Part 11Pay As You Earn

Chapter 5PAYE settlement agreements

705Approximations allowed in calculations

PAYE regulations may provide for a PAYE settlement agreement to allow sums which an employer is to account for—

a

to be computed, if two or more persons hold employments to which the agreement relates, by reference to a number of those persons all taken together;

b

to include sums representing income tax on an estimated amount taken to be the aggregate of the amounts of PAYE income consisting of—

i

taxable benefits provided or made available by reason of the employments to which the agreement relates, and

ii

expenses paid to the persons holding those employments; and

c

to be computed in a manner under which they do not necessarily represent an amount of income tax which would be payable (apart from the agreement) by persons holding employments to which the agreement relates.