The Income Tax (Pay As You Earn) Regulations 2003

CHAPTER 4 U.K. MANDATORY USE OF ELECTRONIC COMMUNICATIONS

[F1 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

F1 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

F1 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

F1 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))

[F2 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.

[F3 (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.

[F4 (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

F2 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))

F3 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))

F4 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

I1 Reg. 206 in force at 6.4.2004, see reg. 1

[F5 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

F5 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.— [F6 (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);

F7 (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

F6 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

F7 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

I2 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 [F8 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) F9 ...,

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 [F8 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

F8 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))

F9 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

I3 Reg. 208 in force at 6.4.2004, see reg. 1

Standards of accuracy and completeness U.K.

[F10 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

F10 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))

[F11 [F12 Penalty for failing to deliver relevant annual returns and specified information] U.K.

210.— [F13 (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 [F14 205A] is liable to a penalty.

[F15 (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

F11 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

F12 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))

F13 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))

F14 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))

F15 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)

C1 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))

[F16 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

F11 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

F16 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

F11 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

F16 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

F11 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 [F17 or regulation 205A] which had not ceased at the time the [F18 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),

[F19 (aa) the employer is not regarded as an employer the purposes of this Chapter]

(b) the employer did comply with regulation 205 [F20 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

F11 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

F17 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))

F18 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))

F19 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))

F20 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))