- Latest available (Revised)
- Point in Time (08/08/2016)
- Original (As made)
Point in time view as at 08/08/2016.
There are currently no known outstanding effects for the The Income Tax (Pay As You Earn) Regulations 2003, CHAPTER 3.
Revised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.
Textual Amendments
F1Pt. 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
[F254. 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
F2Reg. 54 substituted (6.4.2011) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2011 (S.I. 2011/729), regs. 1, 12
54ZA.—(1) Any requirement in this Chapter to complete (howsoever expressed) and send to HMRC Part 3 of Form P45 or Form P46(Pen) applies only to—
(a)non-Real Time Information pension payers, and
(b)Real Time Information pension payers to whom HMRC has given a notice requiring the pension payer to send to HMRC Form P45 or Form P46(Pen) on the commencement of a new pensioner’s pension.
(2) Paragraph (1) is without prejudice to the requirement in regulation 55(3)(b) (PAYE pension income paid by former employer) to complete and give Form P46(Pen) to the pensioner.]
Textual Amendments
F3Reg. 54ZA inserted (6.4.2012) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2012 (S.I. 2012/822), regs. 1(1), 22
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
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 F6... late presentation of Form P45 etc).]
Textual Amendments
F4Regs. 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
F5Reg. 54B heading substituted (6.4.2012) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2012 (S.I. 2012/822), regs. 1(1), 23
F6Words in reg. 54B(2) omitted (6.4.2012) by virtue of The Income Tax (Pay As You Earn) (Amendment) Regulations 2012 (S.I. 2012/822), regs. 1(1), 24
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 [F7Form P46(Pen)] and—
(a)send it to the Inland Revenue, and
(b)give [F8a copy of the information] to the pensioner.
(4) The [F7Form P46(Pen)] must contain the following information—
(a)the pensioner’s name,
(b)the pensioner’s address, F9...
[F10(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 [F11annually],
(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 [F7Form P46(Pen)] F12...).
Textual Amendments
F7Words 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)
F8Words 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)
F9Words 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)
F10Reg. 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)
F11Word 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)
F12Words 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
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, F13...
(c)the date on which the pension started.
[F14(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
F13Word 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)
F14Reg. 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
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 [F16Form P46(Pen)].
[F17(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
F15Reg. 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)
F16Words 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)
F17Reg. 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
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.
[F19(1A) This regulation does not apply where the relevant pension payment is a relevant lump sum payment.]
(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 [F20Form P46(Pen)].
[F21(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.
[F22(7) In this regulation, and in regulation 58A (procedure if no Form P45 and code not known where payment is a relevant lump sum payment), a “relevant lump sum payment” is—
(a)a payment of taxable pension income under section 636B or 636C of ITEPA, or treated as such a payment, and
(b)which is made at a time when the pension payer is not making any other payments of PAYE pension income to the pensioner under the same registered pension scheme.]
Textual Amendments
F18Reg. 58 heading substituted (6.4.2012) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2012 (S.I. 2012/822), regs. 1(1), 25
F19Reg. 58(1A) inserted (6.4.2013 with application in relation to the tax year 2013-14 and subsequent tax years) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2013 (S.I. 2013/521), regs. 1(2), 12(a)
F20Words 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)
F21Reg. 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)
F22Reg. 58(7) inserted (6.4.2013 with application in relation to the tax year 2013-14 and subsequent tax years) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2013 (S.I. 2013/521), regs. 1(2), 12(b)
Commencement Information
58A.—(1) This regulation applies if—
(a)a pension payer makes a payment of a relevant lump sum payment,
(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 a relevant lump sum payment to the pensioner before HMRC issue a code for use in respect of the pensioner, the pension payer must deduct tax using the basic rate code on the non-cumulative basis.
(3) Where the pension payer is one to whom paragraph (6) applies on the day on which the relevant lump sum payment is made, or if that is not practicable, without unreasonable delay, the pension payer must complete Form P45 and provide—
(a)Part 1 of Form P45 to HMRC, and
(b)Parts 1A, 2 and 3 to the pensioner.
(4) Where paragraph (6) does not apply, on the day on which the relevant lump sum payment is made, or if that is not practicable, without unreasonable delay, the pension payer must complete and provide Parts 1A, 2 and 3 of Form P45 to the pensioner.
(5) The information listed in rows 1 to 6, and 10 to 16 of column 1 of Table 2 to regulation 36 must, subject to the conditions set out in column 2, be provided in the various Parts of Form P45 as indicated in columns 3 to 5, as if—
(a)references to “employer” were to “pension payer”, and
(b)references to “employee” were to “pensioner.
(6) This paragraph applies to—
(a)a pension payer who is a non-Real Time Information pension payer, and
(b)a Real Time Information pension payer to whom HMRC has given a notice requiring the pension payer to send to HMRC Form P45.]
Textual Amendments
F23Reg. 58A inserted (6.4.2013 with application in relation to the tax year 2013-14 and subsequent tax years) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2013 (S.I. 2013/521), regs. 1(2), 13
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 (F24... late presentation of Form P45 etc).
Textual Amendments
F24Words in reg. 59(2) omitted (6.4.2012) by virtue of The Income Tax (Pay As You Earn) (Amendment) Regulations 2012 (S.I. 2012/822), regs. 1(1), 26
Commencement Information
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.
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) [F25(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
F25Word 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
The Whole Instrument you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Instrument you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Instrument without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Instrument without Schedules you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Instrument you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Instrument without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Point in Time: This becomes available after navigating to view revised legislation as it stood at a certain point in time via Advanced Features > Show Timeline of Changes or via a point in time advanced search.
Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.
Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: