The Income Tax (Pay As You Earn) Regulations 2003

[F1 Real time returns U.K.

Textual Amendments

F1 Regs. 67B-67H and cross-headings inserted (6.4.2012) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2012 (S.I. 2012/822), regs. 1(1), 27(b) (with regs. 54-57)

Real time returns of information about relevant payments U.K.

67B.— (1) [F2 Subject to [F3 paragraph (1A)],] on or before making a relevant payment to an employee, a Real Time Information employer must deliver to HMRC the information specified in Schedule A1 in accordance with this regulation unless the employer is not required by regulation 66 (deductions working sheets) to maintain a deductions working sheet for any employees.

[F4 (1A) But a Real Time Information employer—

(a) which for the tax year 2014-15 meets Conditions A and B, or

(b) which for the tax year 2015-16 meets Conditions A and C,

may instead for that tax year deliver to HMRC the information specified in Schedule A1 (real time returns) in respect of all relevant payments made to an employee in a tax month on or before making the last relevant payment in that month.

(1B) Condition A is that, at 5th April 2014, the Real Time Information employer is one to whom HMRC has issued an employer’s PAYE reference.

(1C) Condition B is that, at 6th April 2014, the Real Time Information employer employs no more than 9 employees.

(1D) Condition C is that, at 6th April 2015, the Real Time Information employer employs no more than 9 employees.]

(2) The information must be included in a return.

(3) Subject to paragraph (4), if relevant payments are made to more than one employee at the same time, the return under paragraph (2) must include the information required by Schedule A1 in respect of each employee to whom a relevant payment is made at that time.

(4) If relevant payments are made to more than one employee at the same time but the employer operates more than one payroll, the employer must make a return in respect of each payroll.

(5) The return is to be made using an approved method of electronic communications.

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F2 Words in reg. 67B(1) inserted (with effect in accordance with reg. 1(2)(3) of the amending S.I.) by The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2013 (S.I. 2013/2300), regs. 1(1), 2(a)

F3 Words in reg. 67B(1) substituted (6.4.2014) by The Income Tax (Pay As You Earn) and the Income Tax (Construction Industry Scheme) (Amendment) Regulations 2014 (S.I. 2014/472), regs. 1(2), 4(a)

F4 Reg. 67B(1A)-(1D) substituted for reg. 67B(1A) (6.4.2014) by The Income Tax (Pay As You Earn) and the Income Tax (Construction Industry Scheme) (Amendment) Regulations 2014 (S.I. 2014/472), regs. 1(2), 4(b)

[F5 Employees in respect of whom employer is not required to maintain deductions working sheets U.K.

67BA.— (1) This regulation applies if an employer makes a relevant payment to an employee in respect of whom the employer is not required by regulation 66 (deductions working sheets) to maintain a deductions working sheet.

(2) The employer need not deliver the information required by regulation 67B(1) on or before making the payment.

(3) The employer must deliver that information no later than the end of the period of 7 days starting with the day following the day on which the payment is made.

Textual Amendments

F5 Regs. 67BA-67BC 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), 19

Employees paid in specified circumstances U.K.

67BB.— (1) This regulation applies if an employer makes a payment to an employee and all of the circumstances in paragraph (2) apply.

(2) The circumstances are that—

(a) the payment includes an amount which is a relevant payment for work undertaken by the employee on—

(i) the day the payment is made, or

(ii) provided that the payment is made before the employee leaves the place of work at the end of the employee’s period of work, the day before the payment is made,

(b) in respect of the work mentioned in sub-paragraph (a), it was not reasonably practicable for the employer to calculate the payment due before the completion of the work, and

(c) it is not reasonably practicable for the employer to deliver the information required by regulation 67B(1) on making the payment.

(3) The employer need not deliver the information required by regulation 67B(1) on or before making the payment.

(4) The employer must deliver that information no later than the end of the period of 7 days starting with the day following the day on which the payment is made.

Textual Amendments

F5 Regs. 67BA-67BC 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), 19

Regulations 67BA and 67BB: supplementary U.K.

67BC   Where regulation 67BA or 67BB applies, the information required by regulation 67B(1) in respect of the relevant payment may be included in a return with the information for any other relevant payment.]

Textual Amendments

F5 Regs. 67BA-67BC 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), 19

[F6 Employees paid advance payments U.K.

67BD.— (1) Paragraph (2) applies where a Real Time Information employer—

(a) makes regular relevant payments to an employee,

(b) makes an advance payment to the employee, and

(c) makes a reduced regular relevant payment to the employee.

(2) Where this paragraph applies—

(a) the requirements of regulations 66, 67B and Schedule A1 do not apply to advance payments in the period beginning with the making of the advance payment and ending with the making of the reduced regular relevant payment, and

(b) the reduced regular relevant payment and advance payments made in respect of it must be treated for the purposes of regulations 66, 67B and Schedule A1 as if they were a single relevant payment made at the time that the reduced regular relevant payment is made.

(3) In this regulation—

(a) “advance payment” means a relevant payment that—

(i) is not a regular relevant payment,

(ii) is for an amount that would otherwise be included in the amount of the next regular relevant payment that follows the making of the relevant payment, and

(iii) does not exceed the amount that, at the time that the relevant payment is made, reasonably represents completed service in respect of which no other relevant payment has been made;

(b) “completed service” means work undertaken or obligations performed by the employee in accordance with the employee’s contract with the Real Time Information employer;

(c) “reduced regular relevant payment” means a regular relevant payment that has been reduced by reference to advance payments made to the employee;

(d) “regular relevant payment” means a relevant payment normally made to the employee at fixed intervals of no shorter than a week and no longer than a month.]

Textual Amendments

F6 Reg. 67BD inserted (6.4.2024) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2024 (S.I. 2024/305), regs. 1, 2(2)

Modification of the requirements of regulation 67B: notional payments U.K.

67C.— (1) This regulation applies if an employer makes a relevant payment which is a notional payment (including a notional payment arising by virtue of a retrospective tax provision) to an employee.

[F7 (2) If the employer is unable to comply with the requirements in regulation 67B(1) to deliver the information required by that regulation on or before making the relevant payment, the employer must instead deliver the information as soon as reasonably practicable after the payment is made and in any event no later than 14 days after the end of the tax month in which the payment is made.]

Textual Amendments

F7 Reg. 67C(2) substituted (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), 20

[F8 Notifications of relevant payments to and by providers of certain electronic payment methods U.K.

67CA.— (1) A Real Time Information employer who makes a relevant payment using an approved method of electronic communications which falls to be included in a return under regulation 67B must—

(a) generate a reference under paragraph (3) and include it in that return,

(b) notify the service provider that the payment is a relevant payment, and

(c) generate a sub-reference under paragraph (3) in respect of the relevant payment and notify the service provider of that sub-reference.

(2) A service provider who receives a notification under paragraph (1)(b) must notify HMRC of the information it holds that is required for generating a reference under paragraph (3) in relation to the relevant payment.

(3) A reference and sub-reference under this paragraph is to be generated using the method specified by the Commissioners for Her Majesty’s Revenue and Customs in a direction.

(4) In paragraphs (1) and (2), “service provider” means the provider of the approved method of electronic communications using which the payment is made.

(5) For the purposes of paragraphs (1) and (4), an “approved method of electronic communications” is any method of electronic communications which has been approved for the purposes of regulation 199 (large employers required to make specified payments electronically).

(6) A direction under paragraph (3) may also—

(a) specify circumstances in which paragraphs (1) and (2) are not to apply, and

(b) specify the form and manner of the notifications required by paragraphs (1)(b) and (c) and (2).]

Textual Amendments

F8 Reg. 67CA inserted (9.8.2012 with effect in relation to relevant payments made on and after 1.9.2012) by The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2012 (S.I. 2012/1895), regs. 1, 2

Exceptions to regulation 67B U.K.

67D.— (1) This regulation applies to—

(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 the company secretary fall within sub-paragraph (a), ...

(d) a care and support employer [F9 , and

(e) an employer to whom a direction has been given under paragraph (11)] ,

[F10 but this is subject to paragraph (2B).]

(2) A Real Time Information employer to whom this regulation applies may proceed in accordance this regulation instead of regulation 67B.

[F11 (2A) Before 6th April 2014, a Real Time Information employer to whom this regulation applies may proceed as if the employer were a non-Real Time Information employer and the provisions of these Regulations apply accordingly to such an employer.]

[F12 (2B) This regulation does not apply if a Real Time Information employer within paragraph (1) makes a return using an approved method of electronic communications.]

(3) [F13 On and after 6th April 2014, a] Real Time Information employer must deliver to HMRC the information specified in Schedule A1 in respect of each employee to whom relevant payments are made in a tax [F14 quarter] unless the employer is not required by regulation 66 (deductions working sheets) to maintain a deductions working sheet for any employees and, for the purposes of this regulation, references in Schedule A1 to a relevant payment shall be read as if they were references to all the relevant payments made to the employee in the tax [F14 quarter].

(4) The information must be included in a return.

(5) The return required under paragraph (4) must be delivered within 14 days after the end of the tax [F15 quarter] the return relates to.

(6) If relevant payments have been made to more than one employee in the tax [F16 quarter], the return under paragraph (4) must include the information required by Schedule A1 in respect of each employee to whom a relevant payment has been made.

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9) In paragraph (1)(c), “company” means a body corporate or unincorporated association but does not include a partnership.

(10) In paragraph (1)(d), “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, and

(c) it is the employer who delivers the return (and not some other person on the employer’s behalf).

[F17 (11) Where the Commissioners for Her Majesty’s Revenue and Customs are satisfied that—

(a) it is not reasonably practicable for an employer to make a return using an approved method of electronic communication, and

(b) it is the employer who delivers the return (and not some other person on the employer’s behalf)

they may make a direction specifying that the employer is not required to make a return using an approved method of electronic communication.]

Textual Amendments

F9 Reg. 67D(1)(e) and word 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), 21(a)(ii)

F10 Words in reg. 67D(1)(e) inserted (6.4.2014) by The Income Tax (Pay As You Earn) and the Income Tax (Construction Industry Scheme) (Amendment) Regulations 2014 (S.I. 2014/472), regs. 1(2), 5(a)

F11 Reg. 67D(2A) 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), 21(b)

F12 Reg. 67D(2B) inserted (6.4.2014) by The Income Tax (Pay As You Earn) and the Income Tax (Construction Industry Scheme) (Amendment) Regulations 2014 (S.I. 2014/472), regs. 1(2), 5(b)

F13 Words in reg. 67D(3) substituted (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), 21(c)

F14 Word in reg. 67D(3) substituted (6.4.2014) by The Income Tax (Pay As You Earn) and the Income Tax (Construction Industry Scheme) (Amendment) Regulations 2014 (S.I. 2014/472), regs. 1(2), 5(c)

F15 Word in reg. 67D(5) substituted (6.4.2014) by The Income Tax (Pay As You Earn) and the Income Tax (Construction Industry Scheme) (Amendment) Regulations 2014 (S.I. 2014/472), regs. 1(2), 5(c)

F16 Word in reg. 67D(6) substituted (6.4.2014) by The Income Tax (Pay As You Earn) and the Income Tax (Construction Industry Scheme) (Amendment) Regulations 2014 (S.I. 2014/472), regs. 1(2), 5(c)

F17 Reg. 67D(11) 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), 21(e)

Returns under regulations 67B and 67D: amendments U.K.

67E.— (1) This regulation applies where [F18 there is an inaccuracy in a return] made under regulation 67B (real time returns of information about relevant payments) or 67D (exceptions to regulation 67B) [F19 , whether careless or deliberate,] and paragraph (2), (3) or (4) applies.

(2) This paragraph applies where the [F20 inaccuracy] relates to the information given in the return in respect of an employee under paragraph 16 [F21 , 16A] or 17 of Schedule A1 (real time returns).

(3) This paragraph applies where the [F20 inaccuracy] was the omission of details of a relevant payment to an employee.

(4) This paragraph applies where the [F22 inaccuracy] arises because, as a result of a retrospective tax provision, the total amount of the relevant payments made by an employer to an employee increases for any tax year in which the employer was a Real Time Information employer.

[F23 (5) Where an employer becomes aware of an inaccuracy in a return submitted under regulation 67B or 67D, the employer must provide the correct information in the next return for the tax year in question.]

(6) But if the information has not been corrected before 20th April following the end of the tax year in question, the employer must make a return under this paragraph.

(7) A return under paragraph (6)—

(a) must include the following—

(i) the information specified in paragraphs 2 to 4, 8 to [F24 13, 15 and 22A] of Schedule A1,

(ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(iii) [F25 if the return relates to the tax year 2017-18 or to an earlier tax year,] the value of the adjustment to the information given under paragraphs 16 [F26 , 16A] or 17 of Schedule A1 in the final return under regulation 67B or 67D containing information in respect of the employee in the tax year in question,

[F27 (iiia) if the return relates to the tax year 2020-21 or a subsequent tax year, the amount which should have been given under paragraphs 16, 16A or 17 of Schedule A1 in the final return under regulation 67B or 67D containing information in respect of the employee in the tax year in question,

(iiib) if the return relates to the tax year 2018-19 or 2019-20—

(aa) the value of the adjustment to the information given under, or

(bb) the amount which should have been given under,

paragraphs 16, 16A or 17 of Schedule A1 in the final return under regulation 67B or 67D containing information in respect of the employee in the tax year in question,]

[F28 (iv) the tax code used by the employer in respect of the employee in the tax year in question and,]

(v) if paragraph (8) applies, the information specified in paragraphs 36 to [F29 43] of Schedule A1,

(b) must be made as soon as reasonably practicable after the [F30 employer becomes aware of the inaccuracy], and

(c) must be made by an approved method of electronic communications.

(8) This paragraph applies if—

(a) the [F31 inaccuracy] is within paragraph (3),

(b) the relevant payment was the first relevant payment to the employee in the employment, and

(c) the information specified in paragraphs 36 to [F32 43] of Schedule A1 has not otherwise been provided.

(9) In the application of paragraphs (6) and (7) to cases within paragraph (3), if no information was given in any returns under regulation 67B or 67D in respect of the employee in the tax year, the value of the adjustments required [F33 by paragraph (7)(a)(iii) or (iiib)] must be calculated as if there was a final return containing information for the employee in the year and the figure requiring adjustment was zero.

(10) Paragraph (7)(c) does not apply if the employer is one to whom regulation 67D applies.

Textual Amendments

F18 Words in reg. 67E(1) substituted (6.4.2014) by The Income Tax (Pay As You Earn) and the Income Tax (Construction Industry Scheme) (Amendment) Regulations 2014 (S.I. 2014/472), regs. 1(2), 6(a)(i)

F19 Words in reg. 67E(1) inserted (6.4.2014) by The Income Tax (Pay As You Earn) and the Income Tax (Construction Industry Scheme) (Amendment) Regulations 2014 (S.I. 2014/472), regs. 1(2), 6(a)(ii)

F20 Word in reg. 67E(2)(3) substituted (6.4.2014) by The Income Tax (Pay As You Earn) and the Income Tax (Construction Industry Scheme) (Amendment) Regulations 2014 (S.I. 2014/472), regs. 1(2), 6(b)

F21 Word in reg. 67E(2) inserted (6.4.2021) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2021 (S.I. 2021/218), regs. 1, 3(a)

F22 Word in reg. 67E(4) substituted (6.4.2014) by The Income Tax (Pay As You Earn) and the Income Tax (Construction Industry Scheme) (Amendment) Regulations 2014 (S.I. 2014/472), regs. 1(2), 6(b)

F23 Reg. 67E(5) substituted (6.4.2014) by The Income Tax (Pay As You Earn) and the Income Tax (Construction Industry Scheme) (Amendment) Regulations 2014 (S.I. 2014/472), regs. 1(2), 6(c)

F24 Words in reg. 67E(7)(a)(i) substituted (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), 22(a)

F25 Words in reg. 67E(7)(a)(iii) inserted (6.4.2021) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2021 (S.I. 2021/218), regs. 1, 3(b)

F26 Word in reg. 67E(7)(a)(iii) inserted (6.4.2021) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2021 (S.I. 2021/218), regs. 1, 3(a)

F27 Reg. 67E(7)(a)(iiia)(iiib) inserted (6.4.2021) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2021 (S.I. 2021/218), regs. 1, 3(c)

F28 Reg. 67E(7)(a)(iv) substituted (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), 22(c)

F29 Words in reg. 67E(7)(a)(v) substituted (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), 22(d)

F30 Words in reg. 67E(7)(b) substituted (6.4.2014) by The Income Tax (Pay As You Earn) and the Income Tax (Construction Industry Scheme) (Amendment) Regulations 2014 (S.I. 2014/472), regs. 1(2), 6(d)

F31 Word in reg. 67E(8)(a) substituted (6.4.2014) by The Income Tax (Pay As You Earn) and the Income Tax (Construction Industry Scheme) (Amendment) Regulations 2014 (S.I. 2014/472), regs. 1(2), 6(b)

F32 Words in reg. 67E(8)(c) substituted (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), 22(d)

F33 Words in reg. 67E(9) inserted (6.4.2021) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2021 (S.I. 2021/218), regs. 1, 3(d)

[F34 Failure to make a return under regulation 67B or 67D U.K.

67EA.— (1) This regulation applies where an employer does not make a return as required by regulation 67B (real time returns of information about relevant payments) or 67D (exceptions to regulation 67B).

(2) The employer must provide the information in the next return made under regulation 67B or 67D for the tax year in question.

(3) If the information has not been provided before 20th April following the end of the tax year in question, the employer must make a return under this paragraph.

(4) A return under paragraph (3) must—

(a) include the information specified in Schedule A1,

(b) be made as soon as reasonably practicable after the discovery of the failure to make the return, and

(c) be made using an approved method of electronic communications.

(5) If a return under paragraph (3) is not made before 20th May following the end of the tax year in question section 98A of TMA 1970 (special penalties in case of certain returns) will apply to the return [F35 , but this paragraph does not apply to a return in respect of the tax year 2014-15 or a subsequent tax year].]

Textual Amendments

F34 Reg. 67EA 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), 23

F35 Words in reg. 67EA(5) inserted (10.9.2014) by The Finance Act 2009, Schedule 55 (Penalties for failure to make returns) (Appointed Days and Consequential Provision) Order 2014 (S.I. 2014/2395), art. 3

Additional information about payments U.K.

67F.— (1) A Real Time Information employer may send to HMRC a notification if—

(a) for a tax period, the employer was not required to make any returns in accordance with regulation 67B or 67D because no relevant payments were made during the tax period, or

(b) the employer has sent the final return under regulation 67B or 67D that the employer expects to make—

(i) in the circumstances described in paragraph 5 of Schedule A1 (real time returns), or

(ii) for the tax year.

(2) A notification under paragraph (1)(b) must—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) be sent within 14 days of the end of final tax period of the tax year.

[F36 (c) if the notification is under paragraph (1)(b)(i), include the date on which the PAYE scheme ceased]

(3) A notification under this regulation must—

(a) state—

(i) the tax year to which it relates,

(ii) the employer’s HMRC office number,

(iii) the employer’s PAYE reference, and

(iv) the employer’s accounts office reference, and

(b) be sent using an approved method of electronic communications unless the employer is one to whom regulation 67D applies.

[F37 (4) This regulation applies in addition to the provisions set out in regulation 147D (duty to report amount of apprenticeship levy to be paid).]]

Textual Amendments

F36 Reg. 67F(2)(c) inserted (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), 24

F37 Reg. 67F(4) inserted (6.4.2017) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2017 (S.I. 2017/414), regs. 1, 2(4)