7A

1

Payment of an amount that is less than the amount which the contractor was liable to pay to the Commissioners for Her Majesty’s Revenue and Customs under regulation 7(1)32, will, for the purposes of paragraph 6(2) of Schedule 56 to the Finance Act 2009 (amounts of penalty: PAYE and CIS), be treated as a payment of the full amount if the difference between the full amount and the amount paid is no more than £100 (“the tolerance”), but this is subject to paragraph (2).

2

If a contractor makes a payment under regulation 7(1) and the total sum paid to Her Majesty’s Revenue and Customs for the tax period includes not only that payment but also one or more of—

a

any tax deducted under the PAYE Regulations33,

b

any earnings-related contributions (as defined by regulation 1(2) of the SSC Regulations34, or

c

any repayment due under the Student Loans Regulations 200935,

the tolerance is applied to the total sum paid to the Commissioners for Her Majesty’s Revenue and Customs for the tax period to which the payments relate.