The Income Tax (Pay As You Earn) (Amendment) Regulations 2021

• Citation: S.I. 2021/218
• Sections: 4

Section 1 Citation and commencement

These Regulations may be cited as the Income Tax (Pay As You Earn) (Amendment) Regulations 2021 and come into force on 6th April 2021.

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 67E (returns under regulations 67B and 67D: amendments)—

(a) in paragraphs (2) and (7)(a)(iii), after “16” insert “, 16A”,

(b) at the beginning of paragraph (7)(a)(iii), insert “if the return relates to the tax year 2017-18 or to an earlier tax year,”,

(c) after paragraph (7)(a)(iii), insert—

(iiia) if the return relates to the tax year 2020-21 or a subsequent tax year, the amount which should have been given under paragraphs 16, 16A or 17 of Schedule A1 in the final return under regulation 67B or 67D containing information in respect of the employee in the tax year in question,

(iiib) if the return relates to the tax year 2018-19 or 2019-20—

(aa) the value of the adjustment to the information given under, or

(bb) the amount which should have been given under,

paragraphs 16, 16A or 17 of Schedule A1 in the final return under regulation 67B or 67D containing information in respect of the employee in the tax year in question,

(d) in paragraph (9), after “adjustments required” insert “by paragraph (7)(a)(iii) or (iiib)”.

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

In regulation 67H (payments to and recoveries from HMRC for each tax period by Real Time Information employers: returns under regulation 67E(6)), for paragraph (2) substitute—

(2) If the return shows—

(a) an adjustment under regulation 67E(7)(a)(iii) or (iiib), or

(b) an adjustment to the amount originally given under paragraph 17 of Schedule A1,

and the value of the adjustment is a positive amount, that amount is an amount due to be paid to HMRC for the final tax period of the tax year the return relates to.