The Income Tax (Pay As You Earn) Regulations 2003

• (dd) national insurance number (if the individual has one) or gender and date of birth (where the individual does not have a national insurance number);

• (ee) Unique Taxpayer Reference issued by HMRC (if self-employed or a member of a partnership);

• (ii) the date on which the individual began providing the services referred to in regulation 84E;

• (iii) the date (if any) on which the individual stopped providing the services referred to in regulation 84E; and

• (c) where a payment is made to an individual in respect of, or in connection with, the services referred to in regulation 84E, but that payment is not included in a return delivered to HMRC under regulation 67B at the time the payment was made because there is no reporting requirement or there is a reporting failure—

• (i) the full name (or if a partnership the name under which they trade) and address of the person receiving the payment made by the specified employment intermediary (if not the same as in 84G(b)(i)(aa) and (bb));

• (ii) the total of the payments made by the specified employment intermediary to the person in the tax quarter;

• (iii) the reason why the specified employment intermediary has not deducted income tax from those payments;

• (iv) where the reason for the non deduction given in (iii) is that the payments made are to a limited company the full name of the company and company registration number of that company; and

• (v) whether the payments included amounts in respect of Value Added Tax.

Retention of records

84H

• (1) A specified employment intermediary must keep and preserve non-PAYE records which are not required to be sent to HMRC under any other provision of these Regulations for not less than three years after the end of the tax year to which they relate.

• (2) The duty under paragraph (1) to keep and preserve non-PAYE records may be discharged by preserving them in any form or by any means.

• (3) In this regulation “non-PAYE records” means information, records and documents which evidence the specified information.

CHAPTER3A — BENEFITS IN KIND

Interpretation

61A

In this Chapter—

• “amount foregone” has the meaning given in section 69B of ITEPA;

• “authorised employer” has the meaning given by regulation 61C;

• “main relevant payment” means the relevant payment normally made to the specified employee at regular intervals of a week or more;

• “making good payment” means the payment referred to in regulation 61E(2) or 61G(2)(b);

• “optional remuneration arrangements” has the meaning given in section 69A of ITEPA;”

• “relevant amount” means the amount calculated in accordance with section 87A, 94A, 120A, 154A or 203A of ITEPA, as the case may be;

• “specified benefit” means any benefit treated as earnings under any of the following provisions of Part 3 of ITEPA (employment income: earnings and benefits etc. treated as earnings)—section 87 (non-cash vouchers) except where section 694 (non-cash vouchers: treated as payments of PAYE income) of ITEPA applies, section 87A (benefit of non-cash voucher treated as earnings: optional remuneration arrangements), section 94 (credit-tokens) except where section 695 (credit-tokens: treated as payments of PAYE income) of ITEPA applies, section 94A (benefit of credit-token treated as earnings: optional remuneration arrangements), section 120 (car), section 120A (benefit of car treated as earnings: optional remuneration arrangements), section 149 (car fuel), section 149A (benefit of car fuel treated as earnings: optional remuneration arrangements), section 154 (van), section 154A (benefit of a van treated as earnings: optional remuneration arrangements), section 160 (van fuel), section 160A (benefit of van fuel treated as earnings: optional remuneration arrangements), section 203 (employment-related benefit); section 203A (employment-related benefit provided under optional remuneration arrangements);

• “specified employee” means an employee to whom an authorised employer provides a specified benefit;

• “Taxable Amount of the Benefit” has the meaning given in regulation 61D(1).

PAYE: benefits in kind

61B

• (1) This Chapter applies where during a tax year an authorised employer provides a specified benefit to a specified employee.

• (2) Where this Chapter applies—

• (a) the specified benefit is to be treated as a payment of PAYE income for the purposes of these Regulations; and

• (b) any reference (howsoever expressed) in these Regulations to relevant payment includes an amount in respect of the provision of a specified benefit, such amount to be determined in accordance with regulations 61D, 61H, 61I, 61J, 61K, 61L and 61LA, as the case may be;

but this is subject to paragraph (3).

• (3) An amount determined in accordance with regulation 61D, 61H, 61I, 61J, 61K, 61L or 61LA, as the case may be, is not to be included as a relevant payment for the purpose of calculating whether the deduction of tax would exceed the overriding limit.

Authorised employer

61C

• (1) An employer is an authorised employer in respect of a specified employee for a tax year for the purposes of this Chapter if—

• (a) HMRC has authorised that employer to make—

• (i) deductions of income tax in respect of the provision of a specified benefit from payments which that employer actually makes of, or on account of, PAYE income of that employee; or

• (ii) repayments of such income tax; and

• (b) such authorisation has not been withdrawn.

• (2) An employer will be authorised by HMRC if the conditions set out in paragraph (3) are met.

• (3) The conditions are that—

• (a) before the start of the tax year the employer has made an application for authorisation in respect of one or more specified employees to HMRC; and

• (b) such an application identifies the specified benefit or benefits that will be provided to the specified employees.

• (4) But in cases falling within paragraph (5), an employer may make an application for authorisation in respect of one or more specified employees during a tax year.

• (5) The cases are that—

• (a) a specified benefit or benefits is to be provided to the specified employees referred to in the application for the first time during the tax year;

• (b) a specified benefit or benefits is to be provided to an employee upon commencement of employment and the employer is already an authorised employer for the purposes of this Chapter; or

• (c) the application made before the start of the tax year contained an error.

• (6) If during the tax year an authorised employer notifies HMRC that the application for authorisation is withdrawn in respect of the specified employees identified in the notification, then the employer will cease to be an authorised employer in respect of those specified employees from the end of the tax year in which that notice is given.

• (7) But in cases falling within paragraph (8), where an authorised employer notifies HMRC the application for authorisation is withdrawn in respect of the specified employees identified in the notification, then the employer will cease to be an authorised employer in respect of those employees from the date that the notification is received by HMRC.

• (8) The cases are—

• (a) the relevant payment actually made to the specified employee named in the withdrawal notification will be insufficient to enable the authorised employer to deduct the full amount of tax due in respect of the relevant payment;

• (b) that during the tax year the authorised employer stops providing a specified benefit or benefits to the specified employees identified in the withdrawal notification and the Revised Taxable Amount of the Benefit provided is nil; or

• (c) the application made before the start of the year contained an error.

• (9) Any application or notice must be made to HMRC using an approved method of electronic communication unless the employer is one to whom regulation 67D applies.

• (9A) An application cannot be made under this regulation for the tax year 2027-28 or subsequent tax years.

• (10) For the purposes of this regulation, “Revised Taxable Amount of the Benefit” means the result of the calculation at step 3 of regulation 61I(2), as applied by regulation 61J(2).

Deduction and repayments of tax: general rule

61D

• (1) Where this Chapter applies an authorised employer must take the following steps—

Method of calculating the cash equivalent or relevant amount in respect of the benefit of a car or van

61E

• (1) Where the specified benefit is the provision of a car or a van the cash equivalent or relevant amount is calculated in accordance with section 121, 121A, 154A or 155 of ITEPA, as the case may be.

• (2) For the purposes of paragraph (1), the authorised employer may take into account payments that the specified employee is required to make in the tax year as a condition of the car or van being available for that employee’s private use.

Method of calculating the cash equivalent or amount foregone in respect of the benefit of fuel

61F

• (1) Where the specified benefit is the provisions of car fuel or van fuel the cash equivalent or amount foregone in respect of that benefit is calculated in accordance with section 149A, 150, 160A or 161 of ITEPA, as the case may be.

• (2) For the purposes of paragraph (1), the authorised employer may take into account payments that the specified employee is required to make during the tax year in connection with the provision of fuel for that employee’s private use.

Method of calculating the cash equivalent or relevant amount of non-cash vouchers, credit-tokens and employment-related benefits

61G

• (1) Where the specified benefit is a non-cash voucher, credit-token or any employment-related benefit the cash equivalent or relevant amount of the specified benefit is to be calculated in accordance with section 87, 87A, 94, 94A, 203 or 203A of ITEPA, as the case may be.

• (2) For the purposes of paragraph (1), the authorised employer may make reasonable assumptions about—

• (a) the cost of a specified benefit to be incurred in a tax year where the cost is not known at the start of the tax year; and

• (b) payments that a specified employee is expected to make in the tax year to make good any part of the cost incurred in providing the benefit to that employee.

Modification of the general rule: cessation of employment but continuing benefit

61H

• (1) This regulation applies instead of regulation 61D(2) if during a tax year the employment of a specified employee ceases but the authorised employer continues to provide the specified benefit to that employee.

• (2) Before the employment ceases the authorised employer must take the following steps—

Step 1

Determine at that time the number of remaining main relevant payments to be made in the employment.

Step 2

If the cost to the authorised employer of the specified benefit has changed, redetermine the cash equivalent , relevant amount or amount foregone in accordance with regulations 61E, 61F or 61G, as the case may be, otherwise the cash equivalent , relevant amount or amount foregone in respect of the specified benefit is that previously determined for the tax year under step 1 of regulation 61D(1).

The result is the revised cash equivalent , relevant amount or amount foregone in respect of the specified benefit provided during the employment.

Step 3

Calculate the taxable amount of the benefit provided to date by—

• (a) determining the number of main relevant payments that have been made to date, then

• (b) multiplying that number by the Taxable Amount of the Benefit obtained under step 3 of regulation 61D(1).

Step 4

Subtract the taxable amount of the benefit provided to date (the amount obtained from step 3) from the revised cash equivalent , relevant amount or amount foregone in respect of the benefit provided during the employment (the amount obtained from step 2).

Step 5

Divide the amount obtained from step 4 by the number obtained at step 1.

The result is the Adjusted Taxable Amount of the Benefit.

Step 6

Add the Adjusted Taxable Amount of the Benefit to either—

• (a) the next main relevant payment, where that is the only main relevant payment remaining in the employment; or

• (b) each of the remaining main relevant payments, where the number of remaining main relevant payment determined under step 1 of paragraph (2) is more than one,

and apply step 5 of regulation 61D(1) to that amount or amounts, as the case may be.

Modification of the general rule: in-year adjustments: change to the benefit during the year with effect from the date of the change

61I

• (1) This regulation applies instead of regulation 61D(2) if during a tax year there is a change to the specified benefit provided to a specified employee and, for the purposes of calculating the cash equivalent , relevant amount or amount foregone in respect of that benefit under ITEPA, that change has effect from the date the revised benefit is provided to the employee.

• (2) Subject to paragraph (4), the authorised employer must take the following steps—

Step 1

Before making the next main relevant payment after the change to the specified benefit has taken effect, calculate the revised cash equivalent , relevant amount or amount foregone in respect of the specified benefit by—

• (a) determining the cash equivalent, relevant amount or amount foregone in respect of the specified benefit that has been provided in the tax year, in accordance with section 87, 87A, 94, 94A, 121, 121A, 149A, 150, 154A, 155, 160A, 161, 203 or 203A of ITEPA, as the case may be, then

• (b) determining the cash equivalent , relevant amount or amount foregone in respect of the specified benefit, that will be provided for the remainder of the tax year, in accordance with regulation 61E, 61F or 61G, as the case may be, and

• (c) adding these numbers together.

Step 2

Calculate the taxable amount of the benefit provided to date by—

• (a) determining the number of main relevant payments that have been made to date, then

• (b) multiplying that number by the Taxable Amount of the Benefit determined under step 3 of regulation 61D(1).

Step 3

Subtract the taxable amount of the benefit provided to date (the amount obtained from step 2) from the revised cash equivalent , relevant amount or amount foregone in respect of the specified benefit (the amount obtained from step 1).

Step 4

Determine the number of remaining main relevant payments to be made in the tax year.

Step 5

Divide the amount obtained from step 3 by the number obtained at step 4.

The result, where the amount is a positive value, is the Increased Taxable Amount of the Benefit.

The result, where the amount is a negative value, is the Reduced Taxable Amount of the Benefit.

Step 6

Add the Increased Taxable Amount of the Benefit to, or subtract the Reduced Taxable Amount of the Benefit from, the next main relevant payment and apply step 5 of regulation 61D(1) to that amount.

• (3) On making any subsequent main relevant payment in that year, the employer must add the Increased Taxable Amount of the Benefit to, or subtract the Reduced Taxable Amount of the Benefit from, that payment and apply step 5 of regulation 61D(1) to that amount.

• (4) Where the change to the specified benefit occurs in the final tax month of a tax year and the authorised employer is not able to take the steps set out in paragraph (2) before the final main relevant payment for that year is made that employer must—

• (a) comply with steps 1 to 5 of paragraph (2) before the first main relevant payment of the next tax year (“tax year 2”) is made;

• (b) add the Increased Taxable Amount of the Benefit to, or subtract the Reduced Taxable Amount of the Benefit from, the first main relevant payment to be made in tax year 2; and

• (c) apply step 5 of regulation 61D(1) to that amount.

Modification of the general rule: in-year adjustments: change to the benefit during the year with effect from the start of tax year and other changes

61J

• (1) This regulation applies if during a tax year:

• (a) there is a change to the specified benefit provided to a specified employee and, for the purposes of calculating the cash equivalent , relevant amount or amount foregone in respect of that benefit under ITEPA, that change has effect from the start of the tax year;

• (b) the employer becomes aware that the cash equivalent , relevant amount or amount foregone in respect of the specified benefit determined at the start of the year in accordance with regulation 61E, 61F or 61G (method of calculating the cash equivalent) is no longer accurate;

• (c) the employer will stop providing a specified benefit during the tax year; or

• (d) there is a change to the number of main relevant payments used to determine the Taxable Amount of the Benefit where the specified employee is paid at irregular intervals.

• (2) Where this regulation applies, regulation 61D(2) no longer applies and regulation 61I applies but with the modification in paragraph (3).

• (3) For the purposes of calculating the revised cash equivalent , relevant amount or amount foregone of the specified benefit, step 1 of regulation 61I(2) is modified as follows—

Step 1

In cases where regulation 61J(1)(a), (b) or (c) applies, redetermine the cash equivalent , relevant amount or amount foregone of the specified benefit in accordance with regulations 61E, 61F or 61G, as the case may be. In cases where regulation 61J(1)(d) applies, use the cash equivalent , relevant amount or amount foregone of the benefit determined at the start of the year under step 1 of regulation 61D(1).

• (4) Any references in regulation 61I(2) to the revised cash equivalent , relevant amount or amount foregone in respect of the benefit or to the amount obtained under step 1 of 61I(2) are to be read in accordance with paragraph (3).

Modification of the general rule: making good

61K

• (1) This regulation applies instead of regulation 61D(2) where immediately before the authorised employer makes the final main relevant payment of the tax year the specified employee has not made any or all of the making good payment.

• (2) The authorised employer must—

• (a) ascertain the difference between:

• (i) the amount of the making good payment that has been taken into account when determining the cash equivalent , relevant amount or amount foregone in respect of the specified benefit at the start of the tax year; and

• (ii) the amount the specified employee has actually paid at that time;

• (b) add the amount obtained under sub-paragraph (a) to the final main relevant payment, and

• (c) apply step 5 of regulation 61D(1) to that amount.

• (3) Where this regulation applies the authorised employer may not take into account making good payments for the purposes of calculating the cash equivalent , relevant amount or amount foregone in respect of the same specified benefit provided to the same specified employee in the following tax year.

Modification of the general rule: failure to make good fuel benefit

61L

• (1) This regulation applies if the specified employee has not made the payment referred to in regulation 61F(2) before 1st June following the end of the tax year (“tax year 1”) in which the specified benefit of car fuel or van fuel was provided.

• (2) Before making the first main relevant payment after 1st June following the end of tax year 1 (“the first main relevant payment in tax year 2”) the authorised employer must take the following steps—

Step 1

Redetermine the cash equivalent of the specified benefit of car fuel or van fuel received in tax year 1 in accordance with section 150 or 161 of ITEPA on the basis that Condition A in section 151 or 162 of ITEPA (car fuel and van fuel: nil cash equivalent), as the case may be, has not been met.

The result is the Outstanding Taxable Amount of the Fuel Benefit for Tax Year 1.

Step 2

Add the Outstanding Taxable Amount of the Fuel Benefit for Tax Year 1 to the first main relevant payment in tax year 2 and apply step 5 of regulation 61D(1) to that amount.

• (3) Where this regulation applies and the authorised employer is continuing to provide the specified benefit of car fuel or van fuel in tax year 2, the employer must make an in-year adjustment for that year, in accordance with regulation 61J(1)(b), and redetermine the cash equivalent of the specified benefit without taking into account payments the employee is required to make, in connection with the private use of fuel, as referred to in regulation 61F(2).

Information to specified employees

61M

• (1) Before 1st June following the end of the tax year in which the specified benefits have been provided, an authorised employer must provide a statement to every specified employee identifying—

• (a) every specified benefit provided to that employee during that tax year; and

• (b) the cash equivalent , relevant amount or amount foregone in respect of the specified benefit provided during that tax year treated as a payment of PAYE income under this Chapter.

• (2) In this regulation—

• (a) “authorised employer” includes an employer who ceased to be an authorised employer during or after the tax year; and

• (b) “specified employee” includes an employee who was a specified employee for only part of the tax year.

22B

• (1) If applicable, an indication that comprised within the payment is an amount treated as a payment of PAYE income under regulation 61B (PAYE: benefits in kind) and, if so, the amount of the specified benefit in respect of which tax has been deducted.

• (2) If the benefit is a car—

• (a) in the first return in which the benefit of the car is included as a relevant payment, the following information in relation to that car—

• (i) the make and model of the car,

• (ii) if the car is a car with a CO2 emission figure within section 134(1) of ITEPA, the car’s CO2 emission figure determined by section 135, 136, 136A, 137 137A or 138 of ITEPA, as the case may be,

• (iii) the type of fuel or power the car uses,

• (iv) the calculated price of the car,

• (v) the cash equivalent of the car or amount foregone in respect of the car, determined under regulation 61E and either section 121 or 121A of ITEPA, as the case may be,

• (vi) the date on which the car was first made available,

• (vii) the cash equivalent or the amount foregone in respect of any fuel provided for the car, determined under regulation 61F and either section 149A or 150 of ITEPA as the case may be, and

• (viii) the date on which fuel has been provided for the car,

• (b) if the car ceases to be available, in the next return following the cessation, the date the car became unavailable,

• (c) if fuel has been provided for the car and ceases to be provided, in the next return following the cessation, the date the fuel ceased to be provided, and

• (d) where an employer becomes aware of an inaccuracy in a return submitted under sub-paragraphs (a) to (c) above, the employer must provide the correct information in the next return for that tax year.

• (3) In this paragraph—

• “amount foregone” has the meaning given in section 69B of ITEPA,

• “available” is to be read in accordance with section 116(1) of ITEPA (meaning of when a car or van is available to an employee),

• “calculated price of the car” and “cash equivalent” are to be read in accordance with section 121 of ITEPA (method of calculating the cash equivalent of the benefit of a car)”, and

• “unavailable” is to be read in accordance with section 143(2) of ITEPA (deduction for periods when car unavailable).

22C

• (1) If applicable, an indication that comprised within the payment is an amount in respect of a reportable payment and the amount of that reportable payment.

• (2) For the purposes of sub-paragraph (1) a “reportable payment” is—

• (a) a payment of an uncrystallised funds pension lump sum,

• (b) a lifetime annuity under a flexible annuity contract, or

• (c) a payment made out of—

• (i) a fund referred to in section 227G(2), (4) or (5) of the Finance Act 2004,

• (ii) an arrangement referred to in section 227G(3) of the Finance Act 2004, or

• (iii) a scheme pension referred to in section 227G(9) of the Finance Act 2004.

• (3) For the purposes of sub-paragraph (2)—

• (a) “flexible annuity contract” has the meaning given by section 227G(8) of the Finance Act 2004, and

• (b) “uncrystallised funds pension lump sum” has the meaning given by paragraph 4A of Schedule 29 to the Finance Act 2004.

22D

If applicable, an indication that comprised within the payment is a lump sum to which section 636A(4ZA) of ITEPA applies and the amount of that lump sum.

CHAPTER 3B — Certain debts of companies under section 339A of ITEPA (travel expenses of workers providing services through employment intermediaries)

Interpretation of Chapter 3B: “relevant PAYE debt” and “relevant date”

97ZG

• (1) In this Chapter “relevant PAYE debt”, in relation to a company means an amount within any of paragraphs (2) to (5).

• (2) An amount within this paragraph is an amount that the company is to account for in accordance with these Regulations by virtue of section 339A(7) to (9) of ITEPA (persons providing fraudulent documents).

• (3) An amount within this paragraph is an amount which a company is to deduct and pay in accordance with these Regulations by virtue of section 339A of ITEPA in circumstances where—

• (a) the company is an employment intermediary,

• (b) on the basis that section 339A of ITEPA does not apply by virtue of subsection (3) of that section the company has not deducted and paid the amount, but

• (c) the company has not been provided by any other person with evidence from which it would be reasonable in all the circumstances to conclude that subsection (3) of that section applied (and the mere assertion by a person that the manner in which the worker provided the services was not subject to (or to the right of) supervision, direction or control by any person is not such evidence).

• (4) An amount within this paragraph is an amount that the company is to deduct and pay in accordance with these Regulations by virtue of section 339A of ITEPA in a case where subsection (4) of that section applies (services provided under arrangements made by intermediaries).

• (5) An amount within this paragraph is any interest or penalty in respect of an amount within any of paragraphs (2) to (4) for which the company is liable.

• (6) In this Chapter “the relevant date” in relation to a relevant PAYE debt means the date on which the first payment is due on which PAYE is not accounted for.

Interpretation of Chapter 3B: general

97ZH

In this Chapter—

• “company” includes a limited liability partnership;

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

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

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

Liability of directors for relevant PAYE debts

97ZI

• (1) This regulation applies in relation to an amount of relevant PAYE debt of a company if the company does not deduct 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

97ZJ

• (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 97ZI 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 97ZI applies.

Withdrawal of personal liability notices

97ZK

• (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

97ZL

• (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 97ZI(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 97ZI(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 the personal liability notice is served.

Repayment of surplus amounts

97ZM

• (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 97ZI(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).

Modification of the general rule: failure to make good benefit of credit-token

61LA

• (1) This regulation applies where the specified benefit is a credit-token and the specified employee has not made all of the making good payments referred to in regulation 61G(2)(b) before 1st June following the end of the tax year (“tax year 1”) in which the credit-token was used.

• (2) Before making the first main relevant payment after 1st June in the following tax year (“the first main relevant payment in tax year 2”) the authorised employer must take the following steps—

Step 1

Calculate the outstanding taxable amount of the benefit of the credit-token used in tax year 1 by-

• (a) determining the cash equivalent or relevant amount of the benefit of the credit-token used in that tax year in accordance with section 94 or 94A ITEPA;

• (b) subtracting from that amount the cash equivalent or relevant amount of the benefit of the credit-token used as determined under step 1 of regulation 61I(2) as modified by regulation 61J(3) during that tax year.

Step 2

Add the amount obtained from step 1 to the first main relevant payment in tax year 2 and apply step 5 of regulation 61D(1) to that amount.

• (3) Where this regulation applies regulation 61G(2)(b) does not apply in respect of credit-tokens used in tax year 2.

Information to specified employees

Relevant PAYE and apprenticeship levy debts of managed service companies

Part 7A — Apprenticeship Levy

Interpretation of Part 7A

147B

In this Part—

• “monthly pay bill” means the total amount of earnings paid by a person in a tax month on which Class 1 secondary contributions would be payable but for the condition in section 6(1)(b) of the Contributions and Benefits Act (liability for Class 1 contributions).

Due date for payment of apprenticeship levy

147C

• (1) A person must pay the amount of apprenticeship levy due under this Part within—

• (a) 17 days after the end of the tax month, where the payment is made by an approved method of electronic communications, or

• (b) 14 days after the end of the tax month, in any other case.

• (2) The person must pay the apprenticeship levy mentioned in paragraph (1) at the same time as the amount of tax and any earnings-related contributions due and in accordance with Chapter 1 of Part 4 of these Regulations (payment, returns and information).

• (3) In this regulation, “earnings-related contributions” means any contributions other than Class 1A and 1B contributions payable under the Contributions and Benefits Act in respect of earnings paid to or for the benefit of an earner in respect of employed earners employment.

Duty to report amount of apprenticeship levy to be paid

147D

• (1) Subject to paragraph (2) this regulation applies where—

• (a) a person’s pay bill in the tax year preceding the year in which the apprenticeship levy liability falls to be reported was over £3 million, or

• (b) a person considers that their pay bill will be over £3 million in the current tax year.

• (2) In the case of a member of a company unit or charities unit this regulation applies where—

• (a) the total amount of the pay bill for the company unit or the charities unit in the tax year preceding the year in which the apprenticeship levy liability falls to be reported was over £3 million, or

• (b)

• (i) the annual entitlement to levy allowance has been determined for each member of the company unit or charities unit in the current tax year in accordance with sections 101 or 102 of the Finance Act 2016, and

• (ii) a member considers that their annual pay bill will be over £T where T is an amount equal to the levy allowance determined for that member divided by 0.005.

• (3) A Real Time Information employer must inform HMRC of their apprenticeship levy liability after deducting any amount of levy allowance to which they are entitled for the tax month from it.

• (4) The information must be given in a return.

• (5) The return mentioned under paragraph (4) must be sent within 14 days after the end of the tax month.

• (6) A return 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 to which the return of the apprenticeship levy relates,

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

• (v) the amount of annual levy allowance the employer is allocating to the employer’s PAYE reference,

• (vi) the amount of apprenticeship levy due to date which the employer has calculated, and

• (vii) the tax month to which it relates, and

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

• (7) This regulation applies in addition to the provisions set out in regulation 67F (additional information about payments).

Calculation of monthly levy allowance

147E

• (1) This regulation applies where the monthly levy allowance falls to be calculated by a person.

• (2) Subject to regulations 147F and 147G, the monthly levy allowance is an amount equal to—

$$NP$where— N is the levy allowance for the tax year, and P is twelve.$

• (3) Subject to regulations 147F and 147G, the monthly cumulative levy allowance is an amount equal to the monthly levy allowance aggregated in accordance with the tax month within the tax year as shown in the table below.

Relevant month in the tax year	Monthly cumulative levy allowance
Month 1	£1,250
Month 2	£2,500
Month 3	£3,750
Month 4	£5,000
Month 5	£6,250
Month 6	£7,500
Month 7	£8,750
Month 8	£10,000
Month 9	£11,250
Month 10	£12,500
Month 11	£13,750
Month 12	£15,000

Apportionment of levy allowance between employer’s PAYE references

147F

• (1) This regulation applies where a person has more than one employer’s PAYE reference in respect of its employees.

• (2) The person may elect to apportion their annual entitlement of levy allowance amongst the employer’s PAYE references mentioned in paragraph (1) in accordance with the proportions they choose.

• (3) The monthly levy allowance for each employer’s PAYE reference is an amount equal to one twelfth of the annual apportioned entitlement for that reference.

• (4) The person must notify HM Revenue and Customs of the election mentioned in paragraph (2) with their first return of the apprenticeship levy.

Apportionment of levy allowance between employer’s PAYE references: members of a company unit or charities unit

147G

• (1) This regulation applies where—

• (a) members of a company unit or charities unit (“the relevant members”) have determined what amount of levy allowance each of them is entitled to for the tax year, and

• (b) at least one of the relevant members mentioned in sub-paragraph (1)(a) has more than one employer’s PAYE reference.

• (2) The relevant members may elect to apportion their share of levy allowance amongst their respective employer’s PAYE references in accordance with the proportions they choose.

• (3) The relevant members must—

• (a) make the election mentioned in sub-paragraph (2) at the beginning of the tax year, and

• (b) notify HMRC of the election made with their first return of the apprenticeship levy.

Calculation of monthly apprenticeship levy for the first month of the tax year

147H

A person must calculate the amount of their apprenticeship levy for the first month of the tax year in accordance with the following steps.

Step 1Multiply the amount of the monthly pay bill by 0.5%.

Step 2Deduct the monthly levy allowance for the first month as mentioned in Table 1 from the amount obtained from step 1.If the resulting amount is positive, that amount is the apprenticeship levy payable for the first month of the tax year.If the resulting amount is negative or zero, there will be no apprenticeship levy payable for the first month of the tax year.

Calculation of monthly apprenticeship levy for subsequent months of the tax year

147I

• (1) A person must calculate the amount of apprenticeship levy for any month following the first month of the tax year (the relevant month) in accordance with the following steps.

Step 1Determine the cumulative amount of the monthly pay bill for the relevant months of the tax year.

Step 2Multiply the amount obtained from step 1 by 0.5%.

Step 3Determine the amount of the monthly cumulative levy allowance for the relevant month in accordance with Table 1.

Step 4Deduct the amount obtained from step 3 from the amount obtained from step 2.If the resulting amount is negative, that amount is to be treated as zero for the purpose of the calculation mentioned in step 6.If the resulting amount is a positive amount, that amount is to be used in the calculation mentioned in step 6.

Step 5Determine the amount of the cumulative apprenticeship levy paid up to the month preceding the relevant month and reduce that amount by any credit gained in the preceding month.

Step 6Deduct the amount obtained from step 5 from the amount obtained from step 4.If the resulting amount is a positive amount, that amount is the apprenticeship levy due to be paid for the relevant month.If the resulting amount is negative, that amount is the credit gained in the relevant month.

• (2) In this regulation, “credit” means any amount which is negative which can be used by a person to reduce the combined amount in the relevant month.

Recovery of overpaid apprenticeship levy by an employer

147J

• (1) This regulation applies where a person has overpaid apprenticeship levy in a tax year.

• (2) The person must set off any overpaid apprenticeship levy against any amount which that person is liable to pay under these Regulations before making a claim to HMRC for a refund of the overpaid levy.

Liability to pay and duty to make a return of apprenticeship levy: Continental shelf workers certificate holders

147K

• (1) This regulation applies to persons specified in certificates in force under section 120(4) of the Social Security Contributions and Benefits Act 1992 (employment at sea: continental shelf operations).

• (2) The person specified in paragraph (3) must—

• (a) pay apprenticeship levy under regulation 147C, and

• (b) make a return of apprenticeship levy under regulation 147D.

• (3) The person referred to paragraph (2) is a UKCS continental shelf workers certificate holder who has obligations under regulation 114B of the SSC Regulations (UKCS continental shelf workers certificate holder: obligations and responsibilities) to make deductions, returns and repayments as are required by a secondary contributor.

• (4) In this regulation a UKCS continental shelf workers certificate holder means a holder of a certificate issued under regulation 114A of the SSC Regulations (application for certificate).

Assessment of unpaid apprenticeship levy

147L

• (1) This regulation applies if it appears to HMRC that there may be apprenticeship levy payable for a tax year under regulations 147E, 147H or 147I (calculation of apprenticeship levy) by an employer which has not been—

• (a) paid to HMRC under regulation 147C, and

• (b) reported on a return under regulation 147D.

• (2) HMRC may assess the amount of apprenticeship levy which to the best of their judgement is due, and serve notice of their assessment on the employer.

• (3) An assessment under this regulation may—

• (a) cover the apprenticeship levy payable by the employer under regulation 147E, 147H or 147I for any one or more tax periods in a tax year, and

• (b) extend to the whole of the apprenticeship levy, or such part of it as is payable in respect of—

• (i) a class or classes of employees specified in the notice of assessment (without naming the individual employees), or

• (ii) one or more named employees specified in the notice.

• (4) Section 30A of TMA (assessing procedure) applies in relation to an assessment under this regulation as it applies in relation to an assessment to income tax.

• (5) Any amount of apprenticeship levy which is payable by virtue of an assessment made under this regulation shall be payable on the day following the end of the period of 30 days beginning with the day on which the notice of assessment is served.

Recovery of overpayment of apprenticeship levy by HMRC

147M

• (1) Where an amount of apprenticeship levy has been repaid to any person which ought not to have been repaid to that person, that amount may be assessed and recovered as if it were unpaid apprenticeship levy.

• (2) An assessment under this regulation shall not be out of time under section 108 of the Finance Act 2016 (time limits for assessment) if it is made before the end of the year of assessment following that in which the amount assessed was repaid.

• (3) In this regulation any reference to an amount repaid includes a reference to an amount allowed by way of a set-off.

Retention by employer of apprenticeship levy records

147N

• (1) An employer must keep and preserve for not less than three years after the end of the tax year to which they relate all apprenticeship levy records which are not required to be sent to HMRC under regulation 147D.

• (2) The duty under paragraph (1) to preserve apprenticeship levy records may be discharged by preserving them in any form or by any means.

• (3) In this regulation, “apprenticeship levy records” means documents relating to the calculation of the amount of apprenticeship levy payable by the employer.

Scottish upper rate codes

32B

• (1) If the employee’s code is an appropriate Scottish upper rate code the employer must deduct tax at the Scottish upper rate specified in that code and regulations 22 and 26 (cumulative and non-cumulative basis) do not apply.

• (2) For the purposes of this regulation an “appropriate Scottish upper rate code” has the meaning given in regulation 7(4).

Nil tax code: no deductions or repayments

HMRC and employer may make PSA

Retention of PSA records

16A

The value of any relevant payments to date in this employment that are treated as payments of PAYE income for the purposes of the PAYE regulations by virtue of sections 687A or 695A of ITEPA.

22E

If applicable, an indication that the payment to which the return relates is a payment in respect of an engagement to which Chapter 10, Part 2 of ITEPA applies by virtue of section 61M(1) of that Act.

CHAPTER 5 — DEBTS ARISING UNDER CHAPTER 10 OF PART 2 OF ITEPA (INTERMEDIARIES)

Recovery from relevant persons

97LA

• (1) In this Chapter, references to a “PAYE debt” must be construed as references to a deemed employer PAYE debt.

• (2) A PAYE debt may be recovered from a relevant person but this is subject to paragraph (3).

• (3) A PAYE debt may only be recovered from a person described in section 688AA(3)(a) ITEPA if an officer of Revenue and Customs considers there is no realistic prospect of recovery of all or part of it within a reasonable period of time from a person described in section 688AA(3)(b).

Recovery of PAYE debt

97LB

• (1) HMRC may not recover a PAYE debt in accordance with regulation 97LA(2) unless it has given a recovery notice to the relevant person during the relevant period.

• (2) No recovery of a PAYE debt may be made—

• (a) if the PAYE debt relates to tax payable in a tax year commencing before 6th April 2021, or

• (b) if the deemed employer is also “the client” described in section 61M(1)(a) of ITEPA.

• (2) In this Chapter, a “recovery notice” means a notice which complies with regulation 97LD.

The relevant period

97LC

• (1) In this Chapter, the “relevant period” in relation to a PAYE debt means the period beginning in accordance with paragraph (2) and ending in accordance with paragraph (3).

• (2) The relevant period begins—

• (a) upon the expiry of the period of 30 days beginning with the day on which the determination made in accordance with regulation 80 of the amount referred to in section 688AA(2)(a) of ITEPA becomes final and conclusive, or

• (b) when an officer of Revenue and Customs becomes aware of sufficient information to make a determination in accordance with regulation 80 in relation to the amount referred to in section 688AA(2)(a) of ITEPA but considers that it would be impractical to make such a determination on account of the liquidation, dissolution or other incapacity of the deemed employer, provided that time is not after the latest time allowed for the making of a determination in accordance with regulation 80 in relation to the PAYE debt.

• (3) The relevant period ends upon the expiry of the period of 12 months beginning with the day on which the period begins.

Contents of recovery notice

97LD

• (1) A recovery notice must contain the following information—

• (a) the name and address of the deemed employer to whom the PAYE debt relates;

• (b) the name of “the worker” for the purposes of section 61M(1)(a) ITEPA to whom the PAYE debt relates;

• (c) the amount of the PAYE debt;

• (d) the tax periods to which the PAYE debt relates;

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

• (f) the date on which the relevant period in relation to the PAYE debt began and whether the period began in accordance with regulation 97LC(2)(a) or (b);

• (g) the relevant person’s name and address;

• (h) whether the relevant person is a person described in paragraph (a) or (b) of the definition of relevant person in section 688AA(3) of ITEPA.

• (2) The recovery notice must also contain a statement, made by the officer of Revenue and Customs giving the notice, that the officer is of the view that there is no realistic prospect of recovering the PAYE debt within a reasonable period from—

• (a) the deemed employer;

• (b) the person mentioned in section 688AA(3)(b) of ITEPA in the case of a recovery notice given to a person mentioned in section 688AA(3)(a) of that Act.

Payment of deemed employer PAYE debt and interest

97LE

• (1) The relevant person must pay the amount of the PAYE debt to HMRC within 30 days beginning with the date on which the notice is given.

• (2) Interest accruing on the PAYE debt by virtue of section 101 of the Finance Act 2009 after expiry of the period of time mentioned in paragraph (1) shall be treated as chargeable to the relevant person under that section.

Appeals

97LF

• (1) A person who is given a recovery notice in relation to a PAYE debt may appeal against the notice on one or more of the grounds set out in paragraph (3).

• (2) A notice of appeal must—

• (a) be given to HMRC within 30 days beginning with the day the recovery notice is given, and

• (b) specify the grounds of the appeal.

• (3) The grounds of appeal are—

• (a) that all or part of the amount specified in the notice in accordance with regulation 97LD(1)(c) does not relate to a PAYE debt;

• (b) that there is a realistic prospect of recovering the PAYE debt from the deemed employer within a reasonable period of time;

• (c) that there is a realistic prospect of recovering the relevant PAYE debt from the person described in section 688AA(3)(b) of ITEPA within a reasonable period of time;

• (d) that the person is not a relevant person in respect of the PAYE debt;

• (e) that the recovery notice was not given within the relevant period;

• (f) that the recovery notice does not satisfy the requirements specified in regulation 97LD.

• (4) But a person may not appeal on the ground mentioned in paragraph (3)(a) if it has already been determined, on an appeal, that the PAYE debt is payable by the deemed employer.

• (5) Subject to paragraph (6), on an appeal that is notified to the tribunal, the tribunal may uphold or quash the recovery 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 amount specified in accordance with regulation 97LD(1)(c) so that it does relate to a PAYE debt.

Withdrawal of recovery notices

97LG

• (1) A recovery notice is withdrawn if the tribunal quashes it.

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

• (3) If a recovery notice is withdrawn in accordance with paragraph (2), HMRC must give notice of that fact to the person to whom the notice was given.

Application of Part 6 of TMA

97LH

Part 6 of TMA (collection and recovery) applies as if—

• (a) the amount of the PAYE debt were income tax charged on the relevant person,

• (b) the recovery notice were an assessment, and

• (c) the giving of the recovery notice were the matter complained of for the purposes of section 65(3) TMA (Magistrates’ court).

Relief from income tax on PAYE income: information about deductible expenses

65A

• (1) This regulation applies if, in relation to a tax year—

• (a) an employee is entitled to relief from income tax in consequence of deductions allowed under Chapter 2 or Chapter 4 of Part 5 of ITEPA (deductions for employee’s expenses) (“the deductible expenses”),

• (b) the total amount of the deductible expenses for that employee in respect of all employments in that tax year does not exceed £2,500, and

• (c) the employee has not been given a notice under section 8 of TMA (personal return) or delivered a purported return within section 12D of TMA (returns made otherwise than pursuant to a notice) for the tax year to which the deductible expenses relate.

• (2) For the purposes of paragraph (1)(c), a notice under section 8 of TMA is treated as not having been given to an employee if that notice has been withdrawn in accordance with section 8B of that Act (withdrawal by HMRC of notice under section 8 or 8A).

• (3) Without prejudice to section 711 of ITEPA (right to make a return), the employee may notify HMRC of the deductible expenses by providing specified information relating to those expenses to HMRC in accordance with this regulation.

• (4) For the purposes of this regulation, the specified information means—

• (a) the tax year in relation to which the employee is entitled to relief from income tax as described in paragraph (1)(a) in respect of the deductible expenses notified;

• (b) in relation to that employee—

• (i) the employee’s full name,

• (ii) the employee’s date of birth,

• (iii) the employee’s address (including postcode), and

• (iv) the employee’s national insurance number (if any);

• (c) in relation to each of the deductible expenses notified—

• (i) the amount of the deductible expense,

• (ii) a description of the deductible expense,

• (iii) the employer’s PAYE reference of the relevant employer, and

• (iv) in the case of a deductible expense allowed under Chapter 4 of Part 5 of ITEPA, a description of the industry or business sector of the relevant employer.

• (4A) The relevant employer in relation to a deductible expense is the person to whom paragraph (4B) applies.

• (4B) This paragraph applies to a person if—

• (a) the person is the employee’s employer in relation to an employment, and

• (b) the deductible expense in question is allowed from the employee’s taxable earnings from that employment.

• (5) The specified information must be provided in the form and manner given in a direction made by the Commissioners for Her Majesty’s Revenue and Customs for this purpose.

• (6) A direction made under paragraph (5) may also—

• (a) authorise, or specify a requirement for, the delivery of information by an approved method of electronic communication, and

• (b) where such a requirement is specified, specify the persons required to deliver information to HMRC by the approved method of electronic communication.

• (7) The specified information cannot be provided more than 4 years after the end of the tax year to which the information relates.

Deductions working sheets

Deduction working sheets: retrospective employment income in closed tax year

Information to employees about payments and tax deducted (Form P60)

Revised information to employees about payments and tax deducted (Form P 60)

Employees paid advance payments

67BD

• (1) Paragraph (2) applies where a Real Time Information employer—

• (a) makes regular relevant payments to an employee,

• (b) makes an advance payment to the employee, and

• (c) makes a reduced regular relevant payment to the employee.

• (2) Where this paragraph applies—

• (a) the requirements of regulations 66, 67B and Schedule A1 do not apply to advance payments in the period beginning with the making of the advance payment and ending with the making of the reduced regular relevant payment, and

• (b) the reduced regular relevant payment and advance payments made in respect of it must be treated for the purposes of regulations 66, 67B and Schedule A1 as if they were a single relevant payment made at the time that the reduced regular relevant payment is made.

• (3) In this regulation—

• (a) “advance payment” means a relevant payment that—

• (i) is not a regular relevant payment,

• (ii) is for an amount that would otherwise be included in the amount of the next regular relevant payment that follows the making of the relevant payment, and

• (iii) does not exceed the amount that, at the time that the relevant payment is made, reasonably represents completed service in respect of which no other relevant payment has been made;

• (b) “completed service” means work undertaken or obligations performed by the employee in accordance with the employee’s contract with the Real Time Information employer;

• (c) “reduced regular relevant payment” means a regular relevant payment that has been reduced by reference to advance payments made to the employee;

• (d) “regular relevant payment” means a relevant payment normally made to the employee at fixed intervals of no shorter than a week and no longer than a month.

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

Additional information about payments

Application of Regulation 72GB

72GA

• (1) Regulation 72GB applies where—

• (a) an amount of income tax or corporation tax has been—

• (i) paid, or

• (ii) assessed

in respect of a payment received by the intermediary that is subsequently treated as a deemed direct payment,

• (b) the deemed direct payment was made on or after 6th April 2017,

• (c) HMRC are in receipt of one or more tax returns, which include an amount of tax that appears to be referable to that deemed direct payment,

• (d) a trigger event has occurred, and

• (e) the trigger event did not occur before 6th April 2024.

• (2) The following are trigger events—

• (a) HMRC serve notice of a determination made under regulation 80 of these Regulations (determination of unpaid tax and appeal against determination) that includes tax in respect of the deemed direct payment,

• (b) HMRC receive a letter of offer,

• (c) HMRC serve a recovery notice under Chapter 5 of Part 4 of these Regulations (debts arising under Chapter 10 of Part 2 of ITEPA), where it would be impractical to recover by way of a determination made under regulation 80, or

• (d) when a determination made under regulation 80 becomes final and conclusive and that determination includes tax in respect of the deemed direct payment.

• (3) In this regulation—

• “intermediary” has the meaning given in section 61M(1)(c) of ITEPA;

• “letter of offer” means an offer in writing by the deemed employer to agree an amount in settlement of the deemed employer’s liability to pay an amount that includes tax on the payment.

• (4) In this regulation and regulations 72GB and 72GC—

• “deemed direct payment” has the meaning given in section 61N of ITEPA.

• (5) For the purposes of this regulation and regulations 72GB and 72GC, tax is assessed if it—

• (a) is included in a return under section 8 of the Taxes Management Act 1970 which includes a self-assessment, or under Schedule 18 to the Finance Act 1998, and

• (b) takes into account any reliefs, including reliefs from income tax, included in the return or returns.

Recovery of taxes

72GB

• (1) Where this regulation applies, HMRC may direct an amount to be treated as having been recovered from the payee and for that amount not to be recoverable from the deemed employer where—

• (a) the deemed employer would otherwise be liable to pay an amount in consequence of being treated under section 61N(3) of ITEPA as having made a deemed direct payment to a worker (other than by virtue of section 61WA of ITEPA), and

• (b) an amount of income tax or corporation tax has been paid or assessed in respect of the deemed direct payment.

• (2) The amount referred to in the opening words of paragraph (1) may be the best estimate which can reasonably be made by an officer of Revenue and Customs (whether generally or specifically) of the amount referred to in paragraph (1)(b).

• (3) The direction may be in respect of one or more amounts of income tax or corporation tax that fall within regulation 72GA(1)(a).

• (4) A direction must be made by notice to the deemed employer and the payee, subject to paragraph (7), stating—

• (a) the date the notice was issued,

• (b) the amount to be treated as having been recovered, and

• (c) the services provided in respect of which the deemed direct payment within regulation 72GA(1)(a) was treated as having been made.

• (5) A direction may be combined with one or more directions relating to the same deemed employer and may be made by issuing one notice to that deemed employer, but each payee must be issued with a separate notice.

• (6) The amount referred to in paragraph (4)(b) will be the overall recovered amount.

• (7) A notice need not be issued to a payee if HMRC or the deemed employer are unaware of the current address of the payee.

• (8) The payee may not—

• (a) make a claim for the repayment of, or relief in respect of, the amount of income tax or corporation tax referred to in regulation 72GA(1)(a), or

• (b) deduct, or set off, the amount of tax referred to in regulation 72GA(1)(a) from or against any income tax or corporation tax liability.

Appeal against a direction notice

72GC

• (1) A payee may appeal against a direction notice under regulation 72GB—

• (a) by notice to HMRC,

• (b) within 30 days of the issue of the direction notice, and

• (c) specifying the grounds of appeal.

• (2) For the purposes of paragraph (1), the grounds of appeal are that—

• (a) the payee did not receive the deemed direct payment,

• (b) no tax has been paid or assessed on the deemed direct payment,

• (c) the amount that is treated as being recovered from the payee is incorrect, or

• (d) none of the trigger events set out in regulation 72GA occurred.

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

• (a) if it appears that the direction should not have been made, set aside the direction,

• (b) if it appears that the amount specified in the notice is incorrect, increase or reduce the amount accordingly, or

• (c) if it appears that the direction was correctly made, uphold the direction.