The Income Tax (Pay As You Earn) and the Income Tax (Construction Industry Scheme) (Amendment) Regulations 2014

7.  After regulation 69 (due date and receipts for payment of tax) insert—

“Circumstances in which payment of a lesser amount is to be treated as payment in full for the purposes of paragraph 6(2) of Schedule 56 to the Finance Act 2009

69A.— (1) A payment that is less than the full amount due under regulation 67G(2) (payments to and recoveries from HMRC for each tax period)(1), as adjusted by regulation 67H (payments due and recoveries from HMRC for each tax period: returns under regulation 67E(6))(2) where appropriate, will for the purposes of paragraph 6(2) of Schedule 56 to the Finance Act 2009 (amount of penalty: PAYE and CIS)(3) be treated as payment of the full amount if the difference between the full amount and the amount paid is no more than £100 (“the tolerance”), but this is subject to paragraphs (2) and (3).

(2) Paragraph (1) does not apply where—

(a) the payment relates to a return which is correcting information given in a return filed in respect of a relevant payment made in an earlier tax month, and

(b) the return is delivered after 19th April following the end of the tax year in question.

(3) If the total sum paid by the employer to HMRC for the tax period includes not only the amount due under regulation 67G(2), as adjusted by regulation 67H where appropriate, but also one or more of—

(a) any earnings-related contributions (as defined by regulation 1(2) of the SSC Regulations 2001(4)),

(b) any payment under regulation 7(1) of the Income Tax (Construction Industry Scheme) Regulations 2005(5), or

(c) any repayment due under the Student Loans Regulations(6),

the tolerance is applied to the total sum paid to HMRC for the tax period to which the payments relate.”.

(1)

Regulation 67G was inserted by regulation 27 of S.I. 2012/822 and amended by regulation 25 of S.I. 2013/521.

(2)

Regulation 67H was inserted by regulation 27 of S.I. 2012/822 and amended by regulation 26 of S.I. 2013/521.

(3)

Paragraph 6(2) was substituted by paragraph 6 of Schedule 11 to the Finance (No. 3) Act 2010 (c. 33) and amended by paragraph 12(3) of Schedule 50 to the Finance Act 2013.

(4)

S.I. 2001/1004. The term “SSC Regulations” and its definition were inserted into regulation 2 of S.I. 2003/2682 by regulation 3 of S.I. 2007/1077.

(5)

S.I. 2005/2045; relevant amending instruments are S.I. 2008/740 and 2012/820.

(6)

S.I. 2009/470. The term “Student Loan Regulations” and its definition were inserted into regulation 2 of S.I. 2003/2682 by regulation 3 of S.I. 2008/782 and substituted by regulation 60 of S.I. 2012/822.