The Income Tax (Construction Industry Scheme) (Amendment) Regulations 2012

Application by the Commissioners for Her Majesty’s Revenue and Customs of sums deducted under section 61 of the Finance Act 2004

7.  In regulation 56 (application by the Commissioners for Her Majesty’s Revenue and Customs of sums deducted under section 61 of the Finance Act 2004)—

(a) after paragraph (2) insert—

“(2A) For any tax period where as a consequence of paragraph (2) the qualifying sub-contractor pays an amount to the Commissioners for Her Majesty’s Revenue and Customs in respect of any liability referred to in that paragraph that is less than the amount the qualifying sub-contractor would have paid but for that paragraph, paragraph (2B) applies if the qualifying sub-contractor is a Real Time Information employer for the purposes of the PAYE Regulations.

(2B) The qualifying sub-contractor must deliver to the Commissioners for Her Majesty’s Revenue and Customs a return under this paragraph stating the value of the sums deducted from contract payments made to the qualifying sub-contractor under section 61 of the Act (1) in the tax year to date.

(2C) The return required by paragraph (2B) must be delivered within 14 days after the end of the tax period.

(2D) If an employer makes an error in a return under paragraph (2B), the employer must provide the correct information in the first return made under that paragraph after the discovery of the error.

(2E) But if the information given has not been corrected before 20th April following the end of the year in question, the employer must provide the correct information for the year in question in a return under this paragraph.”,

(b) in paragraph (5), for “until” substitute “unless”,

(c) for paragraph (5)(b) substitute—

“(b) either—

(i) the qualifying sub-contractor has delivered the return required by regulation 73 of the PAYE Regulations (annual return of relevant payments liable to deduction of tax), or

(ii) the qualifying sub-contractor has delivered to the Commissioners for Her Majesty’s Revenue and Customs each return required under paragraph (2B) for the tax year.”, and

(d) after paragraph (7) insert—

“(8) A return under this regulation must—

(a) state—

(i) the employer’s HMRC office number,

(ii) the employer’s PAYE reference for the purposes of the PAYE Regulations,

(iii) the employer’s accounts office reference, and

(iv) the tax year to which the return relates, and

(b) be delivered using an approved method of electronic communications unless the qualifying sub-contractor is one to whom regulation 67D of the PAYE Regulations applies, in which case the return must be made in a document or format provided or approved by the Commissioners for Her Majesty’s Revenue and Customs.”.

(1)

“The Act” is defined in regulation 2 of the 2005 Regulations as the Finance Act 2004.