Regulation 8 Quarterly tax periodsI1

This regulation applies so that the tax period is a tax quarter if a contractor—

“The average monthly amount” is the average, for tax months falling within the current tax year, of the amounts found by the formula—

In paragraph (2)—

• P is the amount which would be payable to an officer of Revenue and Customs under regulation F167G or 68 of the PAYE Regulations (periodic payments to and recoveries from the Revenue);

• N is the amount which would be payable to an officer of Revenue and Customs under the SSCBA and the SSC Regulations disregarding any amount of secondary Class 1 contributions in respect of which liability has been transferred to the employed earner by an election made jointly by the employed earner and the secondary contributor for the purposes of paragraph 3B(1) of Schedule 1 to the SSCBA (transfer of liability to be borne by earner)^f1;

• L is the amount which would be payable to an officer of Revenue and Customs under regulation F254(1) or, in Northern Ireland, 49(1) of the Student Loans Regulations (payment of repayments deducted to the Commissioners for Her Majesty’s Revenue and Customs) disregarding the reduction referred to in paragraph (3) of F3those regulations;

• S is the amount which would be payable by the contractor to the Commissioners for Her Majesty’s Revenue and Customs under regulation 7 during the tax month;

• SP is the amount which would be payable by the contractor to employees by way of statutory sick pay, statutory maternity pay, F4ordinary statutory paternity pay, additional statutory paternity pay and statutory adoption pay under the SSCBA; and

• CD is—

  1. (a)

     if the contractor is a company, the amount which others would deduct from payments to it, in its position as a sub-contractor, under section 61 of the Act;

  2. (b)

     in any other case, nil.

In this regulation—

• “employed earner” has the same meaning as in the SSCBA;

• “SSCBA” means the Social Security Contributions and Benefit Act 1992^f2 or, in Northern Ireland, the Social Security Contributions and Benefit (Northern Ireland) Act 1992^f3;

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