The Income Tax (Pay As You Earn) Regulations 2003

Multiple PAYE schemes

98.—(1) An employer may elect, for the purposes of these Regulations, to be treated as different employers in relation to different groups of employees.

(2) Where the employer makes an election, these Regulations apply as if—

(a) in respect of each group the employer were a different employer;

(b) each group constituted all of the employer’s employees;

(c) each group were employed in a separate undertaking from the others; and

(d) an employee who has moved from one group to another has left one employment and started employment with a new employer.

(3) While an election is in force, an employer must allocate any new employees to one of the groups.

(4) An election must be made by notice to the Inland Revenue containing—

(a) such information as may be necessary to identify the groups of employees, and

(b) a certificate that each employee falls into one of the groups.

(5) An employer must, subject to paragraph (6), make an election before the beginning of the tax year for which it is to have effect.

(6) An employer who acquires the whole or a part of any business of another employer may, within 90 days of the acquisition, elect—

(a) to be treated as a different employer in relation to the acquired employees, or two or more different employers in relation to groups of the acquired employees, whether or not an election is already in force in respect of the existing employees, or

(b) to add some or all of the acquired employees to existing groups of employees in respect of whom an election is already in force,

and such an election has effect for the tax year in which the acquisition takes place.

(7) In paragraph (6)—

• “business” includes any trade, concern or undertaking;

• “acquired employee” means an employee who was employed in the acquired business.

(8) An election continues in effect until revoked by a notice given to the Inland Revenue.

(9) A notice of revocation must be given before the beginning of the tax year for which the election is to be revoked, but the revocation of an election does not prevent the making of a new election for that or a later tax year.

(10) An election which has not yet come into effect may be revoked at any time before the beginning of the tax year for which it is to have effect.

(11) This regulation is subject to regulation 99.