The Income Tax (Pay As You Earn) and the Income Tax (Construction Industry Scheme) (Amendment) Regulations 2022

• Citation: S.I. 2022/227
• Sections: 6

Section 1 Citation, commencement and effect

(1) These Regulations may be cited as the Income Tax (Pay As You Earn) and the Income Tax (Construction Industry Scheme) (Amendment) Regulations 2022.

(2) Subject to paragraph (3), these Regulations come into force on 6th April 2022.

(3) Regulation 3 comes into force on 6th May 2022.

(4) Regulation 4 has effect in relation to elections made under regulation 98 of the Income Tax (Pay As You Earn) Regulations 2003 (multiple PAYE schemes) on or after 6th April 2022.

(5) Regulation 6 has effect in relation to elections made under regulation 3 of the Income Tax (Construction Industry Scheme) Regulations 2005 (multiple contractors) on or after 6th April 2022.

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

After regulation 65 insert—

Relief from income tax on PAYE income: information about deductible expenses

(65A)

(1) This regulation applies if, in relation to a tax year —

(a) an employee is entitled to relief from income tax in consequence of deductions allowed under Chapter 2 of Part 5 of ITEPA (deductions for employee’s expenses) (“the deductible expenses”),

(b) the total amount of the deductible expenses for that employee in respect of all employments in that tax year does not exceed £2,500, and

(c) the employee has not been given a notice under section 8 of TMA (personal return) or delivered a purported return within section 12D of TMA (returns made otherwise than pursuant to a notice) for the tax year to which the deductible expenses relate.

(2) For the purposes of paragraph (1)(c), a notice under section 8 of TMA is treated as not having been given to an employee if that notice has been withdrawn in accordance with section 8B of that Act (withdrawal by HMRC of notice under section 8 or 8A).

(3) Without prejudice to section 711 of ITEPA (right to make a return), the employee may notify HMRC of the deductible expenses by providing specified information relating to those expenses to HMRC in accordance with this regulation.

(4) For the purposes of paragraph (3), the specified information in relation to each tax year is the nature and amount of each of the deductible expenses incurred in respect of each of the employee’s employments.

(5) The specified information must be provided in the form and manner given in a direction made by the Commissioners for Her Majesty’s Revenue and Customs for this purpose.

(6) A direction made under paragraph (5) may also—

(a) authorise, or specify a requirement for, the delivery of information by an approved method of electronic communication , and

(b) where such a requirement is specified, specify the persons required to deliver information to HMRC by the approved method of electronic communication.

(7) The specified information cannot be provided more than 4 years after the end of the tax year to which the information relates.

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

In regulation 98 (multiple PAYE schemes)—

(a) at the end of paragraph (2)(c) omit “and”;

(b) at the end of paragraph (2)(d) insert—

;

(e) an employee who is allocated to more than one group has more than one employment; and

(f) an employee who is deallocated from one group has left an employment

(c) in paragraphs (3) and (4)(b), before “one of the groups” insert “at least” ;

(d) in paragraph (4), before sub-paragraph (a) insert—

(za) the tax month from which the election is to have effect,

(e) in paragraph (5)—

(i) omit “, subject to paragraph (6),”;

(ii) for “tax year for which it” substitute “tax month immediately preceding the tax month from which the election” ;

(f) after paragraph (5) insert—

(5A) A late election will be treated as if it had been made in relation to the tax month immediately following the tax month from which the election was stated to have had effect.

(g) omit paragraphs (6) and (7);

(h) in paragraph (9), for “tax year”, in each place where it occurs substitute “tax month” ;

(i) in paragraph (10), for “tax year” substitute “tax month” .

Section 5 Amendments to the Income Tax (Construction Industry Scheme) Regulations 2005

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

Section 6 Amendments to the Income Tax (Construction Industry Scheme) Regulations 2005

In regulation 3 (multiple contractors)—

(a) at the end of paragraph (2)(a) omit “and”;

(b) at the end of paragraph (2)(b) insert—

and;

(c) a sub-contractor who is allocated to more than one group has more than one contractor from whom it receives payments under contracts relating to construction operations .

(c) in paragraph (3) before “one of the groups” insert “at least” ;

(d) in paragraph (4), before sub-paragraph (a) insert—

(za) the tax month from which the election is to have effect,

(e) in paragraph (5)—

(i) omit “, subject to paragraph (6),”;

(ii) for “tax year for which it” substitute “tax month immediately preceding the tax month from which the election” ;

(f) after paragraph (5) insert—

(5A) A late election will be treated as if it had been made in relation to the tax month immediately following the tax month from which the election was stated to have had effect.

(g) omit paragraphs (6) and (7);

(h) in paragraph (9) for “tax year”, in each place where it occurs substitute “tax month” ;

(i) in paragraph (10) for “tax year” substitute “tax month” .