DMBM450050 - Legislation: PAYE Regulations: Payment and recovery of tax
Some content of this manual is being considered for archiving. If there is content you use regularly, please email hmrcmanualsteam@hmrc.gov.uk to let us know as soon as possible.
Regulations concerning payment of employers’/ contractors’ deductions, which form the basis for compliance action, are contained in the Income Tax (Pay As You Earn) Regulations 2003.
The following tables show a selection and their effects.
| Subject: Payment and recovery of tax | Income Tax (Pay As You Earn) Regulations 2003 |
|---|---|
| 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) and 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) |
| Subject: HMRC notice (P100) | Income Tax ( Pay As You Earn) Regulations 2003 |
|---|---|
| Authority to issue P100 - requiring employer to make return of tax due when no payment made | 77(1),(2) |
| Authority to issue P100- when dissatisfied with amount paid | 77(1), (3) |
| Period of notice : period in which employer must return notice | 77(4) |
| Period of notice: period included in notice (no of months) | 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) |
| Subject: HMRC notice form P101 | Income Tax (Pay As You Earn) Regulations 2003 |
|---|---|
| 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) |
| Subject: Return at year end (P35,P14s) | Income Tax (Pay As You Earn) Regulations 2003 |
|---|---|
| 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) |
| Subject: Inspection of employer's record | Income Tax (Pay As You Earn) Regulations 2003 |
|---|---|
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) |