5. In regulation 90H (mandatory electronic payment)—
(a)for paragraph (1) substitute —
“(1) An employer who is a large employer within the meaning of regulation 191 (large and medium sized employers) of the PAYE Regulations must pay the specified payment using an approved method of electronic communications”,
(b)in the paragraph (1) inserted by paragraph (a) of this regulation, for the words “191 (large and medium sized employers)” substitute “198A (large employers)”, and
(c)after paragraph (4) insert—
“(5) A specified payment is not treated as received in full by HMRC on or before the date by which that specified payment is required in accordance with paragraph 10 or paragraph 11 of Schedule 4 unless it is made in a manner which secures (in a case where the specified payment is made otherwise than in cash) that, on or before that date, all transactions can be completed which need to be completed before the whole amount of the specified payment becomes available to the Commissioners for Her Majesty’s Revenue and Customs.”.
6. The following are omitted—
(a)regulation 90I (employer in default if specified payment not received by applicable due date),
(b)regulation 90J (default notice and appeal),
(c)regulation 90K (default surcharge), and
(d)regulation 90L (surcharge notice and appeal).
7. In regulation 90M (paragraph 22 return and specified payments), for the definition of “specified payments” substitute—
““specified payments” means payments of earnings-related contributions under paragraph 10 (payments made monthly by employer) or paragraph 11 (payments made quarterly by employer) of Schedule 4.”.
8.—(1) For regulation 90N (mandatory use of electronic communications) substitute the following—
90N.—(1) An employer (as to which see regulation 90NA) must deliver a paragraph 22 return to an official computer system using an approved method of electronic communications.
(2) If the Commissioners for Her Majesty’s Revenue and Customs have made a direction under regulation 205B(1) of the PAYE Regulations requiring a particular method of electronic communication to be used in the case of an employer, the employer must use that method.
(3) This regulation does not apply to a return in respect of retrospective earnings where those earnings relate to a tax year which is closed (see paragraph 1(2) of Schedule 4) at the time the relevant retrospective contributions regulations come into force.
90NA.—(1) For the purposes of regulation 90N, the following shall not be regarded as employers—
(a)an individual who is a practising member of a religious society or order whose beliefs are incompatible with the use of electronic communications,
(b)a partnership, if all the partners fall within sub-paragraph (a),
(c)a company, if all the directors and company secretary fall within sub-paragraph (a),
(d)an employer who is authorised by HMRC to deduct tax from relevant payments made to employees in accordance with regulation 34 of the PAYE Regulations (simplified deduction scheme for personal employees) and who has not received an incentive payment, and
(e)a care and support employer.
(2) In paragraph (1)(c), “company” means a body corporate or unincorporated association but does not include a partnership.
(3) In paragraph (1)(e), a “care and support employer” means an individual (“the employer”) who employs a person to provide domestic or personal services at or from the employer’s home where—
(a)the services are provided to the employer or a member of the employer’s family,
(b)the recipient of the services has a physical or mental disability, or is elderly or infirm,
(c)the employer has not received an incentive payment in respect of the last 3 tax years, and
(d)it is the employer who delivers the paragraph 22 return (and not some other person on the employer’s behalf).
(4) In this regulation “incentive payment” means an incentive payment received under the Income Tax (Incentive Payments for Voluntary Electronic Communication of PAYE Returns) Regulations 2003(1).”.
(2) In paragraph (2) of regulation 90N inserted by paragraph (1) for “205B(1)” substitute “205(2)”.
9. In regulation 90P (penalties and appeals)—
(a)for paragraph (3)(b) substitute—
“(b)been subject to a penalty for failing to deliver the return and accompanying information required by regulation 73 of the PAYE Regulations (annual return of relevant payments liable to deduction of tax (Forms P35 and P14)) in accordance with regulation 205 (mandatory use of electronic communication) of those Regulations.”, and
(b)after paragraph 4(a) insert—
“(aa)the employer is not regarded as an employer for the purposes of regulation 90N,”.
S.I. 2003/2495; amended by S.I. 2005/826; there are other amending instruments but none is relevant.