DMBM450050 - Legislation: PAYE Regulations: Payment and recovery of tax

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Regulations concerning payment of employers’/ contractors’ deductions, which form the basis for compliance action, are contained in the Income Tax (Pay As You Earn) Regulations 2003.

The  following tables show a selection and their effects.

Subject: Payment and recovery of tax	Income Tax (Pay As You Earn) Regulations 2003
Payment of tax monthly by employer	69(1)
Payment of tax quarterly by employer	70(1)
HMRC will give a receipt for payment on request	69(2), (3)
Direction to recover from employee tax not deducted in error by employer	72(3) Condition A
Direction to recover from employee tax not deducted through wilful failure by employer	72(4) Condition B
Interest on tax due from employee	72(7), (8)
Employer entitled to recover repayments from later deductions	68(3), (4) and 71 (4)
Trade disputes - repayments not made payment to HMRC	64(8)
Certificate of interest due from and unpaid by  employee	218(3)
Challenge to HMRC certificate	218(6)

 

Subject: HMRC notice (P100)	Income Tax ( Pay As You Earn) Regulations 2003
Authority to issue P100 - requiring employer to make return of tax due when no payment made	77(1),(2)
Authority to issue P100- when dissatisfied with amount paid	77(1), (3)
Period of notice : period in which employer must return notice	77(4)
Period of notice: period included in notice (no of months)	77(5)
Tax recoverable as if it were an assessment	84(2)
Collector's certificate prepared from employer's return	77 (6)
Prepared certificate is sufficient evidence of debt	218(1)
Challenge to HMRC certificate	218(6)

 

Subject: HMRC notice form P101	Income Tax (Pay As You Earn) Regulations 2003
Criteria and authority for HMRC to issue P101 to employer	78 (1), (2), (3), (4)
Timing of issue of P101 (number of days after month end)	78 (1)
Collector’s judgment based on previous payments	78 (4) (a)
Authority to issue notice for periods covering 2 or more months	78 (5)
Authority to issue notice when HMRC dissatisfied with amount paid	78 (3) (b)
Employer may request inspection of records during 7 day time limit on HMRC notice	78 (6)
Preparation of Collector’s certificate after 7 day time limit	78 (8)
Employer’s response within notice period	78 (9)
Collector’s certificate is sufficient evidence of debt	218 (1)
Employer’s right to recover overpayments from deductions in subsequent tax periods in that tax year	78 (11)
Employer’s right to repayment of tax overpaid after end of year return submitted	78 (13)

 

Subject: Return at year end (P35,P14s)	Income Tax (Pay As You Earn) Regulations 2003
Employer’s obligations to make end of year return	73
Return by company to be signed	73 (8)
HMRC authority to certify and recover unpaid tax	76
Time limit for summary proceedings	84 (3)

 

Subject: Inspection of employer's record	Income Tax (Pay As You Earn) Regulations 2003
Employer’s obligation to produce PAYE records for inspection by HMRC	97(1), (2)
HMRC’s authority to certify tax due and payable	79(2)
HMRC authority to recover unpaid tax certified	84(3)