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The Social Security (Contributions) Regulations 2001

Type Statutory-Instrument

Publication 2001-03-15

Last updated 2026-04-06

State In force

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

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“qualifying period” means a tax period beginning on or after 6th August 2007;

“relevant contributions debt” means a debt specified in paragraph 29B;

“specified amount” means the amount mentioned in paragraph 29C(1)(b);

“transfer notice” means the notice mentioned in paragraph 29C(4);

“transferee” means the person mentioned in paragraph 29C(4).

(2) In this Part of this Schedule references to section 688A, however expressed, are references to section 688A of ITEPA.

Relevant contributions debts of managed service companies

29B

(1) A managed service company has a relevant contributions debt if—

(a) a managed service company must pay an amount of contributions for a qualifying period, and

(b) one of conditions A to E is met.

(2) Condition A is met if—

(a) a decision has been made in accordance with section 8 of the Social Security Contributions (Transfer of Functions, etc.) Act 1999 that an amount of Class 1 National Insurance contributions is due in respect of a qualifying period, and

(b) any part of the amount has not been paid within 14 days from the date on which the decision became final and conclusive.

(3) Condition B is met if—

(a) an employer delivers a return under paragraph 22(1) (return by employer at end of year) for the tax year 2007-08, or any later tax year, showing an amount of total contributions deducted by the employer for that tax year,

(b) HM Revenue and Customs prepare a certificate under paragraph 22(5) (certificate that contributions specified in return under paragraph 22(1) remain unpaid) showing how much of that amount remains unpaid, and

(c) any part of that amount remains unpaid at the end of a period of 14 days beginning with the date on which the certificate is prepared.

(4) Condition C is met if—

(a) HM Revenue and Customs prepare a certificate under paragraph 14(1) (employer failing to pay earnings-related contributions) showing an amount of contributions which the employer is liable to pay for a qualifying period, and

(b) any part of that amount remains unpaid at the end of a period of 14 days beginning with the date on which the certificate is prepared.

(5) Condition D is met if—

(a) HM Revenue and Customs serve notice on an employer under paragraph 15(1) (specified amount of earnings-related contributions payable by the employer) requiring payment of the amount of Class 1 contributions which they consider the employer is liable to pay, and

(b) any part of that amount remains unpaid at the end of a period of 14 days beginning with the date on which the notice is prepared.

(6) Condition E is met if—

(a) HM Revenue and Customs prepare a certificate under paragraph 26A (certificate of employer's liability to pay contributions after inspection of documents) showing an amount of contributions which it appears that the employer is liable to pay for a qualifying period,

(b) HM Revenue and Customs make a written demand for payment of that amount of contributions, and

(c) any part of that amount remains unpaid at the end of a period of 14 days beginning with the date on which the written demand for payment is made.

Transfer of debt of managed service company

29C

(1) This paragraph applies if—

(a) a managed service company has a relevant contributions debt, and

(b) an officer of Revenue and Customs is of the opinion that the relevant contributions debt or a part of the relevant contributions debt (the “specified amount”) is irrecoverable from the managed service company within a reasonable period.

(2) HM Revenue and Customs may make a direction authorising the recovery of the specified amount from the persons specified in section 688A(2) (managed service companies: recovery from other persons).

(3) Upon the making of a direction under sub-paragraph (2), the persons specified in section 688A(2) become jointly and severally liable for the relevant contributions debt, but subject to what follows.

(4) HM Revenue and Customs may not recover the specified amount from any person in accordance with a direction made under sub-paragraph (2) until they have served a notice (a “transfer notice”) on the person in question (the “transferee”).

(5) If an officer of Revenue and Customs is of the opinion that it is appropriate to do so, HM Revenue and Customs may accept an amount less than the specified amount (the “lower amount”) from a transferee; but this acceptance shall not prejudice the recovery of the specified amount from any other transferee.

(6) HM Revenue and Customs may not serve a transfer notice on a person mentioned in section 688A(2)(c), or on a paragraph (c) associate, if the relevant contributions debt is incurred before 6th January 2008.

(7) HM Revenue and Customs may not serve a transfer notice on a person mentioned in section 688A(2)(c), or on a paragraph (c) associate, unless an officer of Revenue and Customs certifies that, in his opinion, it is impracticable to recover the specified amount from persons mentioned in paragraphs (a) and (b) of section 688A(2) and from paragraph (b) associates.

(8) In determining, for the purposes of sub-paragraph (7), whether it is impracticable to recover the specified amount from the persons mentioned in paragraphs (a) and (b) of section 688A(2) and from paragraph (b) associates the officer of Revenue and Customs may have regard to all managed service companies in relation to which a person is a person mentioned in paragraph (a) or (b) of section 688A(2) or a paragraph (b) associate.

(9) In determining which of the persons mentioned in section 688A(2)(c) and which of the paragraph (c) associates are to be served with transfer notices and the amount of those notices, HM Revenue and Customs must have regard to the degree and extent to which those persons are persons who (directly or indirectly) have encouraged or been actively involved in the provision by the managed service company of the services of the individual mentioned in that provision.

Time limits for issue of transfer notices

29D

(1) A transfer notice must be served before the end of the period specified in this paragraph.

(2) Sub-paragraphs (3) to (7) apply if the transfer notice is served on a person mentioned in paragraph (a) or (b) of section 688A(2) or on a paragraph (b) associate.

(3) In a case in which condition A in paragraph 29B is met, the transfer notice must be served before the end of a period of 12 months beginning with the date on which the decision became final and conclusive.

(4) In a case in which condition B in paragraph 29B is met, the transfer notice must be served before the end of a period of 12 months beginning with the date on which HM Revenue and Customs received the return delivered under paragraph 22.

(5) In a case in which condition C in paragraph 29B is met, the transfer notice must be served before the end of a period of 12 months beginning with the date on which HM Revenue and Customs prepare the certificate under paragraph 14(1).

(6) In a case in which condition D in paragraph 29B is met, the transfer notice must be served before the end of a period of 12 months beginning with the date on which HM Revenue and Customs serve notice to the employer under paragraph 15(1).

(7) In a case in which condition E in paragraph 29B is met, the transfer notice must be served before the end of a period of 12 months beginning with the date on which HM Revenue and Customs carry out the inspection of the employer’s contribution records under Schedule 36 to the Finance Act 2008.

(8) If the transfer notice is served on a person mentioned in paragraph (c) of section 688A(2), or on a paragraph (c) associate, the transfer notice must be served before the end of a period of three months beginning with the date on which the officer of Revenue and Customs certifies the matters specified in paragraph 29C(7).

Contents of transfer notice

29E

(1) A transfer notice must contain the following information—

(a) the name of the managed service company to which the relevant contributions debt relates;

(b) the address of the managed service company to which the relevant contributions debt relates;

(d) the tax periods to which the relevant contributions debt relates;

(e) if the tax periods to which the relevant contributions debt relates are comprised in more than one tax year, the apportionment of the relevant contributions debt among those tax years;

(f) which of the conditions A to E specified in paragraph 29B is met;

(g) the transferee’s name;

(h) the transferee’s address;

(j) whether the transferee is a person mentioned in paragraph (a), (b) or (c) of section 688A, a paragraph (b) associate or a paragraph (c) associate;

(k) if the transferee is a person mentioned in paragraph (c) of section 688A or a paragraph (c) associate—

(i) the date on which the officer of Revenue and Customs certified the matters specified in paragraph 29C(7), and

(ii) the names of the persons from whom it has been impracticable to recover the specified amount;

(l) the specified amount;

(m) the tax periods to which the specified amount relates;

(n) if the tax periods to which the specified amount relates are comprised in more than one tax year, the apportionment of the specified amount among those tax years;

(o) the address to which payment must be sent;

(p) the address to which an appeal must be sent.

(2) The transfer notice may specify the lower amount if HM Revenue and Customs are prepared to accept the lower amount from the transferee.

(3) The transfer notice must also contain a statement, made by the officer of Revenue and Customs serving the notice, that in his opinion the specified amount is irrecoverable from the managed service company within a reasonable period.

Payment of the specified amount

29F

(1) If a transfer notice is served, the transferee must pay the specified amount to HM Revenue and Customs at the address specified in the transfer notice.

(2) The transferee must pay the specified amount within 30 days beginning with the date on which the transfer notice is served (the “specified period”).

(3) If a transfer notice is served on a person mentioned in paragraph (a) or (b) of section 688A(2), or on a paragraph (b) associate, the specified amount carries interest from the reckonable date until the date on which payment is made.

(4) If a transfer notice is served on a person mentioned in paragraph (c) of section 688A(2), or on a paragraph (c) associate, the specified amount carries interest from the day following the expiry of the specified period until the date on which payment is made.

(5) For the purposes of sub-paragraph (3) “the reckonable date” has the meaning given by paragraph 17(3)(b)(i).

Appeals

29G

(1) A transferee may appeal against the transfer notice.

(2) A notice of appeal must—

(a) be given to HM Revenue and Customs at the address specified in the transfer notice within 30 days beginning with the date on which the transfer notice was served, and

(b) specify the grounds of the appeal.

(3) The grounds of appeal are any of the following—

(a) that the relevant contributions debt (or part of the relevant contributions debt) is not due from the managed service company to HM Revenue and Customs;

(b) that the specified amount does not relate to a company which is a managed service company;

(d) that the transferee is not a person mentioned in section 688A(2);

(e) that the transferee was not a person mentioned in section 688A(2) during the tax periods to which the specified amount relates;

(f) that the transferee was not a person mentioned in section 688A(2) during some part of the tax periods to which the specified amount relates;

(g) that the transfer notice was not served before the end of the period specified in paragraph 29D;

(h) that the transfer notice does not satisfy the requirements specified in paragraph 29E;

(j) in the case of a transferee mentioned in section 688A(2)(c) or of a paragraph (c) associate, that it is not impracticable to recover the specified amount from persons mentioned in paragraphs (a) and (b) of section 688A(2) or from paragraph (b) associates;

(k) in the case of a transferee mentioned in section 688A(2)(c) or of a paragraph (c) associate, that the amount specified in the transfer notice does not have regard to the degree and extent to which the transferee is a person who (directly or indirectly) has encouraged or been actively involved in the provision by the managed service company of the services of the individual mentioned in that provision.

(4) Sub-paragraph (3)(a) is subject to paragraph 29H(4).

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Procedure on appeals

29H

(1) On an appeal that is notified to the tribunal, the tribunal shall uphold or quash the transfer notice.

(2) The general rule in sub-paragraph (1) is subject to the following qualifications.

(3) In the case of the ground of appeal specified in paragraph 29G(3)(a), the tribunal shall investigate the matter and shall—

(a) uphold the amount of the relevant contributions debt specified in the transfer notice, or

(b) reduce or increase the amount of the relevant contributions debt specified in the transfer notice to such amount as in the tribunal’s opinion is just and reasonable.

(4) If the tribunal determines the amount of the relevant contributions debt of a managed service company under sub-paragraph (3), that amount is conclusive as to the amount of that relevant contributions debt in any later appeal relating to that debt.

(5) In the case of the ground of appeal specified in paragraph 29G(3)(f), the tribunal may reduce the amount specified in the transfer notice to an amount determined in accordance with the equation—

$RA=PTP×AS$

(6) In paragraph (5)—

RA means the reduced amount;

P means the number of days in the tax periods specified in the transfer notice during which the transferee was a person mentioned in section 688A(2);

TP means the number of days in the tax periods specified in the transfer notice;

AS means the amount specified in the transfer notice.

(7) In the case of the ground of appeal specified in paragraph 29G(3)(k), the tribunal may reduce the amount specified in the transfer notice to such amount as in the tribunal’s opinion is just and reasonable.

Withdrawal of transfer notices

29J

(1) A transfer notice shall be withdrawn if the tribunal quashes it.

(2) A transfer notice may be withdrawn if, in the opinion of an officer of Revenue and Customs, it is appropriate to do so.

(3) If a transfer notice is withdrawn, HM Revenue and Customs must give written notice of that fact to the transferee.

Application of Part 6 of the Taxes Management Act 1970

29K

(1) For the purposes of this Chapter, Part 6 of the Taxes Management Act 1970 (collection and recovery) applies as if—

(a) the transfer notice were an assessment of tax on employment income, and

(b) the amount of earnings-related contributions specified in the transfer notice, and any interest payable on that amount under sub-paragraph (3) or (4) of paragraph 29F were income tax charged on the transferee;

and that Part of that Act applies with the modification specified in sub-paragraph (2) and any other necessary modifications.

(2) Summary proceedings for the recovery of the specified amount may be brought in England and Wales or Northern Ireland at any time before the end of a period of 12 months beginning immediately after the expiry of the period mentioned in paragraph 29F(2).

(3) The specified amount is one cause of action or one matter of complaint for the purposes of proceedings under sections 65, 66 and 67 of the Taxes Management Act 1970 (magistrates’ courts, county courts and inferior courts in Scotland).

(4) But sub-paragraph (3) does not prevent the bringing of separate proceedings for the recovery of each of the amounts which the transferee is liable to pay for any tax period.

Repayment of surplus amounts

29L

(1) This paragraph applies if the amounts paid to HM Revenue and Customs in respect of a relevant contributions debt exceed the specified amount.

(2) HM Revenue and Customs shall repay the difference on a just and equitable basis and without unreasonable delay.

(3) Interest on any sum repaid shall be paid in accordance with paragraph 18 (payment of interest on repaid earnings-related contributions).

9

A non-cash voucher providing for health screening or medical check-ups to the extent that no liability to income tax arises in the provision of such health screening or medical check-ups by virtue of any provision of or under the Income Tax (Earnings and Pensions) Act 2003 which exempts from liability to income tax the provision by employers to employees of health screening and medical check-ups.

Class 3 contributions: tax years 1993-94 to 2007-08

50B

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Disposal of contributions not properly paid

Return of contributions paid in error

Return of contributions paid in excess of maxima prescribed in regulation 21

Return of contributions: further provisions

Return of Class 1 contributions paid at the non-contracted out rate instead of at the contracted-out rate

Repayment of Class 1A contributions

Return of precluded Class 3 contributions

Calculation of return of contributions

Reallocation of contributions for benefit purposes

Circumstances in which two-year limit for refunds of Class 1, 1A or 1B contributions not to apply

Voluntary Class 2 contributions: tax years 1993-94 to 2007-08

61A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Payment of contributions after death of contributor

Class 2 contributions paid late in accordance with a payment undertaking

Class 2 and Class 3 contributions paid within a month from notification of amount of arrears

Class 2 and Class 3 contributions paid late through ignorance or error

Amounts of Class 2 and Class 3 contributions in certain cases where earnings removed

65ZA

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Amount of Class 3 contributions payable by virtue of regulation 50A

Amount of Class 3 contributions payable after issue of a full gender recognition certificate

HM Forces' Council Tax Relief

12B

(1) A payment of Council Tax Relief to members of the armed forces of the Crown.

(2) Council Tax Relief is a payment designated as such under a Royal Warrant made under section 333 of the Armed Forces Act 2006.

Commonwealth War Graves Commission and British Council: extra cost of living allowance

Overseas medical treatment

Experts Seconded to European Commission

Late payment of voluntary Class 2 and 3 contributions for tax year 2005-06

65C

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Van fuel

7E

A payment by way of the provision of van fuel which is chargeable to income tax under section 160 of ITEPA 2003.

Car parking facilities

Specific and distinct payments of, or towards, expenses actually incurred

council tax or water or sewerage charges on accommodation provided for employee’s use

rates or water or sewerage charges on accommodation provided for employee’s use

Foreign service allowance

HM Forces’ Operational Allowance

HM Forces’ Council Tax Relief

Commonwealth War Graves Commission and British Council: extra cost of living allowance

Overseas medical treatment

Experts Seconded to European Commission

Payments made from the In-Work Emergency Discretion Fund

18

(1) So much of any payment as equals the amount in sub-paragraph (3).

(2) For the purposes of calculating the amount in sub-paragraph (3) treat amounts which count as employment income under Chapters 2 to 5 of Part 7 of ITEPA 2003 as having been paid in equal instalments on each day of the “relevant period” as determined in accordance with section 41G of ITEPA 2003.

(3) The amount in this sub-paragraph is calculated by adding together every instalment which would satisfy the condition in sub-paragraph (4), (5) or (6) on the day on which the instalment is treated as having been paid.

(4) The condition in this sub-paragraph is that the instalment does not give rise to a liability to pay earnings-related contributions because the employed earner does not fulfil the prescribed conditions as to residence or presence in Great Britain or Northern Ireland (as the case requires) set out in paragraph (1) of regulation 145 or because the proviso in paragraph (2) of that regulation applies.

(5) The condition in this sub-paragraph is that the instalment does not give rise to a liability to pay earnings-related contributions because the employed earneris determined in accordance with Title II of Regulation No (EC) 883/2004 and Title II of Regulation No (EC) 987/2009 to be subject only to the legislation of another EEA State or Switzerland.

(6) The condition in this sub-paragraph is that the instalment does not give rise to a liability to pay earnings-related contributions because the employed earner is determined to be subject only to the legislation of a country outside the United Kingdom pursuant to an Order in Council having effect under section 179 of the Administration Act.

Payments made from the In-Work Emergency Fund

19

Any In-Work Emergency Fund payment made to a person pursuant to arrangements made by the Department of Economic Development under section 1 of the Employment and Training Act (Northern Ireland) 1950.

Up-Front Childcare Fund payments

20

Any Up-Front Childcare Fund payment made pursuant to arrangements made by the Secretary of State under section 2 of the Employment and Training Act 1973.

Better off in Work Credit payments

21

Any Better off in Work Credit payment made pursuant to arrangements made by the Secretary of State under section 2 of the Employment and Training Act 1973.

Late payment of voluntary Class 2 and 3 contributions for tax year 2006-07

65D

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Notification of commencement or cessation of payment of Class 2 or Class 3 contributions on or after 6th April 2009

87A

(1) A person (P) to whom paragraph (2) applies shall immediately notify the relevant date to HMRC in writing or by such means of electronic communications as may be approved.

(2) This paragraph applies where P on or after 6th April 2009 but before 6th April 2015—

(a) becomes, or ceases to be, liable to pay a Class 2 contribution;

(b) becomes, or ceases to be, entitled to pay a Class 2 contribution although not liable to do so; or

(3) In paragraph (1) “the relevant date” means—

(a) in relation to a person to whom paragraph (2)(a) applies, the date on which P commences or ceases to be a self-employed earner;

(b) in relation to a person to whom paragraph (2)(b) or (c) applies, the date on which P wishes to commence or cease paying either Class 2 or Class 3 contributions, as the case may be.

(4) P is to be treated as having immediately notified HMRC in accordance with paragraph (1) if P has notified HMRC within such further time, if any, as HMRC may allow.

Penalty for failure to notify

87B

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Disclosure

87C

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Reduction of penalty for disclosure

87D

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Special reduction

87E

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Notice of decision etc.

87F

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Double jeopardy

87G

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Notification of change of address

Method of, and time for, payment of Class 2 and Class 3 contributions etc.

Arrangements approved by the Board for method of, and time for, payment of Class 2 and Class 3 contributions

Retention by employer of contribution and election records

Certificate of employer's liability to pay contributions after inspection of documents

26A

(1) An officer of Revenue and Customs may, by reference to the information obtained from an inspection of the documents and records produced under Schedule 36 to the Finance Act 2008 (information and inspection powers), and on the occasion of each inspection, prepare a certificate showing—

(a) the amount of earnings-related contributions which it appears that the employer is liable to pay to HMRC, excluding any amount deducted by the employer by virtue of the Compensation of Employers Regulations for the years or tax periods covered by the inspection; or

(b) the amount of any Class 1B contributions which it appears that the employer is liable to pay to HMRC for the years covered by the inspection, or such an amount in addition to an amount referred to in paragraph (a);

together with any amount of earnings-related contributions or Class 1B contributions or a combination of those classes of contributions, which has not been paid to HMRC or, to the best of the officer's knowledge and belief, to any other person to whom it might lawfully be paid.

(2) The production of a certificate mentioned in sub-paragraph (1) shall, unless the contrary is proved, be sufficient evidence that the employer is liable to pay to HMRC in respect of the years or, as the case may be, tax periods mentioned in the certificate, the amount shown in the certificate as unpaid; and any document purporting to be such a certificate shall be treated as such a certificate until the contrary is proved.

(3) The provisions of paragraph 16 shall apply with any necessary modifications to the amount shown in such a certificate.

(4) For the purposes of this paragraph “employer” has the meaning given by paragraph 26(5).

Death of an employer

Succession to a business, etc

Payments by cheque

Paragraph 22 return and specified payments

Penalty for failure to make payments on time: Class 1 contributions

67A—

(1) Schedule 56 to the Finance Act 2009 (“Schedule 56 FA 2009”) (penalty for failure to make payments on time) shall apply in relation to the late payment of Class 1 contributions, as if—

(a) the Class 1 contributions were an amount of tax falling within item 2 of the Table in paragraph 1 of Schedule 56 FA 2009 (“the Table”),

(b) references to the PAYE Regulations were references to these Regulations, and

(c) references to “an assessment or determination” in item 24 of the Table were references to a decision made under section 8(1)(c) of the Social Security Contributions (Transfer of Functions, etc) Act 1999.

(2) Regulation 69A of the PAYE Regulations (circumstances in which payment of a lesser amount is to be treated as payment in full for the purposes of paragraph 6(2) of Schedule 56 to the Finance Act 2009) applies in relation to the late payment of Class 1 contributions as if—

(a) the Class 1 contributions were an amount of tax falling within item 2 of the Table in paragraph 1 of that Schedule,

(b) references to regulations 67G and 67H(2) were references to paragraphs 10 and 11 of Schedule 4 to these Regulations, and

Penalty for failure to make payments on time: Class 1A and Class 1B contributions

67B

Schedule 56 to the Finance Act 2009 (“Schedule 56 FA 2009”) shall apply in relation to the late payment of Class 1A and Class 1B contributions, as if—

(a) the Class 1A and Class 1B contributions were an amount of tax falling within item 3 of the table in paragraph 1 of Schedule 56 FA 2009,

(b) in the case of Class 1B contributions, the reference to “amount shown in return under section 254(1) of FA 2004” was a reference to the amount payable under section 10A of the Act, and

Transfer of liability from secondary contributor to employed earner: relevant employment income

Payment of Class 1A contributions

Due date for payment of a Class 1A contribution

Provisions relating to a Class 1A contribution due on succession to business

Provisions relating to Class 1A contribution due on cessation of business

Employer failing to pay a Class 1A contribution

Specified amount of a Class 1A contribution

Interest on an overdue Class 1A contribution

Payment of interest on a repaid Class 1A contribution

Repayment of interest paid on a Class 1A contribution

Remission of interest on a Class 1A contribution

Return by employer

Returns rendered electronically on another’s behalf

Penalties for failure to make a return and incorrect returns

Application of the Management Act to penalties for failure to make a return and incorrect returns

Special provisions relating to primary Class 1 contributions

Exception in relation to earnings to which regulation 84 applies

Special provisions relating to culpable employed earners and to secondary contributors or employers exempted by treaty etc., from enforcement of the Act or liability under it

Notification of commencement or cessation of payment of Class 2 or Class 3 contributions on or before 5th April 2009

Penalty for failure to notify

Disclosure

Reduction of penalty for disclosure

Special reduction

Notice of decision etc.

Double jeopardy

Notification of change of address

Method of, and time for, payment of Class 2 and Class 3 contributions etc.

Arrangements approved by the Board for method of, and time for, payment of Class 2 and Class 3 contributions

Employers

90NA

(1) For the purposes of regulation 90N, the following shall not be regarded as employers—

(a) an individual who is a practising member of a religious society or order whose beliefs are incompatible with the use of electronic communications,

(b) a partnership, if all the partners fall within sub-paragraph (a),

(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .; and

(e) a care and support employer.

(2) In paragraph (1)(c), “company” means a body corporate or unincorporated association but does not include a partnership.

(3) In paragraph (1)(e), a “care and support employer” means an individual (“the employer”) who employs a person to provide domestic or personal services at or from the employer’s home where—

(a) the services are provided to the employer or a member of the employer’s family,

(b) the recipient of the services has a physical or mental disability, or is elderly or infirm,

(d) it is the employer who delivers the paragraph 22 return (and not some other person on the employer’s behalf).

(4) In this regulation “incentive payment” means an incentive payment received under the Income Tax (Incentive Payments for Voluntary Electronic Communication of PAYE Returns) Regulations 2003.

Standards of accuracy and completeness

Penalties and appeals

Appeals: supplementary provisions

Interpretation

Expenses of MPs and other representatives

Fees relating to the Protection of Vulnerable Groups (Scotland) Scheme

22

A payment of a fee in respect of an application to join the scheme administered under section 44 of the Protection of Vulnerable Groups (Scotland) Act 2007 (scheme to collate and disclose information about individuals working with vulnerable persons).

Repayment of Class 1A contributions: certain earnings no longer treated as earnings for income tax purposes

55A

(1) Subject to regulations 51 and 57 and to paragraph (2), where an officer of Revenue and Customs is satisfied that an amount treated as earnings in respect of which a Class 1A contribution was paid is no longer treated as earnings in accordance with the provisions of sections 100A and 100B of the Income Tax (Earnings and Pensions) Act 2003 (homes outside UK owned through company etc), the amount paid shall be repaid to the person who paid that contribution.

(2) The repayment of all or part of a Class 1A contribution under paragraph (1) is subject to the condition that an application shall be made in writing to HMRC on or before 6th April 2015.

Return of precluded Class 3 contributions

Calculation of return of contributions

Reallocation of contributions for benefit purposes

Circumstances in which two-year limit for refunds of Class 1, 1A or 1B contributions not to apply

Interpretation – qualifying childcare vouchers

6B

In paragraphs 7 and 7A—

(a) “care”, “child” and “parental responsibility” have the same meaning as in section 318B of ITEPA 2003;

(b) “chargeable expense” has the meaning given in paragraph 14 of Schedule 2;

(ba) “eligible employee” has the meaning given in section 270AA of ITEPA 2003;

(d) “qualifying week” means a tax week in respect of which a qualifying childcare voucher is received;

(e) “relevant salary sacrifice arrangements” means arrangements (whenever made) under which the employees for whom the vouchers are provided give up the right to receive an amount of general earnings or specific employment income in return for the provision of the vouchers;

(f) “relevant flexible remuneration arrangements” means arrangements (whenever made) under which the employees for whom the vouchers are provided agree with the employer that they are to be provided with the vouchers rather than receive some other description of employment income;

(g) “relevant low-paid employees” means any of the employer’s employees who are remunerated by the employer at a rate such that, if the relevant salary sacrifice arrangements or relevant flexible remuneration arrangements applied to them, the rate at which they would then be so remunerated would be likely to be lower than the national minimum wage;

(h) “scheme” means the manner by which an employer provides qualifying childcare vouchers and an employee is taken to join a scheme or have joined a scheme when the employer has agreed that vouchers will be provided to the employee under the scheme and there is a child falling within Condition A of paragraph 7(7); and

(i) the administration costs for a voucher means the difference between the cost of provision of a voucher and its face value and the face value is the amount stated on or recorded in the voucher as the value of the provision of care for a child that may be obtained by using it.

Qualifying childcare vouchers for employees who joined a scheme before 6th April 2011

Qualifying childcare vouchers for employees who joined a scheme on or after 6th April 2011, or before 6th April 2011 where there has been a break in employment or a 52 week break in receiving vouchers recommencing on or after 6th April 2011

7A

(1) A qualifying childcare voucher, where an eligible employee joined a scheme—

(a) on or after 6th April 2011;

(b) before 6th April 2011 but ceased to be employed by the employer and was subsequently re-employed by the employer and re-joined the scheme on or after 6th April 2011; or

(c) before 6th April 2011 and there was a continuous period of 52 weeks ending on or after 6th April 2011 throughout which vouchers were not being provided for the employee under the scheme,

subject to the qualifications in sub-paragraphs (3) and (6).

(2) In this paragraph a “qualifying childcare voucher” means a non-cash voucher in relation to which conditions A to D (see sub-paragraphs (7) to (11)) are met.

(3) Where the chargeable expense of the voucher exceeds the exempt amount, only that amount shall be disregarded by virtue of sub-paragraph (1).

(4) The exempt amount is the amount found by the formula—

$$E×QW$Here—E is, in the case of an employee the sum of—£25, if the relevant earnings amount for the tax year, as estimated in accordance with Condition D, exceeds the higher rate limit for the tax year;£28, if the relevant earnings amount for the tax year, as estimated in accordance with Condition D, exceeds the basic rate limit but does not exceed the higher rate limit for the tax year; or£55, in any other case; andthe administration costs for the qualifying childcare voucher;QW is the number of qualifying weeks—for which the earner has been employed by the secondary contributor during the tax year in which the qualifying childcare voucher is provided; andfor which no other qualifying childcare voucher has been provided by the secondary contributor.$

(5) Where an earner has two or more employed earner’s employments, the earnings from which fall to be aggregated in accordance with regulation 14 or 15, the reference to the secondary contributor in paragraph (b) of the definition of QW is a reference to the secondary contributor in respect of any of those employments.

(6) An earner is only entitled to one exempt amount even if childcare vouchers are provided in respect of more than one child.

(7) Condition A is that the voucher is provided to enable an employee to obtain care for a child who—

(a) is a child or stepchild of the employee and is maintained (wholly or partly) at the employee’s expense; or

(b) is resident with the employee and is a person in respect of whom the employee has parental responsibility.

(8) Condition B is that the voucher can only be used to obtain qualifying child care.

(9) Condition C is that the vouchers are provided under a scheme that is open—

(a) to the employer’s eligible employees generally; or

(b) generally to those at a particular location,

subject to sub-paragraph (10).

(10) Where the scheme under which the vouchers are provided involves—

(a) relevant salary sacrifice arrangements; or

(b) relevant flexible remuneration arrangements,

Condition C is not prevented from being met by reason only that the scheme is not open to relevant low-paid employees.

(11) Condition D is that the employer has, at the required time, made an estimate of the employee’s relevant earnings amount for the tax year in respect of which the voucher is provided.

(12) In sub-paragraph (11) “the required time”, in the case of an employee, means—

(a) if the employee joins the scheme under which the vouchers are provided at a time during the tax year, that time, and

(b) otherwise, the beginning of the tax year.

(13) In sub-paragraph (11) the “relevant earnings amount”, in the case of an employee provided with vouchers by an employer for any qualifying week in a tax year, and subject to sub-paragraph (14), means—

(a) the aggregate of—

(i) the amount of any relevant earnings (see sub-paragraph (15)) for the tax year from employment by the employer; and

(ii) any amounts to be treated under Chapters 2 to 12 of Part 3 of ITEPA 2003 as earnings from such employment; less

(b) the aggregate of any excluded amounts (see sub-paragraph (16)).

(14) But if the employee becomes employed by the employer during the tax year, what would otherwise be the amount of the aggregate mentioned in sub-paragraph (13)(a) is the relevant multiple of that amount; and the relevant multiple is—

$$365RD$where—RD is the number of days in the period beginning with the day on which the employee becomes employed by the employer and ending with the tax year.$

(15) In sub-paragraph (13)(a) “relevant earnings” means—

(a) salary, wages or fees, ...

(b) guaranteed contractual bonuses;

(d) guaranteed overtime payments;

(e) location or cost of living allowances;

(f) shift allowances;

(g) skills allowances;

(h) retention and recruitment allowances; and

(i) market rate supplements.

(16) For the purposes of sub-paragraph (13)(b) the following are “excluded amounts”—

(a) contributions under a ... pension scheme allowed under section 193(2) of Finance Act 2004 (relief under net pay arrangements) to be deducted by the employer from the employee’s employment income for the tax year in accordance with the PAYE Regulations;

(za) contributions under a pension scheme if the employee has authorised the employer to make the deductions from relevant payments (as defined by regulation 4 of the PAYE Regulations) for which relief at source is given under section 192(1) of the Finance Act 2004 (relief at source);

(b) donations for which a deduction is made under section 713 of ITEPA 2003 (payroll giving) in calculating the employee’s net taxable earnings from employment by the employer for the tax year in accordance with the PAYE Regulations;

(c) expenses within Chapter 3 of Part 3 of ITEPA 2003 (expenses payments) which the employer is authorised to exclude from the employee’s taxable earnings for the tax year in accordance with the PAYE Regulations;

(d) payments in respect of removal expenses to which section 271 of ITEPA 2003 applies (as defined in section 272) and which are taxable earnings of the employee from employment by the employer for the tax year;

(e) amounts equivalent to the amount of the personal allowance under section 35(1) of the Income Tax Act 2007, and in addition if applicable, the amount of the blind person’s allowance under section 38 of that Act.

Experts seconded to a body of the European Union

15A

A payment in respect of subsistence allowances paid—

(a) by a body of the European Union that is located in the United Kingdom and listed in the table below;

(b) to persons who, because of their expertise in matters relating to the subject matter of the functions of the body, are seconded to the body by their employers.

Bodies of the European Union located in the United Kingdom
The European Medicines Agency
The European Police College
The European Banking Authority

Expenses of MPs and other representatives

Amounts to be treated as earnings: Part 7A of ITEPA 2003

22B

(1) For the purposes of section 3 of the Act (earnings), the amount specified in paragraph (2) shall be treated as remuneration derived from an employed earner’s employment.

(2) The amount is the amount which counts as employment income of the employed earner by virtue of Chapter 2 of Part 7A of ITEPA 2003.This paragraph is subject to paragraphs (3) and (3A).

(3) Paragraph (2) does not apply if the relevant step which gives rise to the amount which counts as employment income by virtue of Chapter 2 of Part 7A of ITEPA 2003 would otherwise give rise to earnings for the purposes of the Act.

(3A) Paragraph (2) does not apply if—

(a) the amount would count as employment income by virtue of Part 7A ITEPA 2003 by reason of a relevant step within paragraph 1 or 1A of Schedule 11 (employment income provided through third parties: loans etc outstanding on 5 April 2019) to the Finance (No. 2) Act 2017, and

(b) the secondary contributor in relation to that amount would have been a person treated as a secondary contributor by virtue of regulation 5(1) of, and any of sub-paragraphs (a) to (f) of paragraph 9 of Column (B) of Schedule 3 (employments in respect of which persons are treated as secondary class 1 contributors) to, the Social Security (Categorisation of Earners) Regulations 1978.

(4) In paragraphs (3) and (3A) “relevant step” means a relevant step for the purposes of Part 7A of ITEPA 2003.

Manner of making sickness payments treated as remuneration

Certain payments by trustees to be disregarded

Payments to directors which are to be disregarded

Liability for Class 1 contributions in respect of earnings normally paid after pensionable age

Liability for Class 1 contributions of persons over pensionable age

Abnormal pay practices

Practices avoiding or reducing liability for contributions

Payments to and benefits from pension schemes exempt from UK taxation under double taxation agreements

Payments connected to amounts within regulation 22B

2A

(1) A payment (“A”) the subject of which represents, or arises or derives (whether wholly or partly or directly or indirectly) from, an amount (“B”) treated as remuneration under regulation 22B which has previously been included in an employed earner’s earnings for the purposes of assessing earnings-related contributions.

(2) Paragraph (1) does not apply to the extent that A exceeds B.

(3) For the purposes of determining whether paragraph (1) applies, A is to be treated as including the value of any payment made before A which represents, or arises or derives (whether wholly or partly or directly or indirectly) from, B.

Payments discharging liability for secondary Class 1 contributions following election under paragraph 3B of Schedule 1 to the Contributions and Benefits Act

Payments by way of incidental overnight expenses

Gratuities and offerings

Redundancy payments

Sickness payments attributable to contributions made by employed earner

Expenses and other payments not charged to income tax under miscellaneous exemptions

VAT on the supply of goods and services by employed earner

Employee’s indemnity insurance

Fees and subscriptions to professional bodies, learned societies etc

Holiday pay

Payments to ministers of religion

Payments to miners and former miners, etc. in lieu of coal

Requirement to give security or further security for amounts of Class 1A contributions

83A

Paragraphs 29M to 29X of Schedule 4 (security for payment of Class 1 contributions) apply in relation to Class 1A contributions as they apply in relation to Class 1 contributions but as if—

(a) in paragraph 29N—

(i) the reference to “Class 1 contributions” were a reference to “Class 1A contributions”; and

(ii) the reference to “paragraph 10, 11 or 11A” were a reference to “section 10 or 10ZA of the Social Security Contributions and Benefits Act 1992, or section 10 or 10ZA of the Social Security Contributions and Benefits (Northern Ireland) Act 1992, as the case may be”; and

(b) in paragraph 29O(1) for “within the meaning given in paragraph 1(2)” there were substituted “within the meaning given in regulation 70(4)”.

Special provisions relating to primary Class 1 contributions

Exception in relation to earnings to which regulation 84 applies

Special provisions relating to culpable employed earners and to secondary contributors or employers exempted by treaty etc., from enforcement of the Act or liability under it

Notification of commencement or cessation of payment of Class 2 or Class 3 contributions on or after 6th April 2009 but before 6th April 2015

Penalty for failure to notify

Disclosure

Reduction of penalty for disclosure

Special reduction

Notice of decision etc.

Double jeopardy

Notification of change of address

Method of, and time for, payment of Class 2 and Class 3 contributions etc.

Arrangements approved by the Board for method of, and time for, payment of Class 2 and Class 3 contributions

Travel at start or finish of overseas employment

Travel between employments where duties performed abroad

Travel costs and expenses where duties performed abroad: earner’s travel

Foreign accommodation and subsistence costs and expenses (overseas employments)

Travel costs and expenses of non-domiciled employee or the employee’s spouse, civil partner or child where duties performed in the United Kingdom

Travelling expenses of workers on offshore gas and oil rigs

Payments connected with cars and vans and exempt heavy goods vehicles provided for private use

Qualifying amounts of relevant motoring expenditure

Qualifying amounts of mileage allowance payment in respect of cycles

Qualifying amounts of passenger payment

Car fuel

Van fuel

rates or water or sewerage charges on accommodation provided for employee’s use

Foreign service allowance

HM Forces’ Operational Allowance

HM Forces’ Council Tax Relief

HM Forces’ Continuity of Education Allowance

12C

(1) A payment of the Continuity of Education Allowance to or in respect of members of the armed forces of the Crown.

(2) The Continuity of Education Allowance is an allowance designated as such under a Royal Warrant made under section 333 of the Armed Forces Act 2006.

Experts seconded to a body of the European Union

Expenses of MPs and other representatives

Payments to and recoveries from HMRC for each tax period by Real Time Information employers: returns under paragraph 21E(6) or 21EA(3)

11ZA

(1) This paragraph applies if, during any tax period, an employer makes a return under paragraph 21E(6) (returns under paragraph 21A and 21D: amendments) other than by virtue of paragraph 21E(4), or paragraph 21EA(3) (failure to make a return under paragraph 21A or 21D of Schedule 4).

(2) The amount specified in paragraph 10(2) or, as the case may be, 11(2) for the final tax period in the year covered by the return is to be adjusted to take account of the information in the return.

(3) If the value of the adjustment required by paragraph (2) is a negative amount, the employer may recover that amount—

(a) by setting it off against the amount the employer is liable to pay under paragraph 10(2) or, as the case may be, 11(2) for the tax period the return is made in; or

(b) from the Commissioners for Her Majesty's Revenue and Customs.

(3A) Where sub-paragraph (3) applies the negative amount is treated as having been paid to HMRC—

(a) 17 days after the end of the final tax period in the year covered by the return where payment is made using an approved method of electronic communication, and

(b) 14 days after the end of the final tax period in the year covered by the return in any other case.

(4) But paragraph (3) does not apply in relation to primary Class 1 contributions in a case where those contributions were deducted in error and the excess deduction has not been refunded to the employee.

Payment of Class 1B contributions

Application of paragraphs 16 and 17 in cases of wilful failure to pay

Repayment of interest

Remission of interest for official error

Application of paragraphs 10, 12, 16, 17, 18, 19 and 20

Real time returns of information about payments of ... earnings

21A

(1) Subject to sub-paragraph (1A), on or before making any payment of ... earnings to an employee a Real Time Information employer must deliver to HMRC the information specified in Schedule 4A (real time returns) in accordance with this paragraph unless—

(a) the employer is not required to maintain a deductions working sheet for any employees, or

(b) an employee’s earnings are below either the lower earnings limit or the secondary threshold, whichever is the lesser amount, and the employer is required to make a return under regulation 67B(1), regulation 67D(3), regulation 67E(6) or regulation 67EA(3) of the PAYE Regulations.

(1A) But a Real Time Information employer—

(a) which for the tax year 2014-15 meets Conditions A and B, or

(b) which for the tax year 2015-16 meets Conditions A and C,

may instead for that tax year deliver to HMRC the information specified in Schedule 4A (real time returns) in respect of every payment of ... earnings made to an employee in a tax month on or before making the last payment of ... earnings in that month.

(1B) Condition A is that at 5th April 2014 the employer is one to whom HMRC has issued an employer’s PAYE reference.

(1C) Condition B is that at 6th April 2014 the Real Time Information employer employs no more than 9 employees.

(1D) Condition C is that at 6th April 2015 the Real Time Information employer employs no more than 9 employees.

(1E) In this paragraph “employer’s PAYE reference” means—

(a) the combination of letters, numbers, or both, used by HMRC to identify an employer for the purposes of the PAYE Regulations, and

(b) the number which identifies the employer’s HMRC office.

(2) The information must be included in a return.

(3) Subject to paragraph (4), if payments of ... earnings are made to more than one employee at the same time, the return under sub-paragraph (2) must include the information required by Schedule 4A in respect of each employee to whom a payment of ... earnings is made at that time.

(4) If payments of ... earnings are made to more than one employee at the same time but the employer operates more than one payroll, the employer must make a return in respect of each payroll.

(5) The return is to be made using an approved method of electronic communications and regulation 90N(2) (mandatory use of electronic communications) applies as if the return was a paragraph 22 return within the meaning given by regulation 90M (paragraph 22 return and specified payments).

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) Schedule 24 to the Finance Act 2007 (penalties for errors), as that Schedule applies to income tax returns, shall apply in relation to the requirement to make a return contained in sub-paragraph (2).

Modification of the requirements of paragraph 21A: notional payments

21B

(1) This paragraph applies if an employer makes a payment of ... earnings to an employee which, for the purposes of tax, is a notional payment within the meaning given by section 710(2) of ITEPA 2003 (including a notional payment arising by virtue of a retrospective tax provision).

(2) If the employer is unable to comply with the requirement in paragraph 21A(1) to deliver the information required by that paragraph on or before making the payment, the employer must instead deliver the information as soon as reasonably practicable after the payment is made and in any event no later than—

(a) the time at which the employer delivers the information required by regulation 67B of the PAYE Regulations (real time returns of information about relevant payments) in respect of the payment;

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ; or

whichever is earliest.

Relationship between paragraph 21A and aggregation of earnings

21C

(1) Where an employee's earnings are aggregated, a Real Time Information employer or, as the case may be, Real Time Information employers must make such arrangements as are necessary to ensure that the information specified in paragraph (2) in respect of all the aggregated earnings is included in the information given in respect of one of the employee's employments only.

(2) The information specified in this paragraph is the information specified in paragraphs 7 and 10(b) and (d) of Schedule 4A (real time returns).

Exceptions to paragraph 21A

21D

(1) This paragraph applies to—

(a) an individual who is a practising member of a religious society or order whose beliefs are incompatible with the use of electronic communications;

(b) a partnership, if all the partners fall within sub-paragraph (a);

(d) a care and support employer.

(e) an employer to whom a direction has been given under sub-paragraph (12).

But this is subject to sub-paragraph (2B).

(2) A Real Time Information employer to whom this paragraph applies may proceed in accordance with this paragraph instead of paragraph 21A.

(2A) Before 6th April 2014, a Real Time Information employer to whom this paragraph applies may proceed as if the employer were a non-Real Time Information employer and accordingly the provisions of this Schedule apply to such an employer.

(2B) This paragraph does not apply if a Real Time Information employer within sub-paragraph (1) makes a return using an approved method of electronic communications.

(3) On and after 6th April 2014, the Real Time Information employer must deliver to HMRC the information specified in Schedule 4A in respect of each employee to whom a payment of ... earnings is made in a tax quarter unless the employer is not required to maintain a deductions working sheet for any employees and, for the purposes of this paragraph, references in Schedule 4A to a payment of ... earnings shall be read as if they were references to all the payments made to the employee in the tax quarter.

(4) The information must be included in a return in such a form as HMRC may approve or prescribe.

(5) The return required under sub-paragraph (4) must be delivered within 14 days after the end of the tax quarter the return relates to.

(6) If payments of ... earnings have been made to more than one employee in the tax quarter, the return under sub-paragraph (4) must include the information required by Schedule 4A in respect of each employee to whom a payment of ... earnings has been made.

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9) Schedule 24 to the Finance Act 2007, as that Schedule applies to income tax returns, shall apply in relation to the requirement to make a return contained in sub-paragraph (4).

(10) In sub-paragraph (1)(c), “company” means a body corporate or unincorporated association but does not include a partnership.

(11) In sub-paragraph (1)(d), “care and support employer” means an individual (“the employer”) who employs a person to provide domestic or personal services at or from the employer's home where—

(a) the services are provided to the employer or a member of the employer's family;

(b) the recipient of the services has a physical or mental disability, or is elderly or infirm; and

(12) Where the Commissioners for Her Majesty’s Revenue and Customs are satisfied that—

(a) it is not reasonably practicable for an employer to make a return using an approved method of electronic communications, and

(b) it is the employer who delivers the return (and not some other person on the employer’s behalf),

they may make a direction specifying that the employer is not required to make a return using an approved method of electronic communications.

Returns under paragraphs 21A and 21D: amendments

21E

(1) This paragraph applies where there is an inaccuracy in a return, whether careless or deliberate, made under paragraph 21A (real time returns of information about payments of ... earnings) or 21D (exceptions to paragraph 21A) and sub-paragraph (2), (3) or (4) applies.

(2) This sub-paragraph applies where the inaccuracy relates to the information given in the return in respect of an employee under one or more of paragraphs 3A, 7, 10(b), 10(d), ... 14, 15, 16, 17A or 18 of Schedule 4A (real time returns).

(3) This sub-paragraph applies where the inaccuracy was the omission of details of a payment of ... earnings to an employee.

(4) This sub-paragraph applies where retrospective earnings increase the total amount of the ... earnings paid to the employee for any tax year in which the employer was a Real Time Information employer.

(5) When the employer becomes aware of an inaccuracy in a return under paragraph 21A or 21D, the employer must provide the correct information in the next return for the tax year in question.

(6) But if the information given has not been corrected before 20th April following the end of the tax year in question, the employer must make a return under this sub-paragraph.

(7) A return under sub-paragraph (6)—

(a) must include the following—

(i) the information specified in paragraphs 2 to 7 and 10 to 12 of Schedule 4A,

(ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(iii) if the return relates to the tax year 2017-18 or an earlier tax year, the value of the adjustment, if any, to the information given under each of the paragraphs of Schedule 4A referred to in sub-paragraph (2) in the final return under paragraph 21A or 21D containing information in respect of the employee in the tax year in question,

(iiia) if the return relates to the tax year 2020-21 or a subsequent tax year, the amount which should have been given under one or more of the paragraphs of Schedule 4A referred to in sub-paragraph (2) in the final return under paragraph 21A or 21D containing information in respect of the employee in the tax year in question,

(iiib) if the return relates to the tax year 2018-19 or 2019-20—

(aa) the value of the adjustment to the information given under, or

(bb) the amount which should have been given under,

one or more of the paragraphs of Schedule 4A referred to in sub-paragraph (2) in the final return under paragraph 21A or 21D containing information in respect of the employee in the tax year in question,

(iv) if the inaccuracy relates to the information which was or which should have been given under paragraph 7 or 10(b) or (d) of Schedule 4A, the information specified in paragraph 6 of that Schedule,

(v) if the inaccuracy relates to the information which was or which should have been given under paragraph 10(d) of Schedule 4A and the correct information decreases the amount reported under that paragraph, an indication of whether the employer has refunded the primary Class 1 contributions paid in error to the employee, and

(vi) if the inaccuracy relates to the information which was or which should have been given under paragraph 16 of Schedule 4A, the information specified in paragraph 17 of that Schedule if it has not already been provided;

(b) must be made as soon as reasonably practicable after the employer becomes aware of the inaccuracy; and

(c) must be made using an approved method of electronic communications and regulation 90N(2) (mandatory use of electronic communications) applies as if the return was a paragraph 22 return within the meaning given by regulation 90M (paragraph 22 return and specified payments).

(8) In the application of sub-paragraphs (6) and (7) to cases within sub-paragraph (3), if no information was given in any returns under paragraph 21A or 21D in respect of the employee in the tax year, the value of any adjustments required by sub-paragraph (7)(a)(iii) or (iiib) must be calculated as if there was a final return containing information for the employee in the year and the figure requiring adjustment was zero.

(9) Sub-paragraph (7)(c) does not apply if the employer is one to whom paragraph 21D applies but in those circumstances the return must be in such a form as HMRC may approve or prescribe.

Additional information about payments

21F

(1) A Real Time Information employer must inform HMRC of each of the amounts specified in Schedule 4B (additional information about payments) for each tax period unless sub-paragraph (4) or (5) applies.

(2) The information must be given in a return.

(3) The return must be delivered within 14 days after the end of the tax period.

(4) This sub-paragraph applies if—

(a) all of the amounts are zero; and

(b) the employer has not made a return under sub-paragraph (2) in the tax year.

(5) This paragraph applies if none of the amounts has changed in the tax period.

(6) If an employer makes an error in a return under this paragraph, the employer must provide the correct information in the first return made under sub-paragraph (2) after the discovery of the error.

(7) But if the information given has not been corrected before 20th April following the end of the year in question, the employer must provide the correct information for the year in question in a return under this sub-paragraph.

(7A) A Real Time Information employer may send to HMRC a notification (included within a return under this paragraph or otherwise) if—

(a) for a tax period, the employer was not required to make any returns in accordance with paragraph 21A or 21D because no payments of ... earnings were made during the tax periods, or

(b) the employer has sent the final return under paragraph 21A or 21D that the employer expects to make—

(i) in the circumstances described in paragraph 5 of Schedule A1 to the PAYE Regulations (real time returns); or

(ii) for the year.

(8) A return under sub-paragraph (2) or (7) and a notification under paragraph (7A)—

(a) must state—

(i) the year to which the return relates,

(ii) the employer's HMRC office number,

(iii) the employer's PAYE reference, ...

(iv) the employer's accounts office reference, and;

(v) if the notification is under sub-paragraph (7A)(b)(i), include the date of cessation;

(b) is to be made using an approved method of electronic communications.

(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(10) For the purposes of sub-paragraph (8)(b), regulation 90N(2) (mandatory use of electronic communications) applies as if the return was a paragraph 22 return within the meaning given by regulation 90M (paragraph 22 return and specified payments).

(11) The requirement to use an approved method of electronic communications does not apply if the employer is one to whom paragraph 21D (exceptions to paragraph 21A) applies but in those circumstances the return must be in such a form as HMRC may approve or prescribe.

(12) Schedule 24 to the Finance Act 2007 (penalties for errors), as that Schedule applies to income tax returns, shall apply in relation to the requirement to make a return contained in sub-paragraph (2) or (7).

Return by employer at end of year

Additional return by employer at end of year where liability transferred to employed earner: elections under paragraph 3B(1) of Schedule 1 to the Act.

Special return by employer at end of voyage period

Return by employer of recovery under the Statutory Sick Pay Percentage Threshold Order

Retention by employer of contribution and election records

Certificate of employer's liability to pay contributions after inspection of documents

Death of an employer

Succession to a business, etc

Payments by cheque

PART 3B — Security for the payment of Class 1 contributions

Interpretation

29M

In this Part—

“employer” has the meaning given in paragraph 29O(1);

“a further notice” has the meaning given in paragraph 29U(3);

“PGS” has the meaning given in paragraph 29S(1).

Requirement for security

29N

In circumstances where an officer of Revenue and Customs considers it necessary for the protection of Class 1 contributions, the officer may require a person described in paragraph 29P(1) to give security or further security for the payment of amounts which an employer is or may be liable to pay to HMRC under paragraph 10, 11, 11ZA or 11A.

Employers

29O

(1) An “employer” is any employer within the meaning given in paragraph 1(2) other than—

(a) the Crown;

(b) a person to whom sub-paragraph (2) applies;

(d) a care and support employer within the meaning given in regulation 90NA(3) of these Regulations.

(2) This sub-paragraph applies to persons who at the relevant time could not be liable to a penalty under Schedule 56 to the Finance Act 2009 by virtue of paragraph 10 of that Schedule (suspension of penalty for failure to make payments on time during currency of agreement for deferred payment).

(3) In sub-paragraph (2), the relevant time is a time at which, but for sub-paragraph (1)(b), the officer would require security.

Persons from whom security can be required

29P

(1) The persons are—

(a) the employer;

(b) any of the following in relation to the employer—

(i) a director;

(ii) a company secretary;

(iii) any other similar officer; or

(iv) any person purporting to act in such a capacity; and

(2) An officer of Revenue and Customs may require—

(a) a person to give security or further security of a specified value in respect of the employer; or

(b) more than one person to give security or further security of a specified value in respect of the employer, and where the officer does so those persons shall be jointly and severally liable to give that security or further security.

Notice of requirement

29Q

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