Made | 20th August 2002 | ||
Laid before Parliament | 21st August 2002 | ||
Coming into force | 1st March 2003 |
(2) Any notice given under these Regulations to or by the Board must be in writing.
(3) In paragraph (2) "writing" includes writing produced by electronic communications that are approved by the Board.
Definition of "relevant employer"
3.
- (1) In these Regulations "relevant employer" means -
This is subject to paragraph (2).
(2)
Notification to relevant employer of employee's entitlement to working tax credit (start notice)
4.
- (1) Where an employee of a relevant employer becomes entitled to an amount of working tax credit equal to or exceeding 75 pence per day, the Board shall give notice to the relevant employer of the employee's entitlement in accordance with paragraphs (2) and (3) ("start notice").
(2) A start notice shall contain the following particulars -
(3) The commencement date contained in the start notice shall not be earlier than the date which is 42 days after the date of issue of the start notice.
Notification to relevant employer of amendment of amount of employee's entitlement to working tax credit (amendment notice)
5.
- (1) Where -
the Board shall give notice to the relevant employer of the amended amount ("amendment notice").
(2) An amendment notice shall contain the following particulars -
(3) The commencement date contained in the amendment notice shall not be earlier than the date which is 42 days after the date of issue of the amendment notice.
Relevant employer's obligation to pay working tax credit
6.
- (1) On receipt of a start notice in respect of an employee the relevant employer must, if he reasonably expects the employee to remain in his employment for three or more consecutive pay periods commencing with the pay period in which the commencement date contained in the start notice falls, take the following steps -
(2) If the relevant employer receives a start notice in respect of an employee but -
he must return the start notice to the Board, indicating on the notice his reasons for doing so.
(3) On receipt of an amendment notice in respect of an employee the relevant employer must, except where paragraph (4) applies, take the following steps -
(4) If the relevant employer receives an amendment notice in respect of an employee but becomes aware that the employee will leave his employment before the first date on which he is due to make a payment of emoluments to the employee following the commencement date contained in the amendment notice, he must return the amendment notice to the Board, indicating on the notice his reasons for doing so.
(5) The relevant employer must record on the employee's payslip for any pay period, as a credit described as "tax credit", the amount of working tax credit paid with the payment of emoluments to which the payslip relates.
(6) On making any payment of working tax credit to an employee the relevant employer must record on the deductions working sheet (P 11) for that employee referred to in regulation 38 of the Employments Regulations the amount of the payment (whether or not the employer is required to complete the deductions working sheet for the purposes of that regulation or of the Contributions Regulations).
(7) The relevant employer must record on the certificate (P60) referred to in regulation 39 of the Employments Regulations[7] the total amount of working tax credit paid to each employee for the income tax year to which the certificate relates (whether or not the employer is required to complete the certificate for the purposes of that regulation or of the Contributions Regulations).
(8) The relevant employer must record on the return (P35) referred to in regulation 43 of the Employments Regulations[8] the total amount of working tax credit paid by him for the income tax year to which the return relates.
(9) The relevant employer must record on the particulars (P14) referred to in paragraph (2) of regulation 43 of the Employments Regulations the total amount of working tax credit paid to each employee for the income tax year to which the particulars relate.
(10) Where the relevant employer makes a payment of working tax credit to an employee which exceeds the amount which the employee is entitled to be paid in accordance with the particulars contained in the start notice or the amendment notice, the employer may recover from the employee an amount not exceeding the excess.
(11) Where no payment of emoluments is due from the relevant employer to an employee for a complete pay period the employer may choose either -
(12) Where the relevant employer chooses not to make any payment of working tax credit to an employee for a pay period in the circumstances mentioned in paragraph (11), he must, not later than 7 days following the end of that pay period, inform the Board that he has made no payment of working tax credit for that pay period.
(13) No payment of working tax credit shall be capable of attachment under any enactment, or may be used by way of set-off or otherwise reduced, extinguished or terminated except in accordance with these Regulations.
(14) Where the relevant employer fails to make payments of working tax credit to an employee in accordance with paragraph (1) or (3), the Board shall make payments of working tax credit to that employee.
Funding of payment of working tax credit
7.
- (1) In this regulation -
(2) The relevant employer shall fund payment of working tax credit for the relevant period in accordance with the following rules.
(3) References in paragraph (1) to the total amount in the case of each of amount A, amount B, amount C and amount D are references to that total amount unreduced by any other amount which the relevant employer is entitled by virtue of any enactment to set off against that total amount.
Application for funding
8.
- (1) Where -
the employer, or an agent authorised by him for that purpose, may apply to the Board for funding on a form provided, or in a form in writing that is approved, by the Board.
(2) For the purposes of paragraph (1) "writing" includes writing produced by electronic communications that are approved by the Board.
(3) If the relevant employer's application is accepted the Board shall pay to the employer such amount as the Board may determine in the circumstances to be reasonable having regard to all relevant matters including -
(4) The Board may vary the amount payable in accordance with paragraph (3), or may make a determination superseding that amount, if it has become inappropriate for any reason or they have reason to believe that it was incorrect at the time it was determined as payable in accordance with that paragraph.
(5) The Board shall notify the employer of -
(6) An employer may appeal to the General Commissioners against -
(7) An appeal under paragraph (6) shall be made by giving notice to the Board within thirty days of the issue of the Board's notification under paragraph (5).
(8) An appeal under paragraph (6) shall be heard by the General Commissioners for the division in which the employer's place of business is situated.
(9) The provisions of Part V of the Management Act and of the General Commissioners (Jurisdiction and Procedure) Regulations 1994[14] shall apply with any necessary modifications to an appeal under paragraph (6) as they apply to appeals against assessments.
(10) On appeal the General Commissioners, having regard to the matters referred to in paragraph (3), may -
(11) Subject to paragraph (9), the determination of the General Commissioners shall be final.
(12) Where -
the Board shall pay to the employer the amount of the excess.
(13) An amount which is paid to an employer by the Board under paragraph (12) shall carry interest at the rate applicable under section 178 of the Finance Act 1989[15] for the purposes of section 824 or, as the case may be, section 826 of the Taxes Act[16] from the date on which the condition in Rule 5 of regulation 7(2) is satisfied until payment.
(14) Funds provided to an employer by the Board in accordance with this regulation shall be for the purpose only of payment by that employer of working tax credit under Step Two of regulation 6(1) or (3) to one or more employees.
Renewal of funding
9.
- (1) Where -
the Board shall, following the end of that year, send to the relevant employer a form for renewal of funding ("renewal form") containing details relating to the funding of payments of working tax credit made by him.
(2) Not later than 30 days following the date of issue of the renewal form, the relevant employer must return the form to the Board signed by him and either confirming that the details recorded on the form are correct as at the date of issue or amending the details if they are not so correct.
Notification of change of circumstances by relevant employer in receipt of funding
10.
If, in the course of an income tax year, as a result of a change of circumstances, whether in relation to the amount of funding requested or otherwise, any of the details recorded on an application for funding under regulation 8, or on a renewal form under regulation 9, cease to be correct, the relevant employer may give notice to the Board, on a form provided by the Board for that purpose, amending those details.
Termination of funding
11.
- (1) The Board shall continue to provide a relevant employer with funds in accordance with regulation 8 until the occurrence of any of the events specified in paragraph (2).
(2) The events are -
Termination of relevant employer's obligation to pay working tax credit (stop notice)
12.
- (1) The relevant employer must continue to make payments of working tax credit to an employee in accordance with a start notice or an amendment notice issued to him until -
(2) A stop notice under paragraph (1)(c) shall contain the following particulars -
(3) Except where an earlier date has been agreed between the Board and the relevant employer, the latest payable date for the purposes of paragraph (2)(d) shall not be earlier than 42 days after the date of issue of the stop notice.
(4) The relevant employer shall not pay working tax credit to the employee after the latest payable date.
This is subject to paragraph (5).
(5) The relevant employer may, after the latest payable date, make a payment of working tax credit that is outstanding at that date in respect of the pay period in which the latest payable date falls.
(6) A stop notice shall be effective in respect of an employee unless and until a new start notice is issued by the Board to the relevant employer in respect of that employee.
(7) Where the relevant employer -
he must inform the Board, not later than 7 days after becoming aware of the employee's death, of the latest day for which he has paid working tax credit in respect of the employee.
(8) Where the relevant employer -
he must inform the Board, not later than 7 days after becoming aware that the employee has left his employment, of the latest day for which he has paid working tax credit in respect of the employee.
(9) Where the employee dies and the relevant employer has not made payments of working tax credit up to the date of death in accordance with paragraph (1), the Board shall pay to the employee's personal representatives the amount of working tax credit outstanding at the date of death.
Temporary break in relevant employer's payment of working tax credit (emergency stop notice and restart notice)
13.
- (1) Where the relevant employer -
the Board shall take the action specified in paragraphs (2) to (4).
(2) The Board shall give notice to the relevant employer confirming that the employer has ceased to make payments of working tax credit to the employee concerned ("emergency stop notice").
(3) The Board shall in addition give notice to the relevant employer confirming the date from which the employer is to resume making payments of working tax credit to that employee ("restart notice").
(4) The Board shall pay to the employee the amount of working tax credit to which he is entitled until the relevant employer resumes making payments of working tax credit to the employee.
(5) An emergency stop notice under paragraph (2) shall contain the following particulars -
(6) A restart notice under paragraph (3) shall contain the following particulars -
(7) Regulation 6(1) and (5) to (10) applies in relation to the receipt by the relevant employer of a restart notice under this regulation as it applies to the receipt by him of a start notice.
(8) Where the relevant employer fails to resume making payments of working tax credit to the employee in accordance with paragraph (3), the Board shall continue to make payments of working tax credit to the employee.
Determination of working tax credit funding to be repaid
14.
- (1) This regulation applies where funds have been provided to the employer under regulation 8 in respect of one or more employees and it appears to an officer of the Board that the employer has not used the whole or part of those funds to pay working tax credit.
(2) The officer of the Board shall determine to the best of his judgment the amount of funds provided under regulation 8 and not used to pay working tax credit and shall serve notice of his determination on the employer.
(3) A determination under this regulation may cover funds provided under regulation 8 -
(4) Subject to the following provisions of this regulation, the following enactments shall apply with any necessary modifications to a determination under this regulation as if it were an assessment and as if the amount of funds determined were income tax charged on the employer -
(5) An appeal against a determination under this regulation that is to be brought before the General Commissioners pursuant to paragraph (4) shall be brought before the General Commissioners for the division in which the employer's place of business is situated.
(6) Where an amount of funds determined under this regulation relates to more than one employee, proceedings may be brought for the recovery of that amount without distinguishing the amounts making up that sum which the employer is liable to repay in respect of each employee and without specifying the employees in question, and the amount determined under this regulation shall be one cause of action or one matter of complaint for the purposes of proceedings under section 65, 66 or 67 of the Management Act[19].
(7) Nothing in paragraph (6) prevents the bringing of separate proceedings for the recovery of any amount which the employer is liable to repay in respect of each employee.
Inspection of employer's records
15.
- (1) For the purpose of enabling the Board to be satisfied whether a relevant employer is complying with the provisions of these Regulations, he must, whenever called upon to do so by an authorised officer of the Board, produce the records specified in paragraph (2) to that officer for inspection, at such time as that officer may reasonably require and at the prescribed place.
(2) The records are -
(3) The prescribed place for the purposes of paragraph (1) means -
(4) The authorised officer may -
(5) Where any document is removed in accordance with paragraph (4)(b), the authorised officer shall provide a receipt for that document.
(6) Where any document is removed in accordance with paragraph (4)(b) that is reasonably required for the proper conduct of a business, the authorised officer shall, not later than seven days following the date on which the document was removed, provide a copy of the document, free of charge, to the person by whom it was produced or caused to be produced.
(7) Where a lien is claimed on a document produced in accordance with paragraphs (1) and (2), the removal of the document in accordance with paragraph (4)(b) shall not be regarded as breaking the lien.
(8) Where records are maintained by computer, the person required to produce them for inspection must provide the authorised officer with all facilities necessary for obtaining information from them.
(9) For the purposes of paragraphs (1) and (2), the employer must retain the wages sheets, deductions working sheets and other documents and records referred to in those paragraphs for not less than three years after the end of the income tax year to which they relate.
Dave Hartnett
Ann Chant
Two of the Commissioners of Inland Revenue
20th August 2002
The Scottish Ministers consent to the making of these Regulations
James Wallace
Deputy First Minister and Minister for Justice A member of the Scottish Executive
19th August 2002
[2] See section 65(5) of the Tax Credits Act 2002 (regulations under section 25 of that Act relating to appeals in Scotland not to be made without the consent of the Scottish Ministers).back
[7] Regulation 39 was amended by regulation 3 of S.I. 1995/1284.back
[8] Regulation 43 was amended by regulation 14 of S.I. 1998/2484 and regulations 7 and 15 of S.I. 2001/1081.back
[9] 1998 c. 30. Regulations made under section 22(5) of the Teaching and Higher Education Act 1998 and section 73B(3) of the Education (Scotland) Act 1980 are the Education (Student Loans) (Repayment) Regulations 2000 (S.I. 2000/944).back
[10] 1980 c. 44. Section 73B was inserted by section 29(2) of the Teaching and Higher Education Act 1998.back
[11] S.I. 1988/1760 (N.I. 14). Relevant instruments made under S.I. 1988/1760 (N.I. 14) are S.R. 1999 Nos. 192 and 370.back
[12] Section 559 was amended by S.I. 1989/2405 Schedule 9 paragraph 61 and Schedule 10, section 139(1) and (2) of, and paragraph 1(2) and (3) of Schedule 27 and Part VIII(21) of Schedule 29 to, the Finance Act 1995 (c. 4), and sections 55(2) and 57 of, and paragraph 1 of Schedule 7 and paragraph 2(1) of Schedule 8 to, the Finance Act 1998 (c. 36).back
[13] S.I. 1993/743. Relevant amending instruments are S.I. 1995/448, 1996/981, 1998/2622 and 2000/1151.back
[14] S.I. 1994/1812, amended by S.I. 1999/3293.back
[15] 1989 c. 26; relevant amendments were made by paragraph 1(3) of Schedule 4 to the Finance 1998 (c. 36).back
[16] Relevant amendments to section 824 were made by sections 196 and 199(2)(a) of, and paragraph 41 of Schedule 19 and Part V of Schedule 26 to, the Finance Act 1994 (c. 9). Relevant amendments to section 826 were made by section 180(6) and (7) of the Finance Act 1989, sections 196 and 199 of, and paragraph 42 of Schedule 19 to, the Finance Act 1994, paragraphs 1 and 2 of Schedule 4 to the Finance Act 1998 and S.I. 1998/3173.back
[17] S.I. 1994/1812, amended by S.I. 1999/3293.back
[18] S.I. 1994/1811, amended by S.I. 1999/3292 and 2000/288.back
[19] Section 65 was amended by section 57(1)(a), (b) and (c) of the Finance Act 1984 (c. 43) and paragraph 30 of Schedule 19 to the Finance Act 1998 (c. 36). Section 66 was amended by section 57(2) of the Finance Act 1984, Part II of Schedule 1 to the County Courts (Northern Ireland) Order 1980 (S.I. 1980/397), the High Court and County Courts Jurisdiction Order 1991 (S.I. 1991/724) and section 89(1) of, and Part 2(14) of Schedule 33 to, the Finance Act 2001 (c. 9). Section 67 was amended by section 58 of, and Part III of Schedule 15 to, the Finance Act 1976 (c. 40), section 156 of the Finance Act 1995 (c. 4) and section 89(1) of, and Part 2(14) of Schedule 33 to, the Finance Act 2001.back