The Income Tax (Employments) (Amendment) Regulations 1996

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend the Income Tax (Employments) Regulations 1993 (S.I. 1993/744) (“the principal Regulations”).

Apart from an amendment of a drafting nature, the amendments made by these Regulations ensure that, as from 6th April 1996, an employee taxpayer will have sufficient information to record in his self assessment return details of his emoluments (including pension emoluments) for the year and of tax deducted under PAYE in respect of those emoluments, and a claimant in respect of unemployment benefit or incapacity benefit will be able to record in his self assessment return details of the benefit paid to him and of tax deducted for the year. The amendments also abolish the requirement for an employer to notify the inspector of taxes before making a repayment exceeding £200 to an employee.

Regulation 1 provides for citation and commencement, and regulation 2 for interpretation.

Regulation 3 amends regulation 23 of the principal Regulations so that the certificate of emoluments and tax deducted given by an employer to an employee on cessation of employment (P45) contains an additional part to be retained by the taxpayer and, in cases where there has been more than one employment during the year, records separately the emoluments paid and tax deducted in respect of the latest employment.

Regulations 4(a), 6, 7(a) and 8 make consequential amendments to the principal Regulations in the light of the amendments made to regulation 23 by regulation 3 of these Regulations.

Regulation 4(b) amends regulation 25 of the principal Regulations so as to abolish the requirement for an employer to notify the inspector of taxes for authorisation to make a repayment of tax exceeding £200 to an employee. Regulation 7(b) makes a consequential amendment to regulation 34 of the principal Regulations in the light of the amendment made by regulation 4(b).

Regulation 5 amends regulation 26 of the principal Regulations so as to provide that the certificate sent by the employer to the inspector on the occasion of an employee’s retirement on pension (P160) contains details of the emoluments paid to the employee in the year to the date of retirement and the total tax deducted, and that a copy of the certificate is given to the employee.

Regulations 9(a) and (d), 11, 12(a) and 13 make similar amendments to the principal Regulations in connection with unemployment benefit as those made by regulations 3, 4(a), 6, 7(a) and 8, and regulation 14 makes similar amendments in connection with incapacity benefit.

Regulations 9(b), 10 and 12(b) amend regulations 84, 88 and 91 respectively of the principal Regulations so as to abolish the requirement for an inspector of taxes to authorise the making of a repayment of tax exceeding £200 to an unemployed person.

Regulation 9(c) makes a drafting amendment to regulation 84(7) of the principal Regulations.