{
  "url": "https://openlegislation.uk/income-tax-pay-as-you-earn-regulations-2003/regulation-61H",
  "json_url": "https://openlegislation.uk/income-tax-pay-as-you-earn-regulations-2003/regulation-61H.json",
  "legislation": "uksi/2003/2682",
  "legislation_title": "The Income Tax (Pay As You Earn) Regulations 2003",
  "legislation_url": "https://openlegislation.uk/income-tax-pay-as-you-earn-regulations-2003",
  "path": "regulation/61H",
  "kind": "regulation",
  "number": "61H",
  "heading": "Modification of the general rule: cessation of employment but continuing benefit",
  "text": "(1) This regulation applies instead of regulation 61D(2) if during a tax year the employment of a specified employee ceases but the authorised employer continues to provide the specified benefit to that employee.\n(2) Before the employment ceases the authorised employer must take the following steps—\nStep 1\nDetermine at that time the number of remaining main relevant payments to be made in the employment.\nStep 2\nIf the cost to the authorised employer of the specified benefit has changed, redetermine the cash equivalent , relevant amount or amount foregone in accordance with regulations 61E, 61F or 61G, as the case may be, otherwise the cash equivalent , relevant amount or amount foregone in respect of the specified benefit is that previously determined for the tax year under step 1 of regulation 61D(1).\nThe result is the revised cash equivalent , relevant amount or amount foregone in respect of the specified benefit provided during the employment.\nStep 3\nCalculate the taxable amount of the benefit provided to date by—\n(a) determining the number of main relevant payments that have been made to date, then\n(b) multiplying that number by the Taxable Amount of the Benefit obtained under step 3 of regulation 61D(1).\nStep 4\nSubtract the taxable amount of the benefit provided to date (the amount obtained from step 3) from the revised cash equivalent , relevant amount or amount foregone in respect of the benefit provided during the employment (the amount obtained from step 2).\nStep 5\nDivide the amount obtained from step 4 by the number obtained at step 1.\nThe result is the Adjusted Taxable Amount of the Benefit.\nStep 6\nAdd the Adjusted Taxable Amount of the Benefit to either—\n(a) the next main relevant payment, where that is the only main relevant payment remaining in the employment; or\n(b) each of the remaining main relevant payments, where the number of remaining main relevant payment determined under step 1 of paragraph (2) is more than one,\nand apply step 5 of regulation 61D(1) to that amount or amounts, as the case may be.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Pt. 3 Ch. 3A inserted (with effect in accordance with reg. 1(4) of the amending S.I.) by The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2015 (S.I. 2015/1927), regs. 1(1), 6"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Words in reg. 61H(2) inserted (6.4.2018) by The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2017 (S.I. 2017/1263), regs. 1, 8(a)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Words in reg. 61H(2) inserted (6.4.2018) by The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2017 (S.I. 2017/1263), regs. 1, 8(b)"
    }
  ],
  "outstanding_effects": [
    {
      "type": "words substituted",
      "affecting": "uksi/2026/1082",
      "affecting_title": "The Income Tax (Pay As You Earn) (Amendment No. 3) Regulations 2026"
    }
  ],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2003/2682/regulation/61H",
    "retrieved_at": "2026-10-29T05:46:54.297265+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."
}