The Income Tax (Pay As You Earn) Regulations 2003

Meaning of “code” etc U.K.

7.—(1) In these Regulations, “code” means—

(a) a combination of letters, numbers or both for use in accordance with the tax tables to establish free pay, additional pay, total free pay to date or total additional pay to date;

(b) any of the special codes (whether expressed in words or represented by a combination of letters, numbers or both) for use in accordance with the tax tables or otherwise.

(2) “K code” means a code which gives rise to additional pay or total additional pay to date.

[F1 (2A) “S code” means a code which effects deductions of tax at the rates [F2 set by a Scottish rate resolution of the Scottish Parliament under section 80C of the Scotland Act 1998].]

[F3 (2B) “C code” means a code which effects deductions of tax at the rates calculated under section 6B of ITA.]

(3) The special codes are—

(a) the basic rate code, which effects deductions of tax wholly at the basic rate;

(b) the higher rate code, which effects deductions of tax wholly at the higher rate;

[F4 (ba) the additional rate code, which effects deductions of tax wholly at the additional rate;]

[F5 (bb) the appropriate Scottish upper rate code, which effects deductions of tax wholly at a Scottish upper rate for a Scottish taxpayer;]

(c) the nil tax code, which requires no deductions of tax;

[F6 (ca) the 0T code, which without allowing for personal allowances, effects deductions of tax so that during the tax year the amounts subject to deductions are in accordance with section 10 of ITA (income charged at the basic, higher and additional rates: individuals) or section 11A of ITA (income charged at Scottish rates);]

[F7 (d) the emergency code, which, after allowing for the personal allowance, effects deductions of tax at—

[F8 (i) the basic rate, or

(ii) the basic and higher rates, or

(iii) the basic, higher and additional rates

so that during the tax year the amounts subject to deductions at the rate or rates concerned are in accordance with section 10 of ITA (income charged at the basic, higher and additional rates: individuals);]

(e) the emergency IB codes which, after allowing for the personal allowance and the blind person’s allowance, effect deductions at the basic rate, so that during the tax year the amounts subject to deductions at that rate are in accordance with section 10 of ITA.]

[F9 (4) In paragraph (3)—

[F10 “appropriate Scottish upper rate code” means a Scottish upper rate code which effects deductions of tax from an employee who is a Scottish taxpayer at a Scottish upper rate which is considered by HMRC to apply where they have reason to believe that the employee will be chargeable at that rate on all or a substantial part of the employee’s relevant payments;]

“blind person’s allowance” means an allowance claimed under either section 265 of ICTA (blind person’s allowance) or section 38 of ITA (blind person’s allowance);

“personal allowance” means an allowance claimed under either section 257(1) of ICTA (personal allowance) or section 35 of ITA (personal allowances for those aged under 65).]

Textual Amendments

F1 Reg. 7(2A) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Income Tax (Pay As You Earn) (Amendment No. 3) Regulations 2015 (S.I. 2015/1667), regs. 1(1), 4

F2 Words in reg. 7(2A) substituted (6.4.2017) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2017 (S.I. 2017/414), regs. 1, 2(3)

F3 Reg. 7(2B) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2018 (S.I. 2018/1327), regs. 1(1), 4

F4 Reg. 7(3)(ba) inserted (6.4.2011) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2011 (S.I. 2011/729), regs. 1, 4(a)

F5 Reg. 7(3)(bb) inserted (6.4.2018) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2018 (S.I. 2018/267), regs. 1, 4(a)(i)

F6 Reg. 7(3)(ca) substituted (6.4.2018) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2018 (S.I. 2018/267), regs. 1, 4(a)(ii)

F7 Reg. 7(3)(d)(e) substituted (6.4.2008) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2008 (S.I. 2008/782), regs. 1, 4(a)

F8 Reg. 7(3)(d)(i)-(iii) substituted for words (6.4.2011) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2011 (S.I. 2011/729), regs. 1, 4(c)

F9 Reg. 7(4) inserted (6.4.2008) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2008 (S.I. 2008/782), regs. 1, 4(b)

F10 Words in reg. 7(4) inserted (6.4.2018) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2018 (S.I. 2018/267), regs. 1, 4(b)

Commencement Information

I1 Reg. 7 in force at 6.4.2004, see reg. 1