54.—(1) Subject to paragraphs (2), (3) and (6) the employer must pay an amount equal to the smaller of the repayments—
(a)deducted by the employer under these Regulations during an income tax month; or
(b)which the employer was required to deduct under these Regulations during that income tax month,
to HMRC within 14 days of the end of that income tax month.
(2) Where, under paragraph 11 of Schedule 4 to the Contributions Regulations, the employer is required to pay National Insurance contributions due in respect of earnings paid in an income tax quarter within 14 days of its end, then subject to paragraphs (3) and (6), the employer must pay an amount equal to the smaller of the repayments—
(a)deducted by the employer under these Regulations during an income tax quarter, or
(b)which the employer is required to deduct during that quarter,
to HMRC within 14 days of the end of that income tax quarter.
(3) Where, before 1 April 2006, the employer has under regulation 7(2) of the Tax Credits (Payment by Employers) Regulations 1999(1) or the Working Tax Credit (Payment by Employers) Regulations 2002(2) funded the payment of tax credit out of repayments deducted under these Regulations or the Education (Student Loans) (Repayment) Regulations 2000, the amount requiring payment to HMRC under paragraph (1) or (2) must be reduced by the amount of tax credit which the employer has funded in the income tax period.
(4) Subject to paragraph (5), if the employer has paid to HMRC on account of repayments under this regulation an amount which the employer was not liable to pay, the amounts which the employer is required subsequently to pay in respect of other payments of earnings made by the employer during the same tax year must be reduced by the amount overpaid.
(5) If the overpayment referred to in paragraph (4) corresponds to an over-deduction from the earnings of one or more employees, an employer may only act in accordance with paragraph (4) if and to the extent that the employer has reimbursed the employee or employees for that over-deduction.
(6) Where an employer makes a payment in accordance with paragraph (1) or (2) by an approved method of electronic communications, payment must be made within 17 days of the end of the relevant income tax period.
SI 1999/3219. These Regulations lapsed with effect from 8 April 2003 on the repeal of section 6 of the Tax Credits Act 1999 (c.10) by the Tax Credits Act 2002 (c.21) section 60 and Schedule 6.
SI 2002/2172. These Regulations were revoked by the Tax Credit (Payment by Employers, etc) (Amendment) Regulations 2005 (SI 2005/2200) regulation 9(2)(a).