PART 10

COMMUNICATIONS

CHAPTER 1ELECTRONIC COMMUNICATIONS: INTERPRETATION

Meaning of electronic communications etc189

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 199983;

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

Specified date190

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Large and medium sized employers191

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CHAPTER 2ELECTRONIC COMMUNICATIONS: GENERAL

Whether information has been delivered electronically192

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.

Proof of content of electronic delivery193

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.

Proof of identity of person sending or receiving electronic delivery194

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.

Information sent electronically on behalf of a person195

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.

Proof of delivery of information sent electronically196

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.

Proof of payment sent electronically197

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.

Use of unauthorised method of electronic communications198

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.

CHAPTER 3ELECTRONIC PAYMENT BY LARGE EMPLOYERS

F56Large employers198A

1

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

2

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 to prepare or maintain a deductions working sheet in respect of that employee, and

b

has not sent to HMRC Part 1 of Form P45 in respect of that employee F59or, as the case may be, has not indicated in a return under regulation 67B or 67D that the employee’s employment has ceased.

F283

The specified date for a particular tax year is 31st October in the preceding tax year.

Large employers required to make specified payments electronically199

1

A large employer ... must use an approved method of electronic communications to make specified payments.

F252

“Specified payments”, in this regulation, means payments of tax under regulation F3867G (payments to and recoveries from HMRC: Real Time Information employers) F23, as adjusted by regulation 67H(2) where appropriate, or 68 (periodic payments to and recoveries from HMRC: non-Real Time Information employers).

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.

F64

This regulation does not apply to a payment of tax in respect of retrospective employment income for a closed year.

F75

A specified payment is not treated as received in full by HMRC on or before the date by which that specified payment is required in accordance with regulation 69 unless it is made in a manner which secures (in a case where the specified 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 specified payment becomes available to the Commissioners for Her Majesty’s Revenue and Customs.

E-payment notices and appeal200

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Employer in default if specified payment not received by applicable due date201

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Default notice and appeal202

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Default surcharge203

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Surcharge notice and appeal204

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CHAPTER 4MANDATORY USE OF ELECTRONIC COMMUNICATIONS F62: SPECIFIED INFORMATION

Annotations:
Amendments (Textual)

F11Mandatory use of electronic communications205

1

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

2

The Commissioners for Her Majesty’s Revenue and Customs may make a general or specific direction requiring an employer to deliver specified information by a particular approved method of electronic communications.

3

Specified information may be delivered by a person on behalf of an employer.

4

This regulation does not apply to specified information which relates to payments of tax due under a retrospective tax provision for a closed year.

5

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).

Mandatory use of electronic communication for delivering specified information205A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

General provisions relating to this Chapter205B

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F29Employers206

1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F92

F13For the purposes of this Chapter, the following 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

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

e

a care and support employerF5and,

f

an employer to whom a direction has been given under regulation 67D (exceptions to regulation 67B) or regulation 142 (direct collection: employee to report payments)

3

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

F274

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 F36specified information (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.

Relevant annual return206A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Specified information207

F521

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);

F57e

the return and accompanying information required by regulation 73 (annual return of relevant payments liable to deduction of tax (Forms P35 and P14)).

F63f

the return and accompanying information required by regulation 85 (employers: annual return of other earnings (Form P11D)).

e

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

E-filing notice and appeals208

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Standards of accuracy and completenessF32209

1

Any ...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 ... specified information which fails to meet those standards must be treated as not having been delivered.

F4F17Penalty for failing to deliver... specified information210

F141

F65Subject to paragraph (5), an employer who fails to deliver specified information or any part of it in accordance with regulation 205 is liable to a penalty.

2

Where the specified information is the return and accompanying information required by regulation 73 (annual return of relevant payments liable to deduction of tax (Forms P35 and P14) the penalty will be determined in accordance with regulation 210AA.

3

The penalty must be determined in accordance with F35regulations 210B and 210BA in all other cases.

4

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

F645

Where the specified information is the return and accompanying information required by regulation 85 (employers: annual return of other earnings (Form P11D)) this regulation does not apply.

Penalty: relevant annual return for the tax year ending 5th April 2010210A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F55F37Penalty: forms P35 and P14210AA

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 F51specified information.

Table 9ZAPenalties: tax years ending 5th April 2011 and subsequent years

1 Number of employees for whom particulars should have been included with the F61specified information

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

F26Penalty: form P45 (Part 1 or Part 3), P46 or P46 (Pen); tax years ending 5th April 2012 and 5th April 2013210B

F31

This regulation applies for the tax years ending 5th April 2012 and 5th April 2013 (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 9AF22Penalties: tax years ending 5th April 2012 and 5th April 2013

1. Number of items of specified information the employer has failed to deliver in the tax quarter

2. Penalty

F531-2

Nil

F533-49

£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.

F31Penalty: form P45 (Part 1 or Part 3), P46 or P46(Pen); tax years ending 5th April 2014 and subsequent years210BA

1

Table 9AA sets out penalties depending on the number of items of specified information the employer has failed to deliver in each tax quarter falling within the tax year ending 5th April 2014 and subsequent years.

Table 9AAPenalties: tax year ending 5th April 2014 and subsequent years

1 Number of items of specified information the employer has failed to deliver in the tax quarter

2 Penalty

1-49

£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+

£3,000

2

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.

3

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

Appeals and interest210C

1

An employer is not liable to a penalty if the employer had a reasonable excuse for failing to comply with regulation 205 ... which had not ceased at the time the ... 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

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F58aa

the employer is not regarded as an employer the purposes of this Chapter

b

the employer did comply with regulation 205 ...,

c

the amount of the penalty is incorrect, or

d

paragraph (1) applies.

3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4

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

F60CHAPTER 4AMandatory use of electronic communications: real time returns of information about relevant payments of tax and associated matters

Annotations:
Amendments (Textual)

Application of Chapter 4 to real time returns of information about relevant payments of tax and associated matters210D

Regulation 205(3) applies to the delivery of the following as if they were specified information within the meaning given by regulation 207—

a

returns under regulation 67B (real time returns of information about relevant payments),

b

returns under regulation 67E(6) (returns under regulation 67B and 67D: amendments), unless the employer is one to whom regulation 67D (exceptions to regulation 67B) applies, and

c

notifications under regulation 67F (additional information about payments) unless the employer is one to whom regulation 67D applies.

CHAPTER 5METHODS OF PROVIDING INFORMATION ETC

How information must or may be delivered by employers211

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 10Regulations 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

F33. . .

F33. . .

F33. . .

F33. . .

F33. . .

F33. . .

F33. . .

F33. . .

F33. . .

F33. . .

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

F49not applicable

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

F2055(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)

F8Form P46(Pen)

yes

yes

58(3)

information to be provided if code not known (UK resident pensioners)

F8Form 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

F50not applicable

73

annual return of relevant payments liable to deduction of tax

Forms P35 and P14

yes

yes

F3973A

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

F24. . .

F24. . .

F24. . .

F24. . .

F24. . .

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

F4198(4)

multiple PAYE schemes

Form P350

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

F50not applicable

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

F50not applicable

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

F21184D

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

F42184G(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

F50not applicable

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.

F16

For the purposes of this regulation “ESA” means employment and support allowance.

F18Modifications for electronic version of Form P46(Pen)212

1

This regulation applies if instead of sending to the Inland Revenue F30Form 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 F43Form 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, F12...

j

the pensioner’s sex,

k

the pensioner’s national insurance number, if known,

l

the pensioner’s date of birth, F16...

m

the amount of pension payable annually.

How information may be delivered by Inland Revenue213

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 11Regulations 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

F1597Q(1), 97U(3)

notice of requirement for security

notice of requirement

yes

F10. . .

F10. . .

F10. . .

F10. . .

F44. . .

F44. . .

F44. . .

F44. . .

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.

F195

References in paragraphs (2) and (4) to—

a

an employer include, in relation to regulations 97Q(1) (notice of requirement) and 97U(3) (outcome of application for reduction in the value of security held: further provision), any person to whom a notice under those regulations is given, and

b

an employer’s agent are to a person acting on behalf of the employer.

How information must be provided by employees214

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 12Regulations 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

F47184G(3)

claimant’s certificate of full-time education

Form P187

F40Meaning of Form P45, P46 and P46(Pen)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—

    1. 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, ...

    2. b

      the Parts 2 and 3 of the Form P45 provided to the claimant in accordance with regulation 159 (cessation of award: Form P45U); F48or

    3. c

      F54the Parts 2 and 3 of the Form P45 provided to the claimant in accordance with regulation 184L (cessation of award: Form P45ESA);

  • F2“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 F34regulation 159 or 184L;

  • F45“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);

  • F46“Form P46(Pen)” means the form provided or approved for use in accordance with regulation 55(3)(a), 57(2) or 58(3).

Service by post216

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.