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SCHEDULE 4U.K. [F1Provisions derived from the Income Tax Acts and the Income Tax (Pay As You Earn) Regulations 2003]

Textual Amendments

PART IVU.K. ASSESSMENT AND DIRECT COLLECTION

Provisions for direct paymentU.K.

30.  In cases of employed earner’s employment, where the employer does not fulfil the conditions prescribed in regulation 145(1)(b) as to residence or presence in Great Britain or Northern Ireland or is a person who, by reason of any international treaty to which the United Kingdom is a party or of any international convention binding on the United Kingdom, is exempt from the provisions of the Act or is a person against whom, for a similar reason, the provisions of the Act are not enforceable, the provisions of paragraph 31 shall apply to the employee, unless the employer, being a person entitled to pay the primary contributions due in respect of the earnings from the said employment, is willing to pay those contributions.

[F2Application of paragraphs 31 and 31AU.K.

30A.—(1) Paragraph 31(4) to (7) does not apply on or after 6th April 2014.

(2) Paragraph 31(7A) and (7B) applies only in relation to closed tax years ending on or before 5th April 2014.

(3) Paragraph 31A applies on and after 6th April 2014.]

Textual Amendments

F2Sch. 4 para. 30A inserted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 20

Direct collection involving deductions working sheetsU.K.

31.—(1) In any case falling within paragraph 30, F3... sub-paragraphs (2) to (8) shall apply.

(2) The employee F4... shall record on [F5a working sheet] his name, national insurance number and category letter indicated by [F6HMRC], and whenever, in respect of an employment such as is specified in paragraph 30, the employee receives any F7[F8... earnings] during [F9the relevant tax year], he shall also record on that working sheet the amount of the [F8earnings], the date on which he received them, and the earnings-related contributions payable by him in respect of those [F8earnings ].

(3) Not later than the time for the payment of income tax, if any, the employee shall pay to [F6HMRC] the amount of the earnings-related contributions payable by the employee in respect of the F7[F10 ... earnings] which have been received by him and for which the income tax is or would have been payable.

[F11(3A) Before 20 May 2014 the employee must deliver to HMRC a return in the prescribed form for the tax year 2013-14 showing the following information:

(a)the total amount of the F7... earnings and earnings-related contributions payable during the tax year 2013-14,

(b)the appropriate category letter,

(c)the employee’s name and address, and

(d)the employee’s national insurance number, and

the provisions of paragraph 22(5) regarding the certification and recovery of earnings-related contributions remaining unpaid by an employer for any year shall apply in the case of any earnings-related contributions remaining unpaid by the employee.]

(4) If, by the time specified in sub-paragraph (3), the employee has paid no amount of earnings-related contributions to [F6HMRC] in respect of the F7[F12 ... earnings] mentioned in that sub-paragraph, and [F6HMRC] is unaware of the amount, if any, which the employee is liable so to pay, or if an amount has been paid but [F6HMRC] is not satisfied that it is the full amount which the employee is liable to pay to him in respect of those [F12earnings], sub-paragraph (5) applies.

(5) If this sub-paragraph applies, [F6HMRC] may give notice to the employee requiring him to render, within the time limited in the notice, a return in the prescribed form containing particulars of all F7[F13 ... earnings] received by him during the period specified in the notice and such other particulars affecting the calculations of the earnings-related contributions payable in respect of the [F13earnings] in question as may be specified in the notice, and in such a case the provisions of—

(a)paragraph 14 regarding the ascertaining and certifying by [F6HMRC] of earnings-related contributions payable by an employer, and

(b)paragraph 16 regarding the recovery of those contributions.

shall apply with the necessary modifications for the purposes of ascertaining, certifying and recovering the earnings-related contributions payable by the employee.

(6) If the employee ceases to receive F7[F14 ... earnings] falling within sub-paragraph (2), he shall immediately render to [F15[F6HMRC], in such form as they may prescribe], a return showing such particulars as they may require for the identification of the employee, the year to which the return relates, the appropriate category letter, the last date on which he received any such [F14earnings], the total of those [F14earnings] and the earnings-related contributions payable from the beginning of the year to that date.

(7) [F16Before 20th May following] the end of the year, the employee shall (unless sub-paragraph (6) has applied) render to [F17[F6HMRC], in such form as they may prescribe], a return showing such particulars as they may require for the identification of the employee, the year to which the return relates, the total of the F7[F18 ... earnings] and earnings-related contributions payable during the year, together with the appropriate category letter, and the provisions of paragraph 22(5) regarding the certification and recovery of earnings-related contributions remaining unpaid by an employer for any year shall apply in the case of any earnings-related contributions remaining unpaid by the employee.

[F19(7A) Where a liability arises to pay contributions in respect of retrospective earnings relating to a closed tax year, the [F20employee] shall render a replacement return for the closed tax year before 20th May following the end of the year in which the relevant retrospective contributions regulations came into force in accordance with sub-paragraph (7), setting out the revised earnings and earnings-related contributions.

(7B) Where sub-paragraph (7A) applies, the [F20employee] shall amend the relevant deductions working sheet or where necessary prepare one in accordance with sub-paragraph (2)]

(8) The employee shall retain deductions working sheets F21... for not less than three years after the end of the year to which they relate.

(9) [F22Section 98A of the Taxes Management Act 1970 (special penalties in the case of certain returns) and Schedule 24 to the Finance Act 2007 (penalties for errors) as that Schedule applies to income tax returns] as modified by the provisions of paragraph 7 to Schedule 1 to the Act, shall apply in relation to the requirement to make a return contained in sub-paragraphs [F23[F24(3A)] and (7A)].

Textual Amendments

F20Word in Sch. 4 para. 31(7A)(7B) substituted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 21(3)

[F25Direct collection involving deductions working sheets on and after 6th April 2014U.K.

31A.—(1) On receiving any F26... earnings which fall to be recorded on a deductions working sheet under paragraph 31(2), subject to sub-paragraph (2), an employee must proceed in accordance with paragraph 21A(1), (2) and (5).

(2) If the employee falls within paragraph 21D(1)(a), the employee may instead proceed in accordance with paragraph 21D(3), (4) and (5).

(3) For the purposes of sub-paragraph (1), paragraph 21A(8) and paragraphs 21AB, 21AC, 21AD, 21B and 21C apply as if the employee were a Real Time Information employer.

(4) For the purposes of sub-paragraph (2), paragraph 21D(9) applies as if the employee were a Real Time Information employer.

(5) For the purposes of sub-paragraphs (1) and (2), paragraphs 15, 16, 21E, 21EA and 21F(7A) and (8) and Schedule 4A apply as if the employee were a Real Time Information employer, but the information required by paragraph 10(a) and (b) of that Schedule need not be provided.]

Textual Amendments

F25Sch. 4 para. 31A inserted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 22