PART V PROVISIONS RELATING TO THE SCHEDULE E CHARGE

CHAPTER V ASSESSMENT, COLLECTION, RECOVERY AND APPEALS

203J S.203B to s.203I: accounting for tax.
(1) Where an employer makes a notional payment of assessable income of an employee, the obligation to deduct income tax shall have effect as an obligation on the employer to deduct income tax at such time as may be prescribed by PAYE regulations from any payment or payments he actually makes of, or on account of, such income of that employee.
(2) For the purposes of this section—
(a) a notional payment is a payment treated as made by virtue of any of sections 203B, 203C and 203F to 203I, other than a payment whose amount is determined in accordance with section 203B(3)(a) or 203C(3)(a); and
(b) any reference to an employer includes a reference to a person who is treated as making a payment by virtue of section 203C(2).
(3) Where, by reason of an insufficiency of payments actually made, the employer is unable to deduct the amount (or the full amount) of the income tax as required by virtue of subsection (1) above, the obligation to deduct income tax shall have effect as an obligation on the employer to account to the Board at such time as may be prescribed by PAYE regulations for an amount of income tax equal to the amount of income tax he is required, but is unable, to deduct.
(4) PAYE regulations may make provision—
(a) with respect to the time when any notional payment (or description of notional payment) is made;
(b) applying (with or without modifications) any specified provisions of the regulations for the time being in force in relation to deductions from actual payments to amounts accounted for in respect of any notional payments;
(c) with respect to the collection and recovery of amounts accounted for in respect of notional payments.
(5) Any amount which an employer deducts or for which he accounts as mentioned in subsections (1) and (3) above shall be treated as an amount paid by the employee in question in respect of his liability to income tax for such year of assessment as may be specified in PAYE regulations.
Ss. 203J-203L inserted (3.5.1994) by Finance Act 1994 (c. 9), s. 131

S. 203J modified (retrospectively) by Finance Act 1998 (c. 36), s. 64(6)(a)