Explanatory note
(This note is not part of the Regulations)
These Regulations amend regulation 41 of the Income Tax (Employments) Regulations 1993 (S.I. 1993/744) (“regulation 41”).
Regulation 41 enables an employer to account to the collector for tax liable to be deducted under PAYE from payments to employees in any quarterly period in a year of assessment within 14 days of the end of that period, rather than having to account within 14 days of the end of any income tax month for tax which he was liable to deduct from payments made in that month.
Regulation 1 provides for the citation and commencement of these Regulations.
Regulation 2 effects the amendment to paragraph (3) of regulation 41. As a result of the amendment the employer may choose to account to the collector on a quarterly basis if he has reasonable grounds for believing that the average monthly amount which he would be liable to pay to the collector in the year of assessment in respect of—
PAYE tax,
national insurance contributions,
deductions from payments to subcontractors in the construction industry, and
repayments in respect of student loans deducted from earnings,
after deducting the amount which he would be liable to pay by way of tax credits under regulation 6(2) of the Tax Credits (Payments by Employers) Regulations 1999 (S.I. 1999/3219), is less than £1,500.