The Income Tax (Pay As You Earn) Regulations 2003

Simplified deduction scheme for personal employees U.K.

34.—(1) The Inland Revenue may [F1 , subject to paragraph (1A),] authorise the employer of a personal employee to deduct tax from each relevant payment made to the employee by reference to the appropriate taxable payments in the simplified tax tables.

[F2 (1A) But authorisation under paragraph (1) must not be given on or after 6th April 2012.]

(2) The amount of tax to be deducted must be—

(a) calculated by reference to the aggregate of the relevant payments made to the authorised personal employee during the payment period, and

(b) reduced by the amount of tax calculated, by reference to that aggregate, when the employer made the previous relevant payment in the same payment period.

(3) In this regulation—

“payment period” means the interval for which free pay is calculated shown on the deductions working sheet issued in accordance with regulation 35(3);

“personal employee” means—

(a)

a person employed at the employer’s home to provide domestic or personal services for the employer or the employer’s family, or

(b)

a person employed to assist the employer with any business, profession or course of study which, solely because of any physical or mental disability, the employer would not be able to carry on without the assistance of the personal employee;

and “authorised personal employee” means a personal employee in respect of whom an authorisation under paragraph (1) is in force;

“simplified tax tables” means the parts of the tax tables which are prepared by the Board of Inland Revenue for use under this regulation.

(4) The following regulations do not apply to cases in which this regulation and regulation 35 apply—

regulation 15	flat rate codes
regulation 16	continued application of employee’s code
regulation 21	deduction and repayment of tax by reference to employee’s code
regulations 22 to 25	cumulative basis
regulations 26 to 31	non-cumulative basis
regulations 32 and 33	higher rate and nil tax codes
regulation 36	cessation of employment: Form P45
regulations 42 to 45	employer to complete Form P45
regulation 55	PAYE pension income paid by former employer
regulation 66	deductions working sheets.

Textual Amendments

F1 Words in reg. 34(1) inserted (6.4.2012) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2012 (S.I. 2012/822), regs. 1(1), 64(a)

F2 Reg. 34(1A) inserted (6.4.2012) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2012 (S.I. 2012/822), regs. 1(1), 64(b)

Commencement Information

I1 Reg. 34 in force at 6.4.2004, see reg. 1