SCHEDULES
SCHEDULE 58Recovery of debts under PAYE regulations
PAYE regulations
1
Section 684 of ITEPA 2003 (PAYE regulations) is amended as follows.
2
In subsection (1), omit “for Her Majesty's Revenue and Customs”.
3
1
Subsection (2) is amended as follows.
2
For “PAYE regulations may, in particular, include” substitute “
The provision that may be made in PAYE regulations includes
”
.
3
In the list of provisions, in item 1, in paragraph (a), omit “for Her Majesty's Revenue and Customs”.
4
In item 2, for “or remaining unpaid (or treated as overpaid or remaining unpaid)” substitute “
(or treated as overpaid) on account of, or any amounts other than relevant debts remaining unpaid (or treated as remaining unpaid)
”
.
5
After item 2 insert—
2A
Provision—
a
for deductions to be made in respect of relevant debts of a payee,
b
as to the circumstances in which such deductions may be made, and
c
where such deductions are made, as to the date on which the relevant debts are to be treated as paid.
6
In item 3, for “income tax has been and is” substitute “
amounts have been and are
”
.
4
After subsection (3) insert—
3A
PAYE regulations under item 2A in the above list may not make provision enabling deductions totalling more than £2,000 to be made from a payee's income for a tax year without the payee's consent.
3B
The Treasury may by order amend the amount specified in subsection (3A).
5
In paragraph (a) of subsection (7A), after “tax” insert “
or other amounts
”
.
6
After that subsection insert—
7AA
In this section “relevant debt”, in relation to a payee, means—
a
a sum payable by the payee to the Commissioners under or by virtue of an enactment, other than an excluded debt, and
b
a sum payable by the payee to the Commissioners under a contract settlement.
7AB
For the purposes of subsection (7AA)—
a
child tax credit or working tax credit that the payee is liable to repay is an excluded debt, and
b
if the payee is an employer, any amount that the payee is required to deduct from the PAYE income of employees for a tax year is an excluded debt until the tax year has ended.
7
In subsection (7C), before the definition of “payer” insert—
“the Commissioners” means the Commissioners for Her Majesty's Revenue and Customs;
“contract settlement” means an agreement made in connection with the liability of the payee or another person to make a payment to the Commissioners under or by virtue of an enactment.