PART 3U.K.DEDUCTION AND REPAYMENT OF TAX

CHAPTER 1U.K.DEDUCTION AND REPAYMENT

Cessation of employmentU.K.

PAYE income paid after employment ceasedU.K.

37.—(1) This regulation applies if a relevant payment is made to an employee after the employment has ceased—

(a)by the former employer in respect of the former employment, or

(b)by any other person in respect of an obligation of the former employer,

and the payment has not been included in Form P45.

[F1(1A) But this regulation does not apply if regulation 37A applies.]

[F2(2) [F3The] person making the payment must deduct tax on the non-cumulative basis using the 0T Code.

(2A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

(3) But—

(a)the payment does not affect the cessation of employment, and

(b)the provisions listed in paragraph (4) do not apply.

(4) The provisions are—

regulation 21deduction and repayment of tax by reference to employee’s code
regulations 22 and 23cumulative basis
F4. . .F5. . .
Chapters 2 and 3 of this Partnew employees and new pensioners: Forms P45 and P46.

(5) The person making the payment must record the following information in a deductions working sheet (which the person must prepare for the purpose if one has not already been prepared for that tax year).

(6) The information is—

(a)the date of the payment,

(b)the amount of the relevant payment, and

(c)the amount of tax deducted on making the payment, or to be deducted or accounted for under regulation 62(4) or (5) (notional payments).

(7) The person making the payment must also notify the employee of the information mentioned in paragraph (6) without unreasonable delay.

Textual Amendments