PART 4PAYMENTS, RETURNS AND INFORMATION

CHAPTER 1PAYMENT OF TAX AND ASSOCIATED RETURNS

Payment and recovery of tax by employer

Periodic payments to and recoveries from the Revenue68

1

This regulation applies to determine how much an employer must pay or can recover for a tax period.

2

If A exceeds B, the employer must pay the excess to the Inland Revenue.

3

But if B exceeds A, the employer may recover the excess either—

a

by deducting it from the amount which the employer is liable to pay under paragraph (2) for a later tax period in the tax year, or

b

from the Board of Inland Revenue.

4

In this Regulation—

  • A is—

    1. a

      the total amount of tax which the employer was liable to deduct from relevant payments made by the employer in the tax period, plus

    2. b

      the total amount of tax for which the employer was liable to account in respect of notional payments made by the employer in that period under regulation 62(5) (notional payments);

  • B is the total amount which the employer was liable to repay in the tax period.

5

Paragraphs (2) and (3) are subject to regulation 71 (modification in case of trade disputes).

6

Paragraph (2) is also subject to regulation 78(11) (entitlement to set off excess payments).