PART 3DEDUCTION AND REPAYMENT OF TAX

CHAPTER 1DEDUCTION AND REPAYMENT

F1Higher rate, additional rate and nil tax codes

Annotations:
Amendments (Textual)

Nil tax code: no deductions or repaymentsI133

1

If an employee’s code is the nil tax code the employer must not deduct or repay any tax, and so regulation 22 (cumulative basis) does not apply.

2

But—

a

if the nil tax code is an amended code, and

b

the Inland Revenue so direct,

regulation 22 applies to the next relevant payment the employer makes in the same tax year, and the employer must make any repayment of tax due.