26.—(1) Where a liable person in respect of whom deductions are being made in accordance with a notice ceases to be in the employment of an employer, subject to paragraph (2), the notice is to lapse immediately after the pay-day coinciding with, or the pay-day following, the termination of the employment.
(2) Where a notice lapses by virtue of paragraph (1) regulation 21 nevertheless applies in respect of any deductions made or to be made in respect of the employment but not yet paid to the appropriate authority.