PSA4010 - Regulation 110 Determinations: Introduction

If there are difficulties in agreeing the actual figure of tax and NICs due under asigned PSA by the due date for the payment HMRC can make a formal determination of the tax and Class 1B NICs due and serve it on the employer.

Regulation 110 of Income Tax (Pay As You Earn) Regulations 2003 gives HMRC power to makesuch a determination.

A Regulation 110 determination is appropriate only where a PSA exists. See PSA1040. If in agreeing a PSA an employer has reservations about the inclusion of certain benefits and/or expenses, including the valuation, then it is not appropriate to include those items on form P626. A Regulation 110 determination cannot be made for items not included in a signed PSA.

This part of the PSA Manual explains

• when a Regulation 110 determination is appropriate
• how to prepare a determination and update ECS
• how to deal with appeals.