PART 9ASSESSMENT AND SELF-ASSESSMENT

Assessments other than self-assessments188.

(1)

In this regulation, “assessment” means an assessment other than one under section 9 of TMA81 (self-assessment).

(2)

The tax payable by the employee is—

A-(B-C)math

  • A is the tax payable under the assessment;

  • B is the total net tax deducted in relation to the employee’s relevant payments during the tax year for which the assessment is made, adjusted as required by paragraph (3); and

  • C is so much, if any, of B as is subsequently repaid.

(3)

For the purpose of determining the tax payable by the employee, and subject to paragraphs (4) and (5)—

(a)

add to B any tax which—

(i)

the employer was liable to deduct from relevant payments but failed to do so, or

(ii)

the employer was liable to account for in accordance with regulation 62(5) (notional payments) but failed to do so;

(b)

make any necessary adjustment to B in respect of any tax overpaid or remaining unpaid for any tax year; and

(c)

make any necessary adjustment to B in respect of any amount to be recovered as if it were unpaid tax under section 30(1) of TMA82 (recovery of overpayment of tax etc) to the extent that—

(i)

F1HMRC took that amount into account in determining the employee’s code, and

(ii)

the total net tax deducted was in consequence greater than it would otherwise have been.

(4)

No direction tax is to be included in calculating the amount of tax referred to in paragraph (3)(a).

(5)

If a direction is made after the making of the assessment, the amount (if any) shown in the notice of assessment as a deduction from, or a credit against, the tax payable under the assessment is to be taken as reduced by so much of the direction tax as was included in calculating the amount of tax referred to in paragraph (3)(a).

(6)

Instead of requiring payment by the employee, F2HMRC may take the tax payable by the employee into account in determining the employee’s code for a subsequent tax year.

(7)

In this regulation—

“direction” means a direction made under F3regulation 72(5), regulation 72F F4, or regulation 72GB or 81(4) in relation to the employee in respect of one or more tax periods falling within the tax year in question;

“direction tax” means any amount of tax which is the subject of a direction;

“tax payable under the assessment” means the amount of tax shown in the assessment as payable without regard to any amount shown in the notice of assessment as a deduction from, or a credit against, the amount of tax payable.