Deduction working sheets: retrospective employment income in closed tax year66A

1

Paragraph (2) applies if—

a

a code has been issued to an employer in respect of an employee for a tax year which has subsequently become a closed tax year (“the relevant tax year”); and

b

after the end of that tax year a payment made during it to that employee becomes a qualifying payment.

2

The employer must at the relevant time —

a

in a case where there was a deductions working sheet for the employee for the relevant tax year, revise it to reflect the effect of the retrospective tax provision on the total PAYE income including the retrospective employment income for that year; and

b

in a case where there was no deductions working sheet for the employee for the relevant year, produce one showing that effect on that income for that year.

3

In a case falling within paragraph (2)(b) the employer must record in the deductions working sheet—

a

the employee’s name,

b

the employee’s national insurance number, if known,

c

the employee’s final code for the relevant tax year, and

d

details of the relevant tax year.

4

The employer must record in the deductions working sheet in respect of every qualifying payment—

a

the date on which the payment is made,

b

the amount of the payment, and

c

the amount of tax, if any, to be deducted or accounted for under regulation 62(4) or (5) (notional payments).

5

Despite paragraph (4)(a), in completing the deductions working sheet, the amount of any retrospective employment income shall be treated, for the purpose of computing the amount of tax to be deducted, as if it were paid in the final tax period, in which the employee was employed, in the relevant tax year.