Explanatory Note

(This note is not part of the Regulations)

The Income Tax (Employments) Regulations 1973 (“the PAYE Regulations ”) (as amended) allow certain employers to pay deductions under Pay As You Earn ( “PAYE ”) to the Inland Revenue quarterly rather than monthly. The employers in question are those whose average monthly payments of PAYE, National Insurance Contributions ( “NIC ”) and the statutory deduction imposed by section 559 of the Income and Corporation Taxes Act 1988 on payments to sub-contractors are expected to be less than £400 in total.

Regulation 5 of these Regulations raises the amount of £400 to £450 with effect from 19th May 1992.

The opportunity has also been taken (in regulations 3 and 4 of these Regulations) to amend the definition of “income tax period ” in regulation 2(1) of the PAYE Regulations, and to amend a cross-reference in regulation 24(5) of the PAYE Regulations.