Legalize / United Kingdom / Statutory-Instrument

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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(b) the total net tax deductible or repayable under these Regulations in respect of all his employees,

during that year.

(6) Where an employee has been taken into employment after the beginning of the year, the return made under paragraph (1) shall also show the total amount of—

(a) any emoluments paid to the employee by any previous employer, and

(b) any tax deductible or, where required either to be recorded on the deductions working sheet or to be capable of being produced from other records pursuant to regulation 25(4), any tax deducted from those emoluments,

being emoluments and tax which the employer rendering the return was required to take into account for the purposes of deducting or repaying tax in the case of emoluments paid by him.

(7) Where the employer is a body corporate, the statement and declaration specified in paragraph (4) and the certificate specified in paragraph (5) shall be signed either by the secretary or by a director of the body corporate.

(8) If an employer has failed to pay the total net amount of tax which he is liable to pay to the collector within 14 days of the end of any year, the collector may prepare a certificate showing the net amount of tax remaining unpaid for that year.

(9) Paragraphs (1) to (5) of regulation 54 shall apply to the amount shown in a certificate under paragraph (8) with the modification that summary proceedings for the recovery of the net amount of tax or such part of it as remains unpaid may be brought at any time before the expiry of—

(a) twelve months after the date limited for delivery of the statement specified in paragraph (4), or

(b) if that statement is not delivered by that date, the expiry of twelve months after its delivery.

(10) A certificate of the collector under paragraph (8) that the net amount of tax remaining unpaid for that year 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 is due to the Crown.

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

(12) Section 98A of the Management Act shall apply in relation to the provisions of paragraph (1) requireing a return to be made.

Return by employer where deductions working sheets not required

44

A return shall be made in respect of every employee to whom the employer paid emoluments at any time during the year at a rate exceeding the minimum rate, but in respect of whom the employer was not required under these Regulations to prepare a deductions working sheet.

Additional return in cases involving a trade dispute

45

(1) In the circumstances specified in paragraph (2), the employer shall forthwith render an additional return containing the particulars specified in paragraph (3) and the statement specified in paragraph (4).

(2) The circumstances specified in this paragraph are where—

(a) the employer has not made any repayment of tax withheld under regulation 36(3) within 42 days after the relevant event specified in regulation 36(3)(a), and

(b) a return has been made under regulation 43 in accordance with regulation 36(4)(b).

(3) The particulars specified in this paragraph are, in respect of each employee, such particulars as the Board may require—

(a) for the identification of the employee,

(b) of the year to which the return relates, and

(4) The statement specified in this paragraph is a statement containing—

(a) a list of the names of all employees in respect of whom the additional return is made,

(b) the amount of tax not repaid in respect of each of those employees, and

Return of other additional emoluments

46

(1) The employer shall render a return or returns to the inspector, not later than 61 days after the end of the year, in such form as the Board may approve or prescribe, containing in respect of each employee—

(a) the particulars specified in paragraph (2), and,

(b) in the case of an employee who is employed in employment to which Chapter II of Part V of the Taxes Act applies, the additional particulars specified in paragraph (3).

(2) The particulars specified in this paragraph are particulars of—

(a) any emoluments given by the employer to the employee otherwise than in money,

(b) any payments made on behalf of the employee and not repaid,

(c) any emoluments which the employee is treated by section 141(1) of the Taxes Act as having received in that year by reason of the provision of a non-cash voucher by the employer,

(d) any emoluments which the employee is treated by section 142(1) of the Taxes Act as having received in that year by reason of the provision of a credit-token by the employer, and

(e) any living accommodation which has been provided for the employee or for members of his family or household by the employer and of the amount of any emoluments of which the employee is treated by virtue of section 145 or 146 of the Taxes Act[^f00026], or by virtue of those sections together, as being in receipt in respect of that accommodation.

(3) The particulars specified in this paragraph are particulars of—

(a) any payments made by the employer to the employee by reason of his employment in respect of expenses,

(b) any sums put by the employer at the disposal of the employee by reason of his employment and paid away by him, and

(c) any benefits provided by the employer for the employee (or for any other person) by reason of his employment such as give rise to any charge to tax under sections 154 to 165 of the Taxes Act.

Unpaid tax

Notice and certificate when tax not paid

47

(1) This regulation applies where, within 14 days of the end of any income tax period, the employer has paid no amount of tax to the collector under regulation 40 or 41 for that income tax period, and the collector is unaware of the amount, if any, which the employer is liable so to pay.

(2) Where this regulation applies, the collector may give notice to the employer, requiring him to render, within 14 days, a return in such form as the Board may prescribe showing the amount of tax which the employer is liable to pay to the collector under regulation 40 or 41 in respect of the income tax period in question.

(3) Where a notice given by the collector under paragraph (2) extends to two or more consecutive income tax periods, these Regulations shall have effect as if those consecutive income tax periods were one income tax period.

(4) The collector may give a notice under paragraph (2) notwithstanding that an amount of tax has been paid to him by the employer under regulation 40 or 41 for an income tax period, if he is not satisfied that the amount so paid is the full amount which the employer is liable to pay to him for that income tax period, and this regulation shall have effect accordingly.

(5) Upon receipt of a return made by the employer under paragraph (2), the collector may prepare a certificate showing the amount of tax which the employer is liable to pay to him for the income tax period in question.

(6) Paragraphs (1) to (5) of regulation 54 shall apply to the amount shown in a certificate under paragraph (5).

(7) The production of the return made by the employer under paragraph (2) and of the certificate of the collector under paragraph (5) shall be sufficient evidence that the amount shown in the certificate is the amount of tax which the employer is liable to pay to the collector in respect of the income tax period in question.

(8) Any document purporting to be a certificate under paragraph (5) shall be deemed to be such a certificate until the contrary is proved.

Notice of specified amount and certificate when tax not paid

48

(1) This regulation applies where, after 14 days following the end of any income tax period, the employer has paid no amount of tax to the collector under regulation 40 or 41 for that income tax period, despite demand being made, and there is reason to believe that the employer is liable so to pay.

(2) Where this regulation applies, the collector, upon consideration of the employer’s record of past payments, may to the best of his judgment specify the amount of tax which he considers the employer is liable to pay, and serve notice on the employer of that amount.

(3) Where the employer has paid no amount under regulation 40 or 41 for the relevant income tax periods, the collector may give a notice under paragraph (2) which extends to two or more consecutive income tax periods, and these Regulations shall have effect as if those income tax periods were the latest income tax period specified in the notice.

(4) The collector may give a notice under paragraph (2) notwithstanding that an amount of tax has been paid to him by the employer under regulation 40 or 41 for any income tax period, if he is not satisfied, after seeking the employer’s explanation, that the amount so paid is the full amount which the employer is liable to pay to him for that income tax period, and this regulation shall have effect accordingly.

(5) If, during the period allowed in a notice given by the collector under paragraph (2), the employer claims, but does not satisfy the collector, that the payment made in respect of the income tax period specified in the notice is the full amount he is liable to pay to the collector for that income tax period, then—

(a) the employer may require the collector to inspect the employer’s documents and records as if the collector had called upon the employer to produce those documents and records in accordance with regulation 55(1), and

(b) regulation 55 shall apply to that inspection, and the notice given by the collector under paragraph (2) shall be disregarded.

(6) Subject to paragraph (7), if the specified amount of tax, or any part of it, is unpaid on the expiration of the period of seven days allowed in the notice, the amount so unpaid shall—

(a) be certified by the collector, and

(b) be deemed to be an amount of tax which the employer was liable to pay for that income tax period in accordance with regulation 40 or 41.

(7) Paragraph (6) shall not apply if, during the period allowed in the notice—

(a) the employer pays the full amount of tax which he is liable to pay to the collector under regulation 40 or 41 for that income tax period, or

(b) the employer satisfies the collector that no amount, or no further amount, is due for that income tax period.

(8) Paragraphs (1) to (5) of regulation 54 shall apply to the amount shown in a certificate under paragraph (6).

(9) The production of a certificate under paragraph (6) shall be sufficient evidence that the employer is liable to pay the amount shown in the certificate to the collector.

(10) Any document purporting to be a certificate under paragraph (6) shall be deemed to be such a certificate until the contrary is proved.

(11) Notwithstanding anything in this regulation, if the employer pays any amount certified by the collector under this regulation and that amount exceeds the amount which he would have been liable to pay in respect of that income tax period apart from this regulation, he shall be entitled to set off such excess against any amount which he is liable to pay to the collector under regulation 40 or 41 for any subsequent income tax period.

(12) If the employer renders the return required by regulation 43(1) after the end of the year, and pays the total net tax which he is liable to pay, any excess of tax paid, and not otherwise recovered by set-off in accordance with this regulation shall be repaid.

Formal determination of tax payable by employer

49

(1) This regulation applies where it appears to the inspector that there may be tax payable under regulation 40 or 41 which—

(a) has not been paid to the collector, and

(b) has not been certified by the collector under regulation 43, 47, 48 or 55.

(2) Where this regulation applies, the inspector may determine the amount of that tax to the best of his judgment, and shall serve notice of his determination on the employer.

(3) A determination under this regulation shall not include tax in respect of which a direction under regulation 42(2) or (3) has been made; and directions under that regulation shall not apply to tax determined under this regulation.

(4) A determination under this regulation may—

(a) cover the tax payable by the employer under regulation 40 or 41 for any one or more income tax periods in a year, and

(b) extend to the whole of that tax or to such part of it as is payable in respect of a class or classes of employees specified in the notice of determination (without naming the individual employees) or of one or more named employees so specified.

(5) Where—

(a) any part of the tax determined under this regulation is not paid within 30 days from the date on which the determination became final and conclusive, and

(b) the Board consider that a direction under regulation 42(3) would, but for paragraph (3) of this regulation, have been made,

the Board may direct that such part of that tax as it appears to them should have been but was not deducted under these Regulations by the employer on payment of the relevant emoluments shall (without prejudice to the right of recovery from the employer) be recovered from the employee.

(6) If tax recoverable from an employee under paragraph (5) does not carry interest under section 88 of the Management Act, it shall be recoverable from the employee together with interest in accordance with—

(a) regulation 50, in relation to any year not later than the year ended 5th April 1992, from the reckonable date (as defined in that regulation), or

(b) regulation 51, in relation to the year ended 5th April 1993 or any subsequent year, from the reckonable date (as defined in that regulation)

until whichever is the earlier of—

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

(ii) the date (if any) immediately before the date on which it begins to carry interest under section 86 of the Management Act.

(7) A determination under this regulation shall be subject to the like provisions as are contained in Parts IV, V and VI of the Management Act as if it was an assessment, and as if the amount of tax determined was income tax charged on the employer, and those Parts of that Act shall apply accordingly with any necessary modifications.

(8) Regulation 100 shall apply, with the necessary modifications, to appeals against determinations under this regulation as it applies to appeals against assessments of emoluments.

(9) A certificate of the collector that any amount of interest payable under paragraph (6) 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.

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

Interest on unpaid tax which has been formally determined

50

(1) Where—

(a) an employer has not paid an amount of tax to the collector under regulation 40 or 41, and

(b) the inspector, at any time after 19th April 1988, makes a determination of the amount of such tax under regulation 49, and

(d) tax is payable pursuant to that determination,

the tax so payable shall carry interest at the prescribed rate from the reckonable date until payment.

(2) Subject to paragraph (3), in this regulation “the reckonable date” means the14th day after the end of the year to which the determination relates and, for the purposes of this regulation, where tax payable by the employer for any one or more income tax periods is covered by a determination, that determination shall relate to the year of which that period forms part.

(3) Where, at any time after 19th April 1988, an inspector makes a determination that relates to a year earlier than the year ending on 5th April 1988, then tax payable in accordance with that determination shall carry interest at the prescribed rate from 19th April 1988 until payment and in those circumstances that date shall be the reckonable date.

Interest on tax overdue–general

51

(1) Subject to paragraph (2), where, in relation to the year ended 5th April 1993 or any subsequent year, an employer has not within 14 days after the end of a year paid to the collector the total net tax deductible by him in respect of all his employees during that year, the tax not so paid shall carry interest at the prescribed rate from the reckonable date until payment.

(2) Paragraph (1) shall not apply to any tax in respect of which a direction under regulation 42(2) or (3) has been made.

(3) In this regulation “the reckonable date”, in relation to any year, means the 14th day after the end of that year.

(4) A certificate of the collector that any amount of interest payable under this regulation 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.

(5) Any document purporting to be a certificate under paragraph (4) shall be deemed to be such a certificate until the contrary is proved.

Interest on tax overdue–further provisions

52

(1) In regulation 50 and 51 “the prescribed rate” means the rate applicable under section 178 of the Finance Act 1989[^f00027] for the purposes of section 86 of the Management Act; and where that rate changes on an operative date within the meaning given by regulation 2 of the Taxes (Interest Rate) Regulations 1989[^f00028] by virtue of those Regulations, the change shall have effect for periods beginning on or after the operative date in relation to interest running from before that date as well as from or from after that date.

(2) The tax payable to which regulation 50(1) or 51(1) applies shall carry interest from the reckonable date even if that date is a non-business day within the meaning of section 92 of the Bills of Exchange Act 1882[^f00029].

(3) Interest payable under regulation 50 or 51 shall be recoverable as if it were an amount of tax which an employer is liable under regulation 40 or 41 to pay to the collector.

Interest on tax overpaid

Interest on tax overpaid by employer

53

(1) Where tax in respect of the year ended 5th April 1993 or any subsequent year is repaid to an employer in the circumstances specified in paragraph (2), the tax repaid shall carry interest at the prescribed rate from the relevant time until the order for the repayment is issued.

(2) The circumstances specified in this paragraph are where the tax is repaid—

(a) after the end of the year following that in respect of which the tax was paid, and

(b) after the end of the year in which the tax was paid.

(3) In this regulation “the prescribed rate” means the rate applicable under section 178 of the Finance Act 1989 for the purposes of section 824 of the Taxes Act[^f00030]; and where that rate changes on an operative date within the meaning given by regulation 2 of the Taxes (Interest Rate) Regulations 1989 by virtue of those Regulations, the change shall have effect for periods beginning on or after the operative date in relation to interest running from before that date as well as from or from after that date.

(4) In this regulation “the relevant time” means—

(a) in the case of a repayment of tax which was paid more than twelve months after the end of the year in respect of which the payment was made, the end of the year in which that tax was paid; and

(b) in any other case, the end of the year after the year in respect of which the payment was made.

Recovery

Recovery of tax

54

(1) Subject to paragraph (3), the provisions of any enactment relating to the recovery of income tax charged under Schedule E shall apply to the recovery of the amount of tax specified in paragraph (2) (in this regulation referred to as “the amount of tax”) as if the amount of tax had been charged under Schedule E by way of an assessment on the employer.

(2) The amount of tax specified in this paragraph is any amount of tax which an employer is liable under regulation 40 or 41, or is deemed liable under regulation 48, to pay to the collector for any income tax period.

(3) Summary proceedings for the recovery of the amount of tax may be brought in England, Wales or Northern Ireland at any time before the expiry of twelve months—

(a) after the date on which the amount of tax became payable, or

(b) where a return has been required under regulation 47, after the date of the delivery of that return to the collector.

(4) Proceedings may be brought for the recovery of the amount of tax without distinguishing the amounts which the employer is liable to pay in respect of each employee and without specifying the employees in question, and the amount of tax shall be one cause of action or one matter of complaint for the purposes of—

(a) proceedings under section 66 of the Management Act[^f00031], and

(b) summary proceedings, including, in Scotland, proceedings in the sheriff court.

(5) Nothing in paragraph (4) shall prevent the bringing of separate proceedings for the recovery of each of the several amounts which the employer is liable to pay for any income tax period in respect of his several employees.

(6) A certificate of the collector that the amount of tax 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.

(7) Any document purporting to be a certificate under paragraph (6) shall be deemed to be such a certificate until the contrary is proved.

Inspection of records

Inspection of employer’s records

55

(1) Every employer, whenever called upon to do so by any authorised officer of the Board, shall produce the records specified in paragraph (2) to that officer for inspection, at such time as that officer may reasonably require, at the prescribed place.

(2) The records specified in this paragraph are—

(a) all wages sheets, deductions working sheets, certificates given in accordance with regulations 29(1) and 30(1) (other than those which the employer has sent to the inspector) and other documents and records whatsoever relating to the calculation or payment of the emoluments of his employees in respect of the years or income tax periods specified by such officer or to the deduction of tax from such emoluments; or

(b) such of those wages sheets, deductions working sheets, certificates or other documents and records as may be specified by the authorised officer.

(3) “The prescribed place” mentioned in paragraph (1) means—

(a) such place in the United Kingdom as the employer and the authorised officer may agree upon; or

(b) in default of such agreement, the place in the United Kingdom at which the documents and records referred to in paragraph (2)(a) are normally kept; or

(c) in default of such agreement and if there is no such place as is referred to in sub-paragraph (b) above, the employer’s principal place of business in the United Kingdom.

(4) The authorised officer may—

(a) take copies of, or make extracts from, any document produced to him for inspection in accordance with paragraphs (1) and (2);

(b) remove any document so produced if it appears to him to be necessary to do so, at a reasonable time and for a reasonable period.

(5) Where any document is removed in accordance with paragraph (4)(b), the authorised officer shall provide—

(a) a receipt for any document so removed; and

(b) a copy of the document, free of charge, within seven days, to the person by whom it was produced or caused to be produced where the document is reasonably required for the proper conduct of a business.

(6) Where a lien is claimed on a document produced in accordance with paragraphs (1) and (2), the removal of the document under paragraph (4)(b) shall not be regarded as breaking the lien.

(7) Where records are maintained by computer, the person required to make them available for inspection shall provide the authorised officer with all facilities necessary for obtaining information from them.

(8) By reference to the information obtained from an inspection of the documents and records produced under paragraphs (1) and (2), the collector may, on the occasion of each inspection, prepare a certificate showing—

(a) the amount of tax which it appears from the documents and records so produced that the employer is liable to pay to the collector for the years or income tax periods covered by the inspection; and

(b) any amount of such tax which 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.

(9) Paragraphs (1) to (5) of regulation 54 shall apply to the amount shown in a certificate under paragraph (8), with the modification that summary proceedings for the recovery of the amount of tax, or such part of it as remains unpaid, may be brought at any time before the expiry of twelve months after the date of the certificate.

(10) The production of a certificate under paragraph (8) shall be sufficient evidence that the employer is liable to pay the amount shown in the certificate pursuant to paragraph (8)(b) to the collector in respect of the years or income tax periods mentioned in the certificate.

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

(12) For the purposes of paragraphs (1) and (2), such of the wages sheets, deductions working sheets, certificates and other documents and records mentioned in those paragraphs as are not required by other provisions of these Regulations to be sent to the inspector or collector shall be retained by the employer for not less than three years after the end of the year to which they relate.

PART VI — SPECIAL PROVISIONS

CHAPTER I — COUNCILLORS' ATTENDANCE ALLOWANCES

Interpretation of Chapter I

56

In this Chapter unless the context otherwise requires—

“attendance allowance” means a payment by way of attendance allowance within section 173(1) of the Local Government Act 1972[^f00032], regulations made under section 18 of the Local Government and Housing Act 1989[^f00033] or regulation 4(1) of the Local Government (Payments to Councillors) Regulations (Northern Ireland) 1981[^f00034];

“council”and “joint committee” shall be construed in accordance with section 148(1) of the Local Government Act (Northern Ireland) 1972[^f00035];

“councillor” means any person who is entitled to receive a payment by way of attendance allowance by virtue of section 173(1) of the Local Government Act 1972 or regulations made under section 18 of the Local Government and Housing Act 1989 and any member of a council entitled to receive a payment by way of attendance allowance by virtue of regulation 4(1) of the Local Government (Payments to Councillors) Regulations (Northern Ireland) 1981;

“employer” includes the local authority, council, joint authority or joint committee paying the attendance allowance;

“local authority” in England and Wales has the meaning assigned to it by section 270(1) of the Local Government Act 1972 and in Scotland has the meaning assigned to it by section 235(1) of the Local Government (Scotland) Act 1973[^f00036].

Councillor’s option to have tax deducted at basic rate

57

(1) This regulation applies where a councillor is entitled to receive an attendance allowance.

(2) Where a councillor is aggrieved by the inspector’s determination under regulation 7 or 9, he may, by notice to the inspector, opt to have income tax deducted from the attendance allowance at the basic rate in force at the time of payment of the attendance allowance.

(3) On receipt of any such notice the inspector shall give notice to the employer of the exercise of the option.

(4) On receipt of a notice given by the inspector to the employer under paragraph (3), and subject to paragraph (5), the employer, on making any payment of an attendance allowance to the councillor, shall deduct income tax at the basic rate in force at the time of that payment.

(5) Where a councillor has exercised his option under paragraph (2) and the inspector considers that the councillor may be obliged to expend money wholly, exclusively and necessarily in the performance of his duties as a councillor, the inspector may direct the employer to disregard an appropriate amount of the councillor’s attendance allowance in calculating the tax to be deducted when any payment of attendance allowance is made to the councillor.

(6) Where the inspector has given notice to the employer of the exercise by a councillor of the option in paragraph (2), the employer shall record, on a deductions working sheet, the particulars specified in paragraph (7) regarding every payment of attendance allowance which he makes to the councillor.

(7) The particulars specified in this paragraph are—

(a) the date of the payment,

(b) the amount of the attendance allowance,

(d) the amount of tax deducted from the attendance allowance.

Application of Part V of these Regulations

58

Part V of these Regulations shall apply to tax liable to be deducted under regulation 57(4).

CHAPTER II — RESERVE AND AUXILIARY FORCES

Interpretation of Chapter II

59

(1) In this Chapter unless the context otherwise requires—

“the Ministry” means— in relation to emoluments paid to members of the Merchant Navy Reserve, the Department of Transport, and, in all other cases, the Ministry of Defence;

“reserve and auxiliary forces” includes the forces specified in paragraph (2);

“reserve pay” means emoluments paid by the Ministry to members of the reserve and auxiliary forces;

“reservist” means any person in receipt of reserve pay other than a person who is not resident in the United Kingdom and is serving outside the United Kingdom.

(2) The forces specified in this paragraph are—

(a) Royal Naval Reserve,

(b) Royal Marines Reserve,

(d) Royal Naval Special Reserve (Special List),

(e) Women’s Royal Naval Reserve,

(f) Women’s Royal Naval Supplementary Reserve,

(g) Queen Alexandra’s Royal Naval Nursing Service Reserve,

(h) Voluntary Aid detachment (Naval Reserve),

(j) Regular Army Reserve of Officers,

(k) Army Reserves, including Regular Reserves and Army General Reserve,

(l) Territorial and Army Volunteer Reserve,

(m) Officer cadets of University Officers Training Corps,

(n) Royal Air Force Reserve of Officers,

(o) Royal Air Force Volunteer Reserve (including University Air Squadron members),

(p) Class E of the Royal Air Force Reserve,

(q) Women’s Royal Air Force Reserve of Officers,

(r) Women’s Royal Air Force Volunteer Reserve,

(s) Royal Auxiliary Air Force,

(t) Women’s Royal Auxiliary Air Force,

(u) Princess Mary’s Royal Air Force Nursing Service Reserve,

(v) Officers, Adult Instructors and Adult Warrant Officers of the Sea Cadet Corps, Army Cadet Forces, Air Training Corps and Combined Cadet Force, and

(w) Merchant Navy Reserve.

Disapplication of Parts III and IV of these Regulations

60

Parts III and IV of these Regulations shall not apply to reserve pay.

Deduction of tax

61

(1) Subject to paragraph (2), the Ministry, on making any payment of reserve pay to a reservist during any year, shall deduct income tax at the basic rate in force at the time payment is made.

(2) The Ministry shall not deduct income tax if—

(a) it has received notice from the inspector of a determination for that year under any of the following provisions of this Chapter that tax shall not be deducted from reserve pay, and

(b) it has not received notice of any amendment of that determination.

(3) Regulation 8 shall not apply to any notice within paragraph (2).

(4) This regulation shall apply on the making of any payment of reserve pay notwithstanding that an objection or appeal has been made under regulation 63 or 64.

Determination by inspector

62

(1) The inspector may make a determination that tax shall not be deducted from reserve pay if he is satisfied that the reservist will not be liable to income tax on the full amount of the reserve pay in that year, on the footing that any reliefs from income tax to which the reservist is entitled are allowable primarily against his income from other sources.

(2) The inspector may make the determination referred to in paragraph (1) either prior to or at any time during any year.

(3) If the inspector makes the determination referred to in paragraph (1), he shall give notice of that determination to the reservist and to the Ministry.

Objections and appeals

63

(1) A reservist from whose reserve pay tax has been deducted in accordance with regulation 61 may give notice of objection to the inspector stating the grounds of his objection if he is aggrieved by that deduction.

(2) On receipt of the notice of objection the inspector shall make a determination whether income tax at the basic rate shall be deducted from the reserve pay, and shall give notice of that determination to the reservist.

(3) The inspector may amend his determination by agreement with the reservist, and, in default of such agreement, the reservist, on giving notice to the inspector, may appeal against the determination.

(4) An appeal under paragraph (3) may be made to the General or Special Commissioners.

(5) Subject to paragraph (6), an appeal to the General Commissioners shall be heard in accordance with the like rules as are contained in paragraph 3 of Schedule 3 to the Management Act.

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

(7) On appeal, the Commissioners shall determine whether income tax at the basic rate shall be deducted from the reserve pay having regard to the circumstances by reference to which the inspector may determine under regulation 62 that income tax at the basic rate shall not be deducted from reserve pay.

(8) Subject to regulation 64, the determination of the Commissioners shall be final.

(9) If, on appeal, the Commissioners determine that tax shall not be deducted from the reserve pay, the inspector shall give notice of that determination to the Ministry.

Amended determinations

64

(1) If a determination by the inspector or the Commissioners under regulation 62 or 63 is found to be inappropriate because the actual circumstances are different from the circumstances by reference to which it was made, the inspector shall amend that determination.

(2) The inspector shall give notice of his amendment of that determination to the reservist and to the Ministry.

(3) Regulation 63 shall apply in relation to an amendment of a determination as it applies in relation to a determination under regulation 63(2).

Certificate of tax deducted

65

(1) The Ministry may, and when required to do so shall, give the reservist a certificate in a form authorised by the Board showing the particulars specified in paragraph (2) in respect of any payment of reserve pay made during the year from which tax is deducted.

(2) The particulars specified in this paragraph are—

(a) the date of the payment,

(b) the amount of the payment, and

Repayment to reservist during the year

66

(1) The Ministry shall not repay tax in respect of reserve pay to a reservist.

(2) On application being made to him by the reservist, the inspector may make such repayment to the reservist as may be appropriate at any time during the year having regard to the matters specified in paragraph (3).

(3) The matters specified in this paragraph are—

(a) the reserve pay of the reservist for the period from the beginning of the year up to and including the date of that application,

(b) the amount of tax deducted from that reserve pay as evidenced by certificates of pay and tax supplied under regulation 65, and

(c) any reliefs from income tax to which the reservist is entitled, and his income for the year from all other sources and his liability to tax on that income, as estimated by the inspector.

Ministry records

67

(1) The Ministry shall record, on a deductions working sheet, the particulars specified in paragraph (2) regarding every payment of reserve pay made to a reservist.

(2) The particulars specified in this paragraph are—

(a) the date of the payment,

(b) the amount of the payment, and

End of year certificate

68

(1) After the end of the year the Ministry shall give the certificate specified in paragraph (2) to a reservist to whom paragraph (3) applies.

(2) The certificate specified in this paragraph is a certificate in the form provided or authorised by the Board showing—

(a) the total amount of reserve pay paid by the Ministry to the reservist during the year,

(b) the total tax deducted from the reserve pay,

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

(3) A reservist to whom this paragraph applies is a reservist who—

(a) is a member of the reserve and auxiliary forces on the last day of the year and from whose reserve pay tax has been deducted during that year, and

(b) has not been given a certificate under regulation 65 in respect of each payment of reserve pay during that year.

Application of Parts V and VIII of these Regulations

69

(1) Part V of these Regulations shall apply with any necessary modifications to tax liable to be deducted under regulation 61.

(2) Part VIII of these Regulations shall apply with any necessary modifications to reserve pay.

Other emoluments of reservist

70

Nothing in this Chapter shall affect the application of these Regulations to any other emoluments of a reservist.

CHAPTER III — HOLIDAY PAY

Interpretation of Chapter III

71

In this Chapter unless the context otherwise requires—

“fund” means a person who pays holiday pay to an individual who is not employed by him (or, on the death of that individual, to some other person);

“holiday pay” means any payment obtained by an individual (or, on his death, by some other person) in exchange for a voucher, stamp or similar document purchased by a person who employs (or employed) that individual for any holiday period;

“recipient” means an individual (or, on that individual’s death, some other person claiming in respect of that individual’s right) who is paid holiday pay by a fund.

Disapplication of Parts III and IV of these Regulations

72

Parts III and IV of these Regulations shall not apply to holiday pay paid by a fund.

Deduction of tax

73

A fund, on making any payment of holiday pay to a recipient, shall deduct income tax at the basic rate in force at the time the payment is made.

Certificate of tax deducted

74

(1) A fund, on making any payment of holiday pay, shall give the recipient a certificate in a form authorised by the Board showing the particulars specified in paragraph (2).

(2) The particulars specified in this paragraph are—

(a) the recipient’s name,

(b) the tax year in which the payment is made,

(d) the amount of the payment, and

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

Repayment to recipient during the year

75

(1) A fund shall not repay tax deducted from a payment of holiday pay to a recipient.

(2) On application being made to him by the recipient, the inspector may make such repayment to the recipient as may be appropriate at any time during the year having regard to the matters specified in paragraph (3).

(3) The matters specified in this paragraph are—

(a) the holiday pay of the recipient (or of the individual in respect of whose right the recipient is paid) for the period from the beginning of the year up to and including the date of that application,

(b) the amount of tax deducted from that holiday pay as evidenced by certificates of pay and tax supplied under regulation 74, and

(c) any reliefs from income tax to which the recipient is (or the individual in respect of whose right the recipient is paid was) entitled, his income for the year from all other sources and his liability to tax on that income, as estimated by the inspector.

Fund records

76

(1) A fund shall record, on a deductions working sheet, the particulars specified in paragraph (2) regarding every payment of holiday pay made to a recipient.

(2) The particulars specified in this paragraph are—

(a) the recipient’s name,

(b) the tax year to which the deductions working sheet relates,

(d) the amount of the payment, and

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

Application of Parts V and VIII of these Regulations

77

(1) Part V of these Regulations shall apply with any necessary modifications to tax liable to be deducted under regulation 73.

(2) Part VIII of these Regulations shall apply with any necessary modifications to holiday pay.

Other emoluments of recipient

78

Nothing in this Chapter shall affect the application of these Regulations to any other emoluments of a recipient.

CHAPTER IV — OTHER CASES

Death of employer

79

If an employer dies, anything which he would have been liable to do under these Regulations shall be done by—

(a) his personal representatives, or

(b) where an employer paid emoluments on behalf of another person, the person succeeding him, or

(c) where an employer paid emoluments on behalf of another person and no person succeeds him, the person on whose behalf he paid emoluments.

Succession to a business, etc.

80

(1) This regulation applies where there has been a change in the employer from whom an employee receives—

(a) emoluments in respect of his employment in any trade, business, concern or undertaking, or in connection with any property, or

(b) any annuity or pension.

(2) Subject to paragraphs (3) and (4), where this regulation applies—

(a) the change shall not be treated as a cessation of employment for the purposes of regulation 23, but,

(b) in relation to any matter arising after the change, the employer after the change shall be liable to do anything which the employer before the change would have been liable to do under these Regulations if the change had not taken place.

(3) The employer after the change shall not be liable for the payment of any tax which was deductible from emoluments paid to the employee before the change took place.

(4) If a trade dispute began, but did not end, before the change took place—

(a) regulations 36(5), 42(7) and 45 shall apply to the employer before the change as though the time limit of 42 days had expired when the change took place, and

(b) the employer after the change shall be liable to make repayment of any tax withheld by the employer before the change in accordance with regulation 36(3) in the year in which the change took place, and regulation 42(6) shall apply in such a case.

(5) The employer before the change shall furnish the employer after the change with such particulars as may be necessary to enable the employer after the change to comply with this regulation.

CHAPTER I — GENERAL

Interpretation of Part VII

81

In this Part of these Regulations unless the context otherwise requires—

“benefit” means a payment in accordance with the Social Security Act 1986[^f00037] or the Social Security Contributions and Benefits Act 1992 or, in Northern Ireland, the Social Security (Northern Ireland) Order 1986[^f00038] or the Social Security Contributions and Benefits (Northern Ireland) Act 1992, which includes taxable benefit;

“claim” means a claim to a benefit;

“claimant” means a person who has made a claim and who is not an employed claimant;

“employed claimant” means an employed earner who has made a claim;

“taxable benefit” means income chargeable under section 617(1) of the Taxes Act[^f00039]; and

“working sheet” means any form of record on or in which the matters required by this Part of these Regulations are to be kept.

Application of other parts of these Regulations

82

(1) Parts III to VI of these Regulations shall apply to payments of taxable benefit only to the extent and with the modifications set out in this Part of these Regulations.

(2) To the extent that Parts III to VI of these Regulations are applied to this Part of these Regulations and unless the context otherwise requires—

“emoluments” shall be interpreted as “taxable benefit”;

“employee” shall be interpreted as “claimant”;

“employer” shall be interpreted as “the Department”;

and related expressions shall be construed accordingly.

CHAPTER II — PAYMENTS TO WHOLLY UNEMPLOYED PERSONS

Interpretation of Chapter II

83

(1) In this Chapter “the Department” means—

(a) in Great Britain, the Department of Employment whether or not a particular payment including taxable benefit was actually made by that Department, or

(b) in Northern Ireland, the Department of Health and Social Services for Northern Ireland.

(2) Where a payment of taxable benefit is made by the Department of Social Security that Department shall make arrangements to enable the Department to comply with these Regulations.

(3) For the purposes of this Chapter any reference to the deduction or repayment of tax on making any payment shall be taken to refer to the duties imposed upon the Department by regulations 88 and 89.

Procedure on making claim

84

(1) On making a claim after a period of employment to which Part IV of these Regulations applied, the claimant shall deliver to the Department the two copies of the certificate delivered to him in accordance with regulation 23(3).

(2) On making a claim after a previous claim to which regulation 89 applied, the claimant shall deliver to the Department the two copies of the certificate delivered to him in accordance with regulation 89(2)(c).

(3) The Department shall forthwith—

(a) prepare a deductions working sheet in the form provided or in a form authorised by the Board and in accordance with the particulars given on the copies of the certificate, the two copies of which were delivered by the claimant;

(b) record on the working sheet the cumulative emoluments shown on the certificate;

(c) either record on the working sheet or keep such records as enable the production of the following particulars, namely—

(i) 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 of the certificate;

(ii) 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; and

(d) supply those particulars to the inspector, in such form as the Board may provide, together with such further information as may be required for the purposes of these Regulations.

(4) If the details on the certificate, the two copies of which were delivered by the claimant, are such that if a calculation were made in accordance with those figures under regulation 91 on the day of claim a repayment of tax exceeding £200 would arise, the Department shall so inform the inspector in accordance with paragraph (3)(d) above.

(5) If the claim is made within the first seven weeks of the year and a certificate, the two copies of which were delivered in accordance with this regulation, shows that the last payment of emoluments or taxable benefit was in the preceding year, the Department shall comply with paragraph (3), but without recording the cumulative emoluments or total net tax deducted (if any) shown on the certificate.

(6) The code shown on the certificate shall be treated as the appropriate code for the purposes of these Regulations, except that where the certificate relates to the year ended 5th April 1993 and the code shown on the certificate is no longer valid, the appropriate code shall be deemed to be the code which effects deduction of tax with no personal reliefs at one or more of the rates referred to in regulation 8(4).

(7) If, on the making of a claim, no copies of a certificate have been delivered in accordance with paragraphs (1) or (2), or, subject to paragraph (5), the two copies of a certificate so delivered show that the last payment of emoluments was in a year preceding that in which the claim was made, the Department shall, for the purposes of paragraph (3), record the code specified by the Board as the appropriate code.

(8) If, on making a claim, a claimant to whom paragraph (1) applies declares that his last employer has not delivered the two copies of the certificate referred to in that paragraph to him, the Department may require that last employer to deliver those two copies to a specified office of the Department.

(9) Subject to paragraph (10), if a claimant has not delivered the two copies of a certificate in accordance with paragraph (1) or (2) and the two copies of the certificate have not been obtained under paragraph (8) within the period specified by the Board, the Department shall render a return to the inspector, giving the name and address of the claimant, the date of claim and such other particulars as may be necessary to enablethe inspector to determine the appropriate code in accordance with regulation 7.

(10) The return referred to in paragraph (9) shall not be rendered if the claimant certifies, in a form provided by the Board, that—

(a) he is undergoing a course of full-time education and has not had regular employment since 6th April, or

(b) he has not had regular employment since the end of his full-time education.

Determinations and notifications by the inspector

85

(1) The inspector may determine an appropriate code for any claimant in accordance with regulation 7, and if he does so regulations 6, 8 and 10 to 13 inclusive shall apply to that determination.

(2) Any notification of code or amended code, or of cumulative emoluments and total net tax deducted received from the inspector by the Department shall be recorded in substitution for any previous record and shall be used for the purpose of all calculations required under this Chapter.

Quarterly attenders

86

(1) If the Department decides that a claimant may make quarterly declarations in respect of his claim and the claimant has not had regular employment for at least twelve months, these Regulations shall not apply as regards any subsequent payment of benefit or event relating to the claim in question.

(2) If the Department decides that a claimant may make quarterly declarations in respect of his claim on the ground that he is in receipt of a pension in respect of a former employment such that no benefit is payable, the Department shall so notify the inspector.

Determination and recording of amount of taxable benefit

87

On each occasion that a payment of benefit is made to a claimant to whom regulation 86 does not apply, the Department shall determine and record the taxable benefit included in the payment.

End of year

88

(1) After the end of the year the Department shall, in respect of each claimant whose latest claim was not treated as terminated under regulation 89 during the year—

(a) make a tax calculation in accordance with regulation 91;

(b) subject to paragraph (2), issue the certificate specified in paragraph (4) to the claimant; and

(2) The Department shall not be required to issue the certificate specified in paragraph (4) if no taxable benefit has been paid and a tax calculation in accordance with regulation 91 is not required.

(3) If a payment of benefit in respect of any year is made after the certificate for that year referred to in paragraph (1) has been rendered or would have been rendered but for paragraph (2), the Department shall proceed under regulation 90 as if further taxable benefit had been paid.

(4) The certificate specified in this paragraph is a certificate in such form as the Board may provide, and shall show as appropriate—

(a) the year to which it relates,

(b) the total benefit for the year excluding any amounts previously notified under regulation 89 or 90,

(d) the code appropriate to the claimant,

(e) any previous emoluments and any tax deducted from those emoluments which the Department was required to take into account under regulation 91,

(f) the total emoluments for the year and the corresponding total net tax deducted, and

(g) the amount of tax refunded by the Department.

(5) The return specified in this paragraph is a return in such form as the Board may prescribe, and shall show as appropriate—

(a) such particulars as may be required for the identification of the claimant,

(b) the particulars specified in paragraph (4),

(d) the excess (if any) of the total tax due arising from the calculation under regulation 91 over tax previously deducted in the year

Termination of claim

89

(1) For the purposes of these Regulations a claim is to be treated as terminated if the claimant—

(a) gives notice of termination, or

(b) fails to make a further claim, or

(2) Where a claim is treated as terminated, the Department shall–

(a) make a tax calculation in accordance with regulation 91;

(b) forthwith deliver to the inspector a certificate in such form as the Board may provide containing the following particulars—

(i) such particulars as may be required for the identification of the claimant,

(ii) the last day in accordance with paragraph (3) below,

(iii) the code appropriate to the claimant,

(iv) the cumulative emoluments (including taxable benefit) and the corresponding total net tax deducted at the date of termination or, if regulation 91(4) or (5) applies, the taxable benefit,

(v) the amount of any tax shown by the calculation to be payable in addition to that already paid,

(vi) the amount of any refund withheld under regulation 91(3) which the inspector has not authorised to be repaid, and

(vii) the date of issue of the certificate;

(c) make two copies of the certificate specified in sub-paragraph (b) above on the form provided, and deliver them to the claimant on the same date as the certificate is delivered to the inspector; and

(d) give notice to the claimant of—

(i) the total benefit for the year excluding any sums previously notified under this regulation or regulation 90, and

(ii) the taxable benefit included in that total benefit.

(3) Subject to paragraph (3), the relevant date for the purpose of any tax calculation which the Department is required to make under this regulation shall be the last day for which benefit was claimed, and if paid was not recoverable, except that if that last day is 4th or 5th April the relevant date shall be the preceding 3rd April.

(4) The Department shall not be required to amend a tax calculation solely because the date originally treated as the relevant date is subsequently shown to be incorrect.

Notification of taxable benefit adjustment

90

If after the issue of a certificate under regulation 88(1) or of a notice under regulation 89(2)(d) or under this regulation, further taxable benefit is paid or taxable benefit overpaid is refunded by the claimant, the Department shall—

(a) give notice to the claimant of the revised figure of total benefit and the taxable benefit included in that revised figure in accordance with the relevant regulation; and

(b) notify the inspector of the sums paid or refunded in such form as the Board may provide.

Tax calculation

91

(1) Subject to paragraphs (4) and (5), whenever the Department is required by these Regulations to make a tax calculation, the Department shall ascertain—

(a) for the year up to the relevant date—

(i) the cumulative emoluments including taxable benefit,

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

(iii) the cumulative taxable emoluments, and

(iv) the cumulative tax; and

(b) the total net tax deductible at the relevant date, save that where the code reflects additional pay, the total net tax deductible shall not exceed the overriding limit.

(2) If the total net tax deductible calculated in accordance with paragraph (1) exceeds the previous total net tax deducted, the Department shall amend the record of the code as if a direction had been received from the inspector on the relevant date under regulation 17.

(3) If the previous total net tax deducted recorded on the working sheet exceeds the total net tax deductible calculated in accordance with paragraph (1), the Department shall repay the excess to the claimant, save that any sum notified to the inspector under regulation 84(4) whose repayment has not been authorised by him shall not be repaid.

(4) No tax calculation shall be made if the inspector has made a direction that the provisions of regulation 17 shall apply to the claimant for the relevant year.

(5) Subject to regulation 85(2), the inspector shall be deemed to have made a direction under paragraph (4) where—

(a) regulation 84(7) has been applied and the certificate referred to in regulation 84(10) has not been given, or

(b) the two copies of the certificate delivered under regulation 84(1) or (2) do not relate to the claimant’s last employment or claim before the present claim, whichever is later, or

(d) it appears to the Department on the occasion of a claim that a previous claim should have been treated as terminated in accordance with regulation 89, or

(e) the code is one issued under regulation 9.

(6) In this regulation—

“the relevant date” means— where a calculation is required by regulation 88, the end of the year, and where a calculation is required by regulation 89, the date specified in regulation 89(3);

“the total net tax deductible” means the total tax due in accordance with the appropriate tax tables in respect of any taxable emoluments at the relevant date.

Death of claimant

92

(1) On the death of a claimant the Department shall comply with regulation 89 where the name and address of the claimant’s personal representative is known, except that—

(a) the two copies of the certificate mentioned in regulation 89(2)(c) shall be sent to the inspector together with the certificate under regulation 89(2)(b), and

(b) the notice referred to in regulation 89(2)(d) shall be sent to the personal representative.

(2) If the Department has not been notified of the name and address of the claimant’s personal representative within 30 days of a claimant’s death—

(a) the inspector shall be deemed to have made a direction under regulation 17, and

(b) the Department shall then proceed as in paragraph (1) above, except that the notice under regulation 89(2)(d) shall not be sent.

Finance

93

(1) The Board shall advance monies to the National Insurance Funds of Great Britain and Northern Ireland at intervals to be agreed with the Department of Social Security and the Department of Health and Social Services for Northern Ireland respectively for use in making repayments of income tax under these Regulations.

(2) The Departments mentioned in paragraph (1) shall provide the Board with a quarterly statement of receipts and payments in such form as the Board may require.

CHAPTER III — PAYMENTS TO EMPLOYED PERSONS

Interpretation of Chapter III

94

In this Chapter “the Department” means—

(a) in Great Britain, the Department of Employment or, as the case may be, the Department of Social Security, or

(b) in Northern Ireland, the Department of Health and Social Services for Northern Ireland

by whom a payment of benefit is made.

Benefit paid by the paying Department direct to the claimant

95

(1) If the Department pays benefit directly to an employed claimant—

(a) the Department shall determine and record the amount of taxable benefit, and

(b) the full sum shall be paid without any deduction or repayment of income tax.

Benefit paid by employer

96

(1) If benefit is paid to an employed claimant by his employer on behalf of the Department and the employer calculates the benefit payable by reference to instructions supplied by the Department, the employer shall also calculate the taxable benefit in accordance with those instructions.

(2) If benefit is paid to an employed claimant by his employer on behalf of the Department and paragraph (1) does not apply, the Department shall notify the employer of the amount of benefit and of taxable benefit.

(3) If the employer has undertaken to pay benefit on behalf of the Department, the Department shall pay the full amount of benefit to the employer without any deduction on account of income tax.

(4) Subject to paragraph (5), Parts III to VI of these Regulations shall apply to the taxable benefit paid by the employer on behalf of the Department as if it were a payment of emoluments from the employment.

(5) In any case in which it appears to the Board that deduction of tax from the taxable benefit referred to in paragraph (4) by reference to the tax tables is impracticable, lthe Board may made such other arrangements as are appropriate for the collection of tax in respect of taxable benefit in such cases.

Termination of claim

97

(1) A claim shall be treated as terminated if the employed claimant—

(a) gives notice of termination, or

(b) fails to make a further claim, or

(2) Where a claim is treated as terminated the Department shall notify the inspector and the employed claimant of the total benefit and taxable benefit paid in respect of the claim, showing the amounts appropriate to each year.

Adjustments

98

If, after the payment of benefit by an employer or the Department, the Department recovers part or all of that payment from the employed claimant, the Department shall notify the inspector and the employed claimant of the adjustment to the figure of taxable benefit, showing the amounts appropriate to each year.

PART VIII — ASSESSMENT AND DIRECT COLLECTION

Assessment

99

(1) Nothing in these Regulations shall prevent an assessment under Schedule E being made on a person in respect of his emoluments.

(2) The assessment of emoluments shall be made in accordance with section 29 of the Management Act[^f00040].

(3) All the emoluments of an employee may be included in one assessment.

Appeals

100

(1) Subject to paragraph (2), an appeal against an assessment of emoluments shall be heard by the General or Special Commissioners in accordance with the like provisions as are contained in section 31[^f00041] and Part V of the Management Act.

(2) The appeal shall be brought before the General Commissioners for the division in which the place where the assessment was made is situated and not the General Commissioners for the division in which the place of employment is situated where—

(a) the place of employment referred to in paragraph 3 of Schedule 3 to the Management Act and the place where the assessment was made are not within the same division, and

(b) the inspector so elects by notice given to the employee.

Repayment of overpayments and recovery of underpayments

101

(1) If the tax payable under the assessment is less than the total net tax deducted from the employee’s emoluments during the year less any subsequent repayments made, the inspector may, and if the person assessed so requires shall, repay the difference to the person assessed instead of taking it into account in determining the appropriate code for a subsequent year.

(2) If the tax payable under the assessment exceeds the total net tax deducted from the employee’s emoluments during the year less any subsequent repayments made, the inspector may require the person assessed to pay the excess to the collector instead of taking it into account in determining the appropriate code for a subsequent year, and where the inspector so requires the person assessed shall pay the excess accordingly.

(3) Subject to paragraph (5), for the purpose of determining the amount of the difference mentioned in paragraph (1) or the excess mentioned in paragraph (2), any necessary adjustment shall be made to the total net tax deducted in respect of the matters specified in paragraph (4).

(4) The matters specified in this paragraph are —

(a) any tax which the employer was liable to deduct from the employee’s emoluments but failed so to deduct, having regard to whether or not the Board or the collector have directed that that tax shall be recovered from the employee;

(b) any shortfall in deductions made in accordance with these Regulations from the employee, where—

(i) payments of profit-related pay have been made to the employee in accordance with a profit-related pay scheme registered under Chapter III of Part V of the Taxes Act,

(ii) in consequence of the relief given by that Chapter less tax has been deducted from those payments than would have been deducted if the scheme had not been registered, and

(iii) the registration of the scheme has subsequently been cancelled with effect from a time before that relevant for the purposes of the relief;

(d) any amount to be recovered as if it were unpaid tax under section 30(1) of the Management Act, being an amount of tax in respect of Schedule E repaid tothe employee in excess of the amount properly due to him, to the extent that the inspector took that amount to be recovered into account in determining the appropriate code and the total net tax deducted was in consequence greater than it would otherwise have been.

(5) An adjustment under sub-paragraph (a) or (b) of paragraph (4) shall be disregarded for the purposes of determining the amount of the difference mentioned in paragraph (1) and of computing any tax overpaid under sub-paragraph (c) of paragraph (4).

Provisions for direct collection–general

102

(1) The inspector may proceed in accordance with any of the provisions and arrangements specified in paragraph (2) in any of the cases specified in paragraph (3).

(2) The provisions and arrangements specified in this paragraph are—

(a) the provisions of regulation 103,

(b) the provisions of regulation 104, and

(3) The cases specified in this paragraph are—

(a) cases of casual employment, and

(b) any other case in which the inspector is of opinion that deduction of tax by reference to the tax tables is impracticable.

Direct collection involving assessment

103

(1) As early in the year as may be, the inspector shall make an assessment for that year in the amount specified in paragraph (2).

(2) The amount specified in this paragraph is—

(a) where the assessment is made upon a pension or pensions, the amount receivable in the current year estimated to the best of the inspector’s judgment; but if this provision does not apply then

(b) where—

(i) the inspector is unable to ascertain the full amount of the employee’s emoluments for the preceding year,

(ii) the inspector is unable to ascertain the full amount of the employee’s emoluments for the part of the preceding year during which the employee was in employment, or

(iii) the employee had no emoluments for the previous year,

an amount estimated to the best of the inspector’s judgment; but if this provision does not apply then

(c) where the employee was in employment during part only of that preceding year, the amount which bears the same proportion to the amount of the employee’s emoluments for the preceding year as a full year bears to the part of that preceding year during which the employee was in employment; but if this provision does not apply then

(d) the amount of the employee’s emoluments for the preceding year.

(3) The inspector shall serve a notice of assessment on the employee, and regulation 100 shall apply accordingly as regards appeals.

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