The Income Tax (Pay As You Earn) Regulations 2003

• (5) A former FPCS employee who has received the statement from the employer may not require a further statement from the employer in respect of the tax year ending 5th April 2002.

• (6) In this paragraph—

• “business travel” has the meaning given by section 168(5)(c) of ICTA⁶³ as that definition had effect for the tax year ending 5th April 2002 by virtue of regulation 46AA(6) of the 1993 Regulations⁶⁴;

• “the FPCS arrangement” means the arrangement known as the Fixed Profit Car Scheme made between the employer and the Inland Revenue for providing information in respect of payments of car allowances and motor mileage allowances made to employees for business travel.

• (7) The reference in sub-paragraph (1)(b)(ii) to the delivery of information by an approved method of electronic communications to an official computer system includes, in relation to information which was delivered before the commencement of these Regulations, a reference to the delivery of information to an official computer system within the meaning of regulation 2(1) of the 1993 Regulations by a means of electronic communications approved for the purposes of regulation 46AA(3) of those Regulations.

FPCS information for the tax year ending 5th April 2002: employees covered by regulation 46(1) of 1993 Regulations

17

• (1) This paragraph applies to a former employee who would be a former FPCS employee were it not for the fact that the employer was required under regulation 46(1) of the 1993 Regulations to provide particulars in respect of the former employee for the tax year ending 5th April 2002.

• (2) If the former employee gives notice to the employer under paragraph (4) of regulation 94 requiring a statement relating to the tax year ending 5th April 2002, the statement must contain (in addition to the particulars mentioned in paragraph (2) of that regulation)—

• (a) particulars of the amount of the taxable profit, if any, for the tax year ending 5th April 2002 in respect of car allowances and motor mileage allowances paid to the former employee in the tax year ending 5th April 2002 for business travel, calculated by reference to the FPCS arrangement, or

• (b) particulars of the total amount of the car allowances and motor mileage allowances paid to the former employee in the tax year ending 5th April 2002 for business travel, and the total amount of miles covered by the former employee in the tax year ending 5th April 2002 in the course of business travel for which the motor mileage allowances were paid.

• (3) “Former employee” has the same meaning as in regulation 94(7).

• (4) Expressions used in this paragraph which are defined in paragraph 16 have the same meaning in this paragraph as in that paragraph.

Due date for payments of tax in respect of tax periods ending before 6th April 2004

18

• (1) The following provisions have effect with the following modifications in so far as the provisions apply in relation to tax periods ending before 6th April 2004.

• (2) For sub-paragraphs (a) and (b) of regulation 69(1) (due date for payments of tax) substitute “within 14 days after the end of the tax period”.

• (3) In regulation 77(1) (return and certificate if tax may be unpaid) for “17 days” substitute “14 days”.

• (4) In regulation 78(1) (notice and certificate if tax may be unpaid) for “17 days” substitute “14 days”.

Interest on unpaid tax: disapplication of regulation 82 for tax years before the tax year ending 5th April 1993

19

Regulation 82 (interest on tax overdue) does not apply in relation to unpaid tax in respect of a tax year ending on or before 5th April 1992.

Interest on unpaid tax: provisions applying to tax years before the tax year ending 5th April 1993

20

• (1) This paragraph applies if the Inland Revenue make a determination under regulation 80 (determination of unpaid tax) which relates to tax payable for a tax year ending on or before 5th April 1992.

• (2) This paragraph also applies if—

• (a) the inspector, at any time after 19th April 1988, made a determination under regulation 49 of the 1993 Regulations (determination of tax payable by employer),

• (b) the determination relates to tax payable for a tax year ending on or before 5th April 1992, and

• (c) tax remains payable pursuant to the determination immediately before the commencement of these Regulations.

• (3) The tax payable pursuant to the determination carries interest at the prescribed rate from the relevant start date until payment (“the interest period”).

• (4) Sub-paragraph (3) applies even if the relevant start date is a non-business day as defined by section 92 of the Bills of Exchange Act 1882⁶⁵.

• (5) Any change made to the prescribed rate during the interest period applies to the tax payable pursuant to the determination from the date of change.

• (6) Regulation 84 (recovery of tax and interest) applies to an amount of interest which an employer is liable to pay under this paragraph as if it were the unpaid amount for the purposes of that regulation.

• (7) Paragraphs (3) and (6) of regulation 218 (certificate of interest due) apply in relation to an amount which an employer is liable to pay under this paragraph as if this paragraph were a regulation included among those listed in paragraph (4) of that regulation.

• (8) Regulation 219 (payment by cheque) applies for determining when a payment is made for the purposes of this paragraph as if this paragraph were included among the provisions listed in paragraph (2) of that regulation.

• (9) In this paragraph—

• “inspector” means an inspector of taxes;

• “the prescribed rate” means the rate applicable under section 178 of the Finance Act 1989⁶⁶ for the purposes of section 86 of TMA;

• “the relevant start date” means—in a case where the determination relates to tax payable for a tax year ending on or before 5th April 1988, 19th April 1988, andin a case where the determination relates to tax payable for a tax year ending after 5th April 1988 but on or before 5th April 1992, the 14th day after the end of the tax year to which the determination relates.

Interest on tax overdue: application of regulation 82 to tax years from 1992-93 to 2003-04

21

• (1) Regulation 82 (interest on tax overdue) has effect with the following modifications where the tax year in respect of which tax is unpaid is—

• (a) the tax year ending 5th April 1993, or

• (b) a tax year ending after 5th April 1993 but on or before 5th April 2004.

• (2) In paragraph (1) for “the total net tax payable in respect of a tax year” substitute “the total net tax deductible by him in respect of all of his employees during a tax year”.

• (3) In paragraph (4) for “a direction made under regulation 72(5), 72F or 81(4)” substitute “a direction made under regulation 42(2) or (3) or 49(5) of the 1993 Regulations⁶⁷ or regulation 72(5) or 81(4) of these Regulations”.

• (4) Omit paragraph (6).

• (5) For paragraph (8) substitute—

(8) The “reckonable date” means 14 days after the end of the tax year.

• (6) After that paragraph insert—

(9) “The 1993 Regulations” means the Income Tax (Employments) Regulations 1993.

Interest on overpaid tax: disapplication of regulation 83 for tax years before the tax year ending 5th April 1997

22

Regulation 83 (interest on overpaid tax) does not apply to tax which was paid by an employer in respect of a tax year ending on or before 5th April 1996.

Interest on overpaid tax: provisions applying to tax years from 1992-93 to 1995-96

23

• (1) This paragraph applies in relation to tax which—

• (a) was paid by an employer in respect of the tax year ending 5th April 1993 or in respect of a tax year ending after 5th April 1993 but on or before 5th April 1996, and

• (b) is repaid to the employer after the end of the tax year in respect of which the tax was paid.

• (2) If the late repayment condition is met, the tax repaid carries interest at the prescribed rate from the relevant time until the order for the repayment is issued (“the interest period”).

• (3) The late repayment condition is that the tax is repaid—

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

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

• (4) Any change made to the prescribed rate during the interest period applies to the tax repaid from the date of change.

• (5) Regulation 219 (payment by cheque) applies for determining when a payment is made for the purposes of this paragraph as if this paragraph were included among the provisions listed in paragraph (2) of that regulation.

• (6) In this paragraph—

• “the prescribed rate” means the rate applicable under section 178 of the Finance Act 1989 for the purposes of section 824 of ICTA⁶⁸;

• “the relevant time” means—in a case where the tax was paid more than twelve months after the end of the tax year in respect of which the payment was made, the end of the tax year in which that tax was paid, andin any other case, the end of the tax year after the tax year in respect of which the payment was made.

Overpayments and underpayments of tax: tax years before the tax year ending 5th April 1997

24

• (1) Despite the revocations made by these Regulations, regulation 101 of the 1993 Regulations⁶⁹ (repayment of overpayments and recovery of underpayments) continues to apply in relation to an assessment for a tax year ending on or before 5th April 1996, but with the modifications mentioned in sub-paragraph (2).

• (2) The modifications are—

• (a) the references in paragraphs (1) and (2) of regulation 101 to the appropriate code for a subsequent year are to be read as references to the employee’s code for a subsequent tax year;

• (b) the references in paragraphs (1) and (2) of that regulation to the inspector and to the collector are to be read as references to the Inland Revenue;

• (c) the reference in paragraph (6) of that regulation to a direction made by the collector under regulation 42(2) of the 1993 Regulations in relation to the employee and in respect of one or more income tax periods falling within the year is to be read as including a reference to a direction under regulation 72(5) of these Regulations in relation to that employee in respect of one or more tax periods falling within the tax year;

• (d) the reference in that paragraph to a direction made by the Board under regulation 42(3) of the 1993 Regulations in relation to the employee and in respect of one or more income tax periods falling within the year is to be read as including a reference to a direction under regulation 72(5) of these Regulations in relation to that employee in respect of one or more tax periods falling within the tax year;

• (e) the reference in that paragraph to a direction made by the Board under regulation 49(5) of the 1993 Regulations in relation to the employee and in respect of one or more income tax periods falling within the year is to be read as including a reference to a direction under regulation 81(4) of these Regulations in relation to that employee in respect of one or more tax periods falling within the tax year.

• (3) Any tax which is payable to the Inland Revenue under regulation 101(2) as it continues to have effect by virtue of this paragraph is payable within 14 days of the date on which the Inland Revenue first makes application for its payment.

Overpayments and underpayments of tax: tax years before the tax year ending 5th April 2002

25

• (1) Regulation 188 (assessments other than self-assessments)—

• (a) does not apply in relation to an assessment for a tax year ending on or before 5th April 1996, and

• (b) has effect in particular with the following modification in relation to an assessment, other than one under section 9 of TMA⁷⁰, for a tax year beginning on or after 6th April 1996 and ending on or before 5th April 2001.

• (2) In paragraph (3), after sub-paragraph (a) insert—

(aa) make any necessary adjustment to B in respect of any shortfall in deductions made in accordance with the Income Tax (Employments) Regulations 1993⁷¹ from the employee, where— (i) payments of profit-related pay have been made to the employee in accordance with a profit-related pay scheme registered under Chapter 3 of Part 5 of ICTA⁷², (ii) in consequence of the relief given by that Chapter less tax has been deducted from those payments than would have been deducted if the scheme had not been registered, and (iii) the registration of the scheme has subsequently been cancelled with effect from a time before that relevant for the purposes of the relief;

Attribution of repayments: tax years before the tax year ending 5th April 1997

26

• (1) Despite the revocations made by these Regulations, regulations 106 to 108 of the 1993 Regulations (attribution of repayments) continue to apply in relation to a repayment to which section 824(5) of ICTA⁷³ applies for a tax year ending on or before 5th April 1996, but with the modification mentioned in sub-paragraph (2).

• (2) The modification is that the reference to the collector in regulation 107(3) is to be read as including a reference to the Inland Revenue.

Certificate that sum due: certificate of the collector

27

• (1) A certificate of the collector that any amount shown in a certificate under the regulations listed in paragraph (2) of regulation 218 has not been paid by an employer to the collector or, to the best of the collector’s knowledge and belief, to any other collector or to any person acting on the collector’s behalf or on behalf of another collector is sufficient evidence that the amount mentioned in the collector’s certificate is unpaid and due to the Crown.

• (2) A certificate of the collector that any amount of interest payable under the regulations listed in paragraph (4) of regulation 218 has not been paid by an employer or employee to the collector or, to the best of the collector’s knowledge and belief, to any other collector or to any person acting on the collector’s behalf or on behalf of another collector is sufficient evidence that the amount mentioned in the certificate is unpaid and due to the Crown.

• (3) A document which purports to be a certificate of the collector under sub-paragraph (1) or (2) is treated as such a certificate until the contrary is proved.

Interpretation

28

In this Part of this Schedule—

• “the 1993 Regulations” means the Income Tax (Employments) Regulations 1993;

• “collector” means a collector of taxes.

SCHEDULE 2 — REVOCATIONS

1. Regulations revoked	2. Reference	3. Extent of revocation
The Income Tax (Employments) Regulations 1993	S.I. 1993/744	The whole Regulations.
The Income Tax (Employments) (Amendment) Regulations 1993	S.I. 1993/2276	The whole Regulations.
The Income Tax (Employments) (Amendment) Regulations 1994	S.I. 1994/775	The whole Regulations.
The Income Tax (Employments) (Notional Payments) Regulations 1994	S.I. 1994/1212	The whole Regulations.
The Income Tax (Employments) (Amendment) Regulations 1995	S.I. 1995/216	The whole Regulations.
The Income Tax (Employments) (Amendment No. 2) Regulations 1995	S.I. 1995/447	The whole Regulations.
The Income Tax (Employments) (Incapacity Benefit) Regulations 1995	S.I. 1995/853	The whole Regulations.
The Income Tax (Employments) (Amendment No. 3) Regulations 1995	S.I. 1995/1223	The whole Regulations.
The Income Tax (Employments) (Amendment No. 4) Regulations 1995	S.I. 1995/1284	The whole Regulations.
The Income Tax (Employments) (Amendment) Regulations 1996	S.I. 1996/804	The whole Regulations.
The Income Tax (Employments) (Amendment No. 2) Regulations 1996	S.I. 1996/980	The whole Regulations.
The Income Tax (Employments) (Amendment No. 3) Regulations 1996	S.I. 1996/1312	The whole Regulations.
The Income Tax (Employments) (Amendment No. 4) Regulations 1996	S.I. 1996/2381	The whole Regulations.
The Income Tax (Employments) (Amendment No. 5) Regulations 1996	S.I. 1996/2554	The whole Regulations.
The Income Tax (Employments) (Amendment No. 6) Regulations 1996	S.I. 1996/2631	The whole Regulations.
The Income Tax (Employments) (Amendment) Regulations 1997	S.I. 1997/214	The whole Regulations.
The Income Tax (Employments) (Notional Payments) (Amendment) Regulations 1998	S.I. 1998/1891	The whole Regulations.
The Income Tax (Employments) (Amendment) Regulations 1998	S.I. 1998/2484	The whole Regulations.
The Income Tax (Employments) (Amendment) Regulations 1999	S.I. 1999/70	The whole Regulations.
The Income Tax (Employments) (Amendment No. 2) Regulations 1999	S.I. 1999/824	The whole Regulations.
The Income Tax (Employments) (Amendment No. 3) Regulations 1999	S.I. 1999/2155	The whole Regulations.
The Income Tax (Employments) (Amendment) Regulations 2000	S.I. 2000/1152	The whole Regulations.
The Income Tax (Sub-contractors in the Construction Industry and Employments) (Amendment) Regulations 2000	S.I. 2000/2742	Regulation 3.
The Income Tax (Electronic Communications) (Miscellaneous Amendments) Regulations 2001	S.I. 2001/1081	In regulation 1(2), the definition of “the Employments Regulations”.Regulations 7 to 21.
The Income Tax (Employments and Electronic Communications) (Miscellaneous Provisions) Regulations 2002	S.I. 2002/680	Regulations 3 to 8.
The Income Tax (Sub-contractors in the Construction Industry and Employments) (Amendment) Regulations 2003	S.I. 2003/536	In regulation 1(2), the definition of “the Employments Regulations”.Regulation 9.
The Income Tax (Employments) (Amendment) Regulations 2003	S.I. 2003/2494	The whole Regulations.

Signed

Nick Montagu — Ann Chant — Two of the Commissioners of Inland Revenue — 2003-10-21

Explanatory note

(This note is not part of the Regulations)

Following the rewrite of the primary legislation relating to pay as you earn in Part 11 of the Income Tax (Earnings and Pensions) Act 2003, these Regulations rewrite, with minor changes, the Income Tax (Employments) Regulations 1993 and regulation 13 of the Income Tax (Employments) (Notional Payments) Regulations 1994.

The Tax Law Rewrite project at the Inland Revenue has prepared a detailed commentary on these Regulations, together with tables of origins and destinations. Copies have been placed in the Library of each House. The commentary is published by The Stationery Office Limited, ISBN 0118404970. It is also available on the internet.

A Regulatory Impact Assessment has also been prepared in relation to these Regulations. It has been placed in the Library of each House. Paper copies may be obtained from the Tax Law Rewrite Project, Inland Revenue, South West Wing, Bush House, London, WC2B 4RD (telephone 020 7438 7606). It is also available on the internet. The project’s website is at www.inlandrevenue.gov.uk/rewrite.

Footnotes

Editorial notes