[F1Higher rate, additional rate and nil tax codes]U.K.
Textual Amendments
F1Reg. 32 cross-heading substituted (6.4.2011) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2011 (S.I. 2011/729), regs. 1, 6
Higher rate code: deductionsU.K.
32. If an employee’s code is the higher rate code the employer must deduct tax at the higher rate, and regulations 22 and 26 (cumulative and non-cumulative basis) do not apply.
[F2Additional rate code: deductionsU.K.
32A. If the employee’s code is the additional rate code the employer must deduct tax at the additional rate and regulations 22 and 26 (cumulative and non-cumulative basis) do not apply.]
Textual Amendments
F2Reg. 32A and cross-heading inserted (6.4.2011) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2011 (S.I. 2011/729), regs. 1, 7
Nil tax code: no deductions or repaymentsU.K.
33.—(1) If an employee’s code is the nil tax code the employer must not deduct or repay any tax, and so regulation 22 (cumulative basis) does not apply.
(2) But—
(a)if the nil tax code is an amended code, and
(b)the Inland Revenue so direct,
regulation 22 applies to the next relevant payment the employer makes in the same tax year, and the employer must make any repayment of tax due.