99.—(1) An election made under regulation 98 must be disregarded if the Inland Revenue—
(a)issue a notice to the employer stating that it appears to them that the election is made wholly or mainly for an improper purpose (“an improper purpose notice”), and
(b)issue the improper purpose notice within 60 days of the making of the election.
(2) An election is made for an “improper purpose” if it is made for the purpose of—
(a)avoiding the requirement imposed by regulation 199 (large employers required to make specified payments electronically),
F1(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F2(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) An employer may appeal against an improper purpose notice by giving notice to the Inland Revenue within 30 days of the issue of the improper purpose notice.
(4) The grounds of appeal are—
(a)that the election was not made wholly or mainly for an improper purpose, or
(b)that the improper purpose notice was not issued within 60 days of the election.
(5) If the appeal is successful the improper purpose notice must be withdrawn.
(6) Regulation 217 (appeals: supplementary provisions) applies to appeals under this regulation.
Textual Amendments
F1Reg. 99(2)(b) omitted (6.4.2011 in relation to the tax year 2011-12 and subsequent tax years) by virtue of The Income Tax (Pay As You Earn) (Amendment) Regulations 2010 (S.I. 2010/668), regs. 1(4), 16(c)
F2Reg. 99(2)(c) omitted (6.4.2010) by virtue of The Income Tax (Pay As You Earn) (Amendment) Regulations 2010 (S.I. 2010/668), regs. 1(2), 16(b)
Commencement Information