PAYE: special types of payment: employee’s requirement to make good PAYE: meaning of 'the relevant date'
Section 222(4) ITEPA 2003
To prevent the condition at section 222(1)(c) from being met, the employee must make good the due amount to the employer within the time allowed.
For a notional payment treated as made on a date after 5 April 2014, the time allowed is the period ending 90 days after the end of the tax year in which the relevant date falls.
For a notional payment treated as made on a date before 6 April 2014, the time allowed is the period ending 90 days after the relevant date.
In relation to section 222, ‘the relevant date’ ordinarily means the date on which the employer is treated as making the notional payment (see EIM11950).
Exceptionally, if the circumstances are such that if, by the effect of new legislation, the employer is deemed to have made a notional payment before the date on which the new legislation received Royal Assent, the date on which the legislation receives Royal Assent will be the relevant date.
It is necessary to consider the full facts including any scheme documentation in order to correctly ascertain when the relevant date falls and so determine when the time allowed runs to. The relevant date in each case will be depend on the specific details of the transactions so careful consideration must be given to this aspect in each case.