Chwilio Deddfwriaeth

Chwiliad Uwch

The Income Tax (Pay As You Earn) Regulations 2003

Changes over time for: Cross Heading: Failure to account for deductible tax

Help about opening options

Version Superseded: 06/04/2010

Status:

Point in time view as at 01/04/2009.

Changes to legislation:

There are currently no known outstanding effects for the The Income Tax (Pay As You Earn) Regulations 2003, Cross Heading: Failure to account for deductible tax. Help about Changes to Legislation

Close

Changes to Legislation

Revised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.

Failure to account for deductible taxU.K.

Certificate if tax in regulation 73 return is unpaidU.K.

76.—(1) Paragraph (2) applies if an employer—

(a)delivers a return under regulation 73 showing an amount of total net tax deducted by the employer for a tax year, and

(b)does not pay that amount to the Inland Revenue before 20th April following the end of the tax year.

(2) The Inland Revenue may prepare a certificate showing how much of that amount remains unpaid.

(3) Regulation 218 deals with the use of certificates as evidence that sums are due and unpaid.

Commencement Information

I1Reg. 76 in force at 6.4.2004, see reg. 1

Return and certificate if tax may be unpaidU.K.

77.—(1) This regulation applies if, 17 days or more after the end of a tax period, condition A or B is met.

(2) Condition A is that—

(a)an employer has not paid any tax under regulation 68 for that tax period, and

(b)the Inland Revenue are unaware of the amount (if any) which the employer is liable to pay.

(3) Condition B is that—

(a)an employer has paid an amount of tax under regulation 68 for that period, but

(b)the Inland Revenue are not satisfied that it is the full amount which the employer is liable to pay for that period.

(4) The Inland Revenue may give notice to the employer requiring the employer within 14 days of the issue of the notice to deliver a return showing the amount of tax which the employer is liable to pay under regulation 68 in respect of the tax period.

(5) If the notice extends to two or more consecutive tax periods in a tax year, this regulation has effect as if they were one tax period.

(6) On receiving a return made by the employer under paragraph (4), the Inland Revenue may prepare a certificate showing the amount of tax which the employer is liable to pay for the tax period and how much (if any) of that amount remains unpaid.

(7) Regulation 218 deals with the use of certificates as evidence that sums are due and unpaid.

Commencement Information

I2Reg. 77 in force at 6.4.2004, see reg. 1

Notice and certificate if tax may be unpaidU.K.

78.—(1) This regulation applies if, 17 days or more after the end of a tax period, condition A or B is met.

(2) Condition A is that—

(a)an employer has not paid any tax under regulation 68 for that tax period, and

(b)[F1HMRC] have reason to believe that the employer is liable to pay an amount of tax.

(3) Condition B is that—

(a)an employer has paid an amount of tax under regulation 68 for that tax period, but

(b)[F2HMRC] are not satisfied, after seeking the employer’s explanation, that it is the full amount which the employer is liable to pay for that period.

(4) [F3HMRC], on consideration of the employer’s record of past payments [F4whether of tax or of combined amounts], may—

(a)specify, to the best of their judgment, the amount of tax [F5or a combined amount] which they consider the employer is liable to pay, and

(b)serve notice on the employer requiring payment of that amount within 7 days of the issue of the notice (“the notice period”).

(5) If the notice extends to two or more consecutive tax periods in a tax year, this regulation has effect as if they were the latest tax period specified in the notice.

(6) If, during the notice period, the employer—

(a)claims that any payment made in respect of the tax period specified in the notice is [F6or includes] the full amount [F7of tax] the employer is liable to pay, but

(b)does not satisfy [F8HMRC] that this is the case,

the employer may require [F8HMRC] to inspect the employer’s PAYE records as if the employer had been required to produce those records [F9under Schedule 36 to the Finance Act 2008 (information and inspection powers)].

(7) If there is an inspection by virtue of paragraph (6) F10... the notice given by [F11HMRC] under paragraph (4) must be disregarded.

(8) If the amount F12... specified in the notice, or any part of it, is not paid during the notice period—

(a)the amount unpaid is treated as an amount of tax [F13or as including an amount of tax] which the employer was liable to pay for that tax period under regulation 68, and

(b)[F14HMRC] may prepare a certificate showing how much of that [F15amount] remains unpaid.

(9) But paragraph (8) does not apply if during the notice period—

(a)the employer pays the full amount of tax which the employer is liable to pay under regulation 68 for that tax period, or

(b)the employer satisfies [F16HMRC] that no amount, or no further amount, is due for that tax period.

(10) Paragraph (11) applies if the employer pays an amount [F17of tax, whether separately or as part of a combined amount, which is] certified under this regulation [F18and] which exceeds the amount the employer would have been liable to pay in respect of that tax period apart from this regulation.

(11) The employer is entitled to set off the excess [F19tax] against any amount which the employer is liable to pay under regulation 68 for any subsequent tax period in the tax year.

(12) Paragraph (13) applies if the employer—

(a)delivers the return required by regulation 73(1) after the end of the tax year, and

(b)pays the total net tax which the employer is liable to pay.

(13) Any excess of tax paid, and not otherwise recovered by set-off in accordance with this regulation, must be repaid.

(14) Regulation 218 deals with the use of certificates as evidence that sums are due and unpaid.

Textual Amendments

Commencement Information

I3Reg. 78 in force at 6.4.2004, see reg. 1

Certificate after inspection of PAYE recordsU.K.

79.—(1) This regulation applies if there is an inspection of an employer’s PAYE records under [F20Schedule 36 to the Finance Act 2008 (information and inspection powers)].

(2) The Inland Revenue may, by reference to the information obtained from the inspection, prepare a certificate showing—

(a)the amount of tax which it appears that the employer is liable to pay for the tax years or tax periods covered by the inspection; and

(b)any amount of that tax which remains unpaid.

(3) Regulation 218 deals with the use of certificates as evidence that sums are due and unpaid.

Textual Amendments

Commencement Information

I4Reg. 79 in force at 6.4.2004, see reg. 1

Determination of unpaid tax and appeal against determinationU.K.

80.—(1) This regulation applies if it appears to [F21HMRC] that there may be tax payable for a tax year under regulation 68 by an employer which has neither been—

(a)paid to [F21HMRC], nor

(b)certified by [F21HMRC] under regulation 76, 77, 78 or 79.

(2) [F22HMRC] may determine the amount of that tax to the best of their judgment, and serve notice of their determination on the employer.

(3) A determination under this regulation must not include tax in respect of which a direction under regulation 72(5) has been made; and directions under that regulation do not apply to tax determined under this regulation.

[F23(3A) A determination under this regulation must not include tax in respect of which a direction under regulation 72F has been made.]

(4) A determination under this regulation may—

(a)cover the tax payable by the employer under regulation 68 for any one or more tax periods in a tax year, and

(b)extend to the whole of that tax, or to such part of it as is payable in respect of—

(i)a class or classes of employees specified in the notice of determination (without naming the individual employees), or

(ii)one or more named employees specified in the notice.

(5) A determination under this regulation is subject to Parts 4, 5 F24... and 6 of TMA (assessment, appeals, collection and recovery) as if—

(a)the determination were an assessment, and

(b)the amount of tax determined were income tax charged on the employer,

and those Parts of that Act apply accordingly with any necessary modifications.

F25(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Commencement Information

I5Reg. 80 in force at 6.4.2004, see reg. 1

Employee liability if tax unpaid after regulation 80 determinationU.K.

81.—(1) This regulation applies if—

(a)any part of the tax determined under regulation 80 is not paid within 30 days from the date on which the determination became final and conclusive, and

(b)condition A or B is met in relation to an employee.

(2) Condition A is that the Inland Revenue are of the opinion that the employee in respect of whose relevant payments the determination was made has received those payments knowing that the employer has wilfully failed to deduct the amount of tax which should have been deducted from those payments.

(3) Condition B is that the unpaid tax represents an amount for which the employer was required to account under regulation 62(5) (notional payments) in relation to a notional payment to the employee.

(4) The Inland Revenue may direct that the employer is not liable to pay the amount of tax which appears to them should have been but was not—

(a)deducted on making those relevant payments, or

(b)accounted for under regulation 62(5).

[F26(4A) If condition A or B is met, any direction under paragraph (4) must be made by notice (“the direction notice”) to the employee stating the date the notice was issued.]

(5) If a direction is made, the amount of tax must not be added under regulation 185(5) or 188(3)(a) (adjustments for self-assessments and other assessments) in relation to the employee.

(6) Tax payable by an employee as a result of a direction carries interest, as if it were unpaid tax due from an employer, in accordance with regulation 82 (interest on tax overdue).

(7) The tax payable carries interest from the reckonable date until whichever is the earlier of—

(a)the date on which payment is made, or

(b)the date (if any) immediately before the date on which it begins to carry interest under section 86 of TMA(1).

Textual Amendments

Commencement Information

I6Reg. 81 in force at 6.4.2004, see reg. 1

[F27Employee’s appeal against direction noticeU.K.

81A.—(1) An employee may appeal against a direction notice under regulation 81(4A)—

(a)by notice to the Inland Revenue,

(b)within 30 days of the issue of the direction notice,

(c)specifying the grounds of the appeal.

(2) For the purpose of paragraph (1) the grounds of appeal are that—

(a)in relation to condition A in regulation 81, the employee did not receive the payments knowing that the employer wilfully failed to deduct the amount of tax which should have been deducted from those payments,

(b)in relation to condition B in regulation 81, the relevant payment was not a notional payment, or

(c)the excess is incorrect.

(3) On an appeal under paragraph (1) [F28that is notified to the tribunal, the tribunal] may—

(a)if it appears F29... that the direction notice should not have been made, set aside the notice; or

(b)if it appears F29... that the amount of tax specified in the direction notice is incorrect, increase or reduce the amount specified in the notice accordingly.

(4) Regulation 72D applies to appeals under this regulation.]

Textual Amendments

(1)

Section 86 was substituted by section 110(1) of the Finance Act 1995 (c. 4) and amended by section 131 of, and paragraph 3 of Schedule 18 to, the Finance Act 1996 (c. 8).

Yn ôl i’r brig

Options/Help

Print Options

You have chosen to open The Whole Instrument

The Whole Instrument you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Instrument as a PDF

The Whole Instrument you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open The Whole Instrument without Schedules

The Whole Instrument without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Instrument without Schedules as a PDF

The Whole Instrument without Schedules you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open yr Offeryn Cyfan

Yr Offeryn Cyfan you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open yr Offeryn Cyfan heb Atodlenni

Yr Offeryn Cyfan heb Atodlenni you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

Close

Mae deddfwriaeth ar gael mewn fersiynau gwahanol:

Y Diweddaraf sydd Ar Gael (diwygiedig):Y fersiwn ddiweddaraf sydd ar gael o’r ddeddfwriaeth yn cynnwys newidiadau a wnaed gan ddeddfwriaeth ddilynol ac wedi eu gweithredu gan ein tîm golygyddol. Gellir gweld y newidiadau nad ydym wedi eu gweithredu i’r testun eto yn yr ardal ‘Newidiadau i Ddeddfwriaeth’.

Gwreiddiol (Fel y’i Deddfwyd neu y’i Gwnaed): Mae'r wreiddiol fersiwn y ddeddfwriaeth fel ag yr oedd pan gafodd ei deddfu neu eu gwneud. Ni wnaed unrhyw newidiadau i’r testun.

Pwynt Penodol mewn Amser: This becomes available after navigating to view revised legislation as it stood at a certain point in time via Advanced Features > Show Timeline of Changes or via a point in time advanced search.

Close

Gweler y wybodaeth ychwanegol ochr yn ochr â’r cynnwys

Rhychwant ddaearyddol: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.

Dangos Llinell Amser Newidiadau: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.

Close

Dewisiadau Agor

Dewisiadau gwahanol i agor deddfwriaeth er mwyn gweld rhagor o gynnwys ar y sgrin ar yr un pryd

Close

Rhagor o Adnoddau

Gallwch wneud defnydd o ddogfennau atodol hanfodol a gwybodaeth ar gyfer yr eitem ddeddfwriaeth o’r tab hwn. Yn ddibynnol ar yr eitem ddeddfwriaeth sydd i’w gweld, gallai hyn gynnwys:

  • y PDF print gwreiddiol y fel deddfwyd fersiwn a ddefnyddiwyd am y copi print
  • rhestr o newidiadau a wnaed gan a/neu yn effeithio ar yr eitem hon o ddeddfwriaeth
  • manylion rhoi grym a newid cyffredinol
  • pob fformat o’r holl ddogfennau cysylltiedig
  • slipiau cywiro
  • dolenni i ddeddfwriaeth gysylltiedig ac adnoddau gwybodaeth eraill
Close

Llinell Amser Newidiadau

This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.

Close

Rhagor o Adnoddau

Defnyddiwch y ddewislen hon i agor dogfennau hanfodol sy’n cyd-fynd â’r ddeddfwriaeth a gwybodaeth am yr eitem hon o ddeddfwriaeth. Gan ddibynnu ar yr eitem o ddeddfwriaeth sy’n cael ei gweld gall hyn gynnwys:

  • y PDF print gwreiddiol y fel gwnaed fersiwn a ddefnyddiwyd am y copi print
  • slipiau cywiro

liciwch ‘Gweld Mwy’ neu ddewis ‘Rhagor o Adnoddau’ am wybodaeth ychwanegol gan gynnwys

  • rhestr o newidiadau a wnaed gan a/neu yn effeithio ar yr eitem hon o ddeddfwriaeth
  • manylion rhoi grym a newid cyffredinol
  • pob fformat o’r holl ddogfennau cysylltiedig
  • dolenni i ddeddfwriaeth gysylltiedig ac adnoddau gwybodaeth eraill