PART 3DEDUCTION AND REPAYMENT OF TAX
F2CHAPTER 3ABENEFITS IN KIND
Deduction and repayments of tax: general rule61D
1
Where this Chapter applies an authorised employer must take the following steps—
Step 1
Before making the first main relevant payment to a specified employee in a tax year, the cash equivalent F3, the relevant amount or amount foregone in respect of the specified benefit or benefits to be provided in that tax year must be determined in accordance with regulation 61E, 61F or 61G (methods of calculating the cash equivalent F4, the relevant amount or amount foregone in respect of specified benefits), as the case may be.
Step 2
Determine the number of main relevant payments to be made to the specified employee in that tax year.
Step 3
Divide the amount obtained from step 1 by the number obtained from step 2.
The resulting amount is the Taxable Amount of the Benefit.
Step 4
Add the Taxable Amount of the Benefit to the first main relevant payment.
Step 5
Deduct or repay tax on the amount obtained at step 4 in accordance with these Regulations by reference to the employee’s code if the employer has one for the employee, even if the code is the subject of an objection or appeal.
2
On making any subsequent main relevant payment in the tax year the authorised employer must add the Taxable Amount of the Benefit to that payment and apply step 5 of paragraph (1) to that amount.
3
This regulation is subject to regulations 61H, 61I, 61J, F161K, 61L and 61LA(modifications to the general rule).
Pt. 3 Ch. 3A inserted (with effect in accordance with reg. 1(4) of the amending S.I.) by The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2015 (S.I. 2015/1927), regs. 1(1), 6