The Income Tax (Pay As You Earn) Regulations 2003

[F1 Modification of the general rule: in-year adjustments: change to the benefit during the year with effect from the start of tax year and other changes U.K.

61J.— (1) This regulation applies if during a tax year:

(a) there is a change to the specified benefit provided to a specified employee and, for the purposes of calculating the cash equivalent of that benefit under ITEPA, that change has effect from the start of the tax year;

(b) the employer becomes aware that the cash equivalent of the specified benefit determined at the start of the year in accordance with regulation 61E, 61F or 61G (method of calculating the cash equivalent) is no longer accurate;

(c) the employer will stop providing a specified benefit during the tax year; or

(d) there is a change to the number of main relevant payments used to determine the Taxable Amount of the Benefit where the specified employee is paid at irregular intervals.

(2) Where this regulation applies, regulation 61D(2) no longer applies and regulation 61I applies but with the modification in paragraph (3).

(3) For the purposes of calculating the revised cash equivalent of the specified benefit, step 1 of regulation 61I(2) is modified as follows—

Step 1

In cases where regulation 61J(1)(a), (b) or (c) applies, redetermine the cash equivalent of the specified benefit in accordance with regulations 61E, 61F or 61G, as the case may be. In cases where regulation 61J(1)(d) applies, use the cash equivalent of the benefit determined at the start of the year under step 1 of regulation 61D(1).

(4) Any references in regulation 61I(2) to the revised cash equivalent of the benefit or to the amount obtained under step 1 of 61I(2) are to be read in accordance with paragraph (3).]

Textual Amendments

F1 Pt. 3 Ch. 3A inserted (with effect in accordance with reg. 1(4) of the amending S.I.) by The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2015 (S.I. 2015/1927), regs. 1(1), 6