(This note is not part of the Regulations)
These Regulations amend the Income Tax (Employments) Regulations 1973 (“the PAYE Regulations”) in various respects. Apart from regulations 3, 4 and 7, which come into force on 13th February 1990, they come into force on 6th April 1990.
Regulation 1 provides for citation and commencement and regulation 2 contains definitions.
Regulation 3 introduces a new Regulation 2A in the PAYE Regulations. This enables employers to elect to set up separate PAYE schemes for different groups of employees. An election will be effective for the tax year after that in which it is made and for subsequent years unless revoked. Where an employer makes an election within 90 days of acquiring an undertaking from another employer, the election has effect for the tax year in which it is made and subsequent years.
Regulation 4 makes amendments to the PAYE Regulations consequent on the introduction of General Commissioners in Northern Ireland and the abolition of the right of election for the hearing of appeals in the County Court there.
Regulation 5 substitutes a new Regulation 27 of the PAYE Regulations in which the requirement for an employer to provide the Collector with the information necessary to calculate the employer’s liability is replaced by a requirement to notify liability for a specified period.
Regulation 6 makes an amendment to Regulation 27A of the PAYE Regulations which is consequent on the amendments to Regulation 30 of those Regulations made by regulation 8.
Regulation 7 makes an amendment to Regulation 29A of the PAYE Regulations (additional to that made by the Income Tax (Employments) (No. 18) Regulations 1989 (S.I. 1989/1289)) consequent on the coming into force of section 178 of the Finance Act 1989 and the Taxes (Interest Rate) Regulations 1989, which together provide a mechanism for the calculation of the prescribed interest rate referred to in that Regulation.
Regulation 8 amends Regulation 30 of the PAYE Regulations by —
(a)extending the date for submission of the employer’s end of year return from 19th April to 19th May in each year;
(b)providing that a single return is made in respect of all employees (or of all employees in the same group), that the statement, declaration and certificate accompanying the return are part of it and that the certificate shows the total net tax deductible from all employees included in the return; and
(c)applying the penalty provisions of section 98A of the Taxes Management Act 1970 to late and incorrect employers' end of year returns.
Regulation 9 amends Regulation 31 of the PAYE Regulations by —
(a)extending the date of submission of the further returns required by that Regulation from 6th May to 6th June in each year;
(b)requiring particulars of non-cash vouchers, credit-tokens and living accommodation provided for employees or members of their families to be shown on returns of employees' benefits;
(c)removing a reference to obsolete legislation relating to medical insurance benefits; and
(d)altering the reference to “director’s or higher-paid employment” in line with changes made by section 53 of the Finance Act 1989.
Regulation 10 amends Regulation 51 of the PAYE Regulations by extending the date for submission of an employee’s end of year return under the alternative direct collection procedure from 19th April to 19th May and applying the penalty provisions of section 98A of the Taxes Management Act 1970 to late and incorrect employees' end of year returns.