The Income Tax (Pay As You Earn) Regulations 2003

Deductions working sheets

66.—(1) Paragraph (2) applies if a code has been issued to an employer in respect of an employee.

(2) The employer must, on making a relevant payment to the employee, prepare a deductions working sheet (unless the employer has already done so).

(3) The employer must record in the deductions working sheet—

(a) the employee’s name,

(b) the employee’s national insurance number, if known,

(c) the employee’s code, and

(d) the tax year to which the deductions working sheet relates.

(4) The employer must record in the deductions working sheet in respect of every relevant payment which the employer makes to the employee—

(a) the date of the payment,

(b) the amount of the payment, and

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

(5) If the employee’s code is used on the cumulative basis, the employer must, in respect of every relevant payment which the employer makes to the employee, either—

(a) record the following information in the deductions working sheet, or

(b) keep such records as enable its production.

(6) The information is—

(a) the total payments to date in relation to the date of payment,

(b) the total free pay to date or, as the case may be, the total additional pay to date, in relation to that date,

(c) the total taxable payments to date in relation to that date,

(d) the corresponding total tax to date,

(e) if the employee’s code is a K code—

(i) the tax due to be deducted at that date (subject to the overriding limit),

(ii) the overriding limit, if any, in relation to the payment,

(iii) the amount of any tax not deducted at that date because of the overriding limit, and

(f) any amount of tax which is not to be repaid because of regulation 64 (trade disputes).

(7) If the employee’s code is not used on the cumulative basis, the employer must, in respect of every relevant payment which the employer makes to the employee, either—

(a) record the following information in the deductions working sheet, or

(b) keep such records as enable its production.

(8) The information is—

(a) the free pay, or, as the case may be, the additional pay for the employee’s code,

(b) the taxable payments, and

(c) if the employee’s code is a K code, the tax due to be deducted and the overriding limit.