The Income Tax (Pay As You Earn) Regulations 2003

[F1 Recovery of taxes U.K.

72GB.— (1) Where this regulation applies, HMRC may direct an amount to be treated as having been recovered from the payee and for that amount not to be recoverable from the deemed employer where—

(a) the deemed employer would otherwise be liable to pay an amount in consequence of being treated under section 61N(3) of ITEPA as having made a deemed direct payment to a worker (other than by virtue of section 61WA of ITEPA), and

(b) an amount of income tax or corporation tax has been paid or assessed in respect of the deemed direct payment.

(2) The amount referred to in the opening words of paragraph (1) may be the best estimate which can reasonably be made by an officer of Revenue and Customs (whether generally or specifically) of the amount referred to in paragraph (1)(b).

(3) The direction may be in respect of one or more amounts of income tax or corporation tax that fall within regulation 72GA(1)(a).

(4) A direction must be made by notice to the deemed employer and the payee, subject to paragraph (7), stating—

(a) the date the notice was issued,

(b) the amount to be treated as having been recovered, and

(c) the services provided in respect of which the deemed direct payment within regulation 72GA(1)(a) was treated as having been made.

(5) A direction may be combined with one or more directions relating to the same deemed employer and may be made by issuing one notice to that deemed employer, but each payee must be issued with a separate notice.

(6) The amount referred to in paragraph (4)(b) will be the overall recovered amount.

(7) A notice need not be issued to a payee if HMRC or the deemed employer are unaware of the current address of the payee.

(8) The payee may not—

(a) make a claim for the repayment of, or relief in respect of, the amount of income tax or corporation tax referred to in regulation 72GA(1)(a), or

(b) deduct, or set off, the amount of tax referred to in regulation 72GA(1)(a) from or against any income tax or corporation tax liability.]

Textual Amendments

F1 Regs. 72GA-72GC inserted (6.4.2024) by The Income Tax (Pay As You Earn) (Amendment) (No. 2) Regulations 2024 (S.I. 2024/355), regs. 1, 2(2)