The Income Tax (Pay As You Earn) (Amendment) Regulations 2024

Amendment of the Income Tax (Pay As You Earn) Regulations 2003

2.—(1) The Income Tax (Pay As You Earn) Regulations 2003(1) are amended as follows.

(2) After regulation 67BC insert—

“Employees paid advance payments

67BD.— (1) Paragraph (2) applies where a Real Time Information employer(2)—

(a) makes regular relevant payments to an employee(3),

(b) makes an advance payment to the employee, and

(c) makes a reduced regular relevant payment to the employee.

(2) Where this paragraph applies—

(a) the requirements of regulations 66, 67B and Schedule A1 do not apply to advance payments in the period beginning with the making of the advance payment and ending with the making of the reduced regular relevant payment, and

(b) the reduced regular relevant payment and advance payments made in respect of it must be treated for the purposes of regulations 66, 67B and Schedule A1 as if they were a single relevant payment(4) made at the time that the reduced regular relevant payment is made.

(3) In this regulation—

(a) “advance payment” means a relevant payment that—

(i) is not a regular relevant payment,

(ii) is for an amount that would otherwise be included in the amount of the next regular relevant payment that follows the making of the relevant payment, and

(iii) does not exceed the amount that, at the time that the relevant payment is made, reasonably represents completed service in respect of which no other relevant payment has been made;

(b) “completed service” means work undertaken or obligations performed by the employee in accordance with the employee’s contract with the Real Time Information employer;

(c) “reduced regular relevant payment” means a regular relevant payment that has been reduced by reference to advance payments made to the employee;

(d) “regular relevant payment” means a relevant payment normally made to the employee at fixed intervals of no shorter than a week and no longer than a month.”

(1)

S.I. 2003/2682 (“the PAYE Regulations”); relevant amending instruments are S.I. 2012/822 and 2013/521.

(2)

Regulation 2 of the PAYE Regulations provides that “Real Time Information employer” has the meaning given in regulation 2A of the PAYE Regulations.

(3)

Regulation 2 of the PAYE Regulations provides that, subject to regulations 10 to 12 of the PAYE Regulations, “employment” has the meaning given in sections 4 and 5 of ITEPA and that “employee” has a corresponding meaning.

(4)

Regulation 2 of the PAYE Regulations provides that “relevant payments” has the meaning given in regulation 4 of the PAYE Regulations.