The Income Tax (Pay As You Earn) Regulations 2003

PART 10 U.K.COMMUNICATIONS U.K.

CHAPTER 1 U.K. ELECTRONIC COMMUNICATIONS: INTERPRETATION

Meaning of electronic communications etc U.K.

189.  In these Regulations—

“approved method of electronic communications”, in relation to the delivery of information or the making of a payment in accordance with a provision of these Regulations, means a method of electronic communications which has been approved, by specific or general directions issued by the Board of Inland Revenue, for the delivery of information of that kind or the making of a payment of that kind under that provision;

“electronic communications” has the meaning given in section 132(10) of the Finance Act 1999(1);

“official computer system” means a computer system maintained by or on behalf of the Board of Inland Revenue or an officer of the Board.

Commencement Information

I1 Reg. 189 in force at 6.4.2004, see reg. 1

Specified date U.K.

190.—(1) For the purposes of Chapters 3 and 4, the Board of Inland Revenue may announce each tax year a date (“the specified date”) for the following tax year.

(2) Any announcement must be made by means of a direction no later than 30th November in a tax year.

(3) The specified date for a tax year applies in respect of specified payments due to be made in respect of that year and specified information required to be delivered in respect of that year.

Commencement Information

I2 Reg. 190 in force at 6.4.2004, see reg. 1

Large and medium sized employers U.K.

191.—(1) “Large employer” means an employer treated as paying PAYE income to 250 or more employees at the specified date.

(2) “Large or medium sized employer” means an employer treated as paying PAYE income to 50 or more employees at the specified date.

(3) An employer is treated as paying PAYE income to an employee at the specified date if the employer—

(a) is required at that date by these Regulations F1 ... to prepare or maintain a deductions working sheet in respect of the employee, and

(b) has not sent to the Inland Revenue Part 1 of Form P45 in respect of that employee.

Textual Amendments

F1 Words in reg. 191(3)(a) omitted (6.4.2006) by virtue of The Income Tax (Pay As You Earn, etc.), (Amendment) Regulations 2006 (S.I. 2006/777), regs. 1(1), 4

Commencement Information

I3 Reg. 191 in force at 6.4.2004, see reg. 1

CHAPTER 2 U.K. ELECTRONIC COMMUNICATIONS: GENERAL

Whether information has been delivered electronically U.K.

192.  For the purpose of these Regulations, information is taken to have been delivered to an official computer system by an approved method of electronic communications only if it is accepted by that official computer system.

Commencement Information

I4 Reg. 192 in force at 6.4.2004, see reg. 1

Proof of content of electronic delivery U.K.

193.—(1) A document certified by the Inland Revenue to be a printed-out version of any information delivered by an approved method of electronic communications is evidence, unless the contrary is proved, that the information—

(a) was delivered by an approved method of electronic communications on that occasion, and

(b) constitutes everything which was delivered on that occasion.

(2) A document which purports to be a certificate given in accordance with paragraph (1) is presumed to be such a certificate unless the contrary is proved.

Commencement Information

I5 Reg. 193 in force at 6.4.2004, see reg. 1

Proof of identity of person sending or receiving electronic delivery U.K.

194.  The identity of—

(a) the person sending any information delivered by an approved method of electronic communications to the Inland Revenue, or

(b) the person receiving any information delivered by an approved method of electronic communications by the Inland Revenue,

is presumed, unless the contrary is proved, to be the person recorded as such on an official computer system.

Commencement Information

I6 Reg. 194 in force at 6.4.2004, see reg. 1

Information sent electronically on behalf of a person U.K.

195.—(1) Any information delivered by an approved method of electronic communications—

(a) to the Inland Revenue, or

(b) to an official computer system,

on behalf of a person is taken to have been delivered by that person.

(2) But this does not apply if the person proves that the information was delivered without the person’s knowledge or connivance.

Commencement Information

I7 Reg. 195 in force at 6.4.2004, see reg. 1

Proof of delivery of information sent electronically U.K.

196.—(1) The use of an approved method of electronic communications is presumed, unless the contrary is proved, to have resulted in the delivery of information—

(a) to the Inland Revenue, if the delivery of the information has been recorded on an official computer system;

(b) by the Inland Revenue, if the despatch of the information has been recorded on an official computer system.

(2) The use of an approved method of electronic communications is presumed, unless the contrary is proved, not to have resulted in the delivery of information—

(a) to the Inland Revenue, if the delivery of the information has not been recorded on an official computer system;

(b) by the Inland Revenue, if the despatch of the information has not been recorded on an official computer system.

(3) The time of receipt or despatch of any information delivered by an approved method of electronic communications is presumed, unless the contrary is proved, to be the time recorded on an official computer system.

Commencement Information

I8 Reg. 196 in force at 6.4.2004, see reg. 1

Proof of payment sent electronically U.K.

197.—(1) The use of a method of electronic communications is presumed, unless the contrary is proved, to have resulted in the making of a payment—

(a) to the Inland Revenue, if the making of the payment has been recorded on an official computer system;

(b) by the Inland Revenue, if the despatch of the payment has been recorded on an official computer system.

(2) The use of a method of electronic communications is presumed, unless the contrary is proved, not to have resulted in the making of a payment—

(a) to the Inland Revenue, if the making of the payment has not been recorded on an official computer system;

(b) by the Inland Revenue, if the despatch of the payment has not been recorded on an official computer system.

(3) The time of receipt or despatch of any payment sent by a method of electronic communications is presumed, unless the contrary is proved, to be the time recorded on an official computer system.

(4) In this regulation, “the Inland Revenue” means the Board of Inland Revenue or any officer of the Board.

Commencement Information

I9 Reg. 197 in force at 6.4.2004, see reg. 1

Use of unauthorised method of electronic communications U.K.

198.—(1) This regulation applies to information which is required to be delivered to the Board of Inland Revenue or to the Inland Revenue under a provision of these Regulations.

(2) The use of a method of electronic communications for the purpose of delivering such information is conclusively presumed not to have resulted in the delivery of that information, unless that method of electronic communications is for the time being approved for delivery of information of that kind under that provision.

Commencement Information

I10 Reg. 198 in force at 6.4.2004, see reg. 1

CHAPTER 3 U.K. ELECTRONIC PAYMENT BY LARGE EMPLOYERS

Large employers required to make specified payments electronically U.K.

199.—(1) A large employer to whom an e-payment notice in respect of a tax year has been issued must use an approved method of electronic communications to make specified payments.

(2) “Specified payments”, in this Chapter, means payments of tax under regulation 68 (periodic payments to and recoveries from the Revenue) in respect of tax months in the tax year to which the e-payment notice relates.

(3) The Board of Inland Revenue may give specific or general directions—

(a) suspending, for any period during which the use of an approved method of electronic communications for the making of specified payments is impossible or impractical, any requirement imposed by these Regulations relating to the use of such methods,

(b) substituting alternative requirements for the suspended ones, and

(c) making any provision that is necessary in consequence of the imposition of the substituted requirements.

[F2 (4) This regulation does not apply to a payment of tax in respect of retrospective employment income for a closed year.]

Textual Amendments

F2 Reg. 199(4) added (6.4.2007) by The Income Tax (Pay as You Earn) (Amendment) Regulations 2007 (S.I. 2007/1077), regs. 1, 17

Commencement Information

I11 Reg. 199 in force at 6.4.2004, see reg. 1

E-payment notices and appeal U.K.

200.—(1) “E-payment notice” means a notice issued by the Inland Revenue in respect of a tax year that the employer is a large employer and accordingly is required to use an approved method of electronic communications for the making of specified payments.

(2) An e-payment notice in respect of a tax year must be issued by 31st December following the specified date for that tax year.

(3) An employer may appeal against an e-payment notice by giving notice to the Inland Revenue within 30 days of the issue of the e-payment notice.

(4) The grounds of appeal are that the employer is not a large employer.

(5) If the appeal is successful the e-payment notice must be withdrawn.

(6) Regulation 217 (appeals: supplementary provisions) applies to appeals under this regulation.

Commencement Information

I12 Reg. 200 in force at 6.4.2004, see reg. 1

Employer in default if specified payment not received by applicable due date U.K.

201.—(1) This regulation applies if an employer is required to make a specified payment by an approved method of electronic communications in accordance with regulation 199.

(2) The employer is in default if the specified payment is not received in full by the Inland Revenue (whether by an approved method of electronic communications or otherwise) on or before the date by which that payment is required in accordance with regulation 69 (due date for payments of tax).

(3) But the employer is not in default if—

(a) the employer had a reasonable excuse for failing to make the specified payment in a manner which secures that it is received in full by the Inland Revenue on or before the applicable due date, and

(b) the specified payment is received in full by the Inland Revenue without unreasonable delay after the excuse ceased.

(4) Inability to pay is not a reasonable excuse for the purposes of paragraph (3)(a).

(5) A payment is not treated as received in full by the Inland Revenue on or before the date by which that payment is required in accordance with regulation 69 unless it is made in a manner which secures (in a case where the payment is made otherwise than in cash) that, on or before that date, all transactions can be completed which need to be completed before the whole amount of the payment becomes available to the Inland Revenue.

Commencement Information

I13 Reg. 201 in force at 6.4.2004, see reg. 1

Default notice and appeal U.K.

202.—(1) The Inland Revenue must issue a default notice to any person who appears to be in default under regulation 201 in respect of a specified payment.

(2) A person may appeal against a default notice by giving notice to the Inland Revenue within 30 days of the issue of the default notice.

(3) The grounds of appeal are—

(a) that the person is not in default, or

(b) that the person is not a large employer, subject to paragraph (5).

(4) If the appeal is successful the default notice must be withdrawn.

(5) Paragraph (3)(b) does not apply if, following an appeal under regulation 200, the e-payment notice was not withdrawn.

(6) Regulation 217 (appeals: supplementary provisions) applies to appeals under this regulation.

Modifications etc. (not altering text)

C1 Reg. 202 applied (with modifications) (6.4.2009) by The Education (Student Loans) (Repayment) Regulations 2009 (S.I. 2009/470), regs. 1(1), 70(1)(a) (with reg. 1(6))

Commencement Information

I14 Reg. 202 in force at 6.4.2004, see reg. 1

Default surcharge U.K.

203.—(1) An employer in default in respect of any specified payment to whom—

(a) a default notice under regulation 202, and

(b) a surcharge notice under regulation 204,

have been issued, is liable to a surcharge.

(2) The surcharge is the sum of the surcharges, calculated in accordance with paragraph (3), in respect of each default relating to the tax year in which were made the relevant payments to which the specified payment referred to in paragraph (1) relates.

(3) The surcharge in respect of each default is the specified percentage of (A − B).

(4) In paragraph (3)—

(a) A is the total amount of tax due for the tax year in which the relevant payments to which the specified payment relates were made;

(b) B is the total of the amounts deducted from A under—

F3 (i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ii) regulations 4, 5 and 6 of the Statutory Maternity Pay (Compensation of Employers) and Miscellaneous Amendment Regulations 1994(2),

(iii) regulations 3 and 5 of the Statutory Paternity Pay and Statutory Adoption Pay (Administration) Regulations 2002(3), and

(iv) regulation 44B of the Income Tax (Sub-contractors in the Construction Industry) Regulations 1993(4);

(c) the specified percentage is determined by reference to the number of the default during a surcharge period in accordance with Table 8.

Table 8

Specified percentage for each default in a surcharge period

1. Default number (within a surcharge period)	2. Specified percentage
1st	0%
2nd	0%
3rd	0.17%
4th	0.17%
5th	0.17%
6th	0.33%
7th	0.33%
8th	0.33%
9th	0.58%
10th	0.58%
11th	0.58%
12th and subsequent defaults	0.83%

(5) A surcharge period is a period which—

(a) begins on the day following the date by which payment is required in accordance with regulation 69 for the first specified payment in respect of which the employer is in default, and

(b) ends at the end of a tax year in relation to which the employer has not been in default in respect of any specified payment.

(6) A surcharge payable under this regulation is payable 30 days after the issue of the surcharge notice.

(7) Section 102 of TMA(5) (mitigation of penalties) applies to a surcharge payable under this regulation as if it were a penalty.

[F4 (8) Section 108 of the Finance Act 2009 (suspension of penalties during currency of agreement for deferred payment) applies to a surcharge payable under this regulation with the following modifications—

(a) in the Table in subsection (5), insert at the end—

“Specified payments within the meaning of regulation 199 of the Income Tax (Pay As You Earn) Regulations 2003

Surcharge under regulation 203 of the Income Tax (Pay As You Earn) Regulations 2003.”

, and

(b) omit subsections (7), (8), (9) and (11).]

Textual Amendments

F3 Reg. 203(4)(b)(i) omitted (6.4.2006) by virtue of The Income Tax (Pay As You Earn, etc.), (Amendment) Regulations 2006 (S.I. 2006/777), regs. 1(1), 5

F4 Reg. 203(8) inserted (with effect in relation to deferred payment agreements made on or after 13.8.3009) by The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2009 (S.I. 2009/2029), regs. 1(3), 4

Modifications etc. (not altering text)

C2 Reg. 203 applied (with modifications) (6.4.2009) by The Education (Student Loans) (Repayment) Regulations 2009 (S.I. 2009/470), regs. 1(1), 70(1)(b) (with reg. 1(6))

Commencement Information

I15 Reg. 203 in force at 6.4.2004, see reg. 1

Surcharge notice and appeal U.K.

204.—(1) The Inland Revenue must issue a surcharge notice to an employer who has been in default on three or more occasions during a surcharge period and consequently will be liable to a surcharge under regulation 203.

(2) The surcharge notice must show the total surcharge liability for the tax year.

(3) The surcharge notice must be issued within 6 years of—

(a) the end of the tax year, or

(b) if earlier, the date on which the employer delivered a return in accordance with regulation 73 (annual return of relevant payments liable to deduction of tax (Forms P35 and P14)).

(4) An employer may appeal against a surcharge notice by giving notice to the Inland Revenue within 30 days of the issue of the surcharge notice.

(5) The grounds of appeal are—

(a) that the number of defaults stated in the notice is incorrect, or

(b) that the amount of the surcharge is incorrect.

(6) But paragraph (5)(a) does not apply in respect of a disputed default which has already been the subject of an appeal under regulation 202, following which the default notice was not withdrawn.

(7) Parts 4, 5 and 6 of TMA (assessment, appeals, collection and recovery) apply to the surcharge notice as if it were an assessment and the amount of the surcharge was tax charged by the assessment, subject to paragraphs (4), (5) and (8).

(8) On an appeal section 50(6) to (8) of TMA (procedure) do not apply, but the [F5 tribunal] may—

(a) if it appears F6 ... that no surcharge has been incurred, set the surcharge notice aside,

(b) if the amount of the total surcharge liability appears F7 ... to be correct, confirm the surcharge notice, or

(c) if the amount of the total surcharge liability appears F8 ...to be incorrect, increase or reduce it to the correct amount.

(9) Regulation 217(3) (appeals: supplementary provisions) applies to appeals under this regulation.

Textual Amendments

F5 Word in reg. 204(8) substituted (1.4.2009) by The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 1(2), Sch. 2 para. 110(2)

F6 Words in reg. 204(8)(a) omitted (1.4.2009) by virtue of The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 1(2), Sch. 2 para. 110(3)

F7 Words in reg. 204(8)(b) omitted (1.4.2009) by virtue of The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 1(2), Sch. 2 para. 110(3)

F8 Words in reg. 204(8)(c) omitted (1.4.2009) by virtue of The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 1(2), Sch. 2 para. 110(3)

Commencement Information

I16 Reg. 204 in force at 6.4.2004, see reg. 1

CHAPTER 4 U.K. MANDATORY USE OF ELECTRONIC COMMUNICATIONS

[F9 Mandatory use of electronic communication for delivering specified information U.K.

205.   An employer (as to which see regulation 206) must deliver a relevant annual return by an approved method of electronic communications to HMRC.

Textual Amendments

F9 Regs. 205-205B substituted for reg. 205 (13.8. 2009 with effect in relation to the tax year 2009-10 and subsequent tax years) by The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2009 (S.I. 2009/2029), regs. 1(2)(4), 5 (with reg. 1(5)(6))

Mandatory use of electronic communication for delivering specified information U.K.

205A.   A specified employer (as to which see regulation 206) must deliver specified information by an approved method of electronic communications to HMRC.

Textual Amendments

F9 Regs. 205-205B substituted for reg. 205 (13.8. 2009 with effect in relation to the tax year 2009-10 and subsequent tax years) by The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2009 (S.I. 2009/2029), regs. 1(2)(4), 5 (with reg. 1(5)(6))

General provisions relating to this Chapter U.K.

205B.— (1) The Commissioners for Her Majesty’s Revenue and Customs may make a general or specific direction requiring an employer or a specified employer to deliver any relevant annual return or specified information by a particular approved method of electronic communications.

(2) Any relevant annual return or specified information may be delivered by a person on behalf of an employer or a specified employer.

(3) Regulations 205 and 205A do not apply to any relevant annual return or specified information which relates to payments of tax due under a retrospective tax provision for a closed year.

(4) References in this Chapter to information and to the delivery of information must be construed in accordance with section 135(8) of the Finance Act 2002 (mandatory e-filing).]

Textual Amendments

F9 Regs. 205-205B substituted for reg. 205 (13.8. 2009 with effect in relation to the tax year 2009-10 and subsequent tax years) by The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2009 (S.I. 2009/2029), regs. 1(2)(4), 5 (with reg. 1(5)(6))

[F10 Employers and specified employers] U.K.

206.—(1) In this Chapter, “specified employer” means—

(a) a large employer, or

(b) a large or medium sized employer,

to whom an e-filing notice for a tax year has been issued by 31st December following the specified date for the tax year.

[F11 (2) The following are not specified employers and, for the purposes of this Chapter, shall not be regarded as employers—

(a) an individual who is a practising member of a religious society or order whose beliefs are incompatible with the use of electronic communications;

(b) a partnership, if all the partners fall within sub-paragraph (a);

(c) a company, if all the directors and company secretary fall within sub-paragraph (a);

(d) an employer who is authorised by HMRC to deduct tax from relevant payments made to employees in accordance with regulation 34 (simplified deduction scheme for personal employees) and who has not received an incentive payment; and

(e) a care and support employer.]

(3) In paragraph (2)(c), “company” means a body corporate or unincorporated association but does not include a partnership.

[F12 (4) In paragraph (2)(e), “a care and support employer” means an individual (“the employer”) who employs a person to provide domestic or personal services at or from the employer’s home where—

(a) the services are provided to the employer or a member of the employer’s family;

(b) the recipient of the services has a physical or mental disability, or is elderly or infirm;

(c) the employer has not received an incentive payment in respect of any of the last 3 tax years; and

(d) it is the employer who delivers the relevant annual return (and not some other person on the employer’s behalf).

(5) In this regulation an “incentive payment” means an incentive payment received under the Income Tax (Incentive Payments for Voluntary Electronic Communication of PAYE Returns) Regulations 2003.]

Textual Amendments

F10 Reg. 206 heading substituted (13.8. 2009 with effect in relation to the tax year 2009-10 and subsequent tax years) by The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2009 (S.I. 2009/2029), regs. 1(2)(4), 6 (with reg. 1(5)(6))

F11 Reg. 206(2) substituted (13.8. 2009 with effect in relation to the tax year 2009-10 and subsequent tax years) by The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2009 (S.I. 2009/2029), regs. 1(2)(4), 7(a) (with reg. 1(5)(6))

F12 Reg. 206(4)(5) inserted (13.8. 2009 with effect in relation to the tax year 2009-10 and subsequent tax years) by The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2009 (S.I. 2009/2029), regs. 1(2)(4), 7(b) (with reg. 1(5)(6))

Commencement Information

I17 Reg. 206 in force at 6.4.2004, see reg. 1

[F13 Relevant annual return U.K.

206A.— (1) In this Chapter “relevant annual return” means the return and accompanying information required by regulation 73 (annual return of relevant payments liable to deduction of tax (Forms P35 and P14)).

(2) But relevant annual return does not include information supplied under special arrangements for the collection of tax made under regulation 141 (direct collection and special arrangements).]

Textual Amendments

F13 Reg. 206A inserted (13.8. 2009 with effect in relation to the tax year 2009-10 and subsequent tax years) by The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2009 (S.I. 2009/2029), regs. 1(2)(4), 8 (with reg. 1(5)(6))

Specified information U.K.

207.— [F14 (1) In this Chapter, “specified information” means—

(a) Part 1 of Form P45;

(b) Part 3 of Form P45;

(c) Form P46;

(d) Form P46(Pen);

F15 (e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

(2) But specified information does not include information supplied under special arrangements for the collection of tax made under regulation 141 (direct collection and special arrangements).

Textual Amendments

F14 Reg. 207(1) substituted (6.4.2009) by The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2007 (S.I. 2007/2969), regs. 1(3), 19

F15 Reg. 207(1)(e) omitted (13.8. 2009 with effect in relation to the tax year 2009-10 and subsequent tax years) by virtue of The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2009 (S.I. 2009/2029), regs. 1(2)(4), 9 (with reg. 1(5)(6))

Commencement Information

I18 Reg. 207 in force at 6.4.2004, see reg. 1

E-filing notice and appeals U.K.

208.—(1) In this Chapter, “e-filing notice” means a notice issued by [F16 HMRC] in respect of a tax year that an employer—

(a) is a large or a large or medium sized employer, and

(b) does not fall within regulation 206(2) F17 ...,

and accordingly is required to use an approved method of electronic communications for the delivery of specified information for the tax year.

(2) An employer may appeal against an e-filing notice by notice to [F16 HMRC] within 30 days of the issue of the e-filing notice.

(3) The grounds of appeal are that the employer does not satisfy the description specified.

(4) If an appeal is successful the e-filing notice must be withdrawn.

(5) Regulation 217 (appeals: supplementary provisions) applies to appeals under this regulation.

Textual Amendments

F16 Word in reg. 208 substituted (13.8. 2009 with effect in relation to the tax year 2009-10 and subsequent tax years) by The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2009 (S.I. 2009/2029), regs. 1(2)(4), 10(a) (with reg. 1(5)(6))

F17 Words in reg. 208(1)(b) omitted (13.8. 2009 with effect in relation to the tax year 2009-10 and subsequent tax years) by virtue of The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2009 (S.I. 2009/2029), regs. 1(2)(4), 10(b) (with reg. 1(5)(6))

Commencement Information

I19 Reg. 208 in force at 6.4.2004, see reg. 1

Standards of accuracy and completeness U.K.

[F18 209.— (1) Any relevant annual return or specified information delivered by a method of electronic communications must meet the standards of accuracy and completeness set by specific or general directions given by the Commissioners for Her Majesty’s Revenue and Customs.

(2) Any relevant annual return or specified information which fails to meet those standards must be treated as not having been delivered.]

Textual Amendments

F18 Reg. 209 substituted (13.8. 2009 with effect in relation to the tax year 2009-10 and subsequent tax years) by The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2009 (S.I. 2009/2029), regs. 1(2)(4), 11 (with reg. 1(5)(6))

[F19 [F20 Penalty for failing to deliver relevant annual returns and specified information] U.K.

210.— [F21 (A1) An employer who fails to deliver a relevant annual return or any part of it in accordance with regulation 205 is liable to a penalty.]

(1) A specified employer who fails to deliver specified information or any part of it in accordance with regulation [F22 205A] is liable to a penalty.

[F23 (2) Where paragraph (A1) applies the penalty must be determined in accordance with regulation 210A.]

(3) The penalty must be determined in accordance with regulation 210B in all other cases.

(4) Regulation 210C applies irrespective of how the penalty falls to be determined.

Textual Amendments

F19 Regs. 210-210C substituted for reg. 210 (6.4.2009) by The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2007 (S.I. 2007/2969), regs. 1(3), 20

F20 Reg. 210 heading substituted (13.8. 2009 with effect in relation to the tax year 2009-10 and subsequent tax years) by The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2009 (S.I. 2009/2029), regs. 1(2)(4), 12 (with reg. 1(5)(6))

F21 Reg. 210(A1) inserted (13.8. 2009 with effect in relation to the tax year 2009-10 and subsequent tax years) by The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2009 (S.I. 2009/2029), regs. 1(2)(4), 13(a) (with reg. 1(5)(6))

F22 Word in reg. 210(1) substituted (13.8. 2009 with effect in relation to the tax year 2009-10 and subsequent tax years) by The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2009 (S.I. 2009/2029), regs. 1(2)(4), 13(b) (with reg. 1(5)(6))

F23 Reg. 210(2) substituted (13.8. 2009 with effect in relation to the tax year 2009-10 and subsequent tax years) by The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2009 (S.I. 2009/2029), regs. 1(2)(4), 13(c) (with reg. 1(5)(6))

Modifications etc. (not altering text)

C3 Reg. 210 applied (with modifications) (6.4.2009) by The Education (Student Loans) (Repayment) Regulations 2009 (S.I. 2009/470), regs. 1(1), 70(1)(c) (with reg. 1(6))

[F24 Penalty: relevant annual return for the tax year ending 5th April 2010 U.K.

210A.   Table 9 sets out the penalty for the tax year ending 5th April 2010, depending on the number of employees for whom particulars should have been included with the relevant annual return.

Table 9

Penalties: tax year ending 5th April 2010

1 Number of employees for whom particulars should have been included with the relevant annual return	2 Penalty
1-5 6-49 50-249 250-399 400-499 500-599 600-699 700-799 800-899 900-999 1000 or more	0 £100 £600 £900 £1200 £1500 £1800 £2100 £2400 £2700 £3000

Textual Amendments

F19 Regs. 210-210C substituted for reg. 210 (6.4.2009) by The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2007 (S.I. 2007/2969), regs. 1(3), 20

F24 Regs. 210A, 201AA substituted for reg. 210A (13.8. 2009 with effect in relation to the tax year 2009-10 and subsequent tax years) by The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2009 (S.I. 2009/2029), regs. 1(2)(4), 14 (with reg. 1(5)(6))

Penalty: relevant annual return for the tax year ending 5th April 2011 and subsequent years U.K.

210AA.   Table 9ZA sets out the penalty for the tax year ending 5th April 2011 and subsequent years, depending on the number of employees for whom particulars should have been included with the relevant annual return.

Table 9ZA

Penalties: tax years ending 5th April 2011 and subsequent years

1 Number of employees for whom particulars should have been included with the relevant annual return	2 Penalty
1-5 6-49 50-249 250-399 400-499 500-599 600-699 700-799 800-899 900-999 1000 or more	£100 £300 £600 £900 £1200 £1500 £1800 £2100 £2400 £2700 £3000]

Textual Amendments

F19 Regs. 210-210C substituted for reg. 210 (6.4.2009) by The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2007 (S.I. 2007/2969), regs. 1(3), 20

F24 Regs. 210A, 201AA substituted for reg. 210A (13.8. 2009 with effect in relation to the tax year 2009-10 and subsequent tax years) by The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2009 (S.I. 2009/2029), regs. 1(2)(4), 14 (with reg. 1(5)(6))

Penalty: Form P45 (Part 1 or Part 3), P46 or P46(Pen) U.K.

210B.— (1) This regulation applies for the tax quarter ending on 5th April 2010 and the tax year ending on 5th April 2011 (the “relevant period”).

(2) Table 9A sets out the penalties for the relevant period depending on the number of items of specified information the employer has failed to deliver in each tax quarter falling within that period.

Table 9A

Penalties: tax quarter ending 5th April 2010 and tax year ending 5th April 2011

1. Number of items of specified information the employer has failed to deliver in the tax quarter	2. Penalty
1 – 5	Nil
6 – 49	£100
50 – 149	£300
150 – 299	£600
300 – 399	£900
400 - 499	£1,200
500 – 599	£1,500
600 - 699	£1,800
700 – 799	£2,100
800 – 899	£2,400
900 – 999	£2,700
1000 or more	£3,000

(3) Each of the types of specified information mentioned in sub-paragraphs (a) to (d) of regulation 207(1) counts as a separate item of specified information for this purpose.

(4) An item of specified information counts even if it relates to the same employee as one or more other items.

Textual Amendments

F19 Regs. 210-210C substituted for reg. 210 (6.4.2009) by The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2007 (S.I. 2007/2969), regs. 1(3), 20

Appeals and interest U.K.

210C.— (1) An employer is not liable to a penalty if the employer had a reasonable excuse for failing to comply with regulation 205 [F25 or regulation 205A] which had not ceased at the time the [F26 relevant annual return or] specified information was delivered.

(2) A notice of appeal against a determination under section 100 of TMA of a penalty can only be on the grounds that—

(a) the employer is not a specified employer, subject to paragraph (3),

[F27 (aa) the employer is not regarded as an employer the purposes of this Chapter]

(b) the employer did comply with regulation 205 [F28 or regulation 205A],

(c) the amount of the penalty is incorrect, or

(d) paragraph (1) applies.

(3) An employer may not appeal on the grounds that the employer is not a specified employer if the employer has already appealed under regulation 208(2) (appeal against e-filing notice).

(4) Section 103A of TMA (interest on penalties) applies to this penalty.]

Textual Amendments

F19 Regs. 210-210C substituted for reg. 210 (6.4.2009) by The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2007 (S.I. 2007/2969), regs. 1(3), 20

F25 Words in reg. 210C(1) inserted (13.8. 2009 with effect in relation to the tax year 2009-10 and subsequent tax years) by The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2009 (S.I. 2009/2029), regs. 1(2)(4), 15(a)(i) (with reg. 1(5)(6))

F26 Words in reg. 210C(1) inserted (13.8. 2009 with effect in relation to the tax year 2009-10 and subsequent tax years) by The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2009 (S.I. 2009/2029), regs. 1(2)(4), 15(a)(ii) (with reg. 1(5)(6))

F27 Reg. 210C(2)(aa) inserted (13.8. 2009 with effect in relation to the tax year 2009-10 and subsequent tax years) by The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2009 (S.I. 2009/2029), regs. 1(2)(4), 15(b)(i) (with reg. 1(5)(6))

F28 Words in reg. 210C(2)(b) inserted (13.8. 2009 with effect in relation to the tax year 2009-10 and subsequent tax years) by The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2009 (S.I. 2009/2029), regs. 1(2)(4), 15(b)(ii) (with reg. 1(5)(6))

CHAPTER 5 U.K. METHODS OF PROVIDING INFORMATION ETC

How information must or may be delivered by employers U.K.

211.—(1) Table 10 applies to determine how employers must or may comply with the requirements of the regulations listed in column 1.

(2) The requirements of the regulation must be complied with in a document or format provided or approved by the Board of Inland Revenue if so indicated in column 4.

(3) Where appropriate, the relevant form number is listed in column 3.

(4) Instead of sending a document to the Inland Revenue, the requirements of the regulation may be complied with by an employer arranging for the information it would contain to be delivered to the Inland Revenue by an approved method of electronic communications if so indicated in column 5.

Table 10

Regulations which require approved document or format, and which permit electronic delivery

1.	2.	3.	4.	5.
Regulation	Description of information	Form number	Approved document or format	Electronic communications
35(3), (4), (5)(a)	simplified deduction scheme: deductions working sheet	Form P12	yes	yes
35(5)(b)	simplified deductions scheme: annual return of deductions working sheets	Form P37	yes	yes
36(1), (2)(a)	cessation of employment	Form P45, Part 1	yes	yes
36(1), (2)(b)	cessation of employment	Form P45, Parts 1A, 2, 3	yes	no
38(1)	death of employee	Form P45, Part 1	yes	yes
39(1)	death of pensioner	Form P45, Part 1	yes	yes
42(8)	procedure if new employer receives Form P45	Form P45, Part 3	yes	yes
46(4), 47(2)(a) 48(2)(a) 49(2)(a)	information to be provided if code not known	Form P46	yes	yes
52(3)	late presentation of Form P45	Form P45, Part 3	yes	yes
[F29 55(3)(a)	information on retirement	P46(Pen)	yes	yes]
56(3)	procedure if new pension payer receives Form P45	Form P45, Part 3	yes	yes
57(2)	information to be provided if code not known (non-UK resident pensioners)	[F30 Form P46(Pen)]	yes	yes
58(3)	information to be provided if code not known (UK resident pensioners)	[F30 Form P46(Pen)]	yes	yes
60(3)	late presentation of Form P45	Form P45, Part 3	yes	yes
67(1)	information to employees about payments and tax deducted	Form P60	yes	no
73	annual return of relevant payments liable to deduction of tax	Forms P35 and P14	yes	yes
[F31 73A	annual return of relevant payments by virtue of a retrospective tax provision	Form P35 (RL	yes	no]
74	annual return of relevant payments not liable to deduction of tax	Form P38A	yes	yes
77(4)	return of tax for which employer is liable under regulation 68	Form P100	yes	no
85(1)(a)	employers: annual return of other PAYE income	Form P9D	yes	no
85(1)(a) and (b)	employers: annual return of other PAYE income: benefits code employee	Form P11D	yes	yes
85(2)	employers: annual return of other PAYE income: declaration	Form P11D(b)	yes	yes
90(2)	quarterly return of cars becoming available or unavailable	Form P46 (car)	yes	yes
129(1)	reserve forces' pay: certificate of tax deducted	Form P59	yes	no
132(1)	reserve forces' pay: end of year certificate	Form P60	yes	no
137(1)	holiday pay funds: certificate of tax deducted	Form P403	yes	no
152(2)	deductions working sheet for claimants awarded taxable JSA	Form PB8	yes	no
153(9)	Department’s return for claimant who delivers Form P45	Forms PB3 and P45 Part 3	yes	no
154(2)	Department’s return for claimant who does not deliver Form P45	Form PB3	yes	no
157(2)(b)	claimant’s end of year certificate	Form P60U	yes	no
157(2)(c)	Department’s end of year return	Form P14U	yes	no
159(2)	cessation of award of JSA	Form P45U	yes	no
160(2)(b)	Department’s notification of taxable JSA adjustment	Form P180	yes	no
164(2)	Department’s quarterly statement to Board of receipts and payments in respect of taxable JSA	–	yes	no
[F32 184D	deductions working sheet for claimants awarded taxable ESA	Form PB8	yes	no
184E(9)	Department’s return for claimant who delivers form P45	Forms PB8 and P45 Part 3	yes	yes
184(G)(1)	Department’s return for claimant who does not deliver form P45	Form PB3	yes	yes
184I(2)(b)	claimant’s end of year certificate	Form P60ESA	yes	no
184J(2)	Department’s end of year return	Form P14U	yes	yes
184L(1)	cessation of award of ESA	Form P45ESA	yes	yes
184Q(2)(b)	Department’s notification of taxable ESA adjustment	Form P180	yes	no
184S(2)	Department’s quarterly statement to HMRC of receipts and payments in respect of taxable ESA		yes	no]

(5) If an employer delivers electronically the return required by regulation 73 (annual return of relevant payments liable to deduction of tax (Forms P35 and P14)), the statement and declaration and the certificate must, instead of being signed as required by regulation 73(8), be authenticated by or on behalf of the employer in such manner as may be approved by the Board of Inland Revenue.

[F33 (6) For the purposes of this regulation “ESA” means employment and support allowance.]

Textual Amendments

F29 Words in reg. 211 Table 10 substituted (6.4.2009) by The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2007 (S.I. 2007/2969), regs. 1(3), 21(a)

F30 Words in reg. 211 Table 10 substituted (6.4.2009) by The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2007 (S.I. 2007/2969), regs. 1(3), 21(b)

F31 Words in reg. 211 Table 10 inserted (6.4.2007) by The Income Tax (Pay as You Earn) (Amendment) Regulations 2007 (S.I. 2007/1077), regs. 1, 19

F32 Words in reg. 211(4) Table 10 inserted (27.10.2008) by The Income Tax (Pay As You Earn) (Amendment) (No.2) Regulations 2008 (S.I. 2008/2601), regs. 1, 4(2)

F33 Reg. 211(6) inserted (27.10.2008) by The Income Tax (Pay As You Earn) (Amendment) (No.2) Regulations 2008 (S.I. 2008/2601), regs. 1, 4(3)

Commencement Information

I20 Reg. 211 in force at 6.4.2004, see reg. 1

[F34 Modifications for electronic version of Form P46(Pen)] U.K.

212.—(1) This regulation applies if instead of sending to the Inland Revenue [F35 Form P46(Pen)] a pension payer delivers the information it would contain to the Inland Revenue by an approved method of electronic communications (as permitted by regulation 211).

(2) For sub-paragraphs (a) to (m) of regulation 55(4) (information to be provided in [F36 Form P46(Pen)]) substitute—

“(a) the pension payer’s PAYE reference,

(b) the pensioner’s name,

(c) the date of retirement,

(d) the date on which the pension started,

(e) the pensioner’s code immediately before retirement and whether it was being used on the cumulative basis,

(f) if the pensioner’s code immediately before retirement was used on the cumulative basis—

(i) the tax week or tax month in which the last relevant payment before retirement was made to the pensioner or, in a case falling within regulation 24, was treated as having been made,

(ii) the total payments to date at the date of retirement,

(iii) the total net tax deducted,

(g) any number used to identify the pensioner,

(h) the tax code in use for the pensioner, and whether it is being used on the cumulative basis,

(i) the pensioner’s address, F37 ...

(j) the pensioner’s sex,

(k) the pensioner’s national insurance number, if known,

(l) the pensioner’s date of birth, F38 ...

(m) the amount of pension payable annually.”

Textual Amendments

F34 Reg. 212 heading substituted (6.4.2009) by The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2007 (S.I. 2007/2969), regs. 1(3), 22(a)

F35 Words in reg. 212(1) substituted (6.4.2009) by The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2007 (S.I. 2007/2969), regs. 1(3), 22(b)

F36 Words in reg. 212(2) substituted (6.4.2009) by The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2007 (S.I. 2007/2969), regs. 1(3), 22(c)(i)

F37 Words in reg. 212(2)(i) omitted (6.4.2009) by virtue of The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2007 (S.I. 2007/2969), regs. 1(3), 22(c)(ii)

F38 Words in reg. 212(2)(l) omitted (6.4.2009) by virtue of The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2007 (S.I. 2007/2969), regs. 1(3), 22(c)(ii)

Commencement Information

I21 Reg. 212 in force at 6.4.2004, see reg. 1

How information may be delivered by Inland Revenue U.K.

213.—(1) Table 11 applies to determine how the Inland Revenue may comply with requirements of the regulations listed in column 1.

(2) Instead of sending a document to the employer or (where relevant) the employer’s agent, the requirements of the regulation may be complied with by the Inland Revenue arranging for the information it would contain to be delivered to the employer or (where relevant) the employer’s agent by an approved method of electronic communications if so indicated in column 4.

(3) The relevant form number is listed in column 3.

Table 11

Regulations which permit electronic delivery by Inland Revenue

1.	2	3.	4.
Regulation	Description of information	Form number	Electronic communications
8(2), 20(2)	issue of code to employer or agent	Form P6 or P9	yes
20(5), (6)	notice to employer to amend codes	Form P7X or P9X	yes
53(2)	notice to employer of payments and total net tax deducted	Form P6	yes
61(2)	notice to pension payer of payments and total net tax deducted	Form P6	yes
[F39 199(1)	e-payment notice	MP(L)(Band 1)	yes
206(1)	e-filing notice	MP(L)(Band 1)	yes]

(4) But the Inland Revenue may only deliver information by an approved method of electronic communications if the employer or employer’s agent (as the case may be) has consented to delivery of information in that way, and the Inland Revenue have not been notified that the consent has been withdrawn.

(5) References in paragraphs (2) and (4) to an employer’s agent are to a person acting on behalf of the employer.

Textual Amendments

F39 Words in reg. 213(3) Table 11 added (6.4.2008) by The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2007 (S.I. 2007/2969), regs. 1(2), 23

Commencement Information

I22 Reg. 213 in force at 6.4.2004, see reg. 1

How information must be provided by employees U.K.

214.—(1) An employee must comply with the requirements of the regulations listed in column 1 of Table 12 in a document or format provided or approved by the Board of Inland Revenue.

(2) Where appropriate, the relevant form number is listed in column 3 of the Table.

Table 12

Regulations which require employee to use approved document or format

1.	2.	3.
Regulation	Subject	Form number
46(2)	Form P46 where employer does not receive Form P45 and code not known	Form P46
145(1)	direct collection: return when relevant payments cease	–
146(1)	direct collection: end of year return	Form P14
147(2)	direct collection: return of unpaid tax	–
154(3)	claimant’s certificate of full-time education	Form P187
[F40 184G(3)	claimant’s certificate of full-time education	Form P187]

Textual Amendments

F40 Words in reg. 214(2) Table 12 inserted (27.10.2008) by The Income Tax (Pay As You Earn) (Amendment) (No.2) Regulations 2008 (S.I. 2008/2601), regs. 1, 5(2)

Commencement Information

I23 Reg. 214 in force at 6.4.2004, see reg. 1

[F41 Meaning of Form P45, P46 and P46(Pen)] U.K.

215.  In these Regulations—

“Form P45” means the form provided or approved for use in accordance with regulations 36 (cessation of employment: Form P45), 38 (death of employee) or 39 (death of pensioner);

“Parts 2 and 3 of Form P45” means—

(a)

the Parts 2 and 3 of the Form P45 provided to the employee or claimant (as the case may be) in accordance with regulation 36, F42 ...

(b)

the Parts 2 and 3 of the Form P45 provided to the claimant in accordance with regulation 159 (cessation of award: Form P45U); [F43 or]

(c)

[F44 the Parts 2 and 3 of the Form P45 provided to the claimant in accordance with regulation 184L (cessation of award: Form P45ESA);]

[F45 “Form P45ESA” means the form required to be completed in accordance with regulation 184L;]

“Form P45U” means the form required to be completed in accordance with [F46 regulation 159 or 184L];

[F47 “Form P46” means the form provided or approved for use in accordance with regulation 46 (form P46 where employer does not receive P45 and code not known);]

[F48 “Form P46(Pen)” means the form provided or approved for use in accordance with regulation 55(3)(a), 57(2) or 58(3).]

Textual Amendments

F41 Reg. 215 heading substituted (6.4.2009) by The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2007 (S.I. 2007/2969), regs. 1(3), 24(a)

F42 Word in reg. 215(a) omitted (27.10.2008) by virtue of The Income Tax (Pay As You Earn) (Amendment) (No.2) Regulations 2008 (S.I. 2008/2601), regs. 1, 6(2)(a)

F43 Word in reg. 215(b) inserted (27.10.2008) by The Income Tax (Pay As You Earn) (Amendment) (No.2) Regulations 2008 (S.I. 2008/2601), regs. 1, 6(2)(b)

F44 Reg. 215(c) inserted (27.10.2008) by The Income Tax (Pay As You Earn) (Amendment) (No.2) Regulations 2008 (S.I. 2008/2601), regs. 1, 6(2)(c)

F45 Words in reg. 215 inserted (27.10.2008) by The Income Tax (Pay As You Earn) (Amendment) (No.2) Regulations 2008 (S.I. 2008/2601), regs. 1, 6(3)

F46 Words in reg. 215 substituted (27.10.2008) by The Income Tax (Pay As You Earn) (Amendment) (No.2) Regulations 2008 (S.I. 2008/2601), regs. 1, 6(4)

F47 Words in reg. 215 substituted (6.4.2009) by The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2007 (S.I. 2007/2969), regs. 1(3), 24(b)

F48 Words in reg. 215 added (6.4.2009) by The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2007 (S.I. 2007/2969), regs. 1(3), 24(c)

Commencement Information

I24 Reg. 215 in force at 6.4.2004, see reg. 1

Service by post U.K.

216.  Any notice or deductions working sheet which is authorised or required to be given, served or issued under these Regulations may be sent by post.

Commencement Information

I25 Reg. 216 in force at 6.4.2004, see reg. 1

(1)

1999 c. 16.

(2)

S.I. 1994/1882, amended by S.I. 2003/672.

(3)

S.I. 2002/2820.

(4)

S.I. 1993/743, amended by S.I. 2003/536.

(5)

Section 102 was amended by section 168(4) of the Finance Act 1989 (c. 26).