The Tax Credits (Payment by Employers) Regulations 1999

Formal determination of tax credit funding

12.—(1) This regulation applies where funds have been provided to the employer under regulation 8 in respect of one or more employees and it appears to the inspector or other officer of the Board that the employer may have retained some or all of those funds.

(2) Where this regulation applies the inspector or other officer of the Board shall determine the amount of funds provided under regulation 8 and retained by the employer to the best of his judgment and shall serve notice of his determination on the employer.

(3) A determination under this regulation may cover the funds provided under regulation 8–

(a) for any one or more pay periods in a tax year, and

(b) in respect of a class or classes of employees specified in the notice of determination (without naming the individual employees) or of one or more named employees so specified.

(4) An appeal against a determination under this regulation that is to be brought before the General Commissioners shall be brought before the General Commissioners for the division in which the place given by the provisions of this regulation (“the relevant place”) is situated.

(5) Parts IV, V, except section 55, and VI of the Management Act shall apply with any necessary modifications to a determination under this regulation as if it were an assessment and as if the amount of funds determined were income tax charged on the employer.

(6) The relevant place is whichever of the places specified in paragraph (7) is identified by an election made by the employer.

(7) Those places are–

(a) the place (if any) in the United Kingdom which, at the time when the election is made, is the employer’s place of business;

(b) the place (if any) which at that time is the employer’s place of residence in the United Kingdom.

(8) Where the employer fails to make an election for the purposes of paragraph (4) before the time limit given in paragraph (9)(b) an officer of the Board may elect which of the places specified in paragraph (7) is to be the relevant place.

(9) An election by an employer for the purposes of this regulation–

(a) shall be made by notice to an officer of the Board;

(b) shall be made at the time when notice of appeal is given or before such later date as the Board allow; and

(c) shall be irrevocable.

(10) Where there is no place falling within paragraph (7) an officer of the Board may give directions for determining the relevant place.

(11) A direction given under paragraph (10) shall not have effect in relation to an appeal unless the officer of the Board has served on the employer a notice stating the effect of the direction in relation to the appeal.

(12) In paragraph (7)(a) “place of business” means–

(a) the place where the trade, profession, vocation or business of the employer is carried on, or

(b) if the trade, profession, vocation or business is carried on at more than one place, the head office or place where it is mainly carried on.