The Income Tax (Employments) (Amendment) Regulations 2003

Amendment of the Income Tax (Employments) Regulations 1993

8.  After regulation 46ZB insert—

“Mandatory use of electronic communications

46ZC.— (1) Specified persons are required to—

(a) transmit the specified information electronically to the inspector or, if so required, the collector, or

(b) deliver the specified information by an approved means of electronic communication to an official computer system.

(2) The specified information may be transmitted or delivered in accordance with paragraph (1) either by the specified person or by another person on his behalf.

(3) The Board may make a general or specific direction requiring a specified person to transmit the specified information electronically or to deliver it by an approved means of electronic communication.

(4) References in regulations 46ZC to 46ZG to information and to the delivery of information shall be construed in accordance with section 135(8) of the Finance Act 2002(1).

Specified persons

46ZD.— (1) A specified person for the purposes of these Regulations is an employer who satisfies the description specified in paragraph (2) or (3) and to whom an e-filing notice has been issued by 31st December following the specified date.

(2) The description specified in this paragraph is that the employer—

(a) is a large employer;

(b) is not an individual who is a practising member of a religious society or order whose beliefs are incompatible with the use of electronic communication;

(c) is not a partnership where all the partners are practising members of a religious society or order whose beliefs are incompatible with the use of electronic communication; and

(d) is not a company where all the directors and the company secretary are practising members of a religious society or order whose beliefs are incompatible with the use of electronic communication.

(3) The description specified in this paragraph is that the employer—

(a) is a large or medium sized employer;

(b) is not an individual who is a practising member of a religious society or order whose beliefs are incompatible with the use of electronic communication;

(c) is not a partnership where all the partners are practising members of a religious society or order whose beliefs are incompatible with the use of electronic communication; and

(d) is not a company where all the directors and the company secretary are practising members of a religious society or order whose beliefs are incompatible with the use of electronic communication.

(4) For the purposes of this regulation—

(a) “company” means any body corporate or unincorporated association but does not include a partnership;

(b) “a large employer” has the meaning given in regulation 42A(2)(b);

(c) “a large or medium sized employer” is a person treated as paying PAYE income to 50 or more recipients at the specified date;

(d) a person is treated as paying PAYE income in the circumstances specified in regulation 42A(3);

(e) “e-filing notice” means a notice issued in respect of a year by an officer of the Board stating that the employer satisfies the description in paragraph (2) or (3) and accordingly is required to use electronic communications for the delivery of specified information;

(f) “the specified date” means such date in the preceding year as is announced annually by means of a direction given by the Board not later than [30th November] of the preceding year;

(g) “the preceding year” means the year preceding that to which the specified information relates.

(5) An employer may appeal against an e-filing notice—

(a) by notice to an officer of the Board,

(b) within 30 days of the issue of the e-filing notice,

(c) on the grounds that the employer does not satisfy the description specified, and if the appeal is successful the e-filing notice shall be withdrawn.

Specified information

46ZE.— (1) Subject to paragraph (2), specified information for the purposes of these Regulations is the return and accompanying information required by virtue of regulation 43(2) of these Regulations (return by employer at end of year)—

(a) for the tax year ending on 5th April 2005, in relation to employers who satisfy the description specified in paragraph (2) of regulation 46ZD; and

(b) for the tax year ending on 5th April 2006 and thereafter, in relation to employers who satisfy the description specified in paragraph (3) of regulation 46ZD.

(2) Specified information does not include information that is supplied in accordance with the provisions and arrangements within regulation 102 of these Regulations (provision for direct collection).

Standards of accuracy and completeness

46ZF.— (1) Specified information delivered by means of electronic communications must meet the standards of accuracy and completeness set by specific or general directions given by the Board.

(2) Where the specified information delivered by means of electronic communications fails to meet the standard specified in paragraph (1), that information shall be treated as not having been delivered.

Penalties

46ZG.— (1) Subject to paragraph (2), where a specified person or another person on his behalf fails to deliver all or any part of the specified information in accordance with regulation 46ZC(1) he shall be liable to a penalty in accordance with the tables below.

Table 1

Penalty table in relation to specified information relating to the tax year ending 5th April 2005

Number of employees for whom particulars should have been included with the specified information	Penalty
1 to 249	nil
250 to 399	£900
400 to 499	£1200
500 to 599	£1500
600 to 699	£1800
700 to 799	£2100
800 to 899	£2400
900 to 999	£2700
1000 or more	£3000

Table 2

Penalty table in relation to specified information relating to the tax years ending 5th April 2006 to 2009

Number of employees for whom particulars should have been included with the specified information	Penalty
1 to 49	nil
50 to 249	£600
250 to 399	£900
400 to 499	£1200
500 to 599	£1500
600 to 699	£1800
700 to 799	£2100
800 to 899	£2400
900 to 999	£2700
1000 or more	£3000

(2) Paragraph (1) does not apply if the employer had a reasonable excuse for failing to comply with regulation 46ZC(1) and the excuse had not ceased at the time the specified information was delivered.

(3) A notice of appeal against determination under section 100 of the Management Act (3) of a penalty under this regulation can only be on the grounds that—

(a) subject to paragraph (4), the employer is not a specified person;

(b) the employer did comply with regulation 46ZC;

(c) the amount of the penalty is incorrect; or

(d) paragraph (2) applies.

(4) Paragraph (3)(a) does not apply where following an appeal under regulation 46ZD(5) the notice was not withdrawn.

Appeals

46ZH.— (1) The following provisions of the Management Act(4) apply to an appeal under regulations 3(8), 42A(4), 42B(7) and 46ZD(5) of these Regulations as they apply to an appeal under section 31 of that Act—

(a) section 31A(5) and (6) (notice of appeal)(5);

(b) section 31B (appeals to General Commissioners);

(c) section 31D (election to bring appeal before Special Commissioners).

(2) Section 103A of the Management Act(6) (interest on penalties) applies to penalties payable under regulation 46ZG.

(3) In an appeal under regulations 3(8), 42A(6), 42B(7) and (12) and 46ZD(5), the relevant place for the purposes of paragraph 3(1)(a) of Schedule 3 to the Management Act(7) (rules for assigning proceedings to General Commissioners) is the place which at the time of the notice of appeal is —

(a) the employer’s place of business in the United Kingdom, or

(b) where the employer has no place of business, the employer’s place of residence in the United Kingdom.

(4) For the purpose of paragraph (2)—

(a) “place of business” means—

(i) the place where the trade, profession, vocation or business with which the proceedings are concerned is carried on, or

(ii) if the trade, profession, vocation or business is carried on at more than one place, the head office or place where it is mainly carried on;

(b) “place of residence” means the employer’s usual place of residence or, if that is unknown, his last known place of residence.”.

(1)

2002 c. 23.

(2)

Regulation 43 was amended by regulation 14(2) of S.I. 1998/2484 and regulation 15 of S.I. 2001/1081.

(3)

Section 100 was substituted by section 167 of the Finance Act 1989 (c. 26) and amended by paragraphs 3(2) and 5 of Schedule 11 to the Finance Act 1990 (c. 29), regulation 2 of and paragraphs 1 and 14 of Schedule 1 and Part 1 of Schedule 2 to the General and Special Commissioners (Amendment of Enactment) Regulations 1994 (S.I. 1994/1813), paragraph 38 of Schedule 19 to the Finance Act 1998 (c. 36) and section 91 of the Finance Act 2001 (c. 9).

(4)

1970 c. 9.

(5)

Sections 31A-31D were substituted by section 88 of and paragraph 11 of Schedule 29 to the Finance Act 2001(c. 9).

(6)

Section 103A was inserted by sections 196 and 199 of and paragraph 33 of Schedule 19 to the Finance Act 1994 (c. 9) and amended by section 115(8) of the Finance Act 1995 (c. 4) and paragraph 40 of Schedule 19to the Finance Act 1998 (c. 36).

(7)

Schedule 3 was substituted by paragraph 10 of Schedule 22 to the Finance Act 1996 (c. 8).