Income Tax (Employments) Regulations 1965
| Jurisdiction | UK Non-devolved |
| Citation | SI 1965/516 |
| Year | 1965 |
1965 No. 516
INCOME TAX
The Income Tax (Employments) Regulations 196518thMarch 1965
30thMarch 1965
6thApril 1965
ARRANGEMENT OF REGULATIONS
PART I
GENERAL
1. Citation, commencement and revocations.
2. Interpretation.
3. Intermediate employers.
4. Troncs.
5. Service by post.
PART II
CODING
6. Deduction and repayment of tax under appropriate code.
7. Determination of appropriate code by Inspector.
8. Coding at standard rate or where no tax is deductible.
9. Notices of coding.
10. Objections and appeals against coding.
11. Amendments of coding.
12. Notice to employer of amended coding.
PART III
DEDUCTION AND REPAYMENT OF TAX
13. Calculation of deduction or repayment.
14. Emoluments not paid weekly or monthly.
15. Subsidiary emoluments of employee paid monthly, etc.
16. Deduction in special cases.
17. Change of employment.
18. Death of employee.
19. Employee for whom deduction card not held.
20. Employee on fixed pay.
21. Modified method of deduction.
22. Aggregation of emoluments in non-cumulative cases.
23. Tax-free emoluments.
24. Repayment during sickness and unemployment.
25. Certificate of tax deducted.
PART IV
PAYMENT AND RECOVERY OF TAX, ETC.
26. Payment of tax by employer.
27. Employer failing to pay tax.
28. Recovery of tax.
29. Return by employer at end of year.
30. Further return in case of certain employees.
31. Return of certain emoluments by employer.
32. Inspection of employer's records.
33. Death of employer.
34. Succession to a business, etc.
PART V
SPECIAL PROVISIONS APPLICABLE TO SEAMEN
35. Interpretation of Part V.
36. Deduction of tax from seamen's wages.
37. Deduction from other emoluments of seamen.
38. Payment of tax to Collector.
39. Return to be rendered by employer.
40. Application of Part IV.
41. Repayment to seaman during the year.
42. Seamen to whom Part V shall not apply.
PART VI
SPECIAL PROVISIONS APPLICABLE TO THE ARMED FORCES
43. Interpretation of Part VI.
44. Application of Parts II and III.
45. Deduction and repayment of tax on forces emoluments.
46. Determination of code for forces emoluments.
47. Appeals against coding.
48. Cessation of full pay and entry into other employment.
PART VII
ASSESSMENT AND DIRECT COLLECTION
49. Assessment and appeals.
50. Repayment of overpayments and recovery of underpayments.
51. Provisions for direct collection.
52. Alternative procedure for direct collection.
53. Recovery of tax from employee.
The Commissioners of Inland Revenue, in exercise of the powers conferred upon them by section 157 of the Income Tax Act 1952(a), hereby make the following Regulations:—
PART I
GENERAL
Citation, commencement and revocations
1.—(1) These Regulations may be cited as the Income Tax (Employments) Regulations 1965 and shall come into operation on 6th April 1965.
(2) The Income Tax (Employments) Regulations 1962(b) and the Income Tax (Employments) (No. 2) Regulations 1963(c) shall cease to have effect from 6th April 1965, except as respects obligations incurred before that date.
Interpretation
2.—(1) In these Regulations, unless the context otherwise requires—
"code" means any part of the tax tables in which all the amounts of free emoluments for any period have been calculated on the basis of the same total amount for the whole year;
"Collector" means a Collector of Taxes;
"cumulative emoluments", in relation to any date, means the sum of all payments of emoluments made by the employer to the employee from the beginning of the year up to and including that date;
"cumulative free emoluments", in relation to any date, means the sum of the free emoluments from the beginning of the year up to and including that date;
"cumulative tax" means the tax due in accordance with the appropriate tax tables in respect of any cumulative taxable emoluments at the relevant date;
"cumulative taxable emoluments", in relation to any date, means the cumulative emoluments reduced by the cumulative free emoluments;
"deduction card" means a deduction card in the form prescribed or approved by the Commissioners of Inland Revenue or such other document as may be authorised by those Commissioners as a deduction card;
"emoluments" means all income assessable to income tax under Schedule E, and references to payments of emoluments include references to payments on account of emoluments;
"employee" means any person in receipt of emoluments;
"employer" means any person paying emoluments;
"free emoluments" means the appropriate amount of any emoluments of the employee which qualify for relief from income tax, including earned income relief thereon, but excluding reduced rate relief;
"graduated contributions" has the same meaning as in the National Insurance Act 1959(d) and the National Insurance Act (Northern Ireland) 1959(e);
"income tax month" means the period beginning on the 6th day of any calendar month and ending on the 5th day of the following calendar month;
(a) 15 & 16 Geo. 6 & 1 Eliz. 2. c. 10.
(b) S.I. 1962/1003 (1962 II, p. 1144).
(c) S.I. 1963/1082 (1963 II, p. 1851).
(d) 7 & 8 Eliz. 2. c. 47.
(e) 1959 c. 21 (N.I.).
"Inspector" means an Inspector of Taxes;
"reliefs from income tax" includes allowances and deductions;
"tax tables" means the tax tables prepared by the Commissioners of Inland Revenue under section 157 of the Income Tax Act 1952, and "simplified tax tables" means such of the said tax tables as are prescribed by those Commissioners for use where, under Regulations 20 and 21, tax is deductible without reference to cumulative emoluments and cumulative tax;
"taxable emoluments" means emoluments reduced by free emoluments;
"total net tax deducted" means, in relation to the emoluments paid to any employee during any period, the total tax deducted from those emoluments less any tax repaid to the employee;
"year" means year of assessment;
other expressions have the same meaning as in the Income Tax Acts.
(2) The Interpretation Act 1889(a) shall apply to these Regulations as it applies to an Act of Parliament.
(3) In relation to tax liable, under the Income Tax (Employments) Regulations 1962(b) (as amended by the Income Tax (Employments) Regulations (No. 2) 1963(c)), to be deducted from emoluments paid prior to 6th April 1965, these Regulations shall have effect as if the tax had been liable to be deducted under these Regulations and accordingly references to any provisions of these Regulations shall, where the context so requires, be construed as references to the corresponding provision of the Income Tax (Employments) Regulations 1962 (as amended as aforesaid).
Intermediate employers
3.—(1) Where an employee works under the general control and management of a person who is not his immediate employer, that person (referred to in this and the next following Regulation as "the principal employer") shall be deemed to be the employer for the purpose of these Regulations, and the immediate employer shall furnish the principal employer with such particulars of the employee's emoluments as may be necessary to enable the principal employer to comply with the provisions of these Regulations.
(2) If the employee's emoluments are actualy paid to him by the immediate employer—
(a) the immediate employer shall be notified by the principal employer of the amount of tax to be deducted or repaid when the emoluments are paid to the employee, and shall deduct or repay the amount so notified to him accordingly; and
(b) the principal employer shall make a corresponding deduction or addition on making to the immediate employer the payment out of which the said emoluments will be paid.
Troncs
4. Where organised arrangements (commonly known as a tronc) exist for gratuities or service charges to be shared among two or more employees by any person (commonly known as a tronc-master),
(a) 52 & 53 Vict. c. 63.
(b) S. I. 1962/1003 (1962 II, p. 1144).
(c) S. I. 1963/1082 (1963 II, p. 1851).
(a) every payment to an employee by way of the sharing out of gratuities or service charges by that person (including the retention by him of his own share if he is also an employee) shall be regarded for the purposes of these Regulations as a payment by him of emoluments; and
(b) to the extent of any such payment that person shall be regarded for the purposes of these Regulations as the employer, notwithstanding the provisions of Regulation 3:
Provided that if the Commissioners of Inland Revenue are satisfied that in any particular case that person has failed to observe or fulfil the requirements of these Regulations or any of them, they may direct that any gratuities or service charges so shared and paid to the tronc-master through the principal employer shall be dealt with under Regulation 3 and that any share of gratuities or service charges not so dealt with shall either be assessed under Regulation 51 on the employee receiving the same or be taken into account under Regulation 7(b) by the Inspector in his determination of a code.
Service by post
5. Any notice or deduction card which is authorised or required to be given, served or issued under these Regulations may be sent by post.
PART II
CODING
Deduction and repayment of tax under appropriate code
6. Every employer, on making any payment of emoluments during any year to any employee in respect of whom a deduction card has been issued to him for that year by the Inspector, shall deduct or repay tax in accordance with these Regulations by reference to the appropriate code, which shall be specified on the deduction card.
Determination of appropriate code by Inspector
7.—(1) The appropriate code shall be determined by the Inspector, who for that purpose may have regard to any of the following matters, namely—
(a) the reliefs from income tax to which the employee is entitled for the year in which the code is determined, so far as his title to those reliefs has been established at the time of the determination:
Provided that, where the code is determined before the beginning of the year for which it is to have effect, the Inspector shall...
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