The Income Tax (Employments) (No. 25) Regulations 1993

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend the Income Tax (Employments) Regulations 1973 (“the PAYE Regulations”). The amendments cover the following matters. First, as a consequence of the pending alteration in the annual date of the Budget, the Regulations change with effect from the year 1994–95 and subsequent years of assessment the procedure for notifying employers of amended codes for employees due to changes in the rates of personal reliefs announced in the Budget. Secondly, the Regulations amend the obligations on a new employer under the PAYE Regulations where the code for an employee differs from the code operated by the previous employer in respect of that employee. Thirdly, the Regulations extend the time within which a new employer or, in the case of an unemployed person, the Department of Employment has to take account of the code operated by a previous employer in respect of an employee.

Regulation 1 provides for citation, commencement and effect, and regulation 2 contains definitions.

Regulation 3 amends regulation 6 of the PAYE Regulations so as to provide that, where the Inspector gives notice to an employer under regulation 12(2) requiring him to carry forward to the following year of assessment and adjust codes as a result of changes in the rates of personal reliefs, a code authorisation shall be deemed to have been issued by the Inspector in respect of each such code specifying that code as the appropriate code.

Regulation 4 amends regulation 12 of the PAYE Regulations so as to provide that, where there is a change in the rates of personal reliefs for the following year of assessment, the Inspector may give notice to the employer requiring him to carry forward to the following year and adjust specified codes for the current year, which are then deemed to be the appropriate codes for the following year.

Regulations 5, 6 and 7 amend regulations 18, 20 and 55 respectively of the PAYE Regulations in relation to the obligations on new employers and the Department of Employment, while regulation 6 also makes a consequential amendment to regulation 20 following the amendment made by these Regulations to regulation 6 of the PAYE Regulations.