# The Income Tax (Employments) (No. 24) Regulations 1993, Note: Explanatory note


(This note is not part of the Regulations)
These Regulations, which come into force on 6th April 1993, amend the provisions of the Income Tax (Employments) Regulations 1973 (as amended) (“the PAYE Regulations”) which relate to interest on unpaid tax.
The central provision relating to interest on unpaid tax is the new regulation 26C. This applies in relation to the year 1992–93 and subsequent years of assessment, and provides that, where an employer has not paid the net tax deductible by him to the collector within 14 days after the end of a year of assessment, the tax not so paid shall (unless a direction is made under regulation 26B(2) or (3)) carry interest at “the prescribed rate” from “the reckonable date” until the date of payment. The expressions “the prescribed rate” and “the reckonable date” are defined in the new regulation.
The existing provisions in the PAYE Regulations which relate to interest on unpaid tax appear at regulation 29A. These Regulations also amend that regulation so that regulation 29A of the PAYE Regulations does not apply to years of assessment later than 1991–92.
The PAYE Regulations make provision (at regulations 26B(3) and 29(4)) for sums to be recovered from the employee in the circumstances there specified. So far as the year 1992–93 and subsequent years of assessment are concerned, these Regulations also provide that these sums shall carry interest in accordance with regulation 26C from “the reckonable date” until either the date of payment or the date immediately before that on which the sum begins to carry interest under section 86 of the Taxes Management Act 1970 (whichever is the earlier). The expression “the reckonable date” has the same meaning as in regulation 26C. So far as the year 1991–92 and earlier years of assessment are concerned, tax subject to a direction under regulation 29(4) will carry interest in accordance with regulation 29A, as presently provided in the PAYE Regulations.
The Regulations also provide, in the new regulation 26D, that, where tax in respect of the year ended 5th April 1993 or any subsequent year is repaid to an employer after the end of the following year, and after the end of the year in which the tax was paid, the tax repaid shall carry interest at “the prescribed rate” from the “the relevant time” until the order for the repayment is issued. The expressions “the prescribed rate” and “the relevant time” are defined in regulation 26D.

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Source: https://www.legislation.gov.uk/uksi/1993/725/note (the official version)
Page: https://openlegislation.uk/income-tax-employments-no-24-regulations-1993/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.