The Income Tax (Employments) (Amendment No. 3) Regulations 1996

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend the Income Tax (Employments) Regulations 1993 (S.I. 1993/744) (“the principal Regulations”). In addition to an amendment of a drafting nature, the amendments make a number of changes, including the revocation of two regulations, in connection with the operation of PAYE following the introduction of self assessment for the year 1996/97 and subsequent years of assessment. Other Regulations amending the principal Regulations in connection with self assessment are S.I. 1995/1284 and 1996/804.

Regulation 1 provides for citation and commencement, and regulation 2 for interpretation.

Regulations 3 to 5, 13 to 18, and 19(2) remove or replace (as appropriate) references in the principal Regulations to assessments under Schedule E for the year 1996/97 and subsequent years of assessment, reflecting the fact that, under self assessment, there is one calculation of tax liability based on income from all sources and capital gains.

Regulations 6, 8, 11 and 19(1) make changes to the principal Regulations reflecting the new rules (in paragraph 10 of Schedule 22 to the Finance Act 1996) for assigning appeal proceedings under self-assessment to divisions of General Commissioners.

Regulation 7 makes a drafting amendment to regulation 46AA(3) of the principal Regulations.

Regulations 9 and 10 change the rules for repayment with interest of tax overpaid by an employer for the year 1996/97 and subsequent years of assessment, so that interest is paid by reference to an earlier date.

Regulation 12 secures that the date for the provision of end of year certificates in respect of taxable social security benefits and payments to reserve forces is the same as the date for the provision of the end of year certificate in respect of an employee’s emoluments (P60).

Regulation 19 revokes with savings regulations 100 and 103 of the principal Regulations.