Regulation 33 Nil tax code: no deductions or repayments

United Kingdom

(1)

If an employee’s code is the nil tax code the employer must not deduct or repay any tax, and so regulation 22 (cumulative basis) does not apply.

(2)

But—

(a)

if the nil tax code is an amended code, and

(b)

the Inland Revenue so direct,

regulation 22 applies to the next relevant payment the employer makes in the same tax year, and the employer must make any repayment of tax due.

Notes on Higher rate, additional rate and nil tax codes

F1: Reg. 32 cross-heading substituted (6.4.2011) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2011 (S.I. 2011/729), regs. 1, 6