Explanatory note

These Regulations provide for the payment of incentive in respect of the years of assessment 2004-05 to 2008-09 to employers, who are not required to file their end of year return electronically by virtue of the provisions of regulation 46ZC of the Income Tax (Employments) Regulations 1993 (S.I. 1993/744, referred to below as “the Employments Regulations”: regulation 46ZC is inserted by regulation 8 of S.I. 2003/2494) but do so voluntarily. The amounts of the incentive are shown in the Table in regulation 4(2).

Regulation 1 provides for citation, commencement and interpretation.

Regulation 2 provides for the construction of references in these Regulations to numbers of employees, applying the rule in regulation 3 of the Employment Regulations. Accordingly, if an employer has elected to have groups of employees treated as being employed in a separate undertaking, and that election does not fall to be disregarded by virtue of regulation 3(6) of those Regulations, references in these Regulations to a number of employees that the employer has is a reference to the number treated as employed in a separate undertaking by that regulation.

Regulation 3 defines the scope of the Regulations.

Regulation 4 provides the rules for determining, in accordance with directions given by the Commissioners of Inland Revenue (“the Board”), whether an incentive will be payable in respect of a particular employer for a year of assessment.

Regulation 5 provides a mechanism enabling entitlement to an incentive for a particular year of assessment to be determined in advance.

Regulation 6 provides for appeals against decisions made by officers of the Board, and applies procedural provisions of the Taxes Management Act 1970 (c. 9) for the purposes of such appeals.

A Regulatory Impact Assessment for these Regulations is available, and the directions referred to in the Regulations will, when published in October 2003, be available on the Inland Revenue website at www.inlandrevenue.gov.uk. The Assessment and the directions will also be available from the Inland Revenue Press Office, whose telephone number is 020 7438 6420.