Income Tax (Employments) Regulations 1973
| Jurisdiction | UK Non-devolved |
1973 No. 334
INCOME TAX
The Income Tax (Employments) Regulations 19731stMarch 1973
13thMarch 1973
6thApril 1973
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 a higher 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. Emoluments paid after employment ceased.
17. Deduction in special cases.
18. Change of employment.
19. Death of employee.
20. Employee for whom deduction card not held.
21. Employee on fixed pay.
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. Formal determination of tax payable by employer.
30. Return by employer at end of year.
31. Further returns.
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. Codes for seamen.
37. Deduction of tax from seamen's wages.
38. Seamen with no code.
39. Payment of tax to the Collector.
40. Return to be rendered by employer.
41. Application of Part IV.
42. Repayment to seaman during the year.
43. Seamen to whom Part V shall not apply.
PART VI
SPECIAL PROVISIONS APPLICABLE TO THE ARMED FORCES
44. Interpretation of Part VI.
45. Application of Parts II and III.
46. Appeals against coding.
47. Cessation of full pay and entry into other employment.
PART VII
ASSESSMENT AND DIRECT COLLECTION
48. Assessment and appeals.
49. Repayment of overpayments and recovery of underpayments.
50. Provisions for direct collection.
51. Alternative procedure for direct collection.
52. Recovery of tax from employee.
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:—
(a) 1970 c. 10.
PART I
GENERAL
Citation, commencement and revocations
1.—(1) These Regulations may be cited as the Income Tax (Employments) Regulations 1973 and shall come into operation on 6th April 1973.
(2) The Income Tax (Employments) Regulations 1965(a) and the other Regulations mentioned in the Schedule to these Regulations shall cease to have effect from 6th April 1973 except as respects obligations incurred before that date.
Interpretation
2.—(1) In these Regulations, unless the context otherwise requires—
"allowable superannuation contributions" means any sum paid by an employee by way of contribution towards a superannuation fund or scheme which is allowed to be deducted as an expense under Schedule E;
"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; and references to code include any designation thereof by numbers and letters, alone or in combination;
"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 the full amount of any income to be taken into account in assessing liability under Schedule E after the deduction of allowable superannuation contributions 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;
"graduated contributions" has the same meaning as in the National Insurance Act 1965(b) and the National Insurance Act (Northern Ireland) 1966(c);
"gross emoluments" means emoluments before the deduction of allowable superannuation contributions;
(a) S.I. 1965/516 (1965 I, p. 1321).
(b) 1965 c. 51.
(c) 1966 c. 6 (N.I.).
"higher rate" means one of the higher rates of income tax specified in the Income Tax Acts;
"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;
"Inspector" means an Inspector of Taxes;
"pension emoluments" means any payment of emoluments comprising a pension or annuity assessable to income tax under Schedule E;
"reliefs from income tax" includes allowances and deductions but not allowable superannuation contributions;
"tax tables" means the tax tables prepared by the Commissioners of Inland Revenue under section 204 of the Income and Corporation Taxes Act 1970(a), and "simplified tax tables" means such of the said tax tables as are prescribed by those Commissioners for use where, under Regulation 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(b) 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 1965(c) (as amended), to be deducted from emoluments paid prior to 6th April 1973, these Regulations shall have effect as if the tax had been liable to be deducted under these Regulations, and accordingly references to any provision of these Regulations shall, where the context so requires, be construed as references to the corresponding provision of the Income Tax (Employments) Regulations 1965 (as amended).
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 actually 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
(a) 1970 c. 10.
(b) 1889 c. 63.
(c) S.I. 1965/516 (1965 I, p. 1321).
(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) 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 50 on the employee receiving the same or be taken into account under paragraph (b) of Regulation 7 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. The...
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