Regulation 101 Repayment of overpayments and recovery of underpayments

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

reg.101(4)(d) rev.in pt. by Income Tax (Employments) 1996 reg.14(a)
reg.101(7) substituted by Income Tax (Employments) 1996 reg.14(b)
reg.101(3) amended by Income Tax (Employments) 1995 reg.7(a)
reg.101(4)(a) rev. in pt. by Income Tax (Employments) 1995 reg.7(b)
reg.101(6)(7) added by Income Tax (Employments) 1995 reg.7(c)

(1)

If the tax payable under the assessment is less than the total net tax deducted from the employee’s emoluments during the year less any subsequent repayments made, the inspector may, and if the person assessed so requires shall, repay the difference to the person assessed instead of taking it into account in determining the appropriate code for a subsequent year.

(2)

If the tax payable under the assessment exceeds the total net tax deducted from the employee’s emoluments during the year less any subsequent repayments made, the inspector may require the person assessed to pay the excess to the collector instead of taking it into account in determining the appropriate code for a subsequent year, and where the inspector so requires the person assessed shall pay the excess accordingly.

(3)

Subject to paragraph (5), for the purpose of determining the amount of the difference mentioned in paragraph (1) or the excess mentioned in paragraph (2), any necessary adjustment shall be made to the total net tax deducted in respect of the matters specified in paragraph (4).

(4)

The matters specified in this paragraph are —

(a)

any tax which the employer was liable to deduct from the employee’s emoluments but failed so to deduct, having regard to whether or not the Board or the collector have directed that that tax shall be recovered from the employee;

(b)

any shortfall in deductions made in accordance with these Regulations from the employee, where—

(i)

payments of profit-related pay have been made to the employee in accordance with a profit-related pay scheme registered under Chapter III of Part V of the Taxes Act,

(ii)

in consequence of the relief given by that Chapter less tax has been deducted from those payments than would have been deducted if the scheme had not been registered, and

(iii)

the registration of the scheme has subsequently been cancelled with effect from a time before that relevant for the purposes of the relief;

(c)

any tax overpaid or remaining unpaid for any year; and

(d)

any amount to be recovered as if it were unpaid tax under section 30(1) of the Management Act, being an amount of tax in respect of Schedule E repaid tothe employee in excess of the amount properly due to him, to the extent that the inspector took that amount to be recovered into account in determining the appropriate code and the total net tax deducted was in consequence greater than it would otherwise have been.

(5)

An adjustment under sub-paragraph (a) or (b) of paragraph (4) shall be disregarded for the purposes of determining the amount of the difference mentioned in paragraph (1) and of computing any tax overpaid under sub-paragraph (c) of paragraph (4).