The Income Tax (Construction Industry Scheme) (Amendment) Regulations 2012

• Citation: S.I. 2012/820
• Sections: 7

Section 1 Citation and commencement

These Regulations may be cited as the Income Tax (Construction Industry Scheme) (Amendment) Regulations 2012 and shall come into force on 6th April 2012.

Section 2 Amendment of the Income Tax (Construction Industry Scheme) Regulations 2005

The Income Tax (Construction Industry Scheme) Regulations 2005 are amended as follows.

Section 3 Interpretation

In regulation 2 (interpretation), for the definition of “Student Loan Regulations” substitute—

“ Student Loan Regulations ” means the Education (Student Loans) (Repayment) Regulations 2009 or, in Northern Ireland, the Education (Student Loans) (Repayment) Regulations (Northern Ireland) 2009 ;

Section 4 Quarterly tax periods

In regulation 8(3) (quarterly tax periods)—

(a) in the definition of “P” before “68” insert “67G or”, and

(b) in the definition of “L”—

(i) for “39(1)” substitute “54(1) or, in Northern Ireland, 49(1)”, and

(ii) for “that regulation” substitute “those regulations”.

Section 5 Gross payment: exceptions from compliance obligations

In Table 3 in regulation 32(2) (exceptions from compliance obligations), in the entry in column 1 relating to the obligation to submit a return under regulations 73, 74 and 85 of the PAYE Regulations , before “73” insert “67B or 67D (real time returns) and”.

Section 6 Mandatory electronic payment

In regulation 45(2) (mandatory electronic payment), before “68” insert “67G or”.

Section 7 Application by the Commissioners for Her Majesty’s Revenue and Customs of sums deducted under section 61 of the Finance Act 2004

In regulation 56 (application by the Commissioners for Her Majesty’s Revenue and Customs of sums deducted under section 61 of the Finance Act 2004)—

(a) after paragraph (2) insert—

(2A) For any tax period where as a consequence of paragraph (2) the qualifying sub-contractor pays an amount to the Commissioners for Her Majesty’s Revenue and Customs in respect of any liability referred to in that paragraph that is less than the amount the qualifying sub-contractor would have paid but for that paragraph, paragraph (2B) applies if the qualifying sub-contractor is a Real Time Information employer for the purposes of the PAYE Regulations.

(2B) The qualifying sub-contractor must deliver to the Commissioners for Her Majesty’s Revenue and Customs a return under this paragraph stating the value of the sums deducted from contract payments made to the qualifying sub-contractor under section 61 of the Act in the tax year to date.

(2C) The return required by paragraph (2B) must be delivered within 14 days after the end of the tax period.

(2D) If an employer makes an error in a return under paragraph (2B), the employer must provide the correct information in the first return made under that paragraph after the discovery of the error.

(2E) But if the information given has not been corrected before 20th April following the end of the year in question, the employer must provide the correct information for the year in question in a return under this paragraph.

(b) in paragraph (5), for “until” substitute “unless”,

(c) for paragraph (5)(b) substitute—

(b) either—

(i) the qualifying sub-contractor has delivered the return required by regulation 73 of the PAYE Regulations (annual return of relevant payments liable to deduction of tax), or

(ii) the qualifying sub-contractor has delivered to the Commissioners for Her Majesty’s Revenue and Customs each return required under paragraph (2B) for the tax year.

(d) after paragraph (7) insert—

(8) A return under this regulation must—

(a) state—

(i) the employer’s HMRC office number,

(ii) the employer’s PAYE reference for the purposes of the PAYE Regulations,

(iii) the employer’s accounts office reference, and

(iv) the tax year to which the return relates, and

(b) be delivered using an approved method of electronic communications unless the qualifying sub-contractor is one to whom regulation 67D of the PAYE Regulations applies, in which case the return must be made in a document or format provided or approved by the Commissioners for Her Majesty’s Revenue and Customs.