PART 4PAYMENTS, RETURNS AND INFORMATION

CHAPTER 1PAYMENT OF TAX AND ASSOCIATED RETURNS

Payment and recovery of tax by employer

Quarterly tax periodsI170

1

This regulation applies, so that the tax period is a tax quarter, if an employer—

a

has reasonable grounds for believing that the average monthly amount will be less than £1,500, and

b

chooses to pay tax quarterly.

2

“The average monthly amount” is the average, for tax months falling within the current tax year, of the amounts found by the formula—

F1(P + N + L + S) − (SP + CD)

3

In paragraph (2)—

  • P is the amount which would be payable to the Inland Revenue under regulation 68 F2...;

  • N is the amount which would be payable to the Inland Revenue under the SSCBA and the SSC Regulations disregarding—

    1. a

      any amount of secondary Class 1 contributions in respect of which liability has been transferred to the employed earner by an election made jointly by the employed earner and the secondary contributor for the purposes of paragraph 3B(1) of Schedule 1 to the SSCBA (transfer of liability to be borne by earner)29; F4...

    2. b

      F4...

  • L is the amount which would be payable to the Inland Revenue under regulation 39(1) of the Student Loans Regulations (payment of repayments deducted to the Inland Revenue) disregarding—

    1. a

      the reduction referred to in paragraph (3) of that regulation, F4...

    2. b

      F4...

  • S is the amount which would be payable by the employer to the Inland Revenue under sections 559 and 559A of ICTA30 (deduction on account of tax etc from payments to certain sub-contractors) and regulation 8 of the Income Tax (Sub-contractors in the Construction Industry) Regulations 199331F3...;

  • F5...

  • SP is the amount which would be payable by the employer to employees by way of statutory sick pay, statutory maternity pay, statutory paternity pay and statutory adoption pay under the SSCBA; and

  • CD is—

    1. a

      if the employer is a company, the amount which others would deduct from payments to it, in its position as a sub-contractor, under section 559 of ICTA (deduction on account of tax etc from payments to certain sub-contractors);

    2. b

      in any other case, nil.

4

In this regulation—

  • “employed earner” has the same meaning as in the SSCBA;

  • “SSCBA” means the Social Security Contributions and Benefits Act 199232 or, in Northern Ireland, the Social Security Contribution and Benefits (Northern Ireland) Act 199233;

  • “SSC Regulations” means the Social Security (Contributions) Regulations 200134;

  • “Student Loans Regulations” means the Education (Student Loans) (Repayment) Regulations 200035 or, in Northern Ireland, the Education (Student Loans) (Repayment) Regulations (Northern Ireland) 200036;

  • F6...

  • F6...