The Income Tax (Employments) (Amendment) Regulations 1998

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”) so as to provide that certain information which an employer is required under the principal Regulations to send to the inspector or collector in connection with PAYE may be sent by way of electronic transmission rather than in paper form. The Regulations also provide that PAYE code authorisations may be notified to employers electronically.

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

Regulation 3 amends regulation 2 of the principal Regulations so as to define references in the principal Regulations to electronic transmission of information.

Regulation 4 amends regulation 6 of the principal Regulations so as to provide that code authorisations may be issued to employers by way of electronic transmission.

Regulations 5 and 7 to 9 amend regulations 23 and 25 to 27 of the principal Regulations so as to provide that particulars relating to cessation of employment and commencement of new employment, or retirement or death of an employee, may be transmitted electronically by an employer instead of in paper form.

Regulations 6, 8, 9, 11 to 13, and 21 to 23 make amendments to regulations 24, 26, 27, 30, 34, 37, 84, 91 and 98E of the principal Regulations in consequence of the amendments made to regulations 23 and 25 of the principal Regulations by regulations 5 and 7 of these Regulations.

Regulation 10 amends regulation 28 of the principal Regulations so as to provide that particulars to be sent to the inspector by an employer of a person in respect of whom the employer has not received a code authorisation may be transmitted electronically instead of being contained on Form P46.

Regulation 14 amends regulation 43 of the principal Regulations so as to provide that detailed particulars of emoluments paid to each employee of an employer in a year of assessment, and of tax deducted from those emoluments, may be transmitted electronically, leaving only the total amount of emoluments paid and of tax deducted to be entered on the paper return (Form P35).

Regulation 15 amends regulation 46 of the principal Regulations so as to provide that details of expenses paid and benefits provided to employees may be transmitted by the employer to the inspector electronically instead of being contained on Form P11D, but that in either case the employer must furnish the inspector with a declaration to the effect that the details provided by him under regulation 46 are correct and complete.

Regulations 16 and 17 make consequential amendments to regulations 46AA and 46AB of the principal Regulations (information to be provided to employee) as a result of the amendment to regulation 46 made by regulation 15 of these Regulations.

Regulation 18 amends regulation 46A of the principal Regulations (inserted by S.I. 1994/775) so as to provide that details required to be sent by an employer to the inspector under that regulation in connection with the provision of a car for an employee may be transmitted electronically instead of being contained on Form P46(Car).

Regulation 19 makes a consequential amendment to regulation 55 of the principal Regulations (inspection of employer’s records) as a result of the amendment to regulation 46 made by regulation 15 of these Regulations.

Regulation 20 makes a consequential amendment to regulation 80A of the principal Regulations (inserted by S.I. 1996/2631) (PAYE settlement agreements) as a result of the amendment to regulation 46 made by regulation 15 of these Regulations.