{
  "url": "https://openlegislation.uk/income-tax-employments-notional-payments-regulations-1994/note",
  "json_url": "https://openlegislation.uk/income-tax-employments-notional-payments-regulations-1994/note.json",
  "legislation": "uksi/1994/1212",
  "legislation_title": "The Income Tax (Employments) (Notional Payments) Regulations 1994",
  "legislation_url": "https://openlegislation.uk/income-tax-employments-notional-payments-regulations-1994",
  "path": "note",
  "kind": "note",
  "number": null,
  "heading": "Explanatory note",
  "text": "(This note is not part of the Regulations)\nSections 203B and 203C of the Income and Corporation Taxes Act 1988 (inserted by sections 125 and 126 of the Finance Act 1994) (“the 1988 Act”) extend the scope of PAYE to certain emoluments paid by a person other than the person for whom the employee works. Sections 203F to 203L of the 1988 Act (inserted by sections 127 to 131 of the Finance Act 1994) extend the scope of PAYE to certain emoluments provided in non-cash form for employees. In each such case the emoluments are treated as if they were cash emoluments paid to the employee by the employer (“a notional payment”).\nThese Regulations make provision in relation to notional payments. First they exclude certain emoluments from being treated as notional payments. Secondly they make provision with respect to the time when certain notional payments are made, and the time when income tax in respect of a notional payment is to be deducted or, as the case may be, accounted for. Finally they make amendments to, and apply with modifications, provisions of the Income Tax (Employments) Regulations 1993 (“the principal Regulations”) in relation to notional payments.\nRegulation 1 provides for citation, commencement and effect, and regulation 2 contains definitions.\nRegulation 3 excludes shares in an employer company or in a company controlling an employer company from the scope of section 203F of the 1988 Act (provision of tradeable assets to employees).\nRegulations 4 and 5 exclude certain credit-tokens and cash vouchers provided for employees from the scope of sections 203H and 203I respectively of the 1988 Act.\nRegulation 6 makes provision for the time when a notional payment arising from the provision of a non-cash voucher is treated as made.\nRegulation 7 prescribes the time when an employer is required to deduct income tax in respect of a notional payment from any payment or payments of emoluments he actually makes to an employee.\nRegulation 8 prescribes the time when an employer is required to account to the Board for income tax in respect of a notional payment in circumstances where, by reason of an insufficiency of payments of emoluments actually made, he is unable to deduct income tax in respect of the notional payment.\nRegulation 9 amends regulations 14 and 15 of the principal Regulations so as to provide that the amount of income tax in respect of a notional payment which falls to be deducted from a payment of emoluments actually made is not subject to the “overriding limit” defined in the principal Regulations.\nRegulations 10 to 12 amend regulation 46 of the principa Regulations. In addition to making changes of a drafting nature, the amendments provide that there shall be included in a return under regulation 46 particulars of the amount of income tax in respect of a notional payment where that amount is treated by section 144A of the Taxes Act (inserted by section 132 of the Finance Act 1994) as assessable income of the employee. The amendments also provide that certain notional payments provided in non-cash form for employees on which the employer is liable to account for PAYE and which would otherwise fall to be included in a return under regulation 46 do not need to be so included.\nRegulation 13 applies, which modifications, specified provisions of the principal Regulations to amounts of income tax in respect of notional payments which fall to be accounted for to the Board because of an insufficiency of payments of emoluments actually made.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/1994/1212/note",
    "retrieved_at": "2026-10-29T13:33:54.585791+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}