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The Income Tax (Pay As You Earn) (Amendment) Regulations 2016

S.I. 2016/329 · Made 9 March 2016

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

Income Tax

Made 9th March 2016

Laid before the House of Commons 11th March 2016

Coming into force 6th April 2016

The Commissioners for Her Majesty’s Revenue and Customs make the following Regulations in exercise of the powers conferred by section 113(1) of the Taxes Management Act 1970f1, section 133 of Finance Act 1999f2 and section 684(1) and (2) of the Income Tax (Earnings and Pensions) Act 2003f3 and now exercisable by themf4.

Annotations to the whole text

Footnotes

f1

1970 c. 9. Section 113 has not been relevantly amended.

f2

1999 c. 16.

f3

2003 c. 1. Section 684 has been relevantly amended by paragraph 102 of Schedule 4 to the Commissioners for Revenue and Customs Act 2005 (CRCA) (c.11).

f4

As a consequence of the amendment by paragraph 102 of Schedule 4 to CRCA to section 684(1) of the Income Tax (Earnings and Pensions) Act 2003, the Commissioners for Her Majesty’s Revenue and Customs have the power to make the Regulations. The powers of the Commissioners of Inland Revenue under section 113(1) of the Taxes Management Act 1970 and section 133 of the Finance Act 1999 were transferred to the Commissioners for Her Majesty’s Revenue and Customs by section 5 of CRCA. Section 50(1) of CRCA provides that, in so far as is appropriate in consequence of section 5, a reference, howsoever expressed, to the Commissioners of Inland Revenue, is to be taken as a reference to the Commissioners for Her Majesty’s Revenue and Customs.

Contents

  1. 1Citation and commencement
  2. 2Amendment of the Income Tax (Pay As You Earn) Regulations 2003
  3. 3Amendment of the Income Tax (Pay As You Earn) Regulations 2003
  4. 4Amendment of the Income Tax (Pay As You Earn) Regulations 2003
  5. 5Amendment of the Income Tax (Pay As You Earn) Regulations 2003
  6. Signature
  7. Explanatory note

1Citation and commencement

These Regulations may be cited as the Income Tax (Pay As You Earn) (Amendment) Regulations 2016 and come into force on 6th April 2016.

2Amendment of the Income Tax (Pay As You Earn) Regulations 2003

The Income Tax (Pay As You Earn) Regulations 2003f1 are amended as follows.

3Amendment of the Income Tax (Pay As You Earn) Regulations 2003

In regulation 65 (repayment if no longer employed) omit paragraph (2)(a).

4Amendment of the Income Tax (Pay As You Earn) Regulations 2003

In Table 10 (regulations which require approved document or format and which permit electronic delivery) in regulation 211 (how information must or may be delivered by employers)f1—

(a)

in the entry relating to “regulation 36(1) and 36(2)(b)” in column 5 for “no” substitute “not applicable”, and

(b)

after the entry relating to “regulation 90(2)”, insert a new entry—

“

98(4)multiple PAYE schemesForm P350yesyes

”

5Amendment of the Income Tax (Pay As You Earn) Regulations 2003

In Schedule A1 (real time returns) after paragraph 22Bf1 insert—

“22C.
(1)

If applicable, an indication that comprised within the payment is an amount in respect of a reportable payment and the amount of that reportable payment.

(2)

For the purposes of sub-paragraph (1) a “reportable payment” is—

(a)

a payment of an uncrystallised funds pension lump sum,

(b)

a lifetime annuity under a flexible annuity contract, or

(c)

a payment made out of—

(i)

a fund referred to in section 227G(2), (4) or (5) of the Finance Act 2004f2,

(ii)

an arrangement referred to in section 227G(3) of the Finance Act 2004, or

(iii)

a scheme pension referred to in section 227G(9) of the Finance Act 2004.

(3)

For the purposes of sub-paragraph (2)—

(a)

“flexible annuity contract” has the meaning given by section 227G(8) of the Finance Act 2004, and

(b)

“uncrystallised funds pension lump sum” has the meaning given by paragraph 4A of Schedule 29 to the Finance Act 2004f3.

22D.

If applicable, an indication that comprised within the payment is a lump sum to which section 636A(4ZA) of ITEPAf4 applies and the amount of that lump sum.”.

Signature

Edward Troup

Jim Harra

Two of the Commissioners for Her Majesty’s Revenue and Customs

9th March 2016

Explanatory note

(This note is not part of the Regulations)

These Regulations amend the Income Tax (Pay As You Earn) Regulations 2003 (S.I. 2003/2682) (“the principal Regulations”) which make provision for the assessment, charge, collection and recovery of income tax in respect of all pay as you earn income.

Regulation 3 of this instrument amends regulation 65 of the principal Regulations to remove the requirement for a person who is seeking a repayment of tax where that person is no longer employed to provide Parts 2 and 3 of Form P45 to Her Majesty’s Commissioners for Revenue and Customs.

Regulation 4 amends Table 10 in regulation 211 of the principal Regulations. The amendment made by regulation 4(a) clarifies the position relating to service of certain Parts of Form P45 by an employer to an employee. Regulation 4(b) inserts a new entry relating to an election by an employer under regulation 98 of the principal Regulations to be treated as different employers in relation to different groups of employees.

Regulation 5 amends Schedule A1 to the principal Regulations. That Schedule sets out the information which an employer (which includes a pension provider) is required to report to Her Majesty’s Revenue and Customs (“HMRC”) on making a payment to an employee (which includes a pensioner). These Regulations amend Schedule A1 by inserting new paragraphs 22C and 22D which require pension providers to report the payment of certain pension payments which may be paid as a consequence of the Taxation of Pensions Act 2014 (c. 30) and the Finance (No. 2) Act 2015 (c. 33).

A Tax Information and Impact Note in relation to the new reporting requirements introduced by this instrument was published on 8th August 2014 and updated on 10th December 2014 and is available at http://www.gov.uk/government/collections/tax-information-and-impact-notes-tinns. It remains an accurate summary of the impacts that apply to this instrument. A Tax Information and Impact Note in relation to the lump sum death benefits changes was published on 8th July and is available at http://www.gov.uk/government/publications/taxation-of-lump-sum-death-benefits.It remains an accurate summary of the impacts that apply to this instrument. A Tax Information and Impact Note has not been prepared in respect of the amendments made by regulations 3 and 4 as they contain no substantive changes to tax policy.