The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2016

This Statutory Instrument has been made in consequence of a defect in S.I. 2015/1927 and is being issued free of charge to all known recipients of that Statutory Instrument.

Statutory Instruments

2016 No. 747

Income Tax

The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2016

Made

13th July 2016

Laid before the House of Commons

18th July 2016

Coming into force

8th August 2016

These Regulations are made by the Commissioners for Her Majesty’s Revenue and Customs in exercise of the powers conferred by section 684(1) and (2) of the Income Tax (Earnings and Pensions) Act 2003(1) and now exercisable by them(2).

Citation and commencement

1.  These Regulations may be cited as the Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2016 and come into force on 8th August 2016.

Amendment of the Income Tax (Pay As You Earn) Regulations 2003

2.—(1) Regulation 87 (information employer must also provide for benefits code employees) of the Income Tax (Pay as You Earn) Regulations 2003(3) is amended as follows.

(2) In paragraph (1), after sub-paragraph (c) insert—

“(d) any mileage allowance payments which are not approved mileage allowance payments;

(e) any passenger payments which are not approved passenger payments.”.

(3) In paragraph (4) before “Related third party” insert—

““approved mileage allowance payments” are mileage allowance payments that are approved in accordance with section 229(3) of ITEPA;

“approved passenger payments” are passenger payments that are approved in accordance with section 233(4) of ITEPA;

“mileage allowance payments” have the meaning given by section 229(2) of ITEPA;

“passenger payments” have the meaning given by section 233(3) of ITEPA.”.

Nick Lodge

Edward Troup

Two of the Commissioners for Her Majesty’s Revenue and Customs

13th July 2016

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Income Tax (Pay As You Earn) Regulations 2003 (S.I. 2003/2682) which make provision for the assessment, charge, collection and recovery of income tax in respect of pay as you earn income.

Regulation 2 amends regulation 87 to introduce a requirement that any amount paid in respect of mileage allowance payments which is not an approved amount is reported on form P11D. It also introduces a requirement that any amount paid in respect of passenger payments which is not an approved amount is reported on form P11D. These requirements were removed in error by SI 2015/1927.

A Tax Information and Impact Note has not been prepared for this Instrument as it contains no substanitve changes to tax policy.

(1)

2003 c. 1. Section 684 of the Income Tax (Earnings and Pensions) Act 2003 (“ITEPA”) has been relevantly amended by paragraphs 102(1) and (2) and 117 of Schedule 4 to the Commissioners for Revenue and Customs Act 2005 (c. 11) (“CRCA”), paragraphs 2, 3 and 7 of Schedule 58 to the Finance Act 2009 (c. 10) and section 225 of the Finance Act 2012 (c. 14).

(2)

The powers of the Board of Inland Revenue under section 684 of ITEPA were transferred to the Commissioners for Revenue and Customs by paragraph 102(2) of Schedule 4 to CRCA. Section 50(1) of that Act provides that, in so far as appropriate, in consequence of section 5 a reference in an enactment, instrument or other document to the Commissioners of Inland Revenue (however expressed) shall be taken as a reference to the Commissioners for Her Majesty’s Revenue and Customs.

(3)

S.I. 2003/2682 relevantly amended by S.I. 2015/1927.