SCHEDULE 4F3Provisions derived from the Income Tax Acts and the Income Tax (Pay As You Earn) Regulations 2003

Annotations:
Amendments (Textual)

PART I GENERAL

Interpretation1

F101

In this Schedule the “PAYE Regulations” means the Income Tax (Pay As You Earn) Regulations 2003.

2

In this Schedule, except where the context otherwise requires—

“aggregated” means aggregated and treated as a single payment under paragraph 1(1) of Schedule 1 to the Act;

“allowable pension contributions” means any sum paid by an employee by way of contribution towards a pension fund or scheme which is withheld from the payment of PAYE income and for which a deduction must be allowed from employment income under section 592(7) or 594(1) of the Taxes Act (exempt approved schemes and exempt statutory schemes);

F15“closed tax year” means any year preceding the current year and cognate expressions shall be construed accordingly;

“Compensation of Employers Regulations” means the Statutory Maternity Pay (Compensation of Employers) and Miscellaneous Amendments Regulations 1994 and the Statutory Sick Pay Percentage Threshold Order 1995

“deductions working sheet” means any form of record on or in which are to be kept the matters required by this Schedule in connection with an employee’s general earnings and earnings-related contributions or the form issued by the Inland Revenue under paragraph 31 or under regulation 35 of the PAYE Regulations (simplified deduction scheme);

“earnings-related contributions” means contributions payable under the Act by or in respect of an employed earner in respect of employed earner’s employment;

“employed earner” and “employed earner’s employment” have the same meaning as in the Act;

“employee” means any person in receipt of general earnings;

“employer” means the secondary contributor determined—

a

by section 7 of the Act;

b

under regulation 5 of, and Schedule 3 to, the Social Security (Categorisation of Earners) Regulations 1978; or

c

under regulation 122;

“general earnings has the meaning given in section 7(3) of ITEPA 2003;”;

F16...

“Inland Revenue” means any officer of the Board of Inland Revenue;

“mariner” has the same meaning as in regulation 115;

“the Reimbursement Regulations” means the Employer’s Contributions Re-imbursement Regulations 1996;

“tax month” means the period beginning on the 6th day of any calendar month and ending on the 5th day of the following calendar month;

“tax period” means a tax quarter where paragraph 11 has effect, but otherwise means a tax month;

“tax quarter” means the period beginning on 6th April and ending on 5th July, or beginning on 6th July and ending on 5th October, or beginning on 6th October and ending on 5th January, or beginning on 6th January and ending on 5th April;

“voyage period” has the same meaning as in regulation 115;

“year” means tax year;

and other expressions have the same meaning as in the Income Tax Acts.

3

For the purposes of paragraphs 7(13), 9, 10, 11 and 22, “primary Class 1 contributions” and “earnings-related contributions” shall, unless the context otherwise requires, include any amount paid on account of earnings-related contributions in accordance with the provisions of regulation 8(6).

Multiple employersF112

1

If—

a

an employer has made an election under regulation 98 of the PAYE Regulations to be treated as a different employer in respect of each group of employees specified in the election, and

b

no improper purpose notice has been given, or if one has been given it has been withdrawn,

he shall be treated as having made an identical election for the purposes of this Schedule.

2

In this paragraph an “improper purpose notice” is a notice issued to the employer stating that it appears to the Inland Revenue that the election is made wholly or mainly for an improper purpose within the meaning of regulation 99(2) of the PAYE Regulations.

Intermediate employers3

1

Where an employee works for a person who is not his immediate employer, that person shall be treated as the employer for the purpose of this Schedule, and the immediate employer shall furnish the principal employer with such particulars of the employee’s F5general earnings as may be necessary to enable the principal employer to comply with the provisions of this Schedule.

This is subject to the qualification in sub-paragraph (4).

2

In this paragraph—

  • “the principal employer” means the person specified as the relevant person in the direction referred to in sub-paragraph (4), and

  • “the immediate employer” means the person specified as the contractor in that direction.

3

If the F6employee’s general earnings are actually paid to him by the immediate employer—

a

the immediate employer shall be notified by the principal employer of the amount of earnings-related contributions which may be deducted when F7those earnings are paid to the employee, and may deduct the amount so notified to him accordingly; and

b

the principal employer may make a corresponding deduction on making to the immediate employer the payment out of which F8those earnings will be paid.

4

This paragraph only applies if a direction has been given by the Board under F9section 691 of ITEPA 2003 (PAYE: mobile UK workforce)F1.

5

Where an employee is paid a sickness payment which by virtue of regulation 23 is not made through the secondary contributor in relation to the employment—

a

the person making that payment shall furnish the secondary contributor with such particulars of that payment as may be necessary to enable the secondary contributor to comply with this Schedule; and

b

for the purposes only of this Schedule the secondary contributor shall be deemed to have made the sickness payment.

Employer’s earnings-related contributions4

If, under this Schedule, a person F14pays any earnings-related contributions which, under section 6(4) of the Act F2, another person is liable to pay, his payment of those contributions shall be made as agent for that other person.

Annotations:
Amendments (Textual)
F14

Word in sch. 4 para. 4 substituted (28.11.2002) by The Social Security (Contributions)(Amendment No. 5) Regulations 2002 (S.I. 2002/2929), regs. 1, 5

F2

This section was substituted by paragraph 2 of Part I of Schedule 9 to the Welfare Reform Act.

F12Intermediaries4A

1

Where any payment of F13general earnings of an employee is made by an intermediary of the employer, the employer shall be treated, for the purposes of this Schedule other than–

a

paragraph 7(1),

b

paragraph 7(3)(a),

c

the references to a subsequent payment of F13general earnings or of monetary earnings in paragraph 7(3) and (8), and

d

paragraph 7(11),

as making the payment of those F13general earnings to the employee.

2

For the purposes of this paragraph, a payment of F13general earnings of an employee is made by an intermediary of the employer if it is made–

a

either–

i

by a person acting on behalf of the employer and at the expense of the employer, or

ii

by a person connected with him, or

b

by trustees holding property for any persons who include, or class of persons which includes, the employee.

3

Section 839 of the Taxes Act (connected persons) applies for the purposes of this paragraph.

F4Continuation of proceedings etc.5

Any legal proceedings or administrative act authorised by or done for the purposes of this Schedule and begun by one Inland Revenue officer may be continued by another officer, and any officer may act for any division or other area.