The Income Tax (Pay As You Earn) Regulations 2003

Interest U.K.

Interest on tax overdue U.K.

82.—(1) This regulation applies if an employer has not paid to [F1 HMRC] the total net tax payable in respect of a tax year by the reckonable date.

(2) Any unpaid tax carries interest at the prescribed rate from the reckonable date until payment (“the interest period”).

(3) Paragraph (2) applies even if the reckonable date is a non-business day as defined by section 92 of the Bills of Exchange Act 1882(1).

(4) But paragraph (2) does not apply to any tax which the employer does not have to pay as a result of a direction made under [F2 regulation 72(5), 72F] or 81(4).

(5) Any change made to the prescribed rate during the interest period applies to the unpaid tax from the date of the change.

(6) The “total net tax payable” in respect of a tax year is—

(a) the total of any amounts payable by the employer under regulation [F3 67G or] 68 for tax periods in the tax year, less

(b) the total of any amounts recoverable from the Board of Inland Revenue under regulation [F4 67G(3)(b) or] 68(3)(b) for those tax periods.

(7) The “prescribed rate” means the rate applicable under section 178 of the Finance Act 1989(2) for the purposes of section 86 of TMA.

(8) [F5 Except where tax is due in respect of a closed tax year by virtue of a retrospective tax provision,] the “reckonable date” means—

(a) 17 days after the end of the tax year, if payment is made using an approved method of electronic communications, or

(b) 14 days after the end of the tax year, in any other case.

[F6 (9) Where tax is due in respect of a closed tax year by virtue of a retrospective tax provision, the “reckonable date” means 14 days after the end of the tax month following that in which the retrospective tax provision is passed.]

Textual Amendments

F1 Word in reg. 82(1) substituted (6.4.2008) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2008 (S.I. 2008/782), regs. 1, 10(a)

F2 Words in reg. 82(4) substituted (6.4.2008) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2008 (S.I. 2008/782), regs. 1, 10(b)

F3 Words in reg. 82(6)(a) inserted (6.4.2012) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2012 (S.I. 2012/822), regs. 1(1), 39(a)

F4 Words in reg. 82(6)(b) inserted (6.4.2012) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2012 (S.I. 2012/822), regs. 1(1), 39(b)

F5 Words in reg. 82(8) inserted (6.4.2007) by The Income Tax (Pay as You Earn) (Amendment) Regulations 2007 (S.I. 2007/1077), regs. 1, 16(2)

F6 Reg. 82(9) added (6.4.2007) by The Income Tax (Pay as You Earn) (Amendment) Regulations 2007 (S.I. 2007/1077), regs. 1, 16(3)

Commencement Information

I1 Reg. 82 in force at 6.4.2004, see reg. 1

Interest on tax overpaid U.K.

83.—(1) This regulation applies if tax is repaid to an employer after the end of the tax year in respect of which the tax was paid.

(2) The tax repaid carries interest at the prescribed rate from the later of—

(a) 14 days after the end of the tax year, and

(b) the date on which the payment of tax for that tax year was made,

until the order for the repayment is issued (“the interest period”).

(3) Any change made to the prescribed rate during the interest period applies to the tax repaid from the date of the change.

(4) “The prescribed rate” means the rate applicable under section 178 of the Finance Act 1989 for the purposes of section 824 of ICTA(3).

Commencement Information

I2 Reg. 83 in force at 6.4.2004, see reg. 1

(1)

1882 c. 61; section 92 was amended by sections 3(1) and 4(4) of the Banking and Financial Dealings Act 1971 (c. 80).

(2)

1989 c. 26, to which there are amendments not relevant to these Regulations.

(3)

Section 824 was amended by paragraph 7 of Schedule 13 to the Finance Act 1988 (c. 39), sections 110(5), 111(4), 158(2) and 179(1) of, and Parts 4, 8 and 10 of Schedule 17 to, the Finance Act 1989 (c. 26), paragraph 14(52) of Schedule 10 to the Taxation of Chargeable Gains Act 1992 (c. 12), paragraph 41 of Schedule 19 to the Finance Act 1994 (c. 9), section 92 of the Finance Act 1997 (c. 16), section 41 of the Finance Act 1999 (c. 16), section 90 of the Finance Act 2001 (c. 9) and paragraph 104 of Schedule 6 to ITEPA.