The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2009

• Citation: S.I. 2009/2029
• Sections: 15

Section 1 Citation, commencement, transitional and interpretation

(1) 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 (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 .

Section 2 Amendment of the Income Tax (Pay As You Earn) Regulations 2003

The Income Tax (Pay As You Earn) Regulations 2003 are amended as follows.

Section 3 Amendment of the Income Tax (Pay As You Earn) Regulations 2003

In regulation 184B (application of other regulations) —

(a) in the list in paragraph (1) for the entries relating to regulation 205 to 210 substitute the following—

(b) in paragraph (2) in the first column of Table 7A for “Employer” substitute “Employer, specified employer”.

Section 4 Amendment of the Income Tax (Pay As You Earn) Regulations 2003

In regulation 203(default surcharge), after paragraph (7) insert—

(8) Section 108 of the Finance Act 2009 (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—

, and

(b) omit subsections (7), (8), (9) and (11).

Section 5 Amendment of the Income Tax (Pay As You Earn) Regulations 2003

For regulation 205 (mandatory use of electronic communications) substitute—

Mandatory use of electronic communication for delivering relevant annual returns

(205) An employer (as to which see regulation 206) must deliver a relevant annual return by an approved method of electronic communications to HMRC.

Mandatory use of electronic communication for delivering specified information

(205A) A specified employer (as to which see regulation 206) must deliver specified information by an approved method of electronic communications to HMRC.

General provisions relating to this Chapter

(205B)

(1) The 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) .

Section 6 Amendment of the Income Tax (Pay As You Earn) Regulations 2003

For the heading to regulation 206 (specified employers) substitute “Employers and specified employers”.

Section 7 Amendment of the Income Tax (Pay As You Earn) Regulations 2003

In regulation 206—

(a) for paragraph (2) substitute—

(2) 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.

(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 .

Section 8 Amendment of the Income Tax (Pay As You Earn) Regulations 2003

After regulation 206 insert—

Relevant annual return

(206A)

(1) 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).

Section 9 Amendment of the Income Tax (Pay As You Earn) Regulations 2003

In regulation 207 (specified information) omit sub-paragraph (e) of paragraph (1).

Section 10 Amendment of the Income Tax (Pay As You Earn) Regulations 2003

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)”.

Section 11 Amendment of the Income Tax (Pay As You Earn) Regulations 2003

For regulation 209 (standards of accuracy and completeness) substitute—

(209)

(1) 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.

Section 12 Amendment of the Income Tax (Pay As You Earn) Regulations 2003

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”.

Section 13 Amendment of the Income Tax (Pay As You Earn) Regulations 2003

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.

Section 14 Amendment of the Income Tax (Pay As You Earn) Regulations 2003

For regulation 210A (penalty: regulation 73 return and accompanying information (Forms P35 and P14)) substitute the following—

Penalty: relevant annual return for the tax year ending 5th April 2010

(210A) 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.

Penalties: tax year ending 5th April 2010

1-5

6-49

50-249

250-399

400-499

500-599

600-699

700-799

800-899

900-999

1000 or more

0

£100

£600

£900

£1200

£1500

£1800

£2100

£2400

£2700

£3000

Penalty: relevant annual return for the tax year ending 5th April 2011 and subsequent years

(210AA) 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.

Penalties: tax years ending 5th April 2011 and subsequent years

1-5

6-49

50-249

250-399

400-499

500-599

600-699

700-799

800-899

900-999

1000 or more

£100

£300

£600

£900

£1200

£1500

£1800

£2100

£2400

£2700

£3000

Section 15 Amendment of the Income Tax (Pay As You Earn) Regulations 2003

In regulation 210C (appeals and interest)—

(a) in paragraph (1) —

(i) after “205” insert “or regulation 205A”, and

(ii) before “specified information” insert “relevant annual return or”,

(b) in paragraph (2) —

(i) after sub-paragraph (a) insert—

(aa) the employer is not regarded as an employer the purposes of this Chapter

(ii) in sub-paragraph (b) after “205” insert “or regulation 205A”.