The Income Tax (Pay As You Earn) Regulations 2003

Repayment during unpaid leave

63.—(1) This regulation applies if—

(a) an employee is not entitled to receive any relevant payments on a normal pay day because of absence from work,

(b) the cumulative basis would have been used in relation to a payment made on that day,

(c) the employee does not fall within regulation 64(1) (absence from work due to participation in trade dispute), and

(d) the employee, or the employee’s authorised representative, makes an application in person to the employer.

(2) The employer must—

(a) comply with regulation 23 (cumulative basis: deduction and repayment) and accordingly repay any tax due to the employee, and

(b) comply with regulation 66(4) to (6) (completion of deductions working sheet),

as if the pay day were one on which relevant payments of nil had been made.