The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2009
Made
Laid before the House of Commons
Coming into force
22nd July 2009
23rd July 2009
13th August 2009
The Commissioners for Her Majesty’s Revenue and Customs make the following Regulations in exercise of the powers conferred by section 684 of the Income Tax (Earnings and Pensions) Act 2003(1), as extended by section 136 of the Finance Act 2002(2) and section 205 of the Finance Act 2003(3), and now exercisable by them:
These Regulations may be cited as the Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2009.
(2)
These Regulations shall come into force on 13th August 2009.
(3)
The amendments made by regulation 4 shall have effect in relation to deferred payment agreements made on or after 13th August 2009.
(4)
Subject to paragraphs (5) and (6), the amendments made by regulations 3 and 5 to 15 shall have effect in relation to the tax year 2009-10 and subsequent tax years.
(5)
The amendments made by regulations 5 to 15 shall not have effect for the tax year 2009-2010 in relation to an employer in respect of whom all of the sub-paragraphs of paragraph (6) apply.
(6)
An employer who —
(a)
is not a specified employer,
(b)
ceases paying PAYE income during the tax year 2009-10, and
(c)
submits the return and accompanying information, required by regulation 73, before 6th April 2010.
(7)
In paragraph (6)—
“regulation 73” means regulation 73 of the Income Tax (Pay As You Earn) Regulations 2003(4) (annual return of relevant payments liable to deduction of tax (Forms P35 and P14));
“specified employer” shall be construed in accordance with regulation 206 of the Income Tax (Pay As You Earn) Regulations 2003(5).
Section 108 of the Finance Act 2009(8) (suspension of penalties during currency of agreement for deferred payment) applies to a surcharge payable under this regulation with the following modifications—
(a)
in the Table in subsection (5), insert at the end—
“Specified payments within the meaning of regulation 199 of the Income Tax (Pay As You Earn) Regulations 2003
Surcharge under regulation 203 of the Income Tax (Pay As You Earn) Regulations 2003.”
“Mandatory use of electronic communication for delivering relevant annual returns
An employer (as to which see regulation 206) must deliver a relevant annual return by an approved method of electronic communications to HMRC.
205A
Mandatory use of electronic communication for delivering specified information
A specified employer (as to which see regulation 206) must deliver specified information by an approved method of electronic communications to HMRC.
205B
General provisions relating to this Chapter
(1)
he Commissioners for Her Majesty’s Revenue and Customs may make a general or specific direction requiring an employer or a specified employer to deliver any relevant annual return or specified information by a particular approved method of electronic communications.
(2)
Any relevant annual return or specified information may be delivered by a person on behalf of an employer or a specified employer.
(3)
Regulations 205 and 205A do not apply to any relevant annual return or specified information which relates to payments of tax due under a retrospective tax provision for a closed year.
(4)
References in this Chapter to information and to the delivery of information must be construed in accordance with section 135(8) of the Finance Act 2002 (mandatory e-filing)(9).”.
6-
For the heading to regulation 206 (specified employers) substitute “Employers and specified employers”.
The following are not specified employers and, for the purposes of this Chapter, shall not be regarded as employers—
(a)
an individual who is a practising member of a religious society or order whose beliefs are incompatible with the use of electronic communications;
(b)
a partnership, if all the partners fall within sub-paragraph (a);
(c)
a company, if all the directors and company secretary fall within sub-paragraph (a);
(d)
an employer who is authorised by HMRC to deduct tax from relevant payments made to employees in accordance with regulation 34 (simplified deduction scheme for personal employees) and who has not received an incentive payment; and
(e)
a care and support employer.”, and
(b)
after paragraph (3) insert—
"(4)
In paragraph (2)(e), “a care and support employer” means an individual (“the employer”) who employs a person to provide domestic or personal services at or from the employer’s home where—
(a)
the services are provided to the employer or a member of the employer’s family;
(b)
the recipient of the services has a physical or mental disability, or is elderly or infirm;
(c)
the employer has not received an incentive payment in respect of any of the last 3 tax years; and
(d)
it is the employer who delivers the relevant annual return (and not some other person on the employer’s behalf).
(5)
In this regulation an “incentive payment” means an incentive payment received under the Income Tax (Incentive Payments for Voluntary Electronic Communication of PAYE Returns) Regulations 2003(10).”.
In this Chapter “relevant annual return” means the return and accompanying information required by regulation 73 (annual return of relevant payments liable to deduction of tax (Forms P35 and P14)).
(2)
But relevant annual return does not include information supplied under special arrangements for the collection of tax made under regulation 141 (direct collection and special arrangements).”.
9-
In regulation 207 (specified information) omit sub-paragraph (e) of paragraph (1).
10-
In regulation 208 (e-filing notice and appeals)—
(a)
for “the Inland Revenue”, in both places where the term occurs, substitute “HMRC”, and
(b)
at the end of paragraph (1)(b) omit “(religious objection)”.
Any relevant annual return or specified information delivered by a method of electronic communications must meet the standards of accuracy and completeness set by specific or general directions given by the Commissioners for Her Majesty’s Revenue and Customs.
(2)
Any relevant annual return or specified information which fails to meet those standards must be treated as not having been delivered.”.
12-
For the heading to regulation 210 (penalty for failing to deliver specified information) substitute “Penalty for failing to deliver relevant annual returns and specified information”.
13-
In regulation 210—
(a)
before paragraph (1) insert—
"(A1)
An employer who fails to deliver a relevant annual return or any part of it in accordance with regulation 205 is liable to a penalty.”,
(b)
in paragraph (1) for “205” substitute “205A”,
(c)
for paragraph (2) substitute —
"(2)
Where paragraph (A1) applies the penalty must be determined in accordance with regulation 210A.”.
14-
For regulation 210A (penalty: regulation 73 return and accompanying information (Forms P35 and P14)) substitute the following—
210A
“Penalty: relevant annual return for the tax year ending 5th April 2010
Table 9 sets out the penalty for the tax year ending 5th April 2010, depending on the number of employees for whom particulars should have been included with the relevant annual return.
Table 9
Penalties: tax year ending 5th April 2010
1 Number of employees for whom particulars should have been included with the relevant annual return
2 Penalty
1-5
0
6-49
£100
50-249
£600
250-399
£900
400-499
£1200
500-599
£1500
600-699
£1800
700-799
£2100
800-899
£2400
900-999
£2700
1000 or more
£3000
210AA
Penalty: relevant annual return for the tax year ending 5th April 2011 and subsequent years
Table 9ZA sets out the penalty for the tax year ending 5th April 2011 and subsequent years, depending on the number of employees for whom particulars should have been included with the relevant annual return.
Table 9ZA
Penalties: tax years ending 5th April 2011 and subsequent years
1 Number of employees for whom particulars should have been included with the relevant annual return
