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HMRC internal manual

PAYE Settlement Agreements

Regulation 110 Determinations


If there are difficulties in agreeing the actual figure of tax and NICs due under asigned PSA by the due date for the payment HMRC can make a formal determination of the taxand Class 1B NICs due and serve it on the employer.

Regulation 110 of Income Tax (Pay As You Earn) Regulations 2003 gives HMRC power to makesuch a determination.

A determination is not an assessment. It is made on figures of tax andNICs unlike an assessment which is made on a figure of income, profit or gain.

A Regulation 110 determination is appropriate only where a PSA exists. See PSA1040. If in discussing a PSA an employer has reservations aboutthe taxation position of certain benefits and/or expenses, including the valuation, thenit is not appropriate to agree a PSA for those items. A Regulation 110 determinationcannot be made for items not included in a signed PSA. Such disputes over chargeability orvaluation should be dealt with by the self assessment process for the individualemployees.

This part of the PSA Manual explains

  • when a Regulation 110 determination is appropriate
  • how to prepare a determination and update ECS
  • how to deal with appeals.