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The Income Tax (Pay As You Earn) Regulations 2003

Type Statutory-Instrument

Publication 2003-10-21

Last updated 2026-04-06

State In force

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

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Procedure where no Form P45 and: (a) employee is not a seconded expatriate and paragraph 41(b) of Schedule A1 applies; or (b) employee is a seconded expatriate and paragraph 43(b) or 43(c) of Schedule A1 applies

49D

(1) This regulation applies where—

(a) the employee is not a seconded expatriate and has indicated in accordance with regulation 40A(1) that the statement in paragraph 41(b) of Schedule A1 is correct, or

(b) the employee is a seconded expatriate to whom regulation 49C does not apply and has indicated in accordance with regulation 40A(1) that the statement in paragraph 43(b) or 43(c) of Schedule A1 is correct.

(2) On making the first relevant payment which equals or exceeds either the lower earnings limit or the secondary threshold, whichever is the lesser amount, to the employee, the employer must—

(a) prepare a deductions working sheet and enter the total payments to date, and

(b) deduct tax on the non-cumulative basis using the emergency code.

(3) On making any subsequent relevant payment before the employee’s code is issued, the employer must continue to deduct or repay tax on the non-cumulative basis using the emergency code.

Procedure where no Form P45 and: (a) employee is a not seconded expatriate and paragraph 41(c) of Schedule A1 applies; or (b) employee is a seconded expatriate and paragraph 43(a) of Schedule A1 applies

49E

(1) This regulation applies in any case which is not dealt with by regulation 49C or 49D.

(2) On making the first relevant payment to the employee, the employer must—

(a) prepare a deductions working sheet and enter both the total payments to date and the total tax to date before the first payment as nil,

(b) deduct tax on the cumulative basis using the basic rate code.

(3) On making any subsequent relevant payment before the employee’s code is issued, the employer must continue to deduct tax on the cumulative basis using the basic rate code.

(4) In the case of a seconded expatriate, the emergency code must be used instead of the basic rate code mentioned in paragraphs (2)(b) and (3).

No Form P45: code treated as issued by HMRC

Procedure in cases of retrospective earnings: code treated as issued by HMRC

Late presentation of Form P45

Late presentation of Form P45: employer’s duties

No Form P45: subsequent procedure on issue of employee’s code

Application of this Chapter to Real Time Information pension payers

54ZA

(1) Any requirement in this Chapter to complete (howsoever expressed) and send to HMRC Part 3 of Form P45 or Form P46(Pen) applies only to—

(a) non-Real Time Information pension payers, and

(b) Real Time Information pension payers to whom HMRC has given a notice requiring the pension payer to send to HMRC Form P45 or Form P46(Pen) on the commencement of a new pensioner’s pension.

(2) Paragraph (1) is without prejudice to the requirement in regulation 55(3)(b) (PAYE pension income paid by former employer) to complete and give Form P46(Pen) to the pensioner.

Relevant pension payments and relevant payments being received by a pensioner

Procedure in regulation 54A cases: code treated as issued by HMRC

PAYE pension income paid by former employer

PAYE pension income paid by other pension payer

Information to be provided in Form P46(Pen) if code not known: non UK residents

Procedure if no Form P45 and code not known: UK pensioners

UK resident pensioner’s code treated as issued by Inland Revenue

Late presentation of Form P45

Subsequent procedure on issue of UK resident pensioner’s code

Real time returns

Real time returns of information about relevant payments

67B

(1) Subject to paragraph (1A), on or before making a relevant payment to an employee, a Real Time Information employer must deliver to HMRC the information specified in Schedule A1 in accordance with this regulation unless the employer is not required by regulation 66 (deductions working sheets) to maintain a deductions working sheet for any employees.

(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 A1 (real time returns) in respect of all relevant payments made to an employee in a tax month on or before making the last relevant payment in that month.

(1B) Condition A is that, at 5th April 2014, the Real Time Information 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.

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

(3) Subject to paragraph (4), if relevant payments are made to more than one employee at the same time, the return under paragraph (2) must include the information required by Schedule A1 in respect of each employee to whom a relevant payment is made at that time.

(4) If relevant payments 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.

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

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

Modification of the requirements of regulation 67B: notional payments

67C

(1) This regulation applies if an employer makes a relevant payment which is a notional payment (including a notional payment arising by virtue of a retrospective tax provision) to an employee.

(2) If the employer is unable to comply with the requirements in regulation 67B(1) to deliver the information required by that regulation on or before making the relevant 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 14 days after the end of the tax month in which the payment is made.

Exceptions to regulation 67B

67D

(1) This regulation 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 , and

(e) an employer to whom a direction has been given under paragraph (11) ,

but this is subject to paragraph (2B).

(2) A Real Time Information employer to whom this regulation applies may proceed in accordance this regulation instead of regulation 67B.

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

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

(3) On and after 6th April 2014, a Real Time Information employer must deliver to HMRC the information specified in Schedule A1 in respect of each employee to whom relevant payments are made in a tax quarter unless the employer is not required by regulation 66 (deductions working sheets) to maintain a deductions working sheet for any employees and, for the purposes of this regulation, references in Schedule A1 to a relevant payment shall be read as if they were references to all the relevant payments made to the employee in the tax quarter.

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

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

(6) If relevant payments have been made to more than one employee in the tax quarter, the return under paragraph (4) must include the information required by Schedule A1 in respect of each employee to whom a relevant payment has been made.

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

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

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

(10) In paragraph (1)(d), “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, and

(11) 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 communication, 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 communication.

Returns under regulations 67B and 67D: amendments

67E

(1) This regulation applies where there is an inaccuracy in a return made under regulation 67B (real time returns of information about relevant payments) or 67D (exceptions to regulation 67B) , whether careless or deliberate, and paragraph (2), (3) or (4) applies.

(2) This paragraph applies where the inaccuracy relates to the information given in the return in respect of an employee under paragraph 16 , 16A or 17 of Schedule A1 (real time returns).

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

(4) This paragraph applies where the inaccuracy arises because, as a result of a retrospective tax provision, the total amount of the relevant payments made by an employer to an employee increases for any tax year in which the employer was a Real Time Information employer.

(5) Where an employer becomes aware of an inaccuracy in a return submitted under regulation 67B or 67D, the employer must provide the correct information in the next return for the tax year in question.

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

(7) A return under paragraph (6)—

(a) must include the following—

(i) the information specified in paragraphs 2 to 4, 8 to 13, 15 and 22A of Schedule A1,

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

(iii) if the return relates to the tax year 2017-18 or to an earlier tax year, the value of the adjustment to the information given under paragraphs 16 , 16A or 17 of Schedule A1 in the final return under regulation 67B or 67D 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 paragraphs 16, 16A or 17 of Schedule A1 in the final return under regulation 67B or 67D 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,

paragraphs 16, 16A or 17 of Schedule A1 in the final return under regulation 67B or 67D containing information in respect of the employee in the tax year in question,

(iv) the tax code used by the employer in respect of the employee in the tax year in question and,

(v) if paragraph (8) applies, the information specified in paragraphs 36 to 43 of Schedule A1,

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

(8) This paragraph applies if—

(a) the inaccuracy is within paragraph (3),

(b) the relevant payment was the first relevant payment to the employee in the employment, and

(9) In the application of paragraphs (6) and (7) to cases within paragraph (3), if no information was given in any returns under regulation 67B or 67D in respect of the employee in the tax year, the value of the adjustments required by 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.

(10) Paragraph (7)(c) does not apply if the employer is one to whom regulation 67D applies.

Additional information about payments

67F

(1) A Real Time Information employer may send to HMRC a notification if—

(a) for a tax period, the employer was not required to make any returns in accordance with regulation 67B or 67D because no relevant payments were made during the tax period, or

(b) the employer has sent the final return under regulation 67B or 67D that the employer expects to make—

(i) in the circumstances described in paragraph 5 of Schedule A1 (real time returns), or

(ii) for the tax year.

(2) A notification under paragraph (1)(b) must—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) be sent within 14 days of the end of final tax period of the tax year.

(3) A notification under this regulation must—

(a) state—

(i) the tax year to which it relates,

(ii) the employer’s HMRC office number,

(iii) the employer’s PAYE reference, and

(iv) the employer’s accounts office reference, and

(b) be sent using an approved method of electronic communications unless the employer is one to whom regulation 67D applies.

(4) This regulation applies in addition to the provisions set out in regulation 147D (duty to report amount of apprenticeship levy to be paid).

Payment and recovery of tax by employer

Payments to and recoveries from HMRC for each tax period by Real Time Information employers

67G

(1) For each tax period, a Real Time Information employer must pay to, or may recover from, HMRC the amount arrived at under the formula in paragraph (4).

(2) If the amount arrived at under the formula in paragraph (4) is a positive amount, the employer must pay the excess to HMRC.

(3) If the amount arrived at under the formula in paragraph (4) is a negative amount, the employer may recover that amount either—

(a) by deducting it from the amount which the employer is liable to pay under paragraph (2) for a later period in the tax year, or

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

(3A) Where a return for a tax period contains a correction under regulation 67E(5) (returns under regulations 67B and 67D: amendments)) and paragraph (3) of this regulation applies, the negative amount is treated as having been paid to HMRC—

(a) 17 days after the end of the tax period in respect of which that return is delivered, where payment is made using an approved method of electronic communications, or

(b) 14 days after the end of the tax period in respect of which that return is delivered, in any other case.

(4) The formula in this paragraph is $A−B$, where—

A is the sum total of the relevant amounts for each of the employer’s employees, and

B is amount A for the previous tax period in the tax year, if any.

(5) For the purposes of paragraph (4), a “relevant amount” is the amount shown under paragraph 17 of Schedule A1 (real time returns) for an employee in the most recent return made in the tax year by the employer under regulation 67B (real time returns of information about relevant payments) or 67D (exceptions to regulation 67B) which contains information about that employee.

(5A) If the employer makes a return under regulation 67EA(3) (failure to make a return under regulation 67B or 67D) a “relevant amount” for the purposes of paragraph (4) is the amount shown under paragraph 17 of Schedule A1 (real time returns) for an employee in that return for the tax year to which that return relates.

(6) In paragraph (5) “the most recent return” means the return which, as at the end of the tax period, contains the most up to date information under paragraph 17 of Schedule A1 about the employee.

(7) This regulation is subject to regulations 67H (payments to and recoveries from HMRC for each tax period by Real Time Information employers: returns under regulation 67E(6)), 71 (modification of regulations 67G and 68 in case of trade dispute) and 75B (certificates under regulation 75A: excess payments).

Payments to and recoveries from HMRC for each tax period by Real Time Information employers: returns under regulation 67E(6)

67H

(1) This regulation applies if, during any tax period, an employer makes a return under regulation 67E(6) (returns under regulations 67B and 67D: amendments) other than by virtue of regulation 67E(4).

(2) If the return shows—

(a) an adjustment under regulation 67E(7)(a)(iii) or (iiib), or

(b) an adjustment to the amount originally given under paragraph 17 of Schedule A1,

and the value of the adjustment is a positive amount, that amount is an amount due to be paid to HMRC for the final tax period of the tax year the return relates to.

(3) If the return shows such an adjustment and the value of the adjustment is a negative amount, that amount is an amount due to be repaid to the employer for the final tax period of the tax year the return relates to and, the employer may recover that amount—

(a) by setting it off against the amount the employer is liable to pay under regulation 67G for the tax period the return was made in, or

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

(4) Where the value of the adjustment is a negative amount, that amount is treated as having been paid to HMRC—

(a) 17 days after the end of the final tax period of the tax year the return relates to, if payment is made using an approved method of electronic communications, or

(b) 14 days after the end of the final tax period of the tax year the return relates to, in any other case.

Modification of regulations 67G and 68 in case of trade dispute

Application of regulations 73 to 75

72H

Regulations 73 to 75 apply to—

(a) non-Real Time Information employers,

(b) Real Time Information employers in relation to tax years in which they were, for the whole of the tax year, non-Real Time Information employers, and

(c) Real Time Information employers to whom HMRC has given a notice requiring a return under regulation 73 in respect of a tax year.

Annual return of relevant payments liable to deduction of tax (Forms P35 and P14)

Amended returns of relevant payments and tax (Forms P14 and P35(RL))

Annual return of relevant payments not liable to deduction of tax (Form P38A)

Additional return in case of trade dispute

Power of HMRC to issue a notice and certificate in cases where regulation 67B or 67D returns are not made, etc

75A

(1) This regulation applies if, 17 days or more after the end of a tax period, condition A or B or C is met.

(2) Condition A is that a Real Time Information employer—

(a) has not paid to HMRC any tax for that tax period,

(b) has not made any returns under regulation 67B (real time returns of information about relevant payments) or 67D (exceptions to regulation 67B) in respect of the tax period, and

and HMRC are not satisfied that no relevant payments have been made in the tax period.

(3) Condition B is that—

(a) a Real Time Information employer has paid an amount of tax for that tax period, whether or not the amount is the amount due under regulation 67G (payments to and recoveries from HMRC for each tax period by Real Time Information employers) as adjusted by regulation 67H(2) where appropriate, but

(b) HMRC are not satisfied, after seeking the employer’s explanation, that the amount due under regulation 67G , as adjusted by regulation 67H(2) where appropriate is the amount which would have been due had any tax returned under regulation 67B or 67D as deducted from each of the employer’s employees during the period been the amount that the employer was liable to deduct.

(4) Condition C is that a Real Time Information employer has not paid to HMRC the amount of tax due under regulation 67G , as adjusted by regulation 67H(2) where appropriate,.

(5) HMRC, on consideration of the matters specified in paragraph (6), may—

(a) specify to the best of their judgment, the amount of tax, or a combined amount, they consider the employer is liable to pay, and

(b) serve notice on the employer requiring payment of that amount within 7 days of the issue of the notice (“the notice period”).

(6) The matters specified in this paragraph are—

(a) the employer’s record of past payments, whether of tax or combined amounts,

(b) any returns made by the employer under regulation 67B or 67D in respect of the tax period,

(d) any returns made by the employer under regulation 67E(6),

(e) any returns made by the employer under regulation 73 (annual return of relevant payments liable to deduction of tax (Forms P35 and P14)) in relation to previous tax years.

(7) If the notice extends to two or more consecutive tax periods in a tax year, this regulation has effect as if they were the latest period specified in the notice.

(8) If, during the notice period, the employer—

(a) claims that the amount paid in respect of the tax period specified in the notice represents the full amount of tax the employer was liable to deduct from each of the employer’s employees during the period, but

(b) does not satisfy HMRC that this is the case,

the employer may require HMRC to inspect the employer’s PAYE records as if the employer had been required to produce those records under Schedule 36 to the Finance Act 2008 (information and inspection powers).

(9) If there is an inspection by virtue of paragraph (8), the notice given by HMRC under paragraph (5) must be disregarded.

(10) If the amount specified in the notice, or any part of it, is not paid during the notice period—

(a) the amount unpaid is treated as an amount of tax or as including an amount of tax which the employer was liable to pay for that tax period under regulation 67G , where appropriate, and

(b) HMRC may prepare a certificate showing how much of that amount remains unpaid.

(11) Regulation 218 deals with the use of certificates as evidence that sums are due and unpaid.

Certificates under regulations 75A: excess payments

75B

(1) This regulation applies if, as a consequence of paying a certified amount of tax under regulation 75A in relation to the tax year, the total amount of tax paid to HMRC for the tax year under these Regulations by an employer exceeds the amount which would have been paid had it not been necessary for HMRC to prepare the certificate.

(2) The employer is entitled to set off the excess tax against any amount which the employer is liable to pay under regulation 67G , as adjusted by regulation 67H(2) where appropriate, for any subsequent tax period or, if the tax year in question has ended, the excess of tax paid may be repaid.

Certificate if tax in regulation 73 return is unpaid

Return and certificate if tax may be unpaid : amounts due under regulation 68

Notice and certificate if tax may be unpaid : amounts due under regulation 68

Certificate after inspection of PAYE records

Determination of unpaid tax and appeal against determination

Employee liability if tax unpaid after regulation 80 determination

Employee’s appeal against direction notice

PART 4A — Security for payment of PAYE

Interpretation

97M

In this Part—

“a further notice” has the meaning given in regulation 97U(3); and

“PGS” has the meaning given in regulation 97S(1).

Requirement for security

97N

(1) In circumstances where an officer of Revenue and Customs considers it necessary for the protection of the revenue, the officer may require a person described in regulation 97P(1) (persons from whom security can be required) to give security or further security for the payment of amounts in respect of which an employer described in regulation 97O (employers) is or may be accountable to HMRC under regulation 67G , as adjusted by regulation 67H(2) where appropriate , 68 or 80 (payments to HMRC and determination of unpaid amounts).

(2) Paragraph (1) does not apply to any amount which the employer is required to pay to HMRC that relates to income to which Part 8 (social security benefits) applies.

Employers

97O

(1) The employer is any employer other than—

(a) the Crown,

(b) an employer to whom paragraph (2) applies,

(d) a care and support employer within the meaning given by regulation 206(4) (employers).

(2) This paragraph applies to employers 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 paragraph (2), the relevant time is a time at which, but for paragraph (1)(b), the officer would require security.

Persons from whom security can be required

97P

(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

97Q

(1) An officer of Revenue and Customs must give notice of a requirement for security to each person from whom security is required and the notice must specify—

(a) the value of security to be given,

(b) the manner in which security is to be given,

(d) the period of time for which security is required.

(2) The notice must include, or be accompanied by, an explanation of—

(a) the employer’s right to make a request under paragraph 10(1) of Schedule 56 to the Finance Act 2009, and

(b) the effect of regulation 97R(2) and (3) (date on which security is due).

(3) In a case which falls within regulation 97P(2)(b), the notice must include, or be accompanied by, the names of each other person from whom security is required.

(4) The notice may contain such other information as the officer considers necessary.

(5) A person shall not be treated as having been required to provide security unless HMRC comply with this regulation and regulation 97R(1).

Date on which security is due

97R

(1) The date specified under regulation 97Q(1)(c) (notice of requirement) may not be earlier than the 30th day after the day on which the notice is given.

(2) If, before the date specified under regulation 97Q(1)(c), the employer makes a request under paragraph 10(1) of Schedule 56 to the Finance Act 2009, the requirement to give security on or before that date does not apply.

(3) In a case which falls within paragraph (2), if HMRC does not agree to the employer’s request, security is to be given on or before the 30th day after the day on which HMRC notifies the employer of that decision.

Application for reduction in the value of security held

97S

(1) A person who has given security (“PGS”) may apply to an officer of Revenue and Customs for a reduction in the value of security held by HMRC if—

(a) PGS’ circumstances have changed since the day the security was given because—

(i) of hardship, or

(ii) PGS has ceased to be a person mentioned in regulation 97P(1) (person from whom security can be required), or

(b) since the day the security was given there has been a significant reduction in the number of employees of the employer to whom the security relates or that employer has ceased to be an employer.

(2) Where regulation 97P(2)(b) applies, a person who has not contributed to the value of the security given may not make an application under paragraph (1).

Outcome of application for reduction in the value of security held

97T

(1) If an application under regulation 97S(1) (application for reduction in the value of security held) is successful, the officer must inform PGS of the reduced value of security that is still required or, where that value is nil, that the requirement for security has been cancelled.

(2) HMRC may make such arrangements as they think fit to ensure the necessary reduction in the value of security held.

Outcome of application for reduction in the value of security held: further provision

97U

(1) This regulation applies—

(a) in cases which fall within regulation 97P(2)(b), and

(b) where PGS’ application is made under regulation 97S(1)(a).

(2) As a consequence of arrangements made under regulation 97T(2) (outcome of application for reduction in the value of security held), an officer of Revenue and Customs may require any other person who was given notice under regulation 97Q (notice of requirement) in relation to the security (“the original security”), or any other person mentioned in regulation 97P(1), to provide security in substitution for the original security.

(3) Where an officer of Revenue and Customs acts in reliance on paragraph (2), the officer must give notice (“a further notice”).

(4) Regulation 97Q and regulation 97R (date on which security is due) apply in relation to a further notice.

(5) Subject to paragraph (6), regulation 97V(1) (appeals) applies in relation to a further notice.

(6) A person who is given a further notice and who was also given notice under regulation 97Q in relation to the original security may only appeal on the grounds the person is not a person mentioned in regulation 97P(1).

Appeals

97V

(1) A person who is given notice under regulation 97Q may appeal against the notice or any requirement in it.

(2) PGS may appeal against—

(a) the rejection by an officer of Revenue and Customs of an application under regulation 97S(1), and

(b) a smaller reduction in the value of security held than PGS applied for.

(3) Notice of an appeal under this regulation must be given—

(a) before the end of the period of 30 days beginning with—

(i) in the case of an appeal under paragraph (1), the day after the day on which the notice was given, and

(ii) in the case of an appeal under paragraph (2), the day after the day on which PGS was notified of the outcome of the application, and

(b) to the officer of Revenue and Customs by whom the notice was given or the decision on the application was made, as the case may be.

(4) Notice of an appeal under this regulation must state the grounds of appeal.

(5) On an appeal under paragraph (1) that is notified to the tribunal, the tribunal may—

(a) confirm the requirements in the notice,

(b) vary the requirements in the notice, or

(6) On an appeal under paragraph (2) that is notified to the tribunal, the tribunal may—

(a) confirm the decision on the application, or

(b) vary the decision on the application.

(7) On the final determination of an appeal under this regulation—

(a) subject to any alternative determination by a tribunal or court, any security to be given is due on the 30th day after the day on which the determination is made, or

(b) HMRC may make such arrangements as it sees fit to ensure the necessary reduction in the value of security held.

(8) An appeal under this regulation is subject to the provisions of Part 5 of TMA (appeals and other proceedings) apart from—

(a) section 46D,

(b) section 47B,

(d) sections 54A to 57.

Appeals: further provision for cases which fall within regulation 97R(2)

97W

In a case which falls within regulation 97R(2) (date on which security is due), if the request mentioned in that provision is made before an appeal under regulation 97V(1) (appeals), regulation 97V(3)(a)(i) applies as if the words “the day after the day on which the notice was given” were “the day after the day on which HMRC notifies the employer of its decision”.

Offence

97X

(1) For the purposes of section 684(4A) of ITEPA (PAYE regulations – security for payment of PAYE: offence)—

(a) in relation to a requirement for security under a notice under regulation 97Q (notice of requirement) the period specified is the period which starts with the day the notice is given and ends with—

(i) the first day after the date specified under regulation 97Q(1)(c), or

(ii) in a case which falls within regulation 97R(2), the first day after the date determined under regulation 97R(3),

(b) in relation to a requirement for security under a further notice the period specified is the period which starts with the day the further notice is given and ends with—

(i) the first day after the date specified under regulation 97Q(1)(c) as it applies in relation to the further notice, or

(ii) in a case which falls within regulation 97R(2), the first day after the date determined under regulation 97R(3) as it applies in relation to the further notice, and

(c) in relation to a requirement for security to which regulation 97V(7)(a) applies the period specified is the period which starts with the day the determination is made and ends with the first day after—

(i) the day the tribunal or court determines to be the day that the security is to be given, or

(ii) the day determined in accordance with that regulation,

as the case may be.

CHAPTER 4A — Mandatory use of electronic communications: real time returns of information about relevant payments of tax and associated matters

Application of Chapter 4 to real time returns of information about relevant payments of tax and associated matters

210D

Regulation 205(3) applies to the delivery of the following as if they were specified information within the meaning given by regulation 207—

(a) returns under regulation 67B (real time returns of information about relevant payments),

(b) returns under regulation 67E(6) (returns under regulation 67B and 67D: amendments), unless the employer is one to whom regulation 67D (exceptions to regulation 67B) applies, and

(c) notifications under regulation 67F (additional information about payments) unless the employer is one to whom regulation 67D applies.

SCHEDULE A1 — Real time returns

1

The information specified in this Schedule is as follows.

Information about the employer

2

The employer’s HMRC office number.

3

The employer’s PAYE reference.

4

The employer’s accounts office reference.

5

If applicable, an indication that this is the final return under regulation 67B (real time returns of information about relevant payments) or 67D (exceptions to regulation 67B) that the employer expects to make because this PAYE scheme has ceased (and, in that case, the date of cessation), unless that information will be included in a notification under regulation 67F (additional information about payments).

6

If applicable, an indication that this is the final return under regulation 67B or 67D that the employer expects to make for the tax year, unless that information will be included in a notification under regulation 67F.

7

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

Information about the employee

8

The employee’s name.

9

The employee’s date of birth.

10

The employee’s current gender.

11

If known, the employee’s national insurance number.

12

If the employee’s national insurance is not known, the employee’s address.

13

The number used by the employer to identify the employee in this employment.

14

If the number used by the employer to identify the employee is different to that shown on the previous return for the employee (if any), an indication of that and the number shown on the previous return.

Information about payments to the employee, etc

15

The tax year to which the return relates.

16

The total payments to date in this employment.

17

The total net tax deducted in relation to the total payments to date in this employment.

18

The employee’s pay frequency or an indication that payments are made to the employee on an irregular basis.

19

The date of the payment the return relates to.

20

The tax week number or tax month number in which the payment is made.

21

An indication of which of the following bands the number of normal hours worked each week by the employee falls into—

(a) up to 15.99,

(b) 16 to 23.99,

(ba) 24 to 29.99,

or an indication that none of the bands is applicable.

22

The value of the payment the return relates to.

23

The tax code operated on the payment the return relates to.

24

If applicable, an indication that the employee’s tax code is being operated on a non-cumulative basis.

25

The total net tax deducted from the payment the return relates to.

26

The value of any amount comprised within the payment made to the employee which falls to be reported under regulation 85 (employees: annual return of other earnings (Form P11D)) and in respect of which tax has been deducted.

27

If the employer is required by regulation 67CA(1)(a) (notifications of relevant payments to and by providers of certain electronic payment methods) to include a reference in the return, the value of any amount which is not subject to tax or national insurance paid to the employee at the same time as the payment.

28

If the employer is required by regulation 67CA(1)(a) to include a reference in the return, the value of any deductions made from the payment which do not otherwise fall to be reported under this Schedule.

29

The value of the payment after allowable pension contributions within the meaning given by regulation 3(2) (net PAYE income) and the deduction of tax, national insurance and deductions due under the Student Loan Regulations.

30

The value, if any, of allowable pension contributions within the meaning given by regulation 3(2) deducted from the payment of PAYE income comprising the payment.

31

The value, if any, of employee pension contributions other than allowable pension contributions within the meaning given by regulation 3(2) deducted from the payment.

32

The value of any earnings for the purposes of the Social Security Contributions and Benefits Act 1992 comprised within the total payment which are included in the gross earnings from the employment for the purpose of calculating liability to Class 1 contributions under that Act but in respect of which tax is not deducted under these Regulations, excluding allowable pension contributions.

33

In paragraphs 15 to 31, “payment” means the relevant payment the information being given in accordance with this Schedule relates to.

34

In paragraph 32, “total payment” means the relevant payment the information being given in accordance with this Schedule relates to plus any other amount paid to the employee at the same time as the relevant payment.

Information on the commencement of employment

35

If the return is the first return in respect of the employee in this employment the information required by paragraphs 36 to 44.

36

The date on which the employment commenced or will commence.

37

The employee’s address.

38

If known, the employee’s passport number.

39

An indication of which of the statements in paragraph 41 applies to the employee.

40

If the employee is a seconded expatriate, the information required by paragraph 42 and an indication of which of the statements in paragraph 43 applies to the employee.

41

The statements in this paragraph are—

(a) the employment is the employee’s first employment since the preceding 6th April, and the employee has not since that date received—

(i) jobseeker’s allowance , incapacity benefit or employment and support allowance which is subject to income tax, or

(ii) a retirement pension or an occupational pension,

(b) the employee is not receiving a retirement pension or an occupational pension and since the preceding 6th April—

(i) has had another employment, but is not now in receipt of employment income from it, or

(ii) has received jobseeker’s allowance, incapacity benefit or employment and support allowance which is subject to income tax, but payment of that allowance or benefit has ceased,

(c) the employee either has another employment (which is continuing) or is in receipt of a retirement pension or an occupational pension.

42

An indication of whether the employee is a seconded expatriate who is a national of an EEA state.

43

The statements in this paragraph are—

(a) the employee intends to live in the United Kingdom for 183 days or more,

(b) the employee intends to live in the United Kingdom for less than 183 days, or

44

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

Information on the cessation of employment

45

If the employment has ceased, the date of cessation.

46

If applicable, an indication that the payment to which the details under this Schedule relate was made after cessation of the employment.

Notifications of relevant payments to and by providers of certain electronic payment methods

67CA

(1) A Real Time Information employer who makes a relevant payment using an approved method of electronic communications which falls to be included in a return under regulation 67B must—

(a) generate a reference under paragraph (3) and include it in that return,

(b) notify the service provider that the payment is a relevant payment, and

(c) generate a sub-reference under paragraph (3) in respect of the relevant payment and notify the service provider of that sub-reference.

(2) A service provider who receives a notification under paragraph (1)(b) must notify HMRC of the information it holds that is required for generating a reference under paragraph (3) in relation to the relevant payment.

(3) A reference and sub-reference under this paragraph is to be generated using the method specified by the Commissioners for Her Majesty’s Revenue and Customs in a direction.

(4) In paragraphs (1) and (2), “service provider” means the provider of the approved method of electronic communications using which the payment is made.

(5) For the purposes of paragraphs (1) and (4), an “approved method of electronic communications” is any method of electronic communications which has been approved for the purposes of regulation 199 (large employers required to make specified payments electronically).

(6) A direction under paragraph (3) may also—

(a) specify circumstances in which paragraphs (1) and (2) are not to apply, and

(b) specify the form and manner of the notifications required by paragraphs (1)(b) and (c) and (2).

Exceptions to regulation 67B

Returns under regulations 67B and 67D: amendments

Additional information about payments

Determination of code in respect of high income child benefit charge

14B

HMRC may determine a code, if and to the extent that the payee does not object, to secure that—

(a) income tax payable for a tax year by the payee by virtue of section 681B of ITEPA (high income child benefit charge) is deducted from PAYE income of the payee paid during that year, and

(b) repayments are made in a tax year in respect of any amounts overpaid on account of income tax under that section for that tax year.

Flat rate codes

Continued application of employee’s code

Notice to employee of code

Procedure if no Form P45 and code not known where payment is a relevant lump sum payment

58A

(1) This regulation applies if—

(a) a pension payer makes a payment of a relevant lump sum payment,

(b) the pensioner is resident in the United Kingdom,

(d) a code in respect of the pensioner has not otherwise been issued to the pension payer.

(2) On making a relevant lump sum payment to the pensioner before HMRC issue a code for use in respect of the pensioner, the pension payer must deduct tax using the basic rate code on the non-cumulative basis.

(3) Where the pension payer is one to whom paragraph (6) applies on the day on which the relevant lump sum payment is made, or if that is not practicable, without unreasonable delay, the pension payer must complete Form P45 and provide—

(a) Part 1 of Form P45 to HMRC, and

(b) Parts 1A, 2 and 3 to the pensioner.

(4) Where paragraph (6) does not apply, on the day on which the relevant lump sum payment is made, or if that is not practicable, without unreasonable delay, the pension payer must complete and provide Parts 1A, 2 and 3 of Form P45 to the pensioner.

(5) The information listed in rows 1 to 6, and 10 to 16 of column 1 of Table 2 to regulation 36 must, subject to the conditions set out in column 2, be provided in the various Parts of Form P45 as indicated in columns 3 to 5, as if—

(a) references to “employer” were to “pension payer”, and

(b) references to “employee” were to “pensioner.

(6) This paragraph applies to—

(a) a pension payer who is a non-Real Time Information pension payer, and

(b) a Real Time Information pension payer to whom HMRC has given a notice requiring the pension payer to send to HMRC Form P45.

UK resident pensioner’s code treated as issued by Inland Revenue

Late presentation of Form P45

Subsequent procedure on issue of UK resident pensioner’s code

Employees in respect of whom employer is not required to maintain deductions working sheets

67BA

(1) This regulation applies if an employer makes a relevant payment to an employee in respect of whom the employer is not required by regulation 66 (deductions working sheets) to maintain a deductions working sheet.

(2) The employer need not deliver the information required by regulation 67B(1) on or before making the payment.

(3) The employer must deliver that information no later than the end of the period of 7 days starting with the day following the day on which the payment is made.

Employees paid in specified circumstances

67BB

(1) This regulation applies if an employer makes a payment to an employee and all of the circumstances in paragraph (2) apply.

(2) The circumstances are that—

(a) the payment includes an amount which is a relevant payment for work undertaken by the employee on—

(i) the day the payment is made, or

(ii) provided that the payment is made before the employee leaves the place of work at the end of the employee’s period of work, the day before the payment is made,

(b) in respect of the work mentioned in sub-paragraph (a), it was not reasonably practicable for the employer to calculate the payment due before the completion of the work, and

(c) it is not reasonably practicable for the employer to deliver the information required by regulation 67B(1) on making the payment.

(3) The employer need not deliver the information required by regulation 67B(1) on or before making the payment.

(4) The employer must deliver that information no later than the end of the period of 7 days starting with the day following the day on which the payment is made.

Regulations 67BA and 67BB: supplementary

67BC

Where regulation 67BA or 67BB applies, the information required by regulation 67B(1) in respect of the relevant payment may be included in a return with the information for any other relevant payment.

Modification of the requirements of regulation 67B: notional payments

Notifications of relevant payments to and by providers of certain electronic payment methods

Exceptions to regulation 67B

Returns under regulations 67B and 67D: amendments

Failure to make a return under regulation 67B or 67D

67EA

(1) This regulation applies where an employer does not make a return as required by regulation 67B (real time returns of information about relevant payments) or 67D (exceptions to regulation 67B).

(2) The employer must provide the information in the next return made under regulation 67B or 67D for the tax year in question.

(3) If the information has not been provided before 20th April following the end of the tax year in question, the employer must make a return under this paragraph.

(4) A return under paragraph (3) must—

(a) include the information specified in Schedule A1,

(b) be made as soon as reasonably practicable after the discovery of the failure to make the return, and

(5) If a return under paragraph (3) is not made before 20th May following the end of the tax year in question section 98A of TMA 1970 (special penalties in case of certain returns) will apply to the return , but this paragraph does not apply to a return in respect of the tax year 2014-15 or a subsequent tax year.

Additional information about payments

Certificates under regulation 75A: excess payments

14A

If applicable, an indication that the payment to which the return relates is a payment to any one of—

(a) a body corporate,

(b) a trustee of a trust of which the employee is a beneficiary,

14B

Where the return relates to a payment within paragraph 14A, the information required by paragraphs 8 to12 need not be provided.

22A

If applicable, an indication that comprised within the payment is—

(a) a pension and if so—

(i) the amount of the pension.

(ii) an indication of whether it is an occupational pension, and

(iii) an indication of whether the pension is being paid because the pensioner is a bereaved spouse or civil partner,

(b) a trivial commutation lump sum, within the meaning given by paragraph 7 or 7A of Schedule 29 to the Finance Act 2004 and, if so, the amount of that lump sum,

(c) a lump sum that falls within regulation 11 (de minimis rule for pension schemes) or 12 (payments by larger pension schemes) of the Registered Pension Schemes (Authorised Payments) Regulations 2009 and, if so, the amount of that lump sum,

(d) a lump sum that falls within regulation 11A (payments by schemes which are not public service pension schemes or occupational pension schemes) of those Regulations and, if so, the amount of that lump sum.

26A

The value of the amounts referred to in paragraph 26 in the tax year to date.

30A

The value of the contributions referred to in paragraph 30 in the tax year to date.

31A

The value of the contributions referred to in paragraph 31 in the tax year to date.

34A

If applicable, an indication that during the period since the employer last made a return under regulation 67B or 67D containing information about the employee—

(a) regulation 64 (trade disputes) has at any time applied in relation to the employee, or

(b) the employee has been absent from the employment without pay.

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

69A

(1) A payment that is less than the full amount due under regulation 67G(2) (payments to and recoveries from HMRC for each tax period), as adjusted by regulation 67H (payments due and recoveries from HMRC for each tax period: returns under regulation 67E(6)) where appropriate, will for the purposes of paragraph 6(2) of Schedule 56 to the Finance Act 2009 (amount of penalty: PAYE and CIS) be treated as payment of the full amount if the difference between the full amount and the amount paid is no more than £100 (“the tolerance”), but this is subject to paragraphs (2) and (3).

(2) Paragraph (1) does not apply where—

(a) the payment relates to a return which is correcting information given in a return filed in respect of a relevant payment made in an earlier tax month, and

(b) the return is delivered after 19th April following the end of the tax year in question.

(3) If the total sum paid by the employer to HMRC for the tax period includes not only the amount due under regulation 67G(2), as adjusted by regulation 67H where appropriate, but also one or more of—

(a) any earnings-related contributions (as defined by regulation 1(2) of the SSC Regulations 2001),

(b) any payment under regulation 7(1) of the Income Tax (Construction Industry Scheme) Regulations 2005, or

the tolerance is applied to the total sum paid to HMRC for the tax period to which the payments relate.

Quarterly tax periods

Modification of regulations 67G and 68 in case of trade dispute

Recovery from employee of tax not deducted by employer

Employer’s request for a direction and appeal against refusal

Employee’s appeal against a direction notice where condition B is met

Appeals: supplementary provisions

Conditions where regulation 72F applies

Recovery from employee of tax that has been self-assessed etc.

Employee’s appeal against a direction notice

Continental shelf workers: provisions relating to certificates

Application for certificate

84A

(1) An employer who meets the conditions in paragraph (2) may apply to HMRC for the issue of a UKCS continental shelf workers certificate.

(2) The conditions are that—

(a) the employer supplies or intends to supply a continental shelf worker for whom the oil field licensee is the relevant person;

(b) the employer has or intends to have a contractual relationship under which the employer acts, directly or indirectly, as an agent of the oil field licensee in connection with these Regulations; and

(c) the employer or an associated company has not had a certificate cancelled previously for a failure to comply with their obligations under regulation 84B.

(3) An application under this regulation must be made in writing and must include—

(a) the name and address of the employer and employer’s PAYE reference;

(b) the name and address of a person in the United Kingdom who is authorised to accept service on behalf of the employer;

(c) confirmation that the employer understands and intends to comply with their obligations contained in regulation 84B; and

(d) the name, address, and employer’s PAYE reference of any associated company which is a current or former holder of a UKCS continental shelf workers certificate.

(4) When the employer makes the first application under this regulation, the employer may also comply with the obligation under regulation 84B(e) by including those details (if known) in the application.

(5) An application made under this regulation may be combined with an application made under regulation 114A of the SSC Regulations.

(6) Upon receipt of an application under this regulation, an officer of Revenue and Customs may, if they are satisfied the conditions in paragraph (2) are met, issue a UKCS continental shelf workers certificate.

(7) A UKCS continental shelf workers certificate must include—

(a) the name of the UKCS continental shelf workers certificate holder;

(b) the employer’s PAYE reference of the UKCS continental shelf workers certificate holder; and

(8) A UKCS continental shelf workers certificate may be issued to—

(a) the person authorised to accept service on behalf of the employer;

(b) the employer; or

(9) A certificate may be combined with a certificate issued under regulation 114A of the SSC Regulations.

(10) Where an employer ceases to meet the conditions in paragraph (2) or to comply with its obligations under regulation 84B, or regulation 114B of the SSC Regulations, an officer of Revenue and Customs may, by notice in writing to the person authorised to accept service on behalf of the employer, cancel the UKCS continental shelf workers certificate from the date specified in the notice of cancellation.

(11) The date specified in paragraph (10) may not be earlier than 10 working days after the date of the notice.

(12) A notice under paragraph (10) may be combined with a notice under regulation 114A of the SSC Regulations.

(13) In this regulation “associated company” means any company within the meaning of section 449 of the Corporation Tax Act 2010.

UKCS continental shelf workers certificate holder: obligations

84B

(1) A UKCS continental shelf workers certificate holder must—

(a) make such deductions, returns and repayments as are required of a relevant person;

(b) keep written records of—

(i) the name, date of birth, and national insurance number of the continental shelf workers supplied;

(ii) the name, registered office and oil field licence number of the oil field licensee to whom each of the workers were supplied;

(iii) the offshore installation to which each of the workers were supplied; and

(iv) the dates between which the workers worked on the offshore installation;

(c) keep the records required by sub-paragraph (b) for a period of 6 years from the end of the tax year to which they relate;

(d) where an officer of Revenue and Customs requires them in writing to do so, provide copies of the records required by sub-paragraph (b) to HMRC within 30 days of the date of the request; and

(e) before supplying the oil field licensee with continental shelf workers for the first time, inform HMRC in writing of the details of the oil field licensee including name, business address, and oil field licence number of the oil field licensee.

(2) In this regulation “offshore installation” means a structure which is, is to be, or has been, put to a relevant use while in water but a structure is not an offshore installation if—

(a) it has permanently ceased to be put to a relevant use,

(b) it is not, and is not to be, put to any other relevant use, and

(3) In paragraph (2)a use is a relevant use if it is—

(a) for the purposes of exploiting mineral resources,

(b) for the purposes of exploration with a view to exploiting mineral resources,

(d) for the recovery of gas so stored,

(e) for the conveyance of things by means of a pipe,

(f) mainly for the provision of accommodation for individuals who work on or from a structure which is, is to be, or has been put to any of the above uses while in the water,

(g) for the purposes of decommissioning any structure which has been used for or in connection with any of the relevant uses above.

(4) For the purposes of paragraphs (3) and (4) a structure is put to use while in water if it is put to use while—

(i) standing in any waters,

(ii) stationed (by whatever means) in any waters, or

(iii) standing on the foreshore or other land intermittently covered with water.

(5) For the purposes of paragraphs (2), (3) and (4) a “structure” includes a ship or other vessel except where it is used wholly or mainly—

(a) for the transport of supplies;

(b) as a safety vessel;

(d) for the laying of cables.

UKCS oil field licensee certificate

84C

(1) Where a UKCS continental shelf workers certificate holder has notified HMRC that the employer intends to supply continental shelf workers to an oil field licensee an officer of Revenue and Customs must issue a UKCS oil field licensee certificate to the oil field licensee.

(2) The UKCS oil field licensee certificate must include—

(a) the name of the oil field licensee;

(b) the registered office of that oil field licensee;

(d) the name of the UKCS continental shelf workers certificate holder;

(e) the date on which it is issued; and

(f) a description of the continental shelf workers to whom it applies.

(3) Where a UKCS oil field licensee certificate is in force the holder of that certificate is not liable to make deductions in respect of any continental shelf worker of a description set out in the certificate.

(4) If a UKCS continental shelf workers certificate is cancelled by an officer of Revenue and Customs that officer must also, by notice in writing, cancel the UKCS oil field licensee certificate.

(5) A notice under paragraph (4) must—

(a) be sent on the same day as the notice cancelling the UKCS continental shelf workers certificate;

(b) specify the date of cancellation of the UKCS oil field licensee certificate; and

(6) The date of cancellation of the UKCS oil field licensee certificate must be the same date as that specified in the UKCS continental shelf workers certificate cancellation notice.

(7) In this regulation “UKCS oil field licensee certificate” means a certificate issued under paragraph (1).

Interpretation of regulations 84A to 114C

84D

In regulations 84A to 84C—

“oil field licensee” means the holder of a licence under Part 1 of the Petroleum Act 1998 in respect of the area in which the duties of the continental shelf worker’s employment are performed;

“UKCS continental shelf workers certificate” means a certificate issued under regulation 84A.

Direct collection: employee to report payments

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

147A

(1) A payment that is less than the full amount due under regulation 67G(2) (payments to and recoveries from HMRC for each tax period), as adjusted by regulation 67H (payments due and recoveries from HMRC for each tax period: returns under regulation 67E(6)) where appropriate, will for the purposes of paragraph 6(2) of Schedule 56 to the Finance Act 2009 (amount of penalty: PAYE and CIS) be treated as payment of the full amount if the difference between the full amount and the amount paid is no more than £100 (“the tolerance”), but this is subject to paragraphs (2) and (3).

(2) Paragraph (1) does not apply where—

(a) the payment relates to a return which corrects information given in a return filed in respect of a relevant payment made in an earlier tax month, and

(b) the return is delivered after 19th April following the end of the tax year in question.

(3) If the total sum paid by the employer to HMRC for the tax period includes not only the amount due under regulation 67G(2), as adjusted by regulation 67H where appropriate, but also one or more of—

(a) any earnings-related contributions (as defined by regulation 1(2) of the SSC Regulations 2001),

(b) any payment under regulation 7(1) of the Income Tax (Construction Industry Scheme) Regulations 2005, or

the tolerance is applied to the total sum paid to HMRC for the tax period to which the payments relate.

CHAPTER 3A — Certain debts of companies under Chapter 7 of Part 2 of ITEPA (agencies)

Interpretation of Chapter 3A

97ZA

In this Chapter—

“company” includes a limited liability partnership;

“HMRC” means Her Majesty's Revenue and Customs;

“director” has the meaning given by section 67 of ITEPA;

“personal liability notice” has the meaning given by regulation 97ZB(2);

“relevant PAYE debt”, in relation to a company, means—any amount that the company is to deduct, or account for, in accordance with these Regulations by virtue of—section 44(4) to (6) of ITEPA (persons providing fraudulent documents), orsection 46A of that Act (anti-avoidance), andany interest or penalty, in respect of an amount within paragraph (a), for which the company is liable;

“the relevant date”, in relation to a relevant PAYE debt, means—in a case where the relevant PAYE debt is to be deducted or accounted for, or arises, by virtue of subsections (4) to (6) of section 44 of ITEPA, the date on which the fraudulent document was provided as mentioned in subsection (4) of that section, orin a case where the relevant PAYE debt is to be deducted or accounted for, or arises, by virtue of section 46A of ITEPA, the date the arrangements mentioned in subsection (1)(b) of that section were entered into;

“the specified amount” has the meaning given by regulation 97ZB(2)(a).

Liability of directors for relevant PAYE debts

97ZB

(1) This regulation applies in relation to an amount of relevant PAYE debt of a company if the company does not deduct, account for or (as the case may be) pay that amount by the time by which the company is required to do so.

(2) HMRC may serve a notice (a “personal liability notice”) on any person who was, on the relevant date, a director of the company—

(a) specifying the amount of relevant PAYE debt in relation to which this regulation applies (“the specified amount”), and

(b) requiring the director to pay to HMRC—

(i) the specified amount, and

(ii) specified interest on that amount.

(3) The interest specified in the personal liability notice—

(a) is to be at the rate applicable under section 178 of the Finance Act 1989 for the purposes of section 86 of TMA, and

(b) is to run from the date the notice is served.

(4) A director who is served with a personal liability notice is liable to pay to HMRC the specified amount and the interest specified in the notice within 30 days beginning with the day the notice is served.

(5) If HMRC serve personal liability notices on more than one director of the company in respect of the same amount of relevant PAYE debt, the directors are jointly and severally liable to pay to HMRC the specified amount and the interest specified in the notices.

Appeals in relation to personal liability notices

97ZC

(1) A person who is served with a personal liability notice in relation to an amount of relevant PAYE debt of a company may appeal against the notice.

(2) A notice of appeal must—

(a) be given to HMRC within 30 days beginning with the day the personal liability notice is served, and

(b) specify the grounds of the appeal.

(3) The grounds of appeal are —

(a) that all or part of the specified amount does not represent an amount of relevant PAYE debt, of the company, to which regulation 97ZB applies, or

(b) that the person was not a director of the company on the relevant date.

(4) But a person may not appeal on the ground mentioned in paragraph (3)(a) if it has already been determined, on an appeal by the company, that—

(a) the specified amount is a relevant PAYE debt of the company, and

(b) the company did not deduct, account for, or (as the case may be) pay the debt by the time by which the company was required to do so.

(5) Subject to paragraph (6), on an appeal that is notified to the tribunal, the tribunal is to uphold or quash the personal liability notice.

(6) In a case in which the ground of appeal mentioned in paragraph (3)(a) is raised, the tribunal may also reduce or increase the specified amount so that it does represent an amount of relevant PAYE debt, of the company, to which regulation 97ZB applies.

Withdrawal of personal liability notices

97ZD

(1) A personal liability notice is withdrawn if the tribunal quashes it.

(2) An officer of Revenue and Customs may withdraw a personal liability notice if the officer considers it appropriate to do so.

(3) If a personal liability notice is withdrawn, HMRC must give notice of that fact to the person upon whom the notice was served.

Recovery of sums due under personal liability notice: application of Part 6 of TMA

97ZE

(1) For the purposes of this Chapter, Part 6 of TMA (collection and recovery) applies as if—

(a) the personal liability notice were an assessment, and

(b) the specified amount, and any interest on that amount under regulation 97ZB(2)(b)(ii), were income tax charged on the director upon whom the notice is served,

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

(2) Summary proceedings for the recovery of the specified amount, and any interest on that amount under regulation 97ZB(2)(b)(ii), may be brought in England and Wales or Northern Ireland at any time before the end of the period of 12 months beginning with the day after the day on which personal liability notice is served.

Repayment of surplus amounts

97ZF

(1) This regulation applies if—

(a) one or more personal liability notices are served in respect of an amount of relevant PAYE debt of a company, and

(b) the amounts paid to HMRC (whether by directors upon whom notices are served or the company) exceed the aggregate of the specified amount and any interest on it under regulation 97ZB(2)(b)(ii).

(2) HMRC is to repay the difference on a just and equitable basis and without unreasonable delay.

(3) HMRC is to pay interest on any sum repaid.

(4) The interest—

(a) is to be at the rate applicable under section 178 of the Finance Act 1989 for the purposes of section 824 of ICTA, and

(b) is to run from the date the amounts paid to HMRC come to exceed the aggregate mentioned in subsection (1)(b).

Penalties under Schedule 55 to the Finance Act 2009

Penalty: failure to comply with regulation 67B or 67D

67I

(1) For the purposes of paragraph 6C of Schedule 55 to the Finance Act 2009 (amount of penalty: real time information for PAYE), a Real Time Information employer which fails to deliver a return falling within item 4 in the Table in paragraph 1 of that Schedule in accordance with—

(a) regulation 67B (real time returns of information about relevant payments);

(b) regulation 67BA (employees in respect of whom employer is not required to maintain a deductions working sheet);

(d) regulation 67C (modification of the requirements of regulation 67B: notional payments); or

(e) regulation 67D (exceptions to regulation 67B)

as the case may be, is liable to a penalty of the amount set out in paragraph (2).

(2) Where a Real Time Information employer fails to deliver such a return and the number of persons employed in the period to which the return relates is—

(a) no more than 9, the penalty is £100;

(b) at least 10 but no more than 49, the penalty is £200;

(d) at least 250, the penalty is £400.

Penalty: initial period

67J

For the purposes of paragraph 6C(3), (4) and (5) of Schedule 55 to the Finance Act 2009 (initial period), the duration of the initial period is thirty days.

Penalty: first failure to deliver a return in a tax year

67K

(1) Paragraph 6C(4) of Schedule 55 to the Finance Act 2009 (unpenalised default) does not apply to any failure to deliver a return falling within item 4 in the Table in paragraph 1 of that Schedule in accordance with regulation 67B, regulation 67BA, regulation 67BB, regulation 67C or regulation 67D, as the case may be,—

(a) by a small existing Real Time Information employer or a new Real Time Information employer in the period 6th March 2015 to 5th April 2015; or

(b) for any tax year for which a Real Time Information employer operates an annual PAYE Scheme.

(2) For the purposes of paragraph (1)(a)—

(a) an employer is a small existing Real Time Information employer if at 6th October 2014 that employer employed no more than 49 employees; and

(b) an employer is a new Real Time Information employer if it is issued with an employer’s PAYE reference after 6th October 2014.

(3) For the purposes of paragraph (1)(b), a Real Time Information employer operates an annual PAYE Scheme for a tax year if for that year—

(a) all the employees are paid annually;

(b) all the employees are paid on the same date; and

(c) the Real Time Information employer is only required under regulation 69 (due date and receipts for payment of tax) to pay HMRC annually.

Determination of code in respect of recovery of tax credit debts

14C

(1) HMRC may determine a code, if and to the extent that the payee does not object, to effect the recovery of all or part of a tax credit debt.

(2) Sums deducted or to be deducted as a result of a determination made in reliance on paragraph (1) are to be treated, for the purposes of employers’ obligations and enforcement, in the same way as amounts of tax which the employer is liable to pay under provisions of these Regulations (so, for example, regulation 84 applies for the purposes of recovery).

(3) Sums deducted as a result of a determination made in reliance on paragraph (1) are to be treated for the purposes of interest on the tax credit debt as having been paid on the first day of the tax year in respect of which the determination is made.

(4) In this regulation “tax credit debt” means child tax credit or working tax credit that the payee is liable to repay to the Commissioners under or by virtue of an enactment.

Recovery of debts: overall limit

14D

(1) This regulation applies where HMRC determines a code under, or by reference to, one or both of the following provisions—

(a) regulation 14A(1) (determination of code in respect of recovery of relevant debts); or

(b) regulation 14C(1) (determination of code in respect of recovery of tax credit debts).

(2) Column 2 of Table 1Asets out the total amount of debt that may be recovered from an employee (“E”) under a code to which this regulation applies, by reference to the expected amount of PAYE income of E in the tax year for which that code is determined.

1 The expected amount of PAYE income of E in the tax year for which the code is determined	2 The total amount of debt that may be recovered from E in that tax year
Less than £30,000	No more than £3,000
£30,000 or more but less than £40,000	No more than £5,000
£40,000 or more but less than £50,000	No more than £7,000
£50,000 or more but less than £60,000	No more than £9,000
£60,000 or more but less than £70,000	No more than £11,000
£70,000 or more but less than £80,000	No more than £13,000
£80,000 or more but less than £90,000	No more than £15,000
£90,000 or more	No more than £17,000.

(3) In this regulation the “total amount of debt” means the sum recovered or to be recovered by virtue of a code determined under, or by reference to, one or both of regulations 14A(1) or 14C(1).

Flat rate codes

Continued application of employee’s code

Notice to employee of code

Employment Intermediaries: return of information relating to agency workers for whom they have not operated PAYE

Specified employment intermediaries

84E

An employment intermediary is a specified employment intermediary if at any time during a tax quarter—

(a) the employment intermediary is an agency;

(b) more than one individual provides services to a client under or in consequence of a contract between the employment intermediary and one or more clients;

(d) the employment intermediary makes one or more payments in respect of, or connected with, the services provided by one or more individuals that—

(i) is required by regulation 67B to be included in a return delivered to HMRC by the employment intermediary when the payment is made but has not been (“a reporting failure”); or

(ii) is not required by regulation 67B to be included in a return delivered to HMRC by the employment intermediary when the payment is made because the individual is not an employee or treated as an employee under regulation 10 (“no reporting requirement”).

Returns by specified employment intermediaries

84F

(1) A specified employment intermediary must, for each tax quarter, provide to HMRC the information specified in regulation 84G no later than the end of the tax month following that quarter.

(2) The information must be included in a return in a form prescribed by HMRC and include a declaration that the information provided in the return is correct and complete to the best of the knowledge and belief of the person completing it.

(3) The return is to be made using an approved method of electronic communication.

(4) The return may be amended until the end of the tax month following the tax quarter after the tax quarter to which the return relates.

(5) Where a return is made in relation to a tax quarter, the specified employment intermediary shall continue to provide a return to HMRC in relation to every subsequent tax quarter until either—

(a) regulation 84E(b) to 84E(d) has not been satisfied for 4 consecutive tax quarters in respect of the specified intermediary; or

(b) the specified employment intermediary notifies HMRC that it is no longer an employment intermediary.

Specified information

84G

The specified information is—

(a) in respect of the specified employment intermediary making the return its—

(i) name;

(ii) address;

(iii) postcode;

(iv) employer’s PAYE reference number where it is required to have one;

(b) in respect of each individual providing the services referred to in regulation 84E—

(i) the individual’s—

(aa) full name;

(bb) address;

(cc) postcode;

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