Regulation 2 Amendment of regulation 41 of the Income Tax (Employments) Regulations 1993

For paragraph (3) of regulation 41 of the Income Tax (Employments) Regulations 1993^f1 substitute–

“(3)

The condition is that, for income tax months falling within the current year, the average monthly amount found by the formula—

$$\begin{gathered} \mathbf{P}+\mathbf{N}+\mathbf{L}+\mathbf{S}-\mathbf{T} \\ \text{will be less than £1,500.} \end{gathered}$$

Here—

• P is the amount which would be payable to the collector under regulation 40 if any adjustment to that amount under regulation 7(1) of the Tax Credits (Payments by Employers) Regulations 1999^f2 (funding of payment by relevant employer or relevant subsequent employer of tax credit) were disregarded;

• N is the amount which would be payable to the collector under the Social Security Contributions and Benefits Act 1992^f3 and the Social Security (Contributions) Regulations 1979^f4; or in Northern Ireland under the Social Security Contributions and Benefits (Northern Ireland) Act 1992^f5 and the Social Security (Contributions) Regulations (Northern Ireland) 1979^f6 if any adjustment to that amount under regulation 7(3) of the Tax Credits (Payments by Employers) Regulations 1999 were disregarded;

• L is the amount which would be payable to the collector under regulation 39(1) of either the Education (Student Loans) (Repayment) Regulations 2000^f7 or the Education (Student Loans) (Repayment) Regulations (Northern Ireland) 2000^f8 (payment of repayment deducted to the Inland Revenue) if the reduction of that amount which is referred to in paragraph (3) of that regulation and in regulation 7(2) of the Tax Credits (Payments by Employers) Regulations 1999 were disregarded;

• S is the amount payable to the collector under section 559 of the Taxes Act and the Income Tax (Sub-contractors in the Construction Industry) Regulations 1993^f9; and

• T is the amount which the employer is required to pay by way of tax credits in accordance with regulation 6(2) of the Tax Credits (Payment by Employers) Regulations 1999.”.