Income Tax (Earnings and Pensions) Act 2003 (c. 1)

Part 11 Pay As You Earn

Chapter 5 PAYE settlement agreements

704 Sums payable by employers under agreements

(1) PAYE regulations may provide—

(a) for a person to make a PAYE settlement agreement with the Inland Revenue; and

(b) to such extent as may be prescribed, for that person’s accountability, and the sums to be accounted for, in respect of income tax on general earnings of that person’s employees to be determined—

(i) in accordance with the agreement, and

(ii) not in accordance with PAYE regulations which would apply apart from this Chapter.

(2) Without prejudice to the generality of section 684(2), any power of the Board to make PAYE regulations with respect to sums falling to be accounted for under such regulations includes power to make the corresponding provision with respect to sums falling to be accounted for in accordance with a PAYE settlement agreement.