2016 No. 329

Income Tax

The Income Tax (Pay As You Earn) (Amendment) Regulations 2016

Made

Laid before the House of Commons

Coming into force

The Commissioners for Her Majesty’s Revenue and Customs make the following Regulations in exercise of the powers conferred by section 113(1) of the Taxes Management Act 19701, section 133 of Finance Act 19992 and section 684(1) and (2) of the Income Tax (Earnings and Pensions) Act 20033 and now exercisable by them4.

Citation and commencement1

These Regulations may be cited as the Income Tax (Pay As You Earn) (Amendment) Regulations 2016 and come into force on 6th April 2016.

Amendment of the Income Tax (Pay As You Earn) Regulations 2003

2

The Income Tax (Pay As You Earn) Regulations 20035 are amended as follows.

3

In regulation 65 (repayment if no longer employed) omit paragraph (2)(a).

4

In Table 10 (regulations which require approved document or format and which permit electronic delivery) in regulation 211 (how information must or may be delivered by employers)6—

a

in the entry relating to “regulation 36(1) and 36(2)(b)” in column 5 for “no” substitute “not applicable”, and

b

after the entry relating to “regulation 90(2)”, insert a new entry—

98(4)

multiple PAYE schemes

Form P350

yes

yes

5

In Schedule A1 (real time returns) after paragraph 22B7 insert—

22C

1

If applicable, an indication that comprised within the payment is an amount in respect of a reportable payment and the amount of that reportable payment.

2

For the purposes of sub-paragraph (1) a “reportable payment” is—

a

a payment of an uncrystallised funds pension lump sum,

b

a lifetime annuity under a flexible annuity contract, or

c

a payment made out of—

i

a fund referred to in section 227G(2), (4) or (5) of the Finance Act 20048,

ii

an arrangement referred to in section 227G(3) of the Finance Act 2004, or

iii

a scheme pension referred to in section 227G(9) of the Finance Act 2004.

3

For the purposes of sub-paragraph (2)—

a

“flexible annuity contract” has the meaning given by section 227G(8) of the Finance Act 2004, and

b

“uncrystallised funds pension lump sum” has the meaning given by paragraph 4A of Schedule 29 to the Finance Act 20049.

22D

If applicable, an indication that comprised within the payment is a lump sum to which section 636A(4ZA) of ITEPA10 applies and the amount of that lump sum.

Edward TroupJim HarraTwo of the Commissioners for Her Majesty’s Revenue and Customs
EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Income Tax (Pay As You Earn) Regulations 2003 (S.I. 2003/2682) (“the principal Regulations”) which make provision for the assessment, charge, collection and recovery of income tax in respect of all pay as you earn income.

Regulation 3 of this instrument amends regulation 65 of the principal Regulations to remove the requirement for a person who is seeking a repayment of tax where that person is no longer employed to provide Parts 2 and 3 of Form P45 to Her Majesty’s Commissioners for Revenue and Customs.

Regulation 4 amends Table 10 in regulation 211 of the principal Regulations. The amendment made by regulation 4(a) clarifies the position relating to service of certain Parts of Form P45 by an employer to an employee. Regulation 4(b) inserts a new entry relating to an election by an employer under regulation 98 of the principal Regulations to be treated as different employers in relation to different groups of employees.

Regulation 5 amends Schedule A1 to the principal Regulations. That Schedule sets out the information which an employer (which includes a pension provider) is required to report to Her Majesty’s Revenue and Customs (“HMRC”) on making a payment to an employee (which includes a pensioner). These Regulations amend Schedule A1 by inserting new paragraphs 22C and 22D which require pension providers to report the payment of certain pension payments which may be paid as a consequence of the Taxation of Pensions Act 2014 (c. 30) and the Finance (No. 2) Act 2015 (c. 33).

A Tax Information and Impact Note in relation to the new reporting requirements introduced by this instrument was published on 8th August 2014 and updated on 10th December 2014 and is available at http://www.gov.uk/government/collections/tax-information-and-impact-notes-tinns. It remains an accurate summary of the impacts that apply to this instrument. A Tax Information and Impact Note in relation to the lump sum death benefits changes was published on 8th July and is available at http://www.gov.uk/government/publications/taxation-of-lump-sum-death-benefits.It remains an accurate summary of the impacts that apply to this instrument. A Tax Information and Impact Note has not been prepared in respect of the amendments made by regulations 3 and 4 as they contain no substantive changes to tax policy.