The Income Tax (Pay As You Earn) Regulations 2003

Direct collection and special arrangements U.K.

141.— [F1 (1) In any case in which HMRC are of the opinion that deduction of tax by reference to the tax tables is impracticable, the direct collection procedure in regulation 142 applies to any PAYE income, unless HMRC makes special arrangements for the collection of tax in respect of that PAYE income.]

(2) A special arrangement does not apply to PAYE income of an employer’s employees if—

(a) the arrangement has not been agreed with the employer, and

(b) the employer does not proceed in accordance with the arrangement.

[F2 (3) A special arrangement must be—

(a) in writing, and

(b) signed and dated by the employer and HMRC.

(4) A special arrangement must specify—

(a) the date by which the return under paragraph (8) must be delivered, which must be no later than 31st May following the end of each tax year to which the special arrangement relates, and

(b) the due date for the payment of tax under paragraph (5).

(5) The employer must pay to HMRC by the due date the tax payable in relation to the preceding tax year in respect of the PAYE income to which a special arrangement applies.

(6) PAYE income to which a special arrangement applies is not to be included—

(a) in a return by the employer under regulation 67B, 67D, 67E, 73, 74 or 75 (returns of relevant payments and tax deducted), nor

(b) in particulars provided by the employer under regulation 85 (annual return of other earnings (Form P11D)).

(7) Following the end of the tax year, the employer must deliver to HMRC the information specified in Schedule A1 (real time returns) in respect of the PAYE income to which a special arrangement applied for that tax year.

(8) The information must be included in a return which must be delivered by the date specified in the special arrangement.

(9) The return must be made using an approved method of electronic communications.

(10) In paragraph (3) “in writing” includes electronic communications and “signed” includes electronic signatures.

(11) In paragraphs (4) and (5) “the due date” means the date specified in the special arrangement which must be no later than 31st May following the end of each tax year to which the special arrangement relates.]

Textual Amendments

F1 Reg. 141(1) substituted (6.4.2020) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2020 (S.I. 2020/88), regs. 1, 2(2)

F2 Reg. 141(3)-(11) inserted (6.4.2020) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2020 (S.I. 2020/88), regs. 1, 2(3)