DMBM450050 - Legislation: PAYE Regulations: Payment and recovery of tax

Subject

Income Tax (Pay As You Earn) Regulations 2003

Payment and recovery of tax

Payment of tax monthly by employer 

69(1)

Payment of tax quarterly by employer 

70(1)

HMRC will give a receipt for payment on request

69(2), (3)

Direction to recover from employee tax not deducted in error by employer

72(3) Condition A

Direction to recover from employee tax not deducted through wilful failure by employer

72(4) Condition B

Interest on tax due from employee

72 (7), (8)

Employer entitled to recover repayments from later deductions

68(3), (4) & 71(4)

Trade disputes - repayments not made payment to HMRC

64(8)

Certificate of interest due from and unpaid by employee

218(3)

Challenge to HMRC certificate 

218(6)

HMRC notice (P100)

Authority to issue P100 –

·           requiring employer to make return of tax due when no payment made

·           when dissatisfied with amount paid

77(1), (2)

77(1),(3)

Period of notice

·           period in which employer must return notice

·           period included in notice (no of months)

77(4)

77(5)

Tax recoverable as if it were an assessment

84(2)

Collector’s certificate prepared from employer’s return

77(6)

Prepared certificate is sufficient evidence of debt

218(1)

Challenge to HMRC certificate

218(6)

HMRC notice form P101

Criteria and authority for HMRC to issue P101 to employer

78 (1), (2), (3), (4)

Timing of issue of P101 (number of days after month end)

78(1)

Collector’s judgment based on previous payments

78(4) (a)

Authority to issue notice for periods covering 2 or more months

78(5)

Authority to issue notice when HMRC dissatisfied with amount paid

78(3)(b)

Employer may request inspection of records during 7 day time limit on HMRC notice

78(6)

Preparation of Collector’s certificate after 7 day time limit

78(8)

Employer’s response within notice period

78(9)

Collector’s certificate is sufficient evidence of debt

218(1)

Employer’s right to recover overpayments from deductions in subsequent tax periods in that tax year

78(11)

Employer’s right to repayment of tax overpaid after end of year return submitted

78(13)

Recovery of tax

Time limit for summary proceedings

84(1)-(3)

Power to recover aggregate of deductions due from employers

84(4), (5

Certificate of debt

218(1), (2)

Challenge to HMRC certificate

218(6)

Return at year end (P35, P14s)

Employer’s obligations to make end of year return

73

Return by company to be signed

73(8)

HMRC authority to certify and recover unpaid tax

76

Time limit for summary proceedings

84 (3)

Inspection of employer’s record

Employer’s obligation to produce PAYE records for inspection by HMRC

97(1), (2)

HMRC’s authority to certify tax due and payable

79(2)

HMRC authority to recover unpaid tax certified

84(3)