The Income Tax (Pay As You Earn) Regulations 2003

Payment of tax under PSA U.K.

Calculation of tax payable under PSA U.K.

108.— [F1 (1) A PSA must provide that the employer is accountable to HMRC for the income tax due.]

[F2 (1A) A PSA must provide for the sums due to be—

(a) computed annually in accordance with the factors specified in paragraph (2), and

(b) comprised of the amounts specified in paragraph (3)]

(2) The factors are—

(a) in the case of qualifying general earnings comprising sums paid in respect of expenses, the estimated aggregate amount of such payments on which income tax is chargeable, reduced by such amount (if any) as would have been deductible if the qualifying general earnings had not been included in the PSA;

(b) in the case of qualifying general earnings comprising benefits provided or made available, the estimated aggregate amount of the cash equivalents and other amounts on which income tax is chargeable, reduced by such amount (if any) as would have been deductible if the qualifying general earnings had not been included in the PSA;

(c) the total number of employees in receipt of qualifying general earnings comprised in the PSA;

[F3 (d) the number of those employees respectively chargeable to income tax—

(i) at only the basic rate for the tax year to which the [F4 computation] relates, and

(ii) at both the basic rate and the higher rate for that tax year; [F5 and

(iii) at the basic, higher and additional rates for that tax year;] [F6 and]

[F7 (iv) at any Scottish rate applicable for the tax year to which the computation relates; [F8 and]]

[F9 (v) at any Welsh rate applicable for the tax year to which the computation relates;]]

(e) such other matters as are agreed by [F10 HMRC] and the employer to be relevant in relation to the qualifying general earnings comprised in the PSA.

(3) The amounts specified for the purposes of [F11 paragraph (1A)(b)] are—

(a) an amount equal to income tax on the aggregate of the amounts computed in accordance with paragraph (2)(a) and (b), calculated so as to take account of the factor specified in paragraph (2)(d); and

(b) a further amount reflecting an estimate of the income tax on the benefit to the employees of having no tax liability on the qualifying general earnings included in the PSA.

Textual Amendments

F1 Reg. 108(1) substituted (6.4.2018) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2018 (S.I. 2018/267), regs. 1, 9(a)

F2 Reg. 108(1A) inserted (6.4.2018) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2018 (S.I. 2018/267), regs. 1, 9(b)

F3 Reg. 108(2)(d) substituted (6.4.2008) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2008 (S.I. 2008/782), regs. 1, 12(a)

F4 Word in reg. 108(2)(d)(i) substituted (6.4.2018) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2018 (S.I. 2018/267), regs. 1, 9(c)(i)

F5 Reg. 108(2)(d)(iii) and word inserted (6.4.2011) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2011 (S.I. 2011/729), regs. 1, 14

F6 Word in reg. 108(2)(d)(iii) inserted (6.4.2018) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2018 (S.I. 2018/267), regs. 1, 9(c)(ii)

F7 Reg. 108(2)(d)(iv) inserted (6.4.2018) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2018 (S.I. 2018/267), regs. 1, 9(c)(iii)

F8 Word in reg. 108(2)(d)(iv) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2018 (S.I. 2018/1327), regs. 1(1), 5(a)

F9 Reg. 108(2)(d)(v) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2018 (S.I. 2018/1327), regs. 1(1), 5(b)

F10 Word in reg. 108(2)(e) substituted (6.4.2008) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2008 (S.I. 2008/782), regs. 1, 12(b)

F11 Words in reg. 108(3) substituted (6.4.2018) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2018 (S.I. 2018/267), regs. 1, 9(d)

Commencement Information

I1 Reg. 108 in force at 6.4.2004, see reg. 1

Payment of tax and recovery proceedings U.K.

109.—(1) The employer must pay to [F12 HMRC] by the due date the aggregate amount for which the employer is accountable to [F13 HMRC] under a PSA [F14 in relation to the preceding tax year].

(2) “The due date” means 19th October following the end of [F15 each tax year] to which the [F16 computation] relates.

(3) Part 6 of TMA (collection and recovery) applies to the recovery of the aggregate amount or any part of it (“the amount of tax”) as if it were income tax charged on the employer.

(4) But summary proceedings for the recovery of the amount of tax may be brought in England, Wales or Northern Ireland at any time before the expiry of 12 months beginning with the due date.

(5) Proceedings may be brought for the recovery of the amount of tax without distinguishing the amounts which the employer is liable to pay in respect of each employee under the PSA and without specifying the employees in question.

(6) The amount of tax is one cause of action or one matter of complaint for the purposes of proceedings under sections 65, 66 and 67 of TMA(1) (magistrates' courts, county courts and inferior courts in Scotland).

Textual Amendments

F12 Word in reg. 109(1) substituted (6.4.2018) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2018 (S.I. 2018/267), regs. 1, 10(a)(i)

F13 Word in reg. 109(1) substituted (6.4.2018) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2018 (S.I. 2018/267), regs. 1, 10(a)(ii)

F14 Words in reg. 109(1) inserted (6.4.2018) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2018 (S.I. 2018/267), regs. 1, 10(a)(iii)

F15 Words in reg. 109(2) substituted (6.4.2018) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2018 (S.I. 2018/267), regs. 1, 10(b)(i)

F16 Word in reg. 109(2) substituted (6.4.2018) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2018 (S.I. 2018/267), regs. 1, 10(b)(ii)

Commencement Information

I2 Reg. 109 in force at 6.4.2004, see reg. 1

Formal determination of tax payable by the employer U.K.

110.—(1) This regulation applies if it appears to the Inland Revenue that there may be an amount payable under regulation 109(1) for any tax year which has not been paid by the due date (as defined by regulation 109(2)).

(2) The Inland Revenue may determine the amount payable to the best of their judgment.

(3) If a determination is made, the Inland Revenue must serve notice of it on the employer.

(4) A determination under this regulation is subject to Parts 4, 5 [F17 , 5A] and 6 of TMA (assessment, appeals, collection and recovery) as if—

(a) the determination were an assessment, and

(b) the amount determined were income tax charged on the employer,

and those Parts of TMA apply accordingly with any necessary modifications.

F18 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F17 Word in reg. 110(4) inserted (in relation to the tax year 2010-11 and subsequent tax years) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2010 (S.I. 2010/668), regs. 1(3), 3

F18 Reg. 110(5) omitted (1.4.2009) by virtue of The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 1(2), Sch. 2 para. 106

Commencement Information

I3 Reg. 110 in force at 6.4.2004, see reg. 1

(1)

Section 65 was amended by section 57(1) of the Finance Act 1984 (c. 43) and paragraph 30 of Schedule 19 to the Finance Act 1998 (c. 36); section 66 was amended by section 57(2) of the Finance Act 1984, section 89(1) of the Finance Act 2001 (c. 9), S.I. 1980/397 (N.I. 3) and S.I. 1991/724; section 67 was amended by section 58 of the Finance Act 1976 (c. 40), section 156 of the Finance Act 1995 (c. 4) and section 89(1) of the Finance Act 2001.