repayment of tax to the employee as may be appropriate, having regard to the employee’s cumulative emoluments at the date of the pay day in question, the corresponding cumulative tax and any tax not deducted when the last preceding payment of emoluments was made,

(b) record the particulars specified in regulation 38(3), and

(c) record the particulars specified in regulation 38(4) or, as the case may be, keep such records as enable the production of those particulars,

as if the occasion were one on which emoluments had been paid.

(2) The circumstances specified in this paragraph are that, owing to absence from work through sickness or other similar cause, the employee is entitled to receive no emoluments on the usual pay day, and regulation 17 would not apply to a payment made on that day.

(3) If, owing to absence from work otherwise than through sickness or other similar cause, the employee is entitled to receive no emoluments on the usual pay day, then, subject to regulation 36, the employer shall proceed in accordance with paragraph (1) as if the absence was due to sickness or other similar cause.

Trade Disputes

36

(1) This regulation applies where the employee is absent from work in consequence of a trade dispute at his place of employment.

(2) Where this regulation applies, then, subject to paragraph (6), unless the employee is not participating or directly interested in the trade dispute, the employer shall—

(a) on the occasion of any payment of emoluments, calculate the amount of tax to be deducted or repaid, or

(b) if no emoluments are paid on the usual pay day, calculate, in accordance with regulation 35(1), the amount of tax (if any) due to be repaid on that day,

and shall then proceed in accordance with paragraphs (3) to (5) below.

(3) The employer shall—

(a) make no repayment of tax calculated as due to be repaid under paragraph (2) and not yet set off in accordance with sub-paragraph (b) below until—

(i) the employee is no longer so absent, or

(ii) the employer ceases to employ the employee, or

(iii) the employee has become genuinely employed elsewhere in the occupation which he usually follows or has become regularly engaged in some other occupation, or

(iv) the employee dies; but

(b) deduct any tax due to be so deducted except that the deduction shall be reduced by any repayment for the year calculated in accordance with paragraph (2) and not yet paid or set off in accordance with this sub-paragraph.

(4) Where the absence of an employee extends beyond the end of the year, the employer shall—

(a) give notice to the employee of the amount of any repayment of tax calculated in accordance with paragraph (2) which has not been set off against any tax due to be deducted under paragraph (3)(b); and

(b) complete the certificate which is to be given under regulation 39 and the return which is to be rendered under regulation 43 as if that tax had been repaid to the employee.

(5) If he has not made any repayment of tax withheld under paragraph (3) within 42 days after the relevant event specified in sub-paragraph (a) of that paragraph, the employer shall not repay that tax to the employee after that date, but shall proceed in accordance with regulation 42(7).

(6) An employee from whom a repayment of tax has been withheld in accordance with paragraph (3) may request a benefit officer to certify that a determining authority under the Social Security Administration Act 1992[^f00018] or, in Northern Ireland, the Social Security Administration (Northern Ireland) Act 1992[^f00019], has decided for the purposes of a claim to benefit that the employee has proved that he is not participating or directly interested in a trade dispute, and if the benefit officer so certifies, the employer shall make such repayment as may be appropriate.

(7) In this regulation—

“benefit” has the same meaning as in regulation 81;

“benefit officer” means the appropriate officer of the Department of Employment or the Department of Social Security, as the case may be, or, in Northern Ireland, the appropriate officer of the Department of Health and Social Services for Northern Ireland;

“place of employment” has the meaning given by section 27(3) of the Social Security Contributions and Benefits Act 1992 or, in Northern Ireland, section 27(3) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992.

Repayment after cessation of employment

37

(1) This regulation applies in the case of a person who has ceased to be employed.

(2) Where this regulation applies, the person shall, on applying for a repayment, produce to the inspector the two copies of the certificate delivered in accordance with regulation 23(3) or regulation 89(2) and a certificate that he was not a claimant within the meaning of regulation 81 for the relevant period, together with such evidence of his unemployment as the inspector may require.

(3) Where this regulation applies, and where the person has not made or has ceased to make a claim as defined in regulation 81, any repayment which may be appropriate at any date, having regard to his cumulative emoluments at that date, the corresponding cumulative tax, and any other emoluments paid to the employee for the year but not included in the cumulative emoluments, shall be made to him by the inspector.

Documents relating to the deduction and repayment of tax

Deductions working sheets etc.

38

(1) Subject to the condition specified in regulation 6(2)(a), every employer, on making any payment of emoluments to any employee during any year, shall, if he has not already done so, prepare a deductions working sheet for that employee.

(2) The employer shall record—

(a) the name of the employee,

(b) the employee’s national insurance number,

(d) the year to which the working sheet relates,

on each deductions working sheet which he is required to prepare under these Regulations.

(3) The employer shall record—

(a) the date of the payment,

(b) the amount of the emoluments, and

on the deductions working sheet for that employee regarding every payment of emoluments which he makes to the employee.

(4) The employer shall either—

(a) record—

(i) the cumulative emoluments in relation to the date of payment,

(ii) the cumulative free emoluments or, as the case may be, the cumulative additional pay, in relation to that date,

(iii) the cumulative taxable emoluments in relation to that date,

(iv) the corresponding cumulative tax,

(v) where additional pay has been added to the payment, the tax due at that date,

(vi) the overriding limit, if any, in relation to the payment,

(vii) the amount of any tax not deducted at that date as a consequence of the overriding limit, and

(viii) the amount of tax, if any, repayment of which is precluded by regulation 36,

on the deductions working sheet for that employee regarding every payment of emoluments which he makes to the employee; or

(b) keep such records as enable the production of the particulars mentioned in paragraphs (i) to (viii) of sub-paragraph (a) above.

Certificate of tax deducted

39

(1) The employer shall give a certificate under this regulation to every employee who is in his employment on the last day of the year and from whose emoluments any tax has been deducted during that year.

(2) The certificate shall be in a form provided or authorised by the Board and, subject to regulation 36(4), shall show—

(a) the year to which it relates,

(b) the total amount of the emoluments paid by the employer to the employee during the year, being emoluments which the employer was required to take into account for the purposes of deducting or repaying tax,

(d) the appropriate code,

(e) the employee’s national insurance number,

(f) the name and address of the employer, and

(g) in the case of a form not provided by the Board, that it has been approved by them in substitution for such a form.

(3) In the case of an employee taken into employment after the beginning of the year, the certificate shall include any emoluments paid to the employee by any previous employer and any tax deductible from those emoluments, being emoluments and tax which the employer giving the certificate was required to take into account for the purposes of deducting or repaying tax in the case of emoluments paid by him.

PART V — PAYMENT AND RECOVERY OF TAX, ETC.

Payment

Payment of tax monthly by employer

40

(1) Subject to regulations 41 and 48(11), the employer shall pay the amount specified in paragraph (2) to the collector within 14 days of the end of every income tax month.

(2) The amount specified in this paragraph shall be determined by the formula–

$$(A+B)-(C+D)$ where— A is all amounts of tax which the employer was liable under these Regulations to deduct from emoluments paid by him in that income tax month; B is all amounts of tax by which deductions in that income tax month were reduced in accordance with regulation 36(3)(b), being amounts in respect of which a reduction was claimed in an earlier income tax month in accordance with C below; C is any amounts calculated as due to be repaid in that income tax month, but whose repayment was precluded during that income tax month by regulation 36(3); and D is any amounts which he was liable to repay in that income tax month (excepting any amounts for which a reduction was claimed in any previous income tax month, or which are being recovered from the Board under regulation 42(6)).$

Payment of tax quarterly by employer

41

(1) Subject to regulation 48(11), the employer shall pay the amount specified in paragraph (2) to the collector within 14 days of the end of every income tax quarter where—

(a) the employer has reasonable grounds for believing that the condition specified in paragraph (3) applies and so chooses, or

(b) regulation 20 applies.

(2) The amount specified in this paragraph shall be determined by the formula—

$$(A+B)-(C+D)$ where— A is all amounts of tax which the employer was liable under these Regulations to deduct from emoluments paid by him in that income tax quarter; B is all amounts of tax by which deductions in that income tax quarter were reduced in accordance with regulation 36(3)(b), being amounts in respect of which a reduction was claimed in an earlier income tax quarter in accordance with C below; C is any amounts calculated as due to be repaid in that income tax quarter, but whose repayment was precluded during that income tax quarter by regulation 36(3); and D is any amounts which he was liable to repay in that income tax quarter (excepting any amounts for which a reduction was claimed in any previous income tax quarter, or which are being recovered from the Board under regulation 42(6)).$

(3) The condition specified in this paragraph is that the average monthly total amount to be paid to the collector under—

(a) regulation 40,

(b) the Social Security Contributions and Benefits Act 1992 and the Social Security (Contributions) Regulations 1979[^f00020] or, in Northern Ireland, the Social Security Contributions and Benefits (Northern Ireland) Act 1992 and the Social Security (Contributions) Regulations (Northern Ireland) 1979[^f00021], and

(c) section 559 of the Taxes Act[^f00022] and the Income Tax (Sub-contractors in the Construction Industry) Regulations 1993[^f00023],

will be less than £450 for income tax months falling within the current year.

Payment of tax by employer–further provisions

42

(1) The collector shall give a receipt to the employer for the total amount paid under regulation 40 or 41 if so requested; but if a receipt is given for the total amount of tax and any earnings-related contributions paid at the same time, then no separate receipt for tax only need be given.

(2) If the amount specified in regulation 40(2) or 41(2) which the employer is liable to pay to the collector exceeds the amount actually deducted by him from emoluments paid during the relevant income tax period, the collector, on being satisfied by the employer that he took reasonable care to comply with these Regulations and that the under-deduction was due to an error made in good faith, may direct that the amount of the excess shall be recovered from the employee, and, where the collector so directs, the employer shall not be liable to pay the amount of that excess to the collector.

(3) If the amount specified in regulation 40(2) or 41(2) which the employer is liable to pay to the collector exceeds the amount actually deducted by him from emoluments paid during the relevant income tax period, the Board, if they are of the opinion that an employee has received his emoluments knowing that the employer has wilfully failed to deduct the amount of tax which he was liable to deduct under these Regulations from those emoluments, may direct that the amount of the excess shall be recovered from the employee, and, where the Board so direct, the employer shall not be liable to pay the amount of that excess to the collector.

(4) If tax recoverable from an employee under paragraph (3) does not carry interest under section 88 of the Management Act[^f00024], it shall carry interest in accordance with regulation 51 from the reckonable date until whichever is the earlier of—

(a) the date on which payment is made, or

(b) the date (if any) immediately before the date on which it begins to carry interest under section 86 of the Management Act[^f00025].

(5) If a difference arises between the employer and the employee—

(a) as to whether the employer has deducted tax, or

(b) as to whether, having regard to regulation 22, the employer is deemed to have deducted tax, or

(d) as to the amount of the tax that is deemed, having regard to regulation 22, to have been deducted

from emoluments paid to the employee, the matter shall, for the purpose of ascertaining the amount of any tax to be recovered from the employee under paragraph (2) or (3), be determined by—

(i) such General Commissioners as the Board, having regard to all the circumstances, shall direct, or

(ii) in the case of a non-resident employee, the Special Commissioners,

and the determination of those Commissioners shall be final.

(6) If the total of the amounts which the employer was liable to repay during any income tax period exceeds the total of the amounts which he was liable to deduct during that income tax period, the employer shall be entitled to deduct the excess from any subsequent payment which he is liable to make to the collector under regulation 40 or 41 or to recover that excess from the Board; but that excess shall not include any amount for which a reduction was made in a payment under regulation 40 or 41 in a previous income tax period, or any amount which is otherwise being recovered from the Board.

(7) If he has not made any repayment of tax withheld under paragraph (3) of regulation 36 within 42 days after the relevant event specified in sub-paragraph (a) of that paragraph, the employer shall pay the tax not repaid to the collector forthwith, and paragraph (1) of this regulation shall apply to the amount paid.

(8) A certificate of the collector that any amount of interest payable under paragraph (4) has not been paid to him, or, to the best of his knowledge and belief, to any other collector or to any person acting on his behalf or on behalf of another collector, shall be sufficient evidence that the sum mentioned in the certificate is unpaid and due to the Crown.

(9) Any document purporting to be a certificate under paragraph (8) shall be deemed to be such a certificate until the contrary is proved.

Documents relating to the payment of tax

Return by employer at end of year where deductions working sheets required

43

(1) The employer shall render a return to the inspector or, if so required, to the collector, not later than 44 days after the end of the year, in such form as the Board may approve or prescribe, containing the particulars specified in paragraph (2) in respect of each employee in respect of whom the employer was required at any time during the year to prepare or maintain a deductions working sheet in accordance with these Regulations.

(2) The particulars specified in this paragraph are such particulars as the Board may require for the identification of—

(a) the employee,

(b) the year to which the return relates,

(d) the appropriate code, and

(e) subject to regulation 36(4), the total net tax deducted from the emoluments.

(3) The return required by paragraph (1) shall include the statement and declaration specified in paragraph (4) and the certificate specified in paragraph (5).

(4) The statement and declaration specified in this paragraph is a statement and declaration, signed by the employer, in the form approved or prescribed by the Board, containing a list of all deductions working sheets on which the employer was required to keep records in accordance with these Regulations in respect of that year.

(5) The certificate specified in this paragraph is a certificate, signed by the employer, showing—

(a) the total net tax deducted or the total net tax repaid in the case of each employee, and

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