71.—(1) This regulation modifies the amount payable or recoverable by an employer under regulation 68 in cases where regulation 64 (trade disputes) applies—
(a)by providing for the amount which would otherwise be payable by the employer for a tax period to be reduced by an amount of repayments (“R”) that cannot be made to employees in the tax period, and
(b)by providing—
(i)for amounts which would otherwise be payable in later tax periods to be increased, or
(ii)for amounts which would otherwise be recoverable in later tax periods to be reduced,
by a total of R.
(2) This regulation applies for consecutive tax periods—
(a)starting with the first tax period at the end of which there is an amount calculated as due to be repaid but which is required to be withheld by regulation 64(5) (tax to be withheld during strike action), and
(b)ending with the next tax period at the end of which no amount is required to be withheld by that regulation.
(3) Column 3 of Table 3 shows the amount payable under regulation 68(2) in the cases set out in column 2 for the first and subsequent tax periods.
| 1. Tax period | 2. Case | 3. Amount payable |
|---|---|---|
| First tax period | if B equals or exceeds A | nil |
| First tax period | any other case | A − B, reduced by P (or by so much of P as reduces the amount payable to nil) |
| Subsequent tax periods | if B equals or exceeds (A + Q) | nil |
| Subsequent tax periods | any other case | (A + Q) − B, reduced by P (or by so much of P as reduces the amount payable to nil). |
(4) The amount (if any) recoverable under regulation 68(3) must be reduced to the extent that it includes amounts—
(a)for which reduction was made under paragraph (3) in an earlier tax period, or
(b)which are otherwise being recovered.
(5) In this regulation—
A is—
the total amount of tax which the employer was liable to deduct from relevant payments made by the employer in the tax period, plus
the total amount of tax for which the employer was liable to account in respect of notional payments made by the employer in that period under regulation 62(5) (notional payments);
B is the total amount which the employer is liable to repay in the tax period, not including any amounts—
for which a reduction was made under paragraph (3) in an earlier tax period; or
which are being recovered under paragraph (4);
P is the total of amounts calculated as due to be repaid in the tax period but required to be withheld during that tax period by regulation 64(5);
Q is the total of amounts—
which, because of regulation 64(5)(b), are set off against tax due to be deducted in the tax period, and
which also, under paragraph (3), have reduced the amount payable in an earlier tax period.