141.—(1) In—
(a)cases of casual employment, and
(b)any other case in which the Inland Revenue are of the opinion that deduction of tax by reference to the tax tables is impracticable,
the Inland Revenue may proceed in accordance with regulation 142, or make special arrangements for the collection of tax in respect of PAYE income of any employees.
(2) A special arrangement does not apply to PAYE income of an employer’s employees if—
(a)the arrangement has not been agreed with the employer, and
(b)the employer does not proceed in accordance with the arrangement.
142.—(1) The Inland Revenue may issue a deductions working sheet to an employee specifying—
(a)the employee’s name,
(b)the capacity in which the employee receives relevant payments,
(c)the employee’s code, and
(d)the tax year to which the deductions working sheet relates.
(2) In such a case regulations 143 to 147 apply unless, within 30 days beginning with the receipt of the deductions working sheet, the employee objects to the use of the direct collection procedure.
143.—(1) Whenever the employee receives any relevant payment during the tax year, the employee must record in the deductions working sheet—
(a)the amount of the payment,
(b)the date on which it was received, and
(c)the total payments to date.
(2) In addition, the employee must record in the deductions working sheet in relation to the last date in a tax quarter on which the employee receives a relevant payment—
(a)the total free pay to date or, as the case may be, the total additional pay to date in relation to that date according to the employee’s code, and
(b)the corresponding total tax to date.
(3) If the employee does not receive any relevant payments in a tax quarter, the last day of the quarter must be used for the purposes of paragraph (2).
(4) If the employee receives relevant payments in more than one capacity, no account is to be taken for the purposes of this regulation and regulations 144 to 147 of the relevant payments received by the employee in any capacity other than that mentioned in the deductions working sheet.
(5) In this regulation and regulations 145 and 146, “total payments to date” means, in relation to any date, the sum of all relevant payments received by the employee from the beginning of the tax year up to and including that date, irrespective of the person or persons from whom it was received.
144.—(1) In this regulation—
“the current total tax” means the total tax to date required to be recorded in the deductions working sheet by an employee under regulation 143(2)(b);
“the previous total tax” means the total tax to date (if any) required to be recorded for the previous tax quarter in the tax year.
(2) If, in relation to any tax quarter, the current total tax exceeds the previous total tax, the employee must pay the excess to the Inland Revenue, within 14 days after the end of the tax quarter.
(3) But if, in relation to any tax quarter, the previous total tax exceeds the current total tax, the employee may recover the excess—
(a)by deducting it from the amount payable under paragraph (2) for a later quarter in the tax year, or
(b)from the Board of Inland Revenue.
(4) If the employee’s code is a K code, the amount payable under paragraph (2) is not to exceed the overriding limit in relation to the relevant payments which the employee has received in that tax quarter.
(5) Any amount which is not payable because of the application of paragraph (4) must be added to the current total tax for the purpose of the calculation in paragraph (2) or (3) for the next tax quarter (if any) of that tax year.
145.—(1) When no longer receiving relevant payments, the employee must, without unreasonable delay, send a return to the Inland Revenue showing the following particulars.
(2) The particulars are—
(a)such particulars as the Board may require for identifying the employee,
(b)the tax year to which the return relates,
(c)the last date on which the employee received any relevant payments (“the last date”),
(d)the employee’s total payments to date at the last date,
(e)the corresponding total tax to date at the last date, and
(f)if the employee’s code is a K code, the amount, if any, of that corresponding total tax to date which is not payable because of regulation 144(4) (overriding limit).
146.—(1) Before 20th May following the end of the tax year, the employee must deliver a return to the Inland Revenue.
(2) The return must show—
(a)such particulars as the Board may require for identifying the employee,
(b)the tax year to which the return relates,
(c)the employee’s total payments to date at the end of the tax year,
(d)the total tax to date calculated for the last tax quarter in the tax year, and
(e)if the employee’s code is a K code, the amount, if any, of that total tax to date which is not payable because of regulation 144(4) (overriding limit).
(3) But paragraph (1) does not apply if the employee has already delivered a return under regulation 145 or section 8 of TMA(1) (personal returns).
(4) If a return is required by paragraph (1), regulations 76, 84 and 218 (which relate to the certification and recovery of tax remaining unpaid by an employer for any tax year) apply with the necessary modifications in the case of any tax remaining unpaid by the employee.
(5) Section 98A of TMA(2) (special penalties in case of certain returns) applies to paragraph (1).
147.—(1) This regulation applies if, within 14 days after the end of any tax quarter—
(a)the employee has not paid any tax for that quarter, and the Inland Revenue are unaware of the amount, if any, which the employee is liable to pay for that quarter, or
(b)the employee has paid an amount of tax for that quarter, but the Inland Revenue are not satisfied that it is the full amount which the employee is liable to pay for that quarter.
(2) The Inland Revenue may give notice to the employee requiring the employee, within 14 days of the issue of the notice, to deliver a return showing the amount of tax which the employee is liable to pay under regulation 144(2) in respect of the tax quarter in question.
(3) If such a notice is given, regulations 77, 84 and 218(5) and (6) (which relate to the certification and recovery of tax unpaid by an employer) apply with the necessary modifications for the purposes of ascertaining, certifying and recovering the tax payable by the employee as if it were tax which the employee was liable to deduct from relevant payments paid by the employee.
Section 8 was substituted by section 90(1) of the Finance Act 1990 (c. 29) and amended by section 178(1) of the Finance Act 1994 (c. 9), section 104(1) and (2) of the Finance Act 1995 (c. 4) and section 121(1) to (3) of the Finance Act 1996 (c. 8).
Section 98A was inserted by section 165 of the Finance Act 1989 (c. 26) and amended by paragraph 138 of Schedule 6 to ITEPA.