Legalize / United Kingdom / Statutory-Instrument

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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Statement A: that the employment referred to in paragraph (1)(a) is the employee’s first employment since the preceding 6th April, and the employee has not since that date received—jobseeker’s allowance , incapacity benefit or employment and support allowance which is subject to income tax, ora retirement pension or an occupational pension;Statement B: that the employee is not receiving a retirement pension or an occupational pension and since the preceding 6th April—has had another employment, but is not now in receipt of employment income from it, orhas 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;Statement C: that the employee either has another employment (which is continuing) or is in receipt of a retirement pension or an occupational pension.

...

A seconded expatriate must indicate instead which of the following statements applies—

Statement A: the employee intends to live in the United Kingdom for 183 days or more;

Statement B: the employee intends to live in the United Kingdom for less than 183 days;

Statement C: the employee will work both inside and outside the United Kingdom, but will live outside.

(2A) A Form P46 must be—

(a) signed by the employee; or

(b) delivered by the employer by an approved method of electronic communications after he has complied with paragraph (2B).

(2B) To the extent that the information contained in it relates to the employee, the employer must verify the content of a Form P46 before it is delivered.

(2C) If, despite the requirements of paragraphs (2) to (2B), a Form P46 is sent or delivered to an officer of Revenue and Customs without the requirements of those paragraphs being satisfied, the employer must deduct tax on the non-cumulative basis using code 0T from the employee’s earnings.

(3) The employer must provide the following information in the Form P46—

(a) the date on which the employment started;

(b) the employee’s works payroll number and the department or branch (if any) in which the employee is employed;

(d) the employer’s PAYE reference;

(e) the employer’s name;

(f) the employer’s full address, including the postcode; and

(g) the tax code used in relation to the employee’s earnings.

(4) The employer must keep the Form P46 until required to send it to the Inland Revenue in accordance with regulations 47 to 49.

(5) Before sending the Form P46, the employer must indicate in the Form which code is being used in respect of the employee and whether it is being used on the non-cumulative basis.

(6) For the purposes of paragraph (1)(b), the employer must ignore any code issued to the employer in respect of an employee’s earlier employment which has ceased.

(7) This regulation ceases to apply in the circumstances mentioned in regulation 51(2)(a) (late presentation of Form P45: before employer required to send Form P46).

Procedure in Form P46 cases: former full-time students

47

(1) This regulation applies in the case of an employee (not a seconded expatriate) who indicates that Statement A applies.

It also applies to a seconded expatriate who confirms being a national of an EEA state ... (see regulation 46(1B)).

(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) send the Form P46 to Her Majesty’s Revenue and Customs,

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

(2A) To comply with paragraph (2)(a)—

(a) the employer must send the Form P46 to Her Majesty’s Revenue and Customs even if the employee has not provided all of the information required by regulation 46, and

(b) the employer must provide any of the information required by regulation 46(1B) that the employee has not provided.

(3) On making any subsequent relevant payment before the Inland Revenue issue a code for use in respect of the employee, the employer must continue to deduct or repay tax on the cumulative basis using the emergency code.

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Procedure in Form P46 cases: employee taking up only or main employment

48

(1) This regulation applies in the case of an employee (not a seconded expatriate) who indicates in the Form P46 that ... Statement B applies.

It also applies in the case of a seconded expatriate who indicates in the Form P46 that Statement B or C applies.

(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) send the P46 to Her Majesty’s Revenue and Customs,

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

(2A) To comply with paragraph (2)(a)—

(a) the employer must send the Form P46 to Her Majesty’s Revenue and Customs even if the employee has not provided all of the information required by regulation 46, and

(b) the employer must provide any of the information required by regulation 46(1B) that the employee has not provided.

(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.

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Procedure in Form P46 cases: other new employees

49

(1) This regulation applies in any case which is not dealt with by regulation 47 or 48 which concerns an employee to whom regulation 46(1) applies.

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

(a) send the Form P46 to Her Majesty’s Revenue and Customs,

(b) 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,

(2A) To comply with paragraph (2)(a)—

(a) the employer must send the Form P46 to Her Majesty’s Revenue and Customs even if the employee has not provided all of the information required by regulation 46, and

(b) the employer must provide any of the information required by regulation 46(1B) that the employee has not provided.

(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)(c) and (3) (see also regulation 7(3) about the codes).

Procedure in Form P46 cases: code treated as issued by Inland Revenue

50

(1) Code 0T, the emergency code or the basic rate code used by the employer in accordance with regulations 46 to 49E is treated, for the purposes of Parts 2 to 4 (codes; deduction and repayment of tax; payments, returns and information) as having been issued by the Inland Revenue as the code for use in respect of the employee.

(2) This does not apply for the purposes of regulation 18 (objections and appeals) and regulations 46 to 49E and 51 to 53 (... late presentation of Form P45).

Late presentation of Form P45

51

(1) This regulation applies if an employee gives Parts 2 and 3 of Form P45 to the employer after commencing employment.

(2) If the employee gives Parts 2 and 3 of Form P45 to the employer before, as the case may be—

(a) the employer is required to send Form P46 to HMRC under regulations 47 to 49, or

(b) the employer is required to send the first return in relation to the employee under regulation 67B (real time returns of information about relevant payments) or 67D (exceptions to regulation 67B) to HMRC,

regulation 42 (procedure if employer receives Form P45) applies.

(3) If the employee gives Parts 2 and 3 of Form P45 to the employer—

(a) after, as the case may be—

(i) Form P46 is required to have been sent to HMRC, or

(ii) the employer is required to send the first return in relation to the employee under regulation 67B or 67D to HMRC,

but

(b) before the employee’s code has been issued to the employer,

this regulation and regulation 52 (late presentation of Form P45: employer’s duties) apply.

(4) If the employee gives Parts 2 and 3 of Form P45 to the employer after the employee’s code has been issued to the employer, they must be destroyed.

(5) If Parts 2 and 3 of Form P45 show that the employment ended in the current tax year then, unless the employer has already ceased to employ the employee—

(a) the code shown in Parts 2 and 3 of Form P45 is treated as having been issued by the Inland Revenue to the employer on the day the employee gives them to the employer, and

(b) the employer must comply with regulation 52.

(6) If Parts 2 and 3 of Form P45 show that the employment ended in the previous tax year and the employee gives them to the employer on or before 24th May then, unless the employer has already ceased to employ the employee—

(a) the code shown in Parts 2 and 3 of Form P45 is treated as having been issued by the Inland Revenue to the employer on the day the employee gives them to the employer,

(b) the employer must deduct or repay tax by reference to that code using the cumulative basis, subject to regulation 32 (higher rate code: deductions), and

(7) Parts 2 and 3 of Form P45 must be destroyed—

(a) if they show that the employment ended in the previous tax year and the employee gives them to the employer after 24th May, or

(b) if they show that the employment ended in an earlier tax year.

Late presentation of Form P45: employer’s duties

52

(1) This regulation applies in the circumstances mentioned in regulation 51(5); and paragraphs (2) and (3) of this regulation also apply in the circumstances mentioned in regulation 51(6).

(1A) Paragraphs (2) and (3) apply if the employer is either—

(a) a non-Real Time Information employer, or

(b) a Real Time Information employer to whom HMRC has given a notice requiring the employer to send to HMRC Form P45 or Form P46 on the commencement of a new employee’s employment.

(2) The employer must insert in Part 3 of Form P45—

(a) the employer’s employer reference,

(b) the date on which the new employment commenced,

(d) the employee’s code in use by the employer if different from the code shown in Parts 2 and 3 of Form P45,

(e) if Parts 2 and 3 of the Form P45 show that the cumulative basis has been used, the figure (if any) recorded in accordance with paragraph (7)(c) or (8)(c) if different from the total tax to date shown on Parts 2 and 3 of Form P45,

(f) the employee’s address,

(g) the employee’s date of birth, ...

(ga) the employee’s sex,

(h) the employee’s job title or description,

(i) the employer’s name, and

(j) the employer’s address.

(3) The employer must then send Part 3 of Form P45 to the employer’s Inland Revenue office.

(4) The employer must prepare a deductions working sheet (unless the employer has already prepared one) in accordance with the following information shown in Parts 2 and 3 of Form P45—

(a) the employee’s name,

(b) the employee’s national insurance number, and

(5) The employer must record in the deductions working sheet the sum of—

(a) the total payments to date (if any) shown in Parts 2 and 3 of Form P45, and

(b) the relevant payments which have been made by the employer since the employment commenced which have not already been recorded in the deductions working sheet.

(6) If Parts 2 and 3 of Form P45 show that the cumulative basis has been used, the employer must also record the following additional information in the deductions working sheet, or keep such records as enable its production.

(7) If the code shown in Parts 2 and 3 of Form P45 is a K code, the additional information is—

(a) the total additional pay to date,

(b) the total taxable payments to date, and

(c) the lower of the total tax to date as at the week or month shown in Parts 2 and 3 of Form P45 or the total net tax deducted shown in it.

(8) In any other case, the additional information is—

(a) the total free pay to date,

(b) the total taxable payments to date, and

(9) The employer must ascertain the amounts required by paragraphs (7)(a) and (b) and (8)(a) and (b) by reference solely to the information shown in Parts 2 and 3 of Form P45.

(10) If Parts 2 and 3 of Form P45 show that the cumulative basis has been used, the employer, on making any subsequent relevant payment to the employee, must deduct or repay tax by reference to the code shown in Parts 2 and 3 of Form P45 on the cumulative basis.

(11) For the purposes of—

(a) paragraph (10), and

(b) item 8 of Table 2 in regulation 36(4) (Form P45), and

the total payments to date recorded in the deductions working sheet in accordance with paragraph (5) and the figure recorded in accordance with paragraph (7)(c) or (8)(c) must be treated as if they were relevant payments made to the employee by, and tax deducted by, the new employer.

(12) For the purposes of regulation 23(8) (cumulative basis: meaning of previous total tax to date), the figure recorded in accordance with paragraph (7)(c) or (8)(c) must be added to any actual previous total tax to date, and the total treated as the previous total tax to date when the employer next makes a relevant payment to the employee.

(13) If Parts 2 and 3 of Form P45 show that the non-cumulative basis has been used, on making any relevant payment to the employee, the employer must, subject to regulation 32 (higher rate code: deductions), deduct tax by reference to the code shown in Parts 2 and 3 of Form P45 on the non-cumulative basis.

Form P46 cases: subsequent procedure on issue of employee’s code

53

(1) On making any relevant payment to an employee falling within regulation 47 to 49E (procedure where no Form P45) after the Inland Revenue have issued a code to the employer for use in respect of the employee, the employer must deduct or repay tax by reference to that code.

(2) For the purposes of paragraph (1) and regulation 66 (deductions working sheets)—

(a) any total payments to date notified to the employer by the Inland Revenue are treated as if they represented relevant payments made by the employer; and

(b) the total net tax deducted before the first payment made in accordance with this regulation is taken to be the sum of—

(i) the total net tax deducted, if any, notified to the employer by the Inland Revenue, and

(ii) any tax which the employer was liable to deduct from the employee’s relevant payments under regulation 47, 48 , 49, 49C, 49D or 49E.

(3) For the purposes of—

(a) item 8 of Table 2 in regulation 36(4) (Form P45), and

(b) regulation 55(4)(f) (Form P46(Pen)),

any total payments to date and total net tax deducted which are notified to the employer by the Inland Revenue must be treated as if they were relevant payments made to the employee by, and tax deducted by, the employer.

(4) If the employee’s previous code was used on the cumulative basis, any amount notified to the employer under paragraph (2)(b)(i) must be added to the previous total tax to date for the purposes of regulation 23(8) (cumulative basis: meaning of previous total tax to date).

CHAPTER 3 — NEW PENSIONERS: FORMS P45 AND P46(PEN)

Scope of Chapter 3

54

This Chapter applies (instead of Chapter 2) when a pension starts and either—

(a) the pensioner will be continuing in employment and will be receiving relevant pension payments in addition to relevant payments from their employer, or

(b) the pensioner will not be receiving relevant payments other than relevant pension payments.

PAYE pension income paid by former employer

55

(1) This regulation applies if the pension payer was, immediately before the pensioner’s retirement, the pensioner’s employer and so, in accordance with regulation 36(3), no Form P45 was completed.

(2) On making relevant pension payments to the pensioner, the pension payer must deduct tax on the non-cumulative basis, subject to regulation 32 (higher rate code: deductions), for the remainder of the tax year in which the pension starts or until directed otherwise by the Inland Revenue.

(3) Within 14 days after the pensioner’s retirement, the pension payer must prepare a Form P46(Pen) and—

(a) send it to the Inland Revenue, and

(b) give a copy of the information to the pensioner.

(4) The Form P46(Pen) must contain the following information—

(a) the pensioner’s name,

(b) the pensioner’s address, ...

(ba) the pensioner’s date of birth,

(bb) the pensioner’s sex,

(d) the pension payer’s PAYE reference,

(e) the date of retirement,

(f) the total payments to date at the date of retirement,

(g) the total payments to date relating to the employment in question at the date of retirement,

(h) the total net tax deducted corresponding to the total payments to date relating to the employment in question,

(i) the amount of pension payable annually,

(j) any number used to identify the pensioner,

(k) whether the pensioner’s code is use on the cumulative basis,

(l) the pension payer’s name, and

(m) the pension payer’s address.

(5) Paragraph (4) is subject to regulation 212 (modifications for electronic version of Form P46(Pen) ...).

PAYE pension income paid by other pension payer

56

(1) This regulation applies if the pensioner gives Parts 2 and 3 of Form P45 to the pension payer when a pension starts.

(2) The pension payer must insert in Part 3 of Form P45—

(a) the pensioner’s address,

(b) any number used to identify the pensioner, ...

(d) the pensioner’s date of birth, and

(e) the pensioner’s sex.

(3) The pension payer must then send Part 3 of Form P45 to the pension payer’s Inland Revenue office.

(4) The receipt by the pension payer of Parts 2 and 3 of Form P45 under paragraph (1) is treated as the issue by the Inland Revenue of the code shown in Parts 2 and 3 of Form P45 as the code for use in respect of the pensioner.

(5) On making relevant pension payments to the pensioner, the pension payer must, subject to regulation 32 (higher rate code: deductions), deduct or repay tax—

(a) on the non-cumulative basis, for the remainder of the tax year to which Parts 2 and 3 of Form P45 relate;

(b) on the cumulative basis, for subsequent tax years.

(6) Paragraph (5) applies until the pension payer is directed otherwise by the Inland Revenue.

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

57

(1) This regulation applies if a pension payer pays a pension, which does not arise wholly from an employment carried on abroad, to a pensioner—

(a) who is not resident in the United Kingdom,

(b) who has not given Parts 2 and 3 of Form P45 to the pension payer, and

(2) On making the first payment which exceeds the PAYE threshold, the pension payer must send to the Inland Revenue the following information in Form P46(Pen).

(3) The information is—

(a) the pensioner’s national insurance number (if known),

(b) the pensioner’s full name,

(d) the pensioner’s date of birth,

(e) the pensioner’s full address including postcode,

(f) date upon which payment of the pension started,

(g) the pensioner’s works payroll number and the department or branch (if any),

(h) the fact that the recipient is a pensioner,

(i) the pension payer’s PAYE reference,

(j) the pension payer’s name,

(k) the pension payer’s full address, including the postcode.

(4) For the purposes of paragraph (1)(c), the pension payer must ignore any code issued to the pension payer in respect of a previous pension of the pensioner which has ended.

Information (Form P46) and procedure if code not known: UK residents

58

(1) This regulation applies if—

(a) a pension payer starts to make relevant pension payments to a pensioner,

(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.

(1A) This regulation does not apply where the relevant pension payment is a relevant lump sum payment.

(2) On making any relevant pension payments to the pensioner before the Inland Revenue issue a code for use in respect of the pensioner, the pension payer must deduct tax on the non-cumulative basis applying the emergency code.

(3) The pension payer must send the Inland Revenue the following information in Form P46(Pen).

(4) The information is—

(a) the pensioner’s national insurance number (if known),

(b) the pensioner’s full name,

(d) the pensioner’s date of birth,

(e) the pensioner’s full address including postcode,

(f) date upon which payment of the pension started,

(g) the pensioner’s works payroll number and the department or branch (if any),

(h) the fact that the recipient is a pensioner,

(i) the pension payer’s PAYE reference,

(j) the pension payer’s name,

(k) the pension payer’s full address, including the postcode, and

(l) the tax code used in relation to the pension.

(5) The pension payer must also indicate in the Form that the emergency code is being used on the non-cumulative basis.

(6) For the purposes of paragraph (1)(d), the pension payer must ignore any code issued to the pension payer in respect of a previous pension of the pensioner which has ended.

(7) In this regulation, and in regulation 58A (procedure if no Form P45 and code not known where payment is a relevant lump sum payment), a “relevant lump sum payment” is a payment which—

(a) is treated as taxable pension income under—

(i) section 637G of ITEPA (trivial commutation lump sums and winding-up lump sums), or

(ii) section 637N of that Act (trivial commutation lump sum death benefits), and

(b) ... is made at a time when the pension payer is not making any other payments of PAYE pension income to the pensioner under the same registered pension scheme.

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

59

(1) The emergency code used by the pension payer in accordance with regulation 58 is treated, for the purposes of Parts 2 to 4 (codes; deduction and repayment of tax; payments, returns and information) as having been issued by the Inland Revenue as the code for use in respect of the pensioner.

(2) This does not apply for the purposes of regulation 18 (objections and appeals) and regulations 58, 60 and 61 (... late presentation of Form P45 etc).

Late presentation of Form P45

60

(1) Paragraphs (2) to (6) apply if the pensioner gives Parts 2 and 3 of Form P45 to the pension payer after the pension has started but before a code has been issued.

(2) The pension payer must insert in Part 3 of Form P45—

(a) the pensioner’s address,

(b) any number used to identify the pensioner, and

(3) The pension payer must then send Part 3 of Form P45 to the pension payer’s Inland Revenue office.

(4) The receipt by the pension payer of Parts 2 and 3 of Form P45 under paragraph (1) is treated, except for the purposes of paragraph (1), as the issue by the Inland Revenue of the code shown in that Form as the pensioner’s code.

(5) On making relevant pension payments to the pensioner, the pension payer must, subject to regulation 32 (higher rate code: deductions), deduct or repay tax—

(a) on the non-cumulative basis, for the remainder of the tax year to which Parts 2 and 3 of Form P45 relate;

(b) on the cumulative basis, for subsequent tax years.

(6) Paragraph (5) applies until the pension payer is directed otherwise by the Inland Revenue.

(7) If Parts 2 and 3 of Form P45 are given to the pension payer after the pension has started and after a code has been issued by the Inland Revenue, they must be destroyed.

Subsequent procedure on issue of UK resident pensioner’s code

61

(1) On making any relevant pension payment to a pensioner falling within regulation 58 after the Inland Revenue have issued a code to the pension payer for use in respect of the pensioner, the pension payer must deduct or repay tax by reference to that code.

(2) For the purposes of paragraph (1) and regulation 66 (deductions working sheets)—

(a) any total payments to date notified to the pension payer by the Inland Revenue are treated as if they represented relevant pension payments made by pension payer; and

(b) the total net tax deducted before the first payment made in accordance with this regulation is taken to be the sum of—

(i) the total net tax deducted, if any, notified to the pension payer by the Inland Revenue, and

(ii) any tax which the pension payer was liable to deduct from the pensioner’s relevant pension payments under regulation 58.

(3) For the purposes of—

(a) item 8 of Table 2 in regulation 36(4) (Form P45), and

(b) regulation 55(4)(f) (P46(Pen)),

any total payments to date and total net tax deducted which are which are notified to the employer by the Inland Revenue must be treated as if they were relevant pension payments made to the pensioner by, and tax deducted by, the pension payer.

(4) If the pensioner’s previous code was used on the cumulative basis, any amount notified to the pension payer under paragraph (2)(b)(i) must be added to the previous total tax to date for the purposes of regulation 23(8) (meaning of previous total tax to date).

CHAPTER 4 — MISCELLANEOUS

Deductions in respect of notional payments

62

(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) The employer must, so far as possible, deduct tax required to be deducted in respect of a notional payment in accordance with any of the provisions listed in paragraph (3) from any relevant payment or payments which the employer actually makes to the employee at the same time as the notional payment.

(3) The provisions are—

regulations 22 to 25	cumulative basis
regulations 26 to 31	non-cumulative basis
regulation 32	higher rate code: deductions
. . .	. . .
regulation 37	PAYE income paid after employment ceased.
paragraphs (2) and (3) of regulation 37A	Income paid after cessation of employment becoming subject to PAYE

(4) If the employer cannot deduct the full amount of tax as required by paragraph (2) from another relevant payment made at the same time as the notional payment, the employer must, so far as possible, deduct the tax from any payment or payments which the employer makes later in the same tax period.

(5) If the relevant payments actually made are insufficient to enable the employer to deduct the full amount of tax due in respect of notional payments, the employer must account to the Board of Inland Revenue for any amount which the employer is unable to deduct.

(6) Regulations 23(5) and 28(5) (deductions on cumulative or non-cumulative basis not to exceed the overriding limit) do not apply to the extent that the tax to be deducted is in respect of a notional payment.

Repayment during unpaid leave

63

(1) This regulation applies if—

(a) an employee is not entitled to receive any relevant payments on a normal pay day because of absence from work,

(b) the cumulative basis would have been used in relation to a payment made on that day,

(d) the employee, or the employee’s authorised representative, makes an application in person to the employer.

(2) The employer must—

(a) comply with regulation 23 (cumulative basis: deduction and repayment) and accordingly repay any tax due to the employee, and

(b) comply with regulation 66(4) to (6) (completion of deductions working sheet),

as if the pay day were one on which relevant payments of nil had been made.

Trade disputes

64

(1) This regulation applies if an employee—

(a) is absent from work because of a trade dispute at the employee’s place of work, and

(b) is participating or directly interested in the trade dispute.

(2) The employer must—

(a) on making any relevant payment, calculate the amount of tax to be deducted or repaid, and

(b) comply with paragraphs (5) to (8).

(3) If no relevant payments are to be made on the normal pay day but the employee’s code would be used on the cumulative basis if a relevant payment were made on that day, the employer must—

(a) calculate, in accordance with regulation 23 (cumulative basis: deduction and repayment) whether any tax is due to be repaid on that day as if it were a day on which relevant payments of nil had been paid, and

(b) comply with paragraphs (5) to (8).

(4) Paragraphs (2) and (3) are subject to paragraphs (9) and (10).

(5) The employer—

(a) must not repay any tax due to be repaid until the end of the employee’s strike action, but

(b) must deduct any tax due to be deducted, less any repayment for the tax year which has not been made.

(6) The amount of any repayment—

(a) made at the end of the employee’s strike action under paragraph (5)(a), or

(b) set against tax due to be deducted under paragraph (5)(b),

must be reduced by any amount previously set off in accordance with paragraph (5)(b).

(7) If the absence of an employee extends beyond the end of the tax year, the employer must—

(a) before 1st June following the end of the tax year, give notice to the employee of the amount of any repayment of tax for the tax year in question calculated in accordance with paragraph (2) which has not been set off against any tax due to be deducted under paragraph (5)(b); and

(b) complete the certificate which must be given under regulation 67 (Form P60) and the return which must be sent under regulation 73 (Form P35 and P14) as if that tax had been repaid to the employee.

(8) If the employer has not made any repayment of tax withheld under paragraph (5) within 42 days after the end of the employee’s strike action, the employer must instead immediately pay the tax not repaid to the Inland Revenue, and regulation 69(2) (receipt where requested) applies to that payment.

(9) An employee from whom a repayment of tax has been withheld in accordance with paragraph (5) may request a benefit officer to certify that—

(a) section 14 of the Jobseekers Act 1995¹⁶, or

(b) in Northern Ireland, article 16 of the Jobseekers (Northern Ireland) Order 1995¹⁷,

(no allowance to those involved in trade dispute) does not disqualify the employee from receiving jobseeker’s allowance, whether or not the employee is in fact entitled to receive jobseeker’s allowance.

(10) If a benefit officer certifies in accordance with paragraph (9), the employer must make such repayment to the employee as may be due.

(11) In this regulation—

“benefit officer” means the appropriate officer—of the Department for Work and Pensions or,in Northern Ireland, of the Department for Social Development;

“end of the employee’s strike action” means any of the following—the employee is no longer absent from work because of the trade dispute,the employer ceases to employ the employee,the employee has become genuinely employed elsewhere in the occupation which the employee usually follows,the employee has become regularly engaged in some other occupation, orthe employee dies;

“jobseeker’s allowance” has the same meaning as in regulation 148;

“place of work” has the meaning given in section 14(4) of the Jobseekers Act 1995 or, in Northern Ireland, in article 16(4) of the Jobseekers (Northern Ireland) Order 1995.

Repayment if no longer employed

65

(1) This regulation applies if, in a tax year, a person (“P”)—

(a) was employed,

(b) is no longer employed, and

(2) P must give the Inland Revenue—

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

(b) either certificate A or B, depending on P’s circumstances, and

(3) Certificate A is one which certifies that P is unemployed and, to the best of P’s knowledge and belief, P—

(a) will not be a claimant during the period starting with the date on which the application is made and ending at the end of the tax year, and

(b) will not be employed during that period.

(4) Certificate B is one which certifies that P is unemployed and is not a claimant when the application is made.

(5) On receiving P’s application, the Inland Revenue must make any repayment of tax which is appropriate, having regard to P’s employee’s code and the following information.

(6) If P gives certificate A the information is—

(a) the total payments to date and the corresponding total tax to date as at the week or month shown in Parts 2 and 3 of Form P45 (or, if lower, the total net tax deducted shown in it),

(b) any other relevant payments received by P in the tax year to date, and

(7) If P does not give certificate A the information is—

(a) the total payments to date and the corresponding total tax to date as at the week or month shown in Parts 2 and 3 of Form P45 (or, if lower, the total net tax deducted shown in it), and

(b) any other relevant payments received by P in the tax year to date.

(8) For the purposes of this regulation, “claimant” means a person who is—

(a) a claimant as defined by regulation 148 (jobseeker’s allowance), or

(b) a claimant in receipt of taxable benefit as defined by regulation 173 (incapacity benefit).

Deductions working sheets

66

(1) Paragraph (2) applies if a code has been issued to an employer in respect of an employee.

(2) The employer must, on making a relevant payment to the employee, prepare a deductions working sheet (unless the employer has already done so).

(3) The employer must record in the deductions working sheet—

(a) the employee’s name,

(b) the employee’s national insurance number, if known,

(d) the tax year to which the deductions working sheet relates.

(4) The employer must record in the deductions working sheet in respect of every relevant payment which the employer makes to the employee—

(a) the date of the payment,

(b) the amount of the payment, and

(c) the amount of tax, if any, deducted or repaid on making the payment, or to be deducted or accounted for under regulation 62(4) or (5) (notional payments).

(4A) For the purposes of paragraphs (4)(a) and (6)(a), (b), (c), and (e)(i), a relevant payment—

(a) which comprises an amount of retrospective employment income, and

(b) which was actually paid during a tax year which is not closed,

shall be treated, for the purpose of computing the amount of tax to be deducted, as paid at the earlier of the relevant time and the end of the last tax period in which the former employee was employed .

(5) If the employee’s code is used on the cumulative basis, the employer must, in respect of every relevant payment which the employer makes to the employee, either—

(a) record the following information in the deductions working sheet, or

(b) keep such records as enable its production.

(6) The information is—

(a) the total payments to date in relation to the date of payment,

(b) the total free pay to date or, as the case may be, the total additional pay to date, in relation to that date,

(d) the corresponding total tax to date,

(e) the tax due to be deducted at that date (subject to the overriding limit),

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

(eb) the amount of any tax not deducted at that date because of the overriding limit, and

(f) any amount of tax which is not to be repaid because of regulation 64 (trade disputes).

(7) If the employee’s code is not used on the cumulative basis, the employer must, in respect of every relevant payment which the employer makes to the employee, either—

(a) record the following information in the deductions working sheet, or

(b) keep such records as enable its production.

(8) The information is—

(a) the free pay, or, as the case may be, the additional pay for the employee’s code,

(b) the taxable payments, and

(9) Nothing in this regulation applies to a closed tax year (see regulation 66A).

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

67

(1) Before 1st June following the end of the tax year, an employer must give a certificate (Form P60) to every employee—

(a) who was in the employer’s employment on the last day of the tax year, and

(b) from whose relevant payments the employer was required to deduct tax at any time during that tax year.

(2) The certificate must show—

(a) the tax year to which it relates,

(b) the employer’s PAYE reference,

(d) the employee’s national insurance number, if known,

(e) any number used by the employer to identify the employee,

(f) the total amount of the relevant payments made by the employer to the employee during the tax year in respect of the employment in question,

(g) the total net tax deducted in relation to those payments, subject to regulation 64(7)(b) (trade disputes),

(h) the employee’s code,

(i) the employer’s name, and

(j) the employer’s address.

(3) In the case of an employee taken into employment after the beginning of the tax year, the certificate must also show—

(a) any amounts required by regulation 43(9), 52(11), 53(3) or 61(3) to be treated as relevant payments made by the employer to the employee during the tax year,

(b) any amounts treated as tax deducted by the employer at the end of the tax year by any of those regulations,

(d) the sum of the figures given under sub-paragraph (b) of this paragraph and paragraph (2)(g).

PART 4 — PAYMENTS, RETURNS AND INFORMATION

CHAPTER 1 — PAYMENT OF TAX AND ASSOCIATED RETURNS

...

Periodic payments to and recoveries from HMRC: non-Real Time Information employers

68

(1) This regulation applies to determine how much a non-Real Time Information employer must pay or can recover for a tax period.

(2) If A exceeds B, the employer must pay the excess to the Inland Revenue.

(3) But if B exceeds A, the employer may recover the excess either—

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

(b) from the Board of Inland Revenue.

(4) In this Regulation—

A is—the total amount of tax which the employer was liable to deduct from relevant payments made by the employer in the tax period, plusthe total amount of tax for which the employer was liable to account in respect of notional payments made or treated by virtue of a retrospective tax provision as made, by the employer in that period under regulation 62(5) (notional payments);

B is the total amount which the employer was liable to repay in the tax period.

(5) Paragraphs (2) and (3) are subject to regulation 71 (modification in case of trade disputes).

(6) Paragraph (2) is also subject to regulation 78(11) (entitlement to set off excess payments).

(7) In the application of paragraph (4) to notional payments arising by reason of the coming into force of the Finance Act 2006, the reference to section 710(7A)(a) of ITEPA 2003 shall be modified as mentioned in section 94(5)(c) of the Finance Act 2006.

Due date and receipts for payment of tax

69

(1) An employer must pay amounts due under regulation 67G(2) , as adjusted by regulation 67H(2) where appropriate, or 68(2)—

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

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

(1A) In paragraph (1), the reference to amounts due under regulation 67G(2) includes

(a) any amount the employer was liable to deduct from employees during the tax period ... , and

(b) any amount the employer must account for under regulation 62(5) (notional payments) in respect of notional payments made by the employer during the tax period,

whether or not those amounts were included in any return under regulation 67B (real time returns of information about relevant payments) or 67D (exceptions to regulation 67B).

(2) The Inland Revenue must give a receipt to the employer for the total amount paid under regulation 67G(2) , as adjusted by regulation 67H(2) where appropriate, or 68(2) if asked.

(3) But no separate receipt for tax only need be given if a receipt is given for the total amount of tax and any earnings-related contributions (as defined by regulation 1(2) of the SSC Regulations)¹⁸ paid at the same time.

(4) In paragraph (1) “the tax period”, in relation to an amount of retrospective employment income, means the tax period immediately following the relevant time.

Quarterly tax periods

70

(1) This regulation applies, so that the tax period is a tax quarter, if an employer—

(a) has reasonable grounds for believing that the average monthly amount will be less than £1,500, and

(b) chooses to pay tax quarterly.

(1A) But this regulation does not apply, so that the tax period remains a month, in respect of amounts of retrospective employment income.

(2) “The average monthly amount” is the average, for tax months falling within the current tax year, of the amounts found by the formula—

(P + N + L + S) − (SP + CD)

(3) In paragraph (2)—

P is the amount which would be payable to the Inland Revenue under regulation 67G , as adjusted by regulation 67H(2) where appropriate, or 68 but disregarding any amount payable in respect of retrospective employment income ...;

N is the amount which would be payable to the Inland Revenue under the SSCBA and the SSC Regulations disregarding—any amount of secondary Class 1 contributions in respect of which liability has been transferred to the employed earner by an election made jointly by the employed earner and the secondary contributor for the purposes of paragraph 3B(1) of Schedule 1 to the SSCBA (transfer of liability to be borne by earner)¹⁹; ...any amount payable under retrospective contributions regulations (see paragraph 1(2) of Schedule 4 to the SSC Regulations) in respect of retrospective earnings (within the meaning of those Regulations);...

L is the amount which would be payable to the Inland Revenue under regulation 54(1) or, in Northern Ireland, 49(1) of the Student Loans Regulations (payment of repayments deducted to the Inland Revenue) disregarding—the reduction referred to in paragraph (3) of those regulations, ......

S is the amount which would be payable by the employer to the Inland Revenue under sections 559 and 559A of ICTA²⁰ (deduction on account of tax etc from payments to certain sub-contractors) and regulation 8 of the Income Tax (Sub-contractors in the Construction Industry) Regulations 1993²¹...;

SP is the amount which would be payable by the employer to employees by way of statutory sick pay, statutory maternity pay, statutory paternity pay , statutory shared parental pay , statutory adoption pay , statutory parental bereavement pay and statutory neonatal care pay under the SSCBA; and

CD is—if the employer is a company, the amount which others would deduct from payments to it, in its position as a sub-contractor, under section 559 of ICTA (deduction on account of tax etc from payments to certain sub-contractors);in any other case, nil.

(4) In this regulation—

“employed earner” has the same meaning as in the SSCBA;

“SSCBA” means the Social Security Contributions and Benefits Act 1992²² or, in Northern Ireland, the Social Security Contribution and Benefits (Northern Ireland) Act 1992²³;

Modification of regulation 68 in case of trade dispute

71

(1) This regulation modifies the amount payable or recoverable by an employer under regulations 67G and 68 in cases where regulation 64 (trade disputes) applies—

(a) by providing for the amount which would otherwise be payable by the employer for a tax period to be reduced by an amount of repayments (“R”) that cannot be made to employees in the tax period, and

(b) by providing—

(i) for amounts which would otherwise be payable in later tax periods to be increased, or

(ii) for amounts which would otherwise be recoverable in later tax periods to be reduced,

by a total of R.

(2) This regulation applies for consecutive tax periods—

(a) starting with the first tax period at the end of which there is an amount calculated as due to be repaid but which is required to be withheld by regulation 64(5) (tax to be withheld during strike action), and

(b) ending with the next tax period at the end of which no amount is required to be withheld by that regulation.

(3) Column 3 of Table 3 shows the amount payable under regulation 67G(2) , as adjusted by regulation 67H(2) where appropriate, or, as the case may be, 68(2) in the cases set out in column 2 for the first and subsequent tax periods.

1. Tax period	2. Case	3. Amount payable
First tax period	if B equals or exceeds A	nil
First tax period	any other case	A − B, reduced by P (or by so much of P as reduces the amount payable to nil)
Subsequent tax periods	if B equals or exceeds (A + Q)	nil
Subsequent tax periods	any other case	(A + Q) − B, reduced by P (or by so much of P as reduces the amount payable to nil).

(4) The amount (if any) recoverable under regulation 67G , as adjusted by regulation 67H(2) where appropriate, or, as the case may be, 68(3) must be reduced to the extent that it includes amounts—

(a) for which reduction was made under paragraph (3) in an earlier tax period, or

(b) which are otherwise being recovered.

(5) In this regulation—

A is—the total amount of tax which the employer was liable to deduct from relevant payments made by the employer in the tax period, plusthe total amount of tax for which the employer was liable to account in respect of notional payments made by the employer in that period under regulation 62(5) (notional payments);

B is the total amount which the employer is liable to repay in the tax period, not including any amounts—for which a reduction was made under paragraph (3) in an earlier tax period; orwhich are being recovered under paragraph (4);

P is the total of amounts calculated as due to be repaid in the tax period but required to be withheld during that tax period by regulation 64(5);

Q is the total of amounts—which, because of regulation 64(5)(b), are set off against tax due to be deducted in the tax period, andwhich also, under paragraph (3), have reduced the amount payable in an earlier tax period.

Recovery from employee of tax not deducted by employer

72

(1) This regulation applies if—

(a) it appears to the Inland Revenue that the deductible amount exceeds the amount actually deducted, and

(b) condition A or B is met.

(2) In this regulation and regulations 72A and 72B—

“the deductible amount” is the amount which an employer was liable to deduct from relevant payments made to an employee in a tax period;

“the amount actually deducted” is the amount actually deducted by the employer from relevant payments made to that employee during that tax period;

“the excess” means the amount by which the deductible amount exceeds the amount actually deducted.

(3) Condition A is that the employer satisfies the Inland Revenue—

(a) that the employer took reasonable care to comply with these Regulations, and

(b) that the failure to deduct the excess was due to an error made in good faith.

(4) Condition B is that the Inland Revenue are of the opinion that the employee has received relevant payments knowing that the employer wilfully failed to deduct the amount of tax which should have been deducted from those payments.

(5) The Inland Revenue may direct that the employer is not liable to pay the excess to the Inland Revenue.

(5A) Any direction under paragraph (5) must be made by notice (“the direction notice”), stating the date the notice was issued, to—

(a) the employer and the employee if condition A is met;

(b) the employee if condition B is met.

(5B) A notice need not be issued to the employee under paragraph (5A)(a) if neither the Inland Revenue nor the employer are aware of the employee’s address or last known address.

(6) If a direction is made, the excess must not be added under regulation 185(5) or 188(3)(a) (adjustments to total net tax deducted for self-assessments and other assessments) in relation to the employee.

(7) If condition B is met, tax payable by an employee as a result of a direction carries interest, as if it were unpaid tax due from an employer, in accordance with section 101 of the Finance Act 2009.

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

Annual returns of relevant payments and tax

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

73

(1) Before 20th May following the end of a tax year, an employer must deliver to the Inland Revenue a return containing the following information.

(2) The information is—

(a) the tax year to which the return relates,

(b) the total amount of the relevant payments made by the employer during the tax year to all employees in respect of whom the employer was required at any time during that year to prepare or maintain deductions working sheets, and

(3) The return must be supported by the following information in respect of each of the employees mentioned in paragraph (2)(b).

(4) The supporting information is—

(a) the employee’s name,

(b) the employee’s address, if known,

(i) the employee’s national insurance number, or

(ii) if that number is not known, the employee’s date of birth, if known, and sex,

(d) the employee’s code,

(e) the tax year to which the return relates,

(f) the total amount of the relevant payments made by the employer to the employee during that tax year, and

(g) the total net tax deducted in relation to those payments.

(5) Paragraphs (2)(c) and (4)(g) are subject to regulation 64(7) (trade disputes).

(6) If an employee was taken into employment after the beginning of the tax year, the employer must also provide the total amounts of—

(a) any amounts required by regulation 43(9), 52(11), 53(3) or 61(3) to be treated as relevant payments made by the employer to the employee during the tax year,

(b) any amounts treated as tax deducted by the employer by any of those regulations,

(d) the sum of the figures given under sub-paragraph (b) of this paragraph and paragraph (4)(g).

(7) The return must include—

(a) a statement and declaration containing a list of all deductions working sheets which the employer was required to prepare or maintain at any time during that tax year; and

(b) a certificate showing—

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

(ii) the total net tax deducted or repaid in respect of all the employees,

during that tax year.

(8) The statement and declaration and the certificate must be—

(a) signed by the employer, or

(b) if the employer is a body corporate, signed either by the secretary or by a director.

(9) Paragraph (8) is subject to regulation 211(5) (authentication in approved manner if return sent electronically).

(10) Section 98A of TMA²⁴ (special penalties in case of certain returns) applies to paragraph (1).

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

74

(1) Before 20th May following the end of a tax year, an employer must deliver a return to the Inland Revenue in respect of every relevant employee.

(2) The return must contain the following information—

(a) the employee’s name,

(b) the employee’s address, if known,

(d) the employee’s job title or description,

(e) the tax year to which the return relates,

(f) the dates during which the employee was employed in the tax year, and

(g) the total amount of the relevant payments made by the employer to the employee during the tax year.

(3) A “relevant employee” is one—

(a) to whom relevant payments exceeding the PAYE threshold were made at any time during the tax year,

(b) who was employed for more than a week, or

(4) But the following are not relevant employees—

(a) an employee included on a return under regulation 73 (Forms P35 and P14),

(b) an employee who has indicated that statement A or statement B applies on Form P46 (see regulation 46), and to whom the employer has not made relevant payments exceeding the PAYE threshold at any time during that tax year.

Additional return in case of trade dispute

75

(1) An employer must immediately deliver an additional return to the Inland Revenue on each occasion that—

(a) the employer has not made any repayment of tax withheld under regulation 64(5) (trade disputes) within 42 days after the end of the employee’s strike action, and

(b) a return has been made under regulation 73 which, in accordance with regulation 64(7)(b), treats that tax as if it were repaid.

(2) The return must contain the following information—

(a) the tax year to which it relates,

(b) such information as the Board of Inland Revenue may require for identifying each of the employees in question, and

(3) The return must be accompanied by a statement containing the following information—

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

(b) the amount of tax not repaid to each of those employees,

Failure to account for deductible tax

Certificate if tax in regulation 73 return is unpaid

76

(1) Paragraph (2) applies if an employer—

(a) delivers a return under regulation 73 showing an amount of total net tax deducted by the employer for a tax year, and

(b) does not pay that amount to the Inland Revenue before 20th April following the end of the tax year.

(2) The Inland Revenue may prepare a certificate showing how much of that amount remains unpaid.

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

Return and certificate if tax may be unpaid

77

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

(2) Condition A is that—

(a) an employer has not paid any tax under regulation 68 for that tax period, and

(b) the Inland Revenue are unaware of the amount (if any) which the employer is liable to pay.

(3) Condition B is that—

(a) an employer has paid an amount of tax under regulation 68 for that period, but

(b) the Inland Revenue are not satisfied that it is the full amount which the employer is liable to pay for that period.

(4) The Inland Revenue may give notice to the employer requiring the employer within 14 days of the issue of the notice to deliver a return showing the amount of tax which the employer is liable to pay under regulation 68 in respect of the tax period.

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

(6) On receiving a return made by the employer under paragraph (4), the Inland Revenue may prepare a certificate showing the amount of tax which the employer is liable to pay for the tax period and how much (if any) of that amount remains unpaid.

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

Notice and certificate if tax may be unpaid

78

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

(2) Condition A is that—

(a) an employer has not paid any tax under regulation 68 for that tax period, and

(b) HMRC have reason to believe that the employer is liable to pay an amount of tax.

(3) Condition B is that—

(a) an employer has paid an amount of tax under regulation 68 for that tax period, but

(b) HMRC are not satisfied, after seeking the employer’s explanation, that it is the full amount which the employer is liable to pay for that period.

(4) HMRC, on consideration of the employer’s record of past payments whether of tax or of combined amounts, may—

(a) specify, to the best of their judgment, the amount of tax or a combined amount which 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”).

(5) 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 tax period specified in the notice.

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

(a) claims that any payment made in respect of the tax period specified in the notice is or includes the full amount of tax the employer is liable to pay, 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).

(7) If there is an inspection by virtue of paragraph (6) ... the notice given by HMRC under paragraph (4) must be disregarded.

(8) 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 68, and

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

(9) But paragraph (8) does not apply if during the notice period—

(a) the employer pays the full amount of tax which the employer is liable to pay under regulation 68 for that tax period, or

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

(10) Paragraph (11) applies if the employer pays an amount of tax, whether separately or as part of a combined amount, which is certified under this regulation and which exceeds the amount the employer would have been liable to pay in respect of that tax period apart from this regulation.

(11) The employer is entitled to set off the excess tax against any amount which the employer is liable to pay under regulation 68 for any subsequent tax period in the tax year.

(12) Paragraph (13) applies if the employer—

(a) delivers the return required by regulation 73(1) after the end of the tax year, and

(b) pays the total net tax which the employer is liable to pay.

(13) Any excess of tax paid, and not otherwise recovered by set-off in accordance with this regulation, must be repaid.

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

Certificate after inspection of PAYE records

79

(1) This regulation applies if there is an inspection of an employer’s PAYE records under Schedule 36 to the Finance Act 2008 (information and inspection powers).

(2) The Inland Revenue may, by reference to the information obtained from the inspection, prepare a certificate showing—

(a) the amount of tax which it appears that the employer is liable to pay for the tax years or tax periods covered by the inspection; and

(b) any amount of that tax which remains unpaid.

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

Determination of unpaid tax and appeal against determination

80

(1) This regulation applies if it appears to HMRC that there may be tax payable for a tax year under regulation 67G , as adjusted by regulation 67H(2) where appropriate, or 68 by an employer which has neither been—

(a) paid to HMRC, nor

(b) certified by HMRC under regulation 75A, 76, 77, 78 or 79.

(1A) In paragraph (1), the reference to tax payable for a tax year under regulation 67G includes references to—

(a) any amount the employer was liable to deduct from employees during the tax year, and

(b) any amount the employer must account for under regulation 62(5) (notional payments) in respect of notional payments made by the employer during the tax year,

whether or not those amounts were included in any return under regulation 67B (real time returns of information about relevant payments) or 67D (exceptions to regulation 67B).

(2) HMRC may determine the amount of that tax to the best of their judgment, and serve notice of their determination on the employer.

(3) A determination under this regulation must not include tax in respect of which a direction under regulation 72(5) has been made; and directions under that regulation do not apply to tax determined under this regulation.

(3A) A determination under this regulation must not include tax in respect of which a direction under regulation 72F has been made.

(4) A determination under this regulation may—

(a) cover ... any one or more tax periods in a tax year, and

(b) extend to the whole of the amount of tax determined by HMRC under paragraph (2), or to such part of it as is payable in respect of—

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

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

(5) A determination under this regulation is subject to Parts 4, 5 , 5A ... and 6 of TMA (assessment, appeals, collection and recovery) as if—

(a) the determination were an assessment, and

(b) the amount of tax determined were income tax charged on the employer,

and those Parts of that Act apply accordingly with any necessary modifications.

(5A) Where a person is jointly and severally liable to pay an amount as a result of Chapter 11 of Part 2 of ITEPA 2003 (umbrella companies)—

(a) this regulation applies to that amount as it applies to an amount of tax payable by an employer (and the references to “the employer” in paragraphs (2) and (5)(b) are to be read accordingly),

(b) in cases that operate by reference to a determination made, or that may be made, under this regulation in relation to the person, the references to “the employer” in the following provisions are to be treated as references to the person—

(i) regulation 81(4) (employee liability if tax unpaid after regulation 80 determination), and

(ii) regulation 97P(1) (persons from whom security for PAYE can be required), and

(c) the references to “the employer” in regulation 72E(6) and regulation 72F (recovery from employee of tax that has been self-assessed etc.) are to be treated as references to the person for the purposes of making a direction under section 72F in relation to the person.

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

Employee liability if tax unpaid after regulation 80 determination

81

(1) This regulation applies if—

(a) any part of the tax determined under regulation 80 is not paid within 30 days from the date on which the determination became final and conclusive, and

(b) condition A or B is met in relation to an employee.

(2) Condition A is that the Inland Revenue are of the opinion that the employee in respect of whose relevant payments the determination was made has received those payments knowing that the employer has wilfully failed to deduct the amount of tax which should have been deducted from those payments.

(3) Condition B is that the unpaid tax represents an amount for which the employer was required to account under regulation 62(5) (notional payments) in relation to a notional payment to the employee.

(4) The Inland Revenue may direct that the employer is not liable to pay the amount of tax which appears to them should have been but was not—

(a) deducted on making those relevant payments, or

(b) accounted for under regulation 62(5).

(4A) If condition A or B is met, any direction under paragraph (4) must be made by notice (“the direction notice”) to the employee stating the date the notice was issued.

(5) If a direction is made, the amount of tax must not be added under regulation 185(5) or 188(3)(a) (adjustments for self-assessments and other assessments) in relation to the employee.

(6) Tax payable by an employee as a result of a direction carries interest, as if it were unpaid tax due from an employer, in accordance with section 101 of the Finance Act 2009.

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

Interest

Interest on tax overdue

82

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

Interest on tax overpaid

83

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

Recovery

Recovery of tax and interest

84

(1) In this regulation, “the unpaid amount” means any amount of tax or interest which—

(a) an employer is liable to pay under regulation 75A(10), 76(2), 77(6), 78(8) or 79(2)(b);

(b) an employee is liable to pay under regulation 72(7) or regulation 81(6).

(2) Part 6 of TMA (collection and recovery) applies to the recovery of the unpaid amount or combined amount and any interest on it as if it were income tax charged on the employer or employee (as the case may be) but with the modification indicated in paragraph (3).

(3) Summary proceedings for the recovery of the unpaid amount may be brought in England and Wales or Northern Ireland at any time before the end of the period which applies for the purposes of the regulation in question, as shown in Table 4.

1. Regulation	2. Period
Regulation 76(2)	a12 months after the date by which the statement specified in regulation 73(7) must be delivered, orbif that statement is delivered after that date, 12 months after its delivery.
Regulations 75A(10), 77(6) and 78(8) ...	a12 months after the date on which the unpaid amount or combined amount and any interest on it became payable, orbif a return has been required under regulation 77, 12 months after the date of the delivery of that return to the Inland Revenue.
Regulation 79(2)(b)	12 months after the date of the certificate.
Regulations 72(7) and 81(6)	12 months after the date on which the unpaid amount became payable.

(4) Proceedings against an employer may be brought for the recovery of the unpaid amount or combined amount and any interest on it without distinguishing the amounts which the employer is liable to pay in respect of each employee and without specifying the employees in question.

(5) The unpaid amount or combined amount and any interest on it is one cause of action or one matter of complaint for the purposes of proceedings under sections 65, 66 and 67 of TMA²⁵ (magistrates' courts, county courts and inferior courts in Scotland).

(6) But paragraphs (4) and (5) do not prevent the bringing of separate proceedings for the recovery of each of the amounts which the employer is liable to pay for any tax period in respect of each of the employees.

CHAPTER 2 — OTHER RETURNS AND INFORMATION

Returns involving PAYE income other than payments

Employers: annual return of other earnings (form P11D)

85

(1) Before 7th July following the end of a tax year, the employer must provide the Inland Revenue—

(a) with the information listed in regulation 86 for each employee, and

(b) with the additional information listed in regulation 87 for each employee whose employment is subject to the benefits code.

(2) At the same time and in the same manner as the employer provides that information, the employer must also provide a declaration stating that—

(a) all information required to be provided has been provided, and

(b) the information is complete and accurate to the best of the employer’s knowledge and belief.

(3) For the purposes of this regulation an employment is “subject to the benefits code” if, for the purposes of the benefits code in ITEPA, it is a taxable employment under Part 2 of ITEPA (as defined by section 66(3) of ITEPA) ....

(4) But this regulation does not apply in relation to a benefit provided in a tax year which has been treated as a payment of PAYE income under Chapter 3A of the Regulations.

Information employer must provide for each employee

86

(1) Particulars of the following information must be provided in the case of each employee—

(a) any earnings which the employee receives from the employer or related third party otherwise than in money, including the amount of those earnings;

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