The Income Tax (Pay As You Earn) Regulations 2003

Simplified deduction schemes: records

35.—(1) The employer must maintain the following records in relation to an authorised personal employee.

(2) The records are—

(a) the date of each relevant payment,

(b) the amount of the relevant payment,

(c) the amount of the free pay,

(d) the amount of the taxable payments, and

(e) the amount of tax, if any, deducted on making the relevant payment, or to be deducted or accounted for under regulation 62(4) or (5) (notional payments).

(3) The employer must maintain the records in a deductions working sheet which has been issued by the Inland Revenue showing the code for use by the employer in respect of the employee for the tax year.

(4) On ceasing to employ an authorised personal employee, the employer must return the completed deductions working sheet in respect of that employee to the Inland Revenue.

(5) Before 20th May following the end of a tax year, an employer who, at the end of that tax year, was employing one or more authorised personal employees must send to the Inland Revenue—

(a) the completed deductions working sheets in respect of those employees, and

(b) a return which complies with paragraph (6).

(6) The employer must declare and certify in the return—

(a) how many deductions working sheets are being sent,

(b) that those are all the deductions working sheets which have been issued to the employer and not already returned to the Inland Revenue, and

(c) that the information contained in the deductions working sheets is fully and truly stated to the best of the employer’s knowledge and belief.

(7) The return is treated for the purposes of these Regulations as the return required by regulation 73(1) (annual return of relevant payments liable to deduction of tax).

(8) “Personal employee” and “authorised personal employee” have the same meaning as in regulation 34.