Income Tax (Employments) (No. 11) Regulations 1981
| Jurisdiction | UK Non-devolved |
| Citation | SI 1981/44 |
| Year | 1981 |
1981 No. 44
INCOME TAX
The Income Tax (Employments) (No. 11) Regulations 198114thJanuary 1981
21stJanuary 1981
6thApril 1981
The Commissioners of Inland Revenue, in exercise of the powers conferred upon them by section 204 of the Income and Corporation Taxes Act 1970(a), hereby make the following Regulations:—
Citation, commencement and interpretation
1.—(1) These Regulations may be cited as the Income Tax (Employments) (No. 11) Regulations 1981, and shall come into operation on 6th April 1981: Provided that, in relation to emoluments paid before 6th April 1981, the Principal Regulations shall continue to apply as if these Regulations had not been made.
(2) In these Regulations "the Principal Regulations" means the Income Tax (Employments) Regulations 1973(b).
Amendments of the Principal Regulations
2. In Regulation 2(1) of the Principal Regulations—
(1) after the definition of "code" there shall be inserted:—
" "code authorisation" means a notice given by an Inspector to an employer specifying the appropriate code;"
(2) the definition of "deduction card" shall be omitted and in its place there shall be inserted:—
" "deductions working sheet" means any form of record on or in which are to be kept the matters required by these Regulations in connection with an employee's emoluments and tax, or, in Regulations 21 and 51, the form issued by the Inspector for the purpose of keeping that record;"
3. For Regulation 6 of the Principal Regulations there shall be substituted:—
"6.—(1) Every employer, on making any payment of emoluments during any year to any employee in respect of whom a code authorisation has been issued to him for that year by the Inspector, shall—
(a) if he has not already done so, prepare a deductions working sheet for that employee, and
(b) deduct or repay tax in accordance with these Regulations by reference to the appropriate code, which shall be specified on the code authorisation.
(a) 1970 c. 10.
(b) S.I. 1973/334, amended by S.I. 1974/2102, 1975/728, 1976/381, 950, 1977/700, 1978/326, 1196, 1979/747, 1980/505.
(2) Where under Regulation 7 the Inspector determines that the appropriate code for any year is not different from the code for the preceding year he shall not be obliged to issue a code authorisation to the employer and if for any year the employer does not receive a code authorisation for an employee who was in his employment on the 5th April in the year preceding that year a code authorisation shall be deemed to have been issued by the Inspector specifying as the appropriate code the code which was appropriate on the said 5th April and the employer shall act in accordance with sub-paragraphs (a) and (b) of paragraph (1) of this Regulation."
4. In Regulation 9 of the Principal Regulations the words "before the deduction card is issued to the employer" shall be omitted.
5. For Regulation 10(5) of the Principal Regulations there shall be substituted:—
"(5) Notwithstanding that the appropriate code as determined by the Inspector may be the subject of an objection or appeal, the employer shall act in accordance with Regulation 6 and shall deduct or repay tax by reference to that code."
6. In Regulation 12(1) of the Principal Regulations for the words "the deduction card has been issued" there shall be substituted:—
"a code authorisation has been issued or is deemed under these Regulations to have been issued".
7. In Part III of the Principal Regulations there shall be inserted before Regulation 13:—
"Preparation of deductions working sheets
12A. The employer shall record on each deductions working sheet which he is required to prepare under these Regulations the employee's name, the appropriate code and the year to which the working sheet relates."
8. In Regulation 18 of the Principal Regulations—
(1) in paragraph (1) for the words "a deduction card has been issued to him" there shall be substituted:—
"a code authorisation has been issued to him, or is deemed under these Regulations to have been issued to him";
(2) for the proviso to paragraph (3) there shall be substituted:—
"Provided that:
(i) if tax is repayable on the occasion of the first such payment and the amount repayable exceeds £50, the new employer shall forthwith notify the Inspector and shall not make the repayment until authorised to do so by the Inspector; and
(ii) where the certificate indicates that the provisions of Regulation 17 have been applied references in this paragraph to cumulative emoluments, cumulative free emoluments and cumulative tax shall be disregarded and the provisions of Regulation 17 shall apply to payments of emoluments made by the new employer."
(3) for paragraph (5) there shall be substituted:—
"(5) The delivery of the 2 copies of the certificate in accordance with paragraph (3) of this Regulation shall be treated for the purposes of this Regulation as the issue of a code authorisation to the new employer in respect of the employee specifying the code contained in the certificate as the appropriate code."
9. In Regulation 19(1) of the Principal Regulations for the words "deduction card has been either issued by the Inspector or prepared by the employer under paragraphs (3) or (4) of Regulation 18 or paragraph (2) of Regulation 20" there shall be substituted:—
"code authorisation has been issued by the Inspector, or is deemed under these Regulations to have been issued".
10. For Regulation 20 of the Principal Regulations and the cross-heading thereto there shall be substituted:—
"Employee for whom appropriate code not known
20.—(1) If the employer makes any payment of emoluments—
(a) to an employee in respect of whom he has not received a code authorisation from the Inspector (and in respect of whom no code authorisation is deemed under paragraph (2) of Regulation 6 to have been issued by the Inspector), and that payment is equivalent to emoluments at a rate a week exceeding that prescribed in accordance with paragraph (2) of this Regulation (in this Regulation called "the prescribed weekly rate") or
(b) to a new employee with other employment or a new employee who does not certify in the prescribed form either that he is taking up employment for the first time after a period of full-time education or that the employment is his only or main employment, at a rate exceeding £1 a week,
the employer, on the occasion of any such payment, shall forthwith render a return to the Inspector giving the name and address of the employee, the date on which his employment commenced, and such other particulars as may be necessary to enable the Inspector to determine the appropriate code in accordance with Regulation 7:
Provided that if the employer, having rendered such a return, makes any subsequent...
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