# The Tax Credits (Payment by Employers) Regulations 1999, Regulation 7: Funding of payment by relevant employer or relevant subsequent employer of tax credit


(1) Subject to paragraphs (2), (3) and (4), the relevant employer or the relevant subsequent employer shall fund payments of tax credit under regulation 6(2) for a pay period from the total amounts of tax which the employer is required to pay to the collector of taxes in respect of the deductions from the emoluments of his employees in accordance with the Employments Regulations for the same pay period, and the amount which the employer is required to pay to the collector of taxes in respect of that pay period in accordance with those Regulations shall be reduced by the amount of tax credit which the employer has paid in respect of that same pay period.
(2) If the total amount of tax credit which the employer is required to pay to an employee or employees for a pay period exceeds the total amount of tax which the employer is required to pay to the collector of taxes in respect of the deductions from the emoluments of his employees in accordance with the Employments Regulations for the same pay period, the employer shall fund the payment of the tax credit (or so much of it as remains outstanding) from any deductions made by the employer from the emoluments of his employees for the same pay period in accordance with regulations under section 22(5) of the Teaching and Higher Education Act 1998 or section 73B of the Education (Scotland) Act 1980 (student loan repayments), or in accordance with Article 3(5) of the Education (Student Support) (Northern Ireland) Order 1998, and the aggregate amount which the employer is required to pay to the collector of taxes in respect of that pay period in accordance with those enactments shall be reduced by the amount which the employer has deducted from them and paid in tax credit in respect of the same pay period.
(3) If the total amount of tax credit which the employer is required to pay to an employee or employees for a pay period exceeds the aggregate of–
(a) the total amount of tax which the employer is required to pay to the collector of taxes in respect of the deductions from the emoluments of his employees in accordance with the Employments Regulations for the same pay period, and
(b) the total amount of the deductions made by the employer from the emoluments of his employees for the same pay period in accordance with regulations under section 22(5) of the Teaching and Higher Education Act 1998 or section 73B of the Education (Scotland) Act 1980 or in accordance with Article 3(5) of the Education (Student Support) (Northern Ireland) Order 1998,
the employer shall fund the payment of the tax credit (or so much of it as remains outstanding) from the total amounts of earnings-related contributions which the employer is required to pay to the collector of taxes in respect of the emoluments of his employees (whether by means of deduction or otherwise) for the same pay period in accordance with the Contributions Regulations, and the aggregate amount which the employer is required to pay to the collector of taxes in respect of that pay period in accordance with those enactments shall be reduced by the amount which the employer has deducted from them and paid in tax credit in respect of the same pay period.
(4) If the total amount of tax credit which the employer is required to pay to an employee or employees for a pay period exceeds the aggregate of–
(a) the total amount of tax which the employer is required to pay to the collector of taxes in respect of the deductions from the emoluments of his employees in accordance with the Employments Regulations for the same pay period,
(b) the total amount of the deductions made by the employer from the emoluments of his employees for the same pay period in accordance with regulations under section 22(5) of the Teaching and Higher Education Act 1998 or section 73B of the Education (Scotland) Act 1980 or in accordance with Article 3(5) of the Education (Student Support) (Northern Ireland) Order 1998, and
(c) the total amounts of earnings-related contributions which the employer is required to pay to the collector of taxes in respect of the emoluments of his employees (whether by means of deduction or otherwise) in accordance with the Contributions Regulations for the same pay period,
the employer may apply to the Board in accordance with regulation 8 for funds to pay the tax credit (or so much of it as remains outstanding) to the employee or employees.

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Source: https://www.legislation.gov.uk/uksi/1999/3219/regulation/7 (the official version)
Page: https://openlegislation.uk/tax-credits-payment-by-employers-regulations-1999/regulation-7
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.