The Income Tax (Sub-contractors in the Construction Industry and Employments) (Amendment) Regulations 2003

Amendment of regulation 41 of the Employments Regulations

9.  For regulation 41(3) of the Employments Regulations (circumstances in which employer may pay tax quarterly) (1) substitute—

“(3) The condition is that for income tax months falling within the current year, the average monthly amount found by the formula below will be less than £1500.

• The formula is—

  

  The expressions used in the formula have the following values.

  • S is the amount payable by the employer to the collector under sections 559 and 559A of the Taxes Act and regulation 8 of the Income Tax (Sub-contractors in the Construction Industry) Regulations 1993 during the tax month from payments made by him.

  • P is the amount which would be payable by the employer to the collector under regulation 40 if any adjustment to that amount under regulation 7(2) of the Working Tax Credit (Payments by Employers) Regulations 2002 (funding of payment of working tax credit) were disregarded.

  • N is the amount which would be payable to the collector under the Social Security Contributions and Benefits Act 1992 or, in Northern Ireland, the Social Security Contributions and Benefits (Northern Ireland) Act 1992 and (in either case) under the Social Security (Contributions) Regulations 2001 but disregarding—

    (a)

    any amount of secondary Class 1 contributions in respect of which liability has been transferred to the employed earner by an election made jointly by the employed earner and the secondary contributor for the purpose of paragraph 3B(1) of Schedule 1 to either of those Acts (transfer of liability to be borne by the earner); and

    (b)

    any adjustment to the amount so payable to the Collector under regulation 7(2) of the Working Tax Credit (Payments by Employers) Regulations 2002;

  • L is the amount which would be payable by the employer to the collector under regulation 39(1) of the Education (Student Loans) (Repayment) Regulations 2000 or of the Education (Student Loans) (Repayment) Regulations (Northern Ireland) 2000 (payment of repayments deducted to the Inland Revenue) if the reduction referred to in paragraph (3) of the respective regulation and in regulation 7(2) of the Working Tax Credit (Payment by Employers) Regulations 2002 (payment by employers) were disregarded.

  • C is the amount payable by the employer to his employees by way of tax credit under the Working Tax Credit (Payment by Employers) Regulations 2002.

  • SP is the amount which would be payable by the employer to his employees by way of statutory sick pay, statutory maternity pay, statutory paternity pay and statutory adoption pay.

  • Here references to statutory sick say, statutory maternity pay, statutory paternity pay and statutory adoption pay are references to payments of that kind under the Social Security Contributions and Benefits Act 1992 or in Northern Ireland under the Social Security Contributions and Benefits (Northern Ireland) Act 1992.

  • CD is—

    (a)

    if the employer is a company, the amount which others would deduct from payments to it, in its position as a sub-contractor, under section 559 of the Taxes Act; and

    (b)

    in any other case, nil.”.

(1)

Regulation 41 has been amended. The relevant amendments were those made by regulation 2 of S.I. 2000/1152 and regulation 3 of S.I. 2000/2742.