The Income Tax (Pay As You Earn) Regulations 2003

Meaning of “code” etcU.K.

7.—(1) In these Regulations, “code” means—

(a)a combination of letters, numbers or both for use in accordance with the tax tables to establish free pay, additional pay, total free pay to date or total additional pay to date;

(b)any of the special codes (whether expressed in words or represented by a combination of letters, numbers or both) for use in accordance with the tax tables or otherwise.

(2) “K code” means a code which gives rise to additional pay or total additional pay to date.

[F1(2A) “S code” means a code which effects deductions of tax at the rates determined under section 6A of ITA.]

(3) The special codes are—

(a)the basic rate code, which effects deductions of tax wholly at the basic rate;

(b)the higher rate code, which effects deductions of tax wholly at the higher rate;

[F2(ba)the additional rate code, which effects deductions of tax wholly at the additional rate;]

(c)the nil tax code, which requires no deductions of tax;

[F3(ca)the 0T code, which without allowing for personal allowances, effects deductions of tax at the basic rate, higher rate and additional rate so that during the tax year the amounts subject to deductions at the rate or rates concerned are in accordance with section 10 of ITA (income charged at the basic, higher and additional rates: individuals);]

[F4(d)the emergency code, which, after allowing for the personal allowance, effects deductions of tax at—

[F5(i)the basic rate, or

(ii)the basic and higher rates, or

(iii)the basic, higher and additional rates

so that during the tax year the amounts subject to deductions at the rate or rates concerned are in accordance with section 10 of ITA (income charged at the basic, higher and additional rates: individuals);]

(e)the emergency IB codes which, after allowing for the personal allowance and the blind person’s allowance, effect deductions at the basic rate, so that during the tax year the amounts subject to deductions at that rate are in accordance with section 10 of ITA.]

[F6(4) In paragraph (3)—

“blind person’s allowance” means an allowance claimed under either section 265 of ICTA (blind person’s allowance) or section 38 of ITA (blind person’s allowance);

“personal allowance” means an allowance claimed under either section 257(1) of ICTA (personal allowance) or section 35 of ITA (personal allowances for those aged under 65).]

Textual Amendments

F1Reg. 7(2A) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Income Tax (Pay As You Earn) (Amendment No. 3) Regulations 2015 (S.I. 2015/1667), regs. 1(1), 4

Commencement Information

I1Reg. 7 in force at 6.4.2004, see reg. 1