The Income Tax (Electronic Communications) (Incentive Payments) Regulations 2001

Citation, commencement and effect

1.—(1) These Regulations may be cited as the Income Tax (Electronic Communications) (Incentive Payments) Regulations 2001 and shall come into force on 1st February 2001.

(2) Nothing in these Regulations affects the operation of the Electronic Lodgement of Tax Returns Order 1997(1) or the Income Tax (Electronic Communications) Regulations 2000(2).

Interpretation

2.  In these Regulations—

“the Board” means the Commissioners of Inland Revenue;

“employer” means any person paying emoluments;

“Employments Regulations” means the Income Tax (Employments) Regulations 1993(3);

“incentive payment” means a payment by way of an incentive to use electronic communications for the delivery of information under regulation 3, 4 or 5;

“the Management Act” means the Taxes Management Act 1970(4);

“tax credit” means working families' tax credit or, as the case may be, disabled person’s tax credit(5).

Incentive payment—return under sections 8 and 9 of the Management Act

3.—(1) The Board shall make an incentive payment in the amount of £10 to any individual who—

(a) makes and delivers a return under sections 8 and 9 of the Management Act(6) for a year of assessment using electronic communications, and

(b) satisfies the conditions specified in any direction given by the Board under paragraph (2).

(2) The Board may give a direction specifying any or all of the following conditions—

(a) a condition that the year of assessment for which the return is to be made and delivered is one specified in the direction,

(b) a condition specifying the form of electronic communication by which the return is to be delivered,

(c) a condition that the individual by whom the return is to be made and delivered is one who is authorised to use the form of electronic communication specified in the direction,

(d) a condition that where the individual by whom the return is made and delivered becomes liable to pay an amount by way of income tax for the year of assessment concerned, the payment or, if more than one, at least one of the payments, made by him in meeting that liability is made using one of the forms of electronic payment specified in the direction,

(e) a condition that the return is made and delivered using the form of electronic communication specified in the direction,

(f) a condition that the return is made and delivered by the individual on or before the day mentioned in section 8(1A) of the Management Act,

(g) a condition that any amount payable by way of income tax by the individual for the year of assessment concerned is paid in accordance with the provisions for payment of income tax contained in sections 59A and 59B of the Management Act(7).

(3) Where an officer of the Board considers that the individual has failed to satisfy one or more of the conditions specified in the direction, he may give notice to the individual that the conditions are not met or, where the incentive payment has already been authorised or made, notice withdrawing the incentive payment.

(4) Where prior to the giving of a notice under paragraph (3) an incentive payment has already been made to the individual, an officer of the Board may recover the amount of the incentive payment in accordance with paragraph (5).

(5) For the purposes of paragraph (4), subsections (1), (4), (5) and (6) of section 30 of the Management Act (recovery of overpayment of tax, etc)(8) and section 30A of that Act(9) (assessing procedure) shall apply as if the amount of the incentive payment to be recovered were an amount of income tax repaid to that individual which ought not to have been repaid to him.

(6) The Board may give a direction relating to appeals against notices under paragraph (3) and appeals against assessments made in pursuance of paragraph (5).

Incentive payment—return under regulation 43 of the Employments Regulations

4.—(1) The Board may make an incentive payment in the amount of £50 to any employer who—

(a) renders a return under regulation 43(10) of the Employments Regulations for a year of assessment using electronic communications, and

(b) satisfies the conditions specified in any direction given by the Board under paragraph (2).

(2) The Board may give a direction specifying any or all of the following conditions—

(a) a condition that the year of assessment for which the return is to be rendered is one specified in the direction,

(b) a condition specifying the form of electronic communication by which the return is to be rendered,

(c) a condition that the employer by whom the return is to be rendered is one who is authorised to use the form of electronic communication specified in the direction,

(d) a condition that at least one of the payments made by the employer under regulation 40 or 41 of the Employments Regulations(11) in the year of assessment concerned is made using one of the forms of electronic payment specified in the direction,

(e) a condition that the return is rendered by the employer, or by an agent of the employer authorised to render the return, using the form of electronic communication specified in the direction,

(f) a condition that, where the return is rendered by the employer’s agent on the employer’s behalf—

(i) the employer has registered on line to use the form of electronic communication specified in the direction,

(ii) the employer has used that form of electronic communication to notify the Board of his agent’s name and address, and

(iii) his agent is authorised by him to render the return on his behalf and to use that form of electronic communication,

(g) a condition that the return is rendered not later than the end of the period mentioned in regulation 43(1) of the Employments Regulations,

(h) a condition that each of the payments required to be made by the employer under regulation 40 or 41 for the year of assessment concerned is made not later than the end of the period mentioned in regulation 40(1) or, as the case may be, regulation 41(1).

(3) Where an officer of the Board considers that the employer has failed to satisfy one or more of the conditions specified in the direction, he may give notice to the employer that the conditions are not met or, where the incentive payment has already been authorised or made, notice withdrawing the incentive payment.

(4) When prior to the giving of a notice under paragraph (3) an incentive payment has already been made to the employer, an officer of the Board may recover the amount of the incentive payment in accordance with paragraph (5).

(5) For the purposes of paragraph (4), subsections (1), (4), (5) and (6) of section 30 of the Management Act and section 30A of that Act shall apply as if the amount of the incentive payment to be recovered were an amount of income tax repaid to a person which ought not to have been repaid to him.

(6) The Board may give a direction relating to appeals against notices under paragraph (3) and appeals against assessments made in pursuance of paragraph (5).

Incentive payment—return of payments of tax credit

5.—(1) The Board shall make an incentive payment in the amount of £50 to any employer who—

(a) pays tax credit to one or more of his employees during a year of assessment,

(b) in accordance with regulation 6(7) of the Tax Credits (Payment by Employers) Regulations 1999(12) records on the certificate contained in a return under regulation 43 of the Employments Regulations the total tax credit paid to his employees for that year,

(c) renders that return using electronic communications, and

(d) satisfies the conditions specified in any direction given by the Board under paragraph (2).

(2) The Board may give a direction specifying any or all of the following conditions—

(a) a condition that the year of assessment for which the return is to be rendered is one specified in the direction,

(b) a condition specifying the form of electronic communication by which the return is to be rendered,

(c) a condition that the employer by whom the return is to be rendered is one who is authorised to use the form of electronic communication specified in the direction,

(d) a condition that the employer satisfies each of the conditions specified in a direction made under regulation 4(2) of these Regulations,

(e) a condition that the employer has paid tax credit in the year of assessment concerned in accordance with regulation 6 of the Tax Credits (Payment by Employers) Regulations 1999 (obligation to pay tax credit on paying emoluments to employees entitled to tax credit).

(3) Where an officer of the Board considers that the employer has failed to satisfy one or more of the conditions specified in the direction, he may give notice to the employer that the conditions are not met or, where the incentive payment has already been authorised or made, notice withdrawing the incentive payment.

(4) Where prior to the giving of a notice under paragraph (3) an incentive payment has already been made to the employer, an officer of the Board may recover the amount of the incentive payment in accordance with paragraph (5).

(5) For the purposes of paragraph (4), subsections (1), (4), (5) and (6) of section 30 of the Management Act and section 30A of that Act shall apply as if the amount of the incentive payment to be recovered were an amount of income tax repaid to a person which ought not to have been repaid to him.

(6) The Board may give a direction relating to appeals against notices under paragraph (3) and appeals against assessments made in pursuance of paragraph (5).

Tim Flesher

Dave Hartnett

Two of the Commissioners of Inland Revenue

11th January 2001