The Working Tax Credit (Payment by Employers) Regulations 2002

Relevant employer’s obligation to pay working tax credit

6.—(1) On receipt of a start notice in respect of an employee the relevant employer must, if he reasonably expects the employee to remain in his employment for three or more consecutive pay periods commencing with the pay period in which the commencement date contained in the start notice falls, take the following steps—

• Step One

• Calculate the amount of working tax credit which the employee is entitled to be paid for each pay period in respect of which the employer will be responsible for paying working tax credit to the employee in accordance with the start notice.

• Step Two

• On making any payment of emoluments to the employee in respect of any date falling on or after the commencement date contained in the start notice, pay to the employee the amount of working tax credit to which he is entitled for the pay period in respect of which that payment of emoluments is made.

(2) If the relevant employer receives a start notice in respect of an employee but—

(a) does not reasonably expect that employee to remain in his employment for three or more consecutive pay periods as mentioned in paragraph (1), or

(b) becomes aware before the first date on which a payment of emoluments is due in respect of any date falling on or after the commencement date contained in the start notice that the employee has left his employment, or will leave his employment before the end of the third consecutive pay period,

he must return the start notice to the Board, indicating on the notice his reasons for doing so.

(3) On receipt of an amendment notice in respect of an employee the relevant employer must, except where paragraph (4) applies, take the following steps—

• Step One

• Calculate the amount of working tax credit which the employee is entitled to be paid for each pay period in respect of which the employer will be responsible for paying working tax credit to the employee in accordance with the amendment notice.

• Step Two

• On making any payment of emoluments to the employee in respect of any date falling on or after the commencement date contained in the amendment notice, pay to the employee the amount of working tax credit to which he is entitled for the pay period in respect of which that payment of emoluments is made.

(4) If the relevant employer receives an amendment notice in respect of an employee but becomes aware that the employee will leave his employment before the first date on which he is due to make a payment of emoluments to the employee following the commencement date contained in the amendment notice, he must return the amendment notice to the Board, indicating on the notice his reasons for doing so.

(5) The relevant employer must record on the employee’s payslip for any pay period, as a credit described as “tax credit”, the amount of working tax credit paid with the payment of emoluments to which the payslip relates.

(6) On making any payment of working tax credit to an employee the relevant employer must record on the deductions working sheet (P 11) for that employee referred to in regulation 38 of the Employments Regulations the amount of the payment (whether or not the employer is required to complete the deductions working sheet for the purposes of that regulation or of the Contributions Regulations).

(7) The relevant employer must record on the certificate (P60) referred to in regulation 39 of the Employments Regulations(1) the total amount of working tax credit paid to each employee for the income tax year to which the certificate relates (whether or not the employer is required to complete the certificate for the purposes of that regulation or of the Contributions Regulations).

(8) The relevant employer must record on the return (P35) referred to in regulation 43 of the Employments Regulations(2) the total amount of working tax credit paid by him for the income tax year to which the return relates.

(9) The relevant employer must record on the particulars (P14) referred to in paragraph (2) of regulation 43 of the Employments Regulations the total amount of working tax credit paid to each employee for the income tax year to which the particulars relate.

(10) Where the relevant employer makes a payment of working tax credit to an employee which exceeds the amount which the employee is entitled to be paid in accordance with the particulars contained in the start notice or the amendment notice, the employer may recover from the employee an amount not exceeding the excess.

(11) Where no payment of emoluments is due from the relevant employer to an employee for a complete pay period the employer may choose either—

(a) not to make any payment of working tax credit to the employee for that period, or

(b) to continue to pay working tax credit to the employee for that period as if he had made a payment of emoluments in that period.

(12) Where the relevant employer chooses not to make any payment of working tax credit to an employee for a pay period in the circumstances mentioned in paragraph (11), he must, not later than 7 days following the end of that pay period, inform the Board that he has made no payment of working tax credit for that pay period.

(13) No payment of working tax credit shall be capable of attachment under any enactment, or may be used by way of set-off or otherwise reduced, extinguished or terminated except in accordance with these Regulations.

(14) Where the relevant employer fails to make payments of working tax credit to an employee in accordance with paragraph (1) or (3), the Board shall make payments of working tax credit to that employee.

(1)

Regulation 39 was amended by regulation 3 of S.I. 1995/1284.

(2)

Regulation 43 was amended by regulation 14 of S.I. 1998/2484 and regulations 7 and 15 of S.I. 2001/1081.