{
  "url": "https://openlegislation.uk/income-tax-pay-as-you-earn-amendment-no-2-regulations-2017/note",
  "json_url": "https://openlegislation.uk/income-tax-pay-as-you-earn-amendment-no-2-regulations-2017/note.json",
  "legislation": "uksi/2017/1263",
  "legislation_title": "The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2017",
  "legislation_url": "https://openlegislation.uk/income-tax-pay-as-you-earn-amendment-no-2-regulations-2017",
  "path": "note",
  "kind": "note",
  "number": null,
  "heading": "Explanatory note",
  "text": "(This note is not part of the Regulations)\nThese Regulations make amendments to the Income Tax (Pay As You Earn) Regulations 2003 (S.I. 2003/2682) (“the PAYE regulations”)—\nso the taxable amount due in respect of optional remuneration arrangements and salary sacrifice arrangements, where a specified benefit is chosen instead of a cash payment and as listed in section 69A of the Income Tax (Earnings and Pensions) Act 2003 (“ITEPA”) can be calculated in accordance with Chapter 3A of the PAYE regulations;\nso employers can report car data information to Her Majesty’s Revenue and Customs (“HMRC”) through PAYE Real Time Information Returns in respect of cars provided to employees as benefits in kind where the employer is voluntarily payrolling.\nRegulation 3(a) and (b) inserts new definitions into regulation 61A (interpretation): “amount foregone”, “optional remuneration arrangements” and “relevant amount”.\nRegulation 3(c) amends the definition of “specified benefit” in regulation 61A by the insertion of new sub-paragraphs (aa), (ba), (ca), (da), (ea), (fa) and (ga). The effect of this amendment is to extend this definition to include a specified benefit which is provided through optional remuneration arrangements. The consequence of this amendment is that employers are obliged to calculate any taxable amount due on a relevant specified benefit in accordance with Chapter 3A of the PAYE regulations.\nRegulations 4 to 13 make a number of consequential amendments which relate to the calculation of taxable amounts due on a specific benefit that employers provide through optional remuneration arrangements. In particular—\nregulation 61D is amended to make provision for a specified benefit provided through optional remuneration arrangements to be subject to the general rules of taxation and deduction in accordance with Chapter 3A of the PAYE regulations;\nregulation 61E is amended to enable the calculation of the taxable amount to be paid on a specified benefit that consists of a car or van that is provided by an employer through optional remuneration arrangements;\nregulation 61F is amended to enable the calculation of the taxable amount to be paid on a specified benefit that consists of fuel provided by an employer through optional remuneration arrangements;\nregulation 61G is amended to enable the calculation of employment-related benefits provided by employers through optional remuneration arrangements as defined by section 203A of ITEPA;\nregulation 61H is amended to make provision for the calculation of specified benefits provided through optional remuneration arrangements in circumstances where an employer continues to provide a specified benefit after the cessation of employment;\nregulation 61I is amended to make provision for the calculation of in-year adjustments of specified benefits that are provided through optional remuneration arrangements that occur during a tax year;\nregulation 61J is amended to make provision for the calculation of in-year adjustments in respect of any change to a specified benefit that is provided through optional remuneration arrangements with effect from the start of a tax year;\nregulation 61K is amended to make provision for a making good payment to be calculated in respect of a specified benefit that is provided through optional remuneration arrangements;\nregulation 61LA is amended to make provision that the general rule applied to the failure to make good in respect of a credit-token includes a credit-token provided through optional remuneration arrangements; and\nregulation 61M is amended to enable an employer to include information in respect of a specified benefit provided through optional remuneration arrangements in end of year statements provided to employees.\nRegulation 14 amends regulation 86 to extend the regulation’s application to information about a specific benefit provided under section 87A, 94A or 103A of ITEPA.\nRegulation 15 makes a consequential amendment to regulation 89 which substitutes regulation 67B for regulation 73 of the PAYE regulations.\nRegulation 16 amends regulation 90 to extend the regulation’s application to a specified benefit provided under section 120A or 121A of ITEPA.\nRegulation 17 substitutes paragraph 22B of Schedule A1 to the PAYE regulations. New sub-paragraph (2)(a) introduces a mandatory requirement that employers provide the data as specified by that paragraph.\nNew paragraphs 22B(2)(b) and 22B(3) specify information that must be provided by employers from 6th April 2018 both in respect of any cars made available on that date and for cars provided for the first time after that date; in particular—\nnew paragraph 22B(2)(b) requires employers to report when a car provided as a benefit in kind to an employee becomes unavailable in the next return following the date that the provision of the car in question ceased;\nnew paragraph 22B(2)(c) requires employers to report the date on which any fuel ceases to be provided in the next return following the date that the provision of fuel in question ceased;\nnew sub-paragraph 22B(2)(d) requires employers to correct any inaccuracies discovered by them in the next return for the tax year in question; and\nnew paragraph 22B(3) sets out definitions of terms used in paragraph 22B.\nA Tax Information and Impact Note covering Regulations 3 to 13 of this instrument will be published on the HMRC website at http://www.hmrc.gov.uk/thelibrary/tiins.htm.\nA Tax Information and Impact Note covering regulation 17 of this instrument will be published on the HMRC website at http://www.hmrc.gov.uk/thelibrary/tiins.htm.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2017/1263/note",
    "retrieved_at": "2026-10-28T23:04:39.874432+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."
}