The Income Tax (Pay As You Earn) Regulations 2003

CHAPTER 3 U.K. [F1 NEW PENSIONERS: FORMS P45 AND P46(PEN)]

Textual Amendments

F1 Pt. 3 Ch. 3 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), 11

Scope of Chapter 3 U.K.

[F2 54.   This Chapter applies (instead of Chapter 2) when a pension starts and either—

(a) the pensioner will be continuing in employment and will be receiving relevant pension payments in addition to relevant payments from their employer, or

(b) the pensioner will not be receiving relevant payments other than relevant pension payments.]

Textual Amendments

F2 Reg. 54 substituted (6.4.2011) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2011 (S.I. 2011/729), regs. 1, 12

[F3 Relevant pension payments and relevant payments being received by a pensioner U.K.

54A.— (1) This regulation applies if the pensioner begins to receive relevant pension payments whilst continuing to receive relevant payments from their employer.

(2) On making relevant pension payments to the pensioner, the pension payer must deduct tax on the non-cumulative basis using the 0T tax code.

(3) The pension payer must send to HMRC the following information in the Form P46(Pen)—

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

(b) the pensioner’s full name,

(c) the pensioner’s sex,

(d) the pensioner’s date of birth,

(e) the pensioner’s full address including postcode,

(f) the date upon which the pension payments started,

(g) the pensioner’s work payroll number and the department or branch (if any) in which the pensioner is employed,

(h) confirmation that the recipient of the relevant payments is a pensioner,

(i) the pension payer’s PAYE reference,

(j) the pension payer’s name,

(k) the pension payer’s full address including postcode, and

(l) the tax code used in relation to the pension.

(4) Before sending the Form P46(Pen), the pension payer must indicate in the form that code 0T is being used on a non-cumulative basis in respect of the pension.

Textual Amendments

F3 Regs. 54A, 54B and cross-headings inserted (6.4.2011) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2011 (S.I. 2011/729), regs. 1, 13

Procedure in Form P46 (Pen) cases: code treated as issued by HMRC U.K.

54B.— (1) The 0T code used by the pension payer in accordance with regulation 54A is treated, for the purposes of Parts 2 to 4 (codes; deduction and repayment of tax; payments, returns and information), as having been issued by HMRC as the code for use in respect of the pensioner.

(2) This does not apply for the purposes of regulation 18 (objections and appeals) and regulations 58, 60 and 61 (Form P46(Pen)) procedure, late presentation of Form P45 etc).]

Textual Amendments

F3 Regs. 54A, 54B and cross-headings inserted (6.4.2011) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2011 (S.I. 2011/729), regs. 1, 13

PAYE pension income paid by former employer U.K.

55.—(1) This regulation applies if the pension payer was, immediately before the pensioner’s retirement, the pensioner’s employer and so, in accordance with regulation 36(3), no Form P45 was completed.

(2) On making relevant pension payments to the pensioner, the pension payer must deduct tax on the non-cumulative basis, subject to regulation 32 (higher rate code: deductions), for the remainder of the tax year in which the pension starts or until directed otherwise by the Inland Revenue.

(3) Within 14 days after the pensioner’s retirement, the pension payer must prepare a [F4 Form P46(Pen)] and—

(a) send it to the Inland Revenue, and

(b) give [F5 a copy of the information] to the pensioner.

(4) The [F4 Form P46(Pen)] must contain the following information—

(a) the pensioner’s name,

(b) the pensioner’s address, F6 ...

[F7 (ba) the pensioner’s date of birth,

(bb) the pensioner’s sex,]

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

(d) the pension payer’s PAYE reference,

(e) the date of retirement,

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

(g) the total payments to date relating to the employment in question at the date of retirement,

(h) the total net tax deducted corresponding to the total payments to date relating to the employment in question,

(i) the amount of pension payable [F8 annually],

(j) any number used to identify the pensioner,

(k) whether the pensioner’s code is use on the cumulative basis,

(l) the pension payer’s name, and

(m) the pension payer’s address.

(5) Paragraph (4) is subject to regulation 212 (modifications for electronic version of [F4 Form P46(Pen)] F9 ...).

Textual Amendments

F4 Words in reg. 55(3)(4)(5) substituted (6.4.2009) by The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2007 (S.I. 2007/2969), regs. 1(3), 12(a)

F5 Words in reg. 55(3)(b) substituted (6.4.2009) by The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2007 (S.I. 2007/2969), regs. 1(3), 12(b)

F6 Words in reg. 55(4)(b) 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), 12(c)(i)

F7 Reg. 55(4)(ba)(bb) inserted (6.4.2009) by The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2007 (S.I. 2007/2969), regs. 1(3), 12(c)(ii)

F8 Word in reg. 55(4)(i) substituted (6.4.2009) by The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2007 (S.I. 2007/2969), regs. 1(3), 12(c)(iii)

F9 Words in reg. 55(5) 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), 12(d)

Commencement Information

I1 Reg. 55 in force at 6.4.2004, see reg. 1

PAYE pension income paid by other pension payer U.K.

56.—(1) This regulation applies if the pensioner gives Parts 2 and 3 of Form P45 to the pension payer when a pension starts.

(2) The pension payer must insert in Part 3 of Form P45—

(a) the pensioner’s address,

(b) any number used to identify the pensioner, F10 ...

(c) the date on which the pension started.

[F11 (d) the pensioner’s date of birth, and

(e) the pensioner’s sex.]

(3) The pension payer must then send Part 3 of Form P45 to the pension payer’s Inland Revenue office.

(4) The receipt by the pension payer of Parts 2 and 3 of Form P45 under paragraph (1) is treated as the issue by the Inland Revenue of the code shown in Parts 2 and 3 of Form P45 as the code for use in respect of the pensioner.

(5) On making relevant pension payments to the pensioner, the pension payer must, subject to regulation 32 (higher rate code: deductions), deduct or repay tax—

(a) on the non-cumulative basis, for the remainder of the tax year to which Parts 2 and 3 of Form P45 relate;

(b) on the cumulative basis, for subsequent tax years.

(6) Paragraph (5) applies until the pension payer is directed otherwise by the Inland Revenue.

Textual Amendments

F10 Word in reg. 56(2) 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), 13(a)

F11 Reg. 56(2)(d)(e) added (6.4.2009) by The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2007 (S.I. 2007/2969), regs. 1(3), 13(b)

Commencement Information

I2 Reg. 56 in force at 6.4.2004, see reg. 1

[F12 Information to be provided in Form P46(Pen) if code not known: non UK residents] U.K.

57.—(1) This regulation applies if a pension payer pays a pension, which does not arise wholly from an employment carried on abroad, to a pensioner—

(a) who is not resident in the United Kingdom,

(b) who has not given Parts 2 and 3 of Form P45 to the pension payer, and

(c) in respect of whom a code has not otherwise been issued by the Inland Revenue.

(2) On making the first payment which exceeds the PAYE threshold, the pension payer must send to the Inland Revenue the following information in [F13 Form P46(Pen)].

[F14 (3) The information is—

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

(b) the pensioner’s full name,

(c) the pensioner’s sex,

(d) the pensioner’s date of birth,

(e) the pensioner’s full address including postcode,

(f) date upon which payment of the pension started,

(g) the pensioner’s works payroll number and the department or branch (if any),

(h) the fact that the recipient is a pensioner,

(i) the pension payer’s PAYE reference,

(j) the pension payer’s name,

(k) the pension payer’s full address, including the postcode.]

(4) For the purposes of paragraph (1)(c), the pension payer must ignore any code issued to the pension payer in respect of a previous pension of the pensioner which has ended.

Textual Amendments

F12 Reg. 57 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), 14(a)

F13 Words in reg. 57(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), 14(b)

F14 Reg. 57(3) substituted (6.4.2006) by The Income Tax (Pay as You Earn) (Amendment) Regulations 2005 (S.I. 2005/2691), regs. 1, 7(2)

Commencement Information

I3 Reg. 57 in force at 6.4.2004, see reg. 1

[F15 Information (Form P46(Pen)) and procedure if code not known: UK residents] U.K.

58.—(1) This regulation applies if—

(a) a pension payer starts to make relevant pension payments to a pensioner,

(b) the pensioner is resident in the United Kingdom,

(c) the pensioner does not give to the pension payer Parts 2 and 3 of Form P45, and

(d) a code in respect of the pensioner has not otherwise been issued to the pension payer.

(2) On making any relevant pension payments to the pensioner before the Inland Revenue issue a code for use in respect of the pensioner, the pension payer must deduct tax on the non-cumulative basis applying the emergency code.

(3) The pension payer must send the Inland Revenue the following information in [F16 Form P46(Pen)].

[F17 (4) The information is—

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

(b) the pensioner’s full name,

(c) the pensioner’s sex,

(d) the pensioner’s date of birth,

(e) the pensioner’s full address including postcode,

(f) date upon which payment of the pension started,

(g) the pensioner’s works payroll number and the department or branch (if any),

(h) the fact that the recipient is a pensioner,

(i) the pension payer’s PAYE reference,

(j) the pension payer’s name,

(k) the pension payer’s full address, including the postcode, and

(l) the tax code used in relation to the pension.]

(5) The pension payer must also indicate in the Form that the emergency code is being used on the non-cumulative basis.

(6) For the purposes of paragraph (1)(d), the pension payer must ignore any code issued to the pension payer in respect of a previous pension of the pensioner which has ended.

Textual Amendments

F15 Reg. 58 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), 15(a)

F16 Words in reg. 58(3) substituted (6.4.2009) by The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2007 (S.I. 2007/2969), regs. 1(3), 15(b)

F17 Reg. 58(4) substituted (6.4.2006) by The Income Tax (Pay as You Earn) (Amendment) Regulations 2005 (S.I. 2005/2691), regs. 1, 8(2)

Commencement Information

I4 Reg. 58 in force at 6.4.2004, see reg. 1

UK resident pensioner’s code treated as issued by Inland Revenue U.K.

59.—(1) The emergency code used by the pension payer in accordance with regulation 58 is treated, for the purposes of Parts 2 to 4 (codes; deduction and repayment of tax; payments, returns and information) as having been issued by the Inland Revenue as the code for use in respect of the pensioner.

(2) This does not apply for the purposes of regulation 18 (objections and appeals) and regulations 58, 60 and 61 ([F18 Form P46(Pen)] procedure, late presentation of Form P45 etc).

Textual Amendments

F18 Words in reg. 59(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), 16

Commencement Information

I5 Reg. 59 in force at 6.4.2004, see reg. 1

Late presentation of Form P45 U.K.

60.—(1) Paragraphs (2) to (6) apply if the pensioner gives Parts 2 and 3 of Form P45 to the pension payer after the pension has started but before a code has been issued.

(2) The pension payer must insert in Part 3 of Form P45—

(a) the pensioner’s address,

(b) any number used to identify the pensioner, and

(c) the date on which the pension started.

(3) The pension payer must then send Part 3 of Form P45 to the pension payer’s Inland Revenue office.

(4) The receipt by the pension payer of Parts 2 and 3 of Form P45 under paragraph (1) is treated, except for the purposes of paragraph (1), as the issue by the Inland Revenue of the code shown in that Form as the pensioner’s code.

(5) On making relevant pension payments to the pensioner, the pension payer must, subject to regulation 32 (higher rate code: deductions), deduct or repay tax—

(a) on the non-cumulative basis, for the remainder of the tax year to which Parts 2 and 3 of Form P45 relate;

(b) on the cumulative basis, for subsequent tax years.

(6) Paragraph (5) applies until the pension payer is directed otherwise by the Inland Revenue.

(7) If Parts 2 and 3 of Form P45 are given to the pension payer after the pension has started and after a code has been issued by the Inland Revenue, they must be destroyed.

Commencement Information

I6 Reg. 60 in force at 6.4.2004, see reg. 1

Subsequent procedure on issue of UK resident pensioner’s code U.K.

61.—(1) On making any relevant pension payment to a pensioner falling within regulation 58 after the Inland Revenue have issued a code to the pension payer for use in respect of the pensioner, the pension payer must deduct or repay tax by reference to that code.

(2) For the purposes of paragraph (1) and regulation 66 (deductions working sheets)—

(a) any total payments to date notified to the pension payer by the Inland Revenue are treated as if they represented relevant pension payments made by pension payer; and

(b) the total net tax deducted before the first payment made in accordance with this regulation is taken to be the sum of—

(i) the total net tax deducted, if any, notified to the pension payer by the Inland Revenue, and

(ii) any tax which the pension payer was liable to deduct from the pensioner’s relevant pension payments under regulation 58.

(3) For the purposes of—

(a) item 8 of Table 2 in regulation 36(4) (Form P45), and

(b) regulation 55(4)(f) [F19 (P46(Pen))],

any total payments to date and total net tax deducted which are which are notified to the employer by the Inland Revenue must be treated as if they were relevant pension payments made to the pensioner by, and tax deducted by, the pension payer.

(4) If the pensioner’s previous code was used on the cumulative basis, any amount notified to the pension payer under paragraph (2)(b)(i) must be added to the previous total tax to date for the purposes of regulation 23(8) (meaning of previous total tax to date).

Textual Amendments

F19 Word in reg. 61(3)(b) substituted (6.4.2009) by The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2007 (S.I. 2007/2969), regs. 1(3), 17

Commencement Information

I7 Reg. 61 in force at 6.4.2004, see reg. 1