Paragraph 31 Direct collection involving deductions working sheets

In any case falling within paragraph 30, F1... sub-paragraphs (2) to (8) shall apply.

The employee F2... shall record on F3a working sheet his name, national insurance number and category letter indicated by F4HMRC, and whenever, in respect of an employment such as is specified in paragraph 30, the employee receives any F5F6... earnings during F7the relevant tax year, he shall also record on that working sheet the amount of the earnings, the date on which he received them, and the earnings-related contributions payable by him in respect of those earnings .

Not later than the time for the payment of income tax, if any, the employee shall pay to HMRC the amount of the earnings-related contributions payable by the employee in respect of the F8 ... earnings which have been received by him and for which the income tax is or would have been payable.

Before 20 May 2014 the employee must deliver to HMRC a return in the prescribed form for the tax year 2013-14 showing the following information:

the provisions of paragraph 22(5) regarding the certification and recovery of earnings-related contributions remaining unpaid by an employer for any year shall apply in the case of any earnings-related contributions remaining unpaid by the employee.

If, by the time specified in sub-paragraph (3), the employee has paid no amount of earnings-related contributions to HMRC in respect of the F10 ... earnings mentioned in that sub-paragraph, and HMRC is unaware of the amount, if any, which the employee is liable so to pay, or if an amount has been paid but HMRC is not satisfied that it is the full amount which the employee is liable to pay to him in respect of those earnings, sub-paragraph (5) applies.

If this sub-paragraph applies, HMRC may give notice to the employee requiring him to render, within the time limited in the notice, a return in the prescribed form containing particulars of all F11 ... earnings received by him during the period specified in the notice and such other particulars affecting the calculations of the earnings-related contributions payable in respect of the earnings in question as may be specified in the notice, and in such a case the provisions of—

shall apply with the necessary modifications for the purposes of ascertaining, certifying and recovering the earnings-related contributions payable by the employee.

If the employee ceases to receive F12 ... earnings falling within sub-paragraph (2), he shall immediately render to F13HMRC, in such form as they may prescribe, a return showing such particulars as they may require for the identification of the employee, the year to which the return relates, the appropriate category letter, the last date on which he received any such earnings, the total of those earnings and the earnings-related contributions payable from the beginning of the year to that date.

F14Before 20th May following the end of the year, the employee shall (unless sub-paragraph (6) has applied) render to F15HMRC, in such form as they may prescribe, a return showing such particulars as they may require for the identification of the employee, the year to which the return relates, the total of the F16 ... earnings and earnings-related contributions payable during the year, together with the appropriate category letter, and the provisions of paragraph 22(5) regarding the certification and recovery of earnings-related contributions remaining unpaid by an employer for any year shall apply in the case of any earnings-related contributions remaining unpaid by the employee.

Where a liability arises to pay contributions in respect of retrospective earnings relating to a closed tax year, the F18employee shall render a replacement return for the closed tax year before 20th May following the end of the year in which the relevant retrospective contributions regulations came into force in accordance with sub-paragraph (7), setting out the revised earnings and earnings-related contributions.

Where sub-paragraph (7A) applies, the employee shall amend the relevant deductions working sheet or where necessary prepare one in accordance with sub-paragraph (2)

The employee shall retain deductions working sheets F19... for not less than three years after the end of the year to which they relate.

F20Section 98A of the Taxes Management Act 1970 (special penalties in the case of certain returns) and Schedule 24 to the Finance Act 2007 (penalties for errors) as that Schedule applies to income tax returns as modified by the provisions of paragraph 7 to Schedule 1 to the Act, shall apply in relation to the requirement to make a return contained in sub-paragraphs F21F22(3A) and (7A).