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HMRC internal manual

Debt Management and Banking Manual

From
HM Revenue & Customs
Updated
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Legislation: PAYE Regulations: Payment and recovery of tax

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 table shows a selection and their effects.

Subject Income Tax (Pay As You Earn) Regulations 2003
   
Payment and recovery of tax  
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) & 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)
HMRC notice (P100)  
Authority to issue P100 –  

·           requiring employer to make return of tax due when no payment made

·           when dissatisfied with amount paid  

77(1), (2)

77(1),(3)  
  Period of notice

·           period in which employer must return notice

·           period included in notice (no of months)  

77(4)

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)  
  HMRC notice form P101    
  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)  
  Recovery of tax    
  Time limit for summary proceedings 84(1)-(3)  
  Power to recover aggregate of deductions due from employers 84(4), (5  
  Certificate of debt 218(1), (2)  
  Challenge to HMRC certificate 218(6)  
  Return at year end (P35, P14s)    
  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)  
  Inspection of employer’s record    
  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)