# The Income Tax (Pay As You Earn) Regulations 2003, Regulation 70: Quarterly tax periods

Extent: E+W+S+N.I.

(1) This regulation applies, so that the tax period is a tax quarter, if an employer—
(a) has reasonable grounds for believing that the average monthly amount will be less than £1,500, and
(b) chooses to pay tax quarterly.
(1A) But this regulation does not apply, so that the tax period remains a month, in respect of amounts of retrospective employment income.
(2) “The average monthly amount” is the average, for tax months falling within the current tax year, of the amounts found by the formula—
(P + N + L + S) − (SP + CD)
(3) In paragraph (2)—
P is the amount which would be payable to the Inland Revenue under regulation 67G , as adjusted by regulation 67H(2) where appropriate, or 68 but disregarding any amount payable in respect of retrospective employment income ...;
N is the amount which would be payable to the Inland Revenue under the SSCBA and the SSC Regulations disregarding—
(a)any amount of secondary Class 1 contributions in respect of which liability has been transferred to the employed earner by an election made jointly by the employed earner and the secondary contributor for the purposes of paragraph 3B(1) of Schedule 1 to the SSCBA (transfer of liability to be borne by earner); ...
(aa)any amount payable under retrospective contributions regulations (see paragraph 1(2) of Schedule 4 to the SSC Regulations) in respect of retrospective earnings (within the meaning of those Regulations);
(c)...
L is the amount which would be payable to the Inland Revenue under regulation 54(1) or, in Northern Ireland, 49(1) of the Student Loans Regulations (payment of repayments deducted to the Inland Revenue) disregarding—
(a)the reduction referred to in paragraph (3) of those regulations, ...
(b)...
S is the amount which would be payable by the employer to the Inland Revenue under sections 559 and 559A of ICTA (deduction on account of tax etc from payments to certain sub-contractors) and regulation 8 of the Income Tax (Sub-contractors in the Construction Industry) Regulations 1993...;
...
SP is the amount which would be payable by the employer to employees by way of statutory sick pay, statutory maternity pay, statutory paternity pay , statutory shared parental pay , statutory adoption pay , statutory parental bereavement pay and statutory neonatal care pay under the SSCBA; and
CD is—
(a)if the employer is a company, the amount which others would deduct from payments to it, in its position as a sub-contractor, under section 559 of ICTA (deduction on account of tax etc from payments to certain sub-contractors);
(b)in any other case, nil.
(4) In this regulation—
“employed earner” has the same meaning as in the SSCBA;
“SSCBA” means the Social Security Contributions and Benefits Act 1992 or, in Northern Ireland, the Social Security Contribution and Benefits (Northern Ireland) Act 1992;
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Source: https://www.legislation.gov.uk/uksi/2003/2682/regulation/70 (the official version)
Page: https://openlegislation.uk/income-tax-pay-as-you-earn-regulations-2003/regulation-70
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.