United Kingdom Statutory Instruments

You are here: BAILII >> Databases >> United Kingdom Statutory Instruments >> The Statutory Paternity Pay and Statutory Adoption Pay (Administration) Regulations 2002
URL: http://www.bailii.org/uk/legis/num_reg/2002/20022820.html

[New search] [Help]

2002 No. 2820
TERMS AND CONDITIONS OF EMPLOYMENT SOCIAL SECURITY
The Statutory Paternity Pay and Statutory Adoption Pay (Administration) Regulations 2002

	Made	13th November 2002
	Laid before Parliament	15th November 2002
	Coming into force	8th December 2002

The Secretary of State, in exercise of the powers conferred on her by sections 7(1), (2)(a) and (b), (4)(a), (b) and (c) and (5), 8(1) and (2)(a), (b) and (c), 10(1) and (2) and 51(1) of the Employment Act 2002[1] and sections 8(1)(f) and (ga) and 25 of the Social Security Contributions (Transfer of Functions, etc.) Act 1999[2] and with the concurrence of the Commissioners of Inland Revenue, hereby makes the following Regulations -

Citation and commencement
1. These Regulations may be cited as the Statutory Paternity Pay and Statutory Adoption Pay (Administration) Regulations 2002 and shall come into force on 8th December 2002.

Interpretation
2. - (1) In these Regulations -

"adopter", in relation to a child, means a person with whom the child is matched for adoption;

"adoption leave" means leave under section 75A of the Employment Rights Act 1996[

3

4

"the Board" means the Commissioners of Inland Revenue;

5

"contributions payments" has the same meaning as in section 7 of the Employment Act;

6

"the Employment Act" means the Employment Act 2002;

"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;

"income tax quarter" means the period beginning on the 6th day of April and ending on the 5th day of July, the period beginning on the 6th day of July and ending on the 5th day of October, the period beginning on the 6th day of October and ending on the 5th day of January or the period beginning on the 6th day of January and ending on the 5th day of April;

7

"paternity pay period" means the period determined in accordance with section 171ZE(2) of the Contributions and Benefits Act as the period in respect of which statutory paternity pay is payable to a person;

"statutory adoption pay" means any payment under section 171ZL of the Contributions and Benefits Act;

"statutory paternity pay" means any payment under section 171ZA or section 171ZB of the Contributions and Benefits Act;

"tax year" means the 12 months beginning with 6th April in any year;

8

(2) Any reference in these Regulations to the employees of an employer includes former employees of his.

Funding of employers' liabilities to make payments of statutory paternity or statutory adoption pay
3. - (1) An employer who has made any payment of statutory paternity pay or statutory adoption pay shall be entitled -

(a) to an amount equal to 92 per cent. of such payment; or

(b) if the payment qualifies for small employer's relief by virtue of section 7(3) of the Employment Act -

(2) The employer shall be entitled in either case (a) or case (b) to apply for advance funding in respect of such payment in accordance with regulation 4, or to deduct it in accordance with regulation 5 from amounts otherwise payable by him.

Application for funding from the Board
4. - (1) If an employer is entitled to a payment determined in accordance with regulation 3 in respect of statutory paternity pay or statutory adoption pay which he is required to pay to an employee or employees for an income tax month or income tax quarter, and the payment exceeds the aggregate of -

(a) the total amount of tax which the employer is required to pay to the collector of taxes in respect of the deductions from the emoluments of his employees in accordance with the Income Tax (Employments) Regulations 1993[

the employer may apply to the Board in accordance with paragraph (2) for funds to pay the statutory paternity pay or statutory adoption pay (or so much of it as remains outstanding) to the employee or employees.

(2) Where -

the employer may apply to the Board for funding in a form approved for that purpose by the Board.

(3) An application by an employer under paragraph (2) shall be for an amount up to, but not exceeding, the amount of the payment to which the employer is entitled in accordance with regulation 3 in respect of statutory paternity pay and statutory adoption pay which he is required to pay to an employee or employees for the income tax month or income tax quarter to which the payment of emoluments relates.

Deductions from payments to the Board
5. An employer who is entitled to a payment determined in accordance with regulation 3 may recover such payment by making one or more deductions from the aggregate of the amounts specified in sub-paragraphs (a) to (d) of regulation 4(1) except where and in so far as -

(a) those amounts relate to earnings paid before the beginning of the income tax month or income tax quarter in which the payment of statutory paternity pay or statutory adoption pay was made;

(b) those amounts are paid by him later than six years after the end of the tax year in which the payment of statutory paternity pay or statutory adoption pay was made;

(c) the employer has received payment from the Board under regulation 4; or

(d) the employer has made a request in writing under regulation 4 that the payment to which he is entitled in accordance with regulation 3 be paid to him and he has not received notification by the Board that the request is refused.

Payments to employers by the Board
6. If the total amount which an employer is or would otherwise be entitled to deduct under regulation 5 is less than the payment to which the employer is entitled in accordance with regulation 3 in an income tax month or income tax quarter, and the Board are satisfied that this is so, then provided that the employer has in writing requested them to do so, the Board shall pay the employer such amount as the employer was unable to deduct.

Date when certain contributions are to be treated as paid
7. Where an employer has made a deduction from a contributions payment under regulation 5, the date on which it is to be treated as having been paid for the purposes of section 7(5) of the Employment Act (when amount deducted from contributions payment to be treated as paid and received by the Board) is -

(a) in a case where the deduction did not extinguish the contributions payment, the date on which the remainder of the contributions payment or, as the case may be, the first date on which any part of the remainder of the contributions payment was paid; and

(b) in a case where the deduction extinguished the contributions payment, the 14th day after the end of the income tax month or income tax quarter during which there were paid the earnings in respect of which the contributions payment was payable.

Overpayments
     8. - (1) This regulation applies where funds have been provided to the employer pursuant to regulation 4 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 statutory paternity pay or statutory adoption pay.

    (2) An officer of the Board shall decide to the best of his judgement the amount of funds provided pursuant to regulation 4 and not used to pay statutory paternity pay or statutory adoption pay and shall serve notice in writing of his decision on the employer.

    (3) A decision under this regulation may cover funds provided pursuant to regulation 4 -

(a) for any one income tax month or income tax quarter, or more than one income tax month or income tax quarter, in a tax year, and

(b) in respect of a class or classes of employees specified in the decision notice (without naming the individual employees), or in respect of one or more employees named in the decision notice.

    (4) Subject to the following provisions of this regulation, Part 6 of the Taxes Management Act 1970[14] (collection and recovery) shall apply with any necessary modifications to a decision 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) 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 employee 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 Taxes Management Act 1970[15].

    (6) Nothing in paragraph (5) prevents the bringing of separate proceedings for the recovery of any amount which the employer is liable to repay in respect of each employee.

Records to be maintained by employers
     9. Every employer shall maintain for three years after the end of a tax year in which he made payments of statutory paternity pay or statutory adoption pay to any employee of his a record of -

(a) if the employee's paternity pay period or adoption pay period began in that year -

(b) the weeks in that tax year in which statutory paternity pay or statutory adoption pay was paid to the employee and the amount paid in each week; and

(c) any week in that tax year which was within the employee's paternity pay period or adoption pay period but for which no payment of statutory paternity pay or statutory adoption pay was made to him and the reason no payment was made.

Inspection of employers' records
10. - (1) Every employer, whenever called upon to do so by any authorised officer of the Board, shall produce the documents and records specified in paragraph (2) to that officer for inspection, at such time as that officer may reasonably require, at the prescribed place.

(2) The documents and records specified in this paragraph are -

(a) all wages sheets, deductions working sheets, records kept in accordance with regulation 9 and other documents and records whatsoever relating to the calculation or payment of statutory paternity pay or statutory adoption pay to his employees in respect of the years specified by such officer; or

(b) such of those wages sheets, deductions working sheets, or other documents and records as may be specified by the authorised officer.

(3) The "prescribed place" mentioned in paragraph (1) means -

(a) such place in Great Britain as the employer and the authorised officer may agree upon; or

(b) in default of such agreement, the place in Great Britain at which the documents and records referred to in paragraph (2)(a) are normally kept; or

(c) in default of such agreement and if there is no such place as is referred to in sub-paragraph (b) above, the employer's principal place of business in Great Britain.

(4) The authorised officer may -

(a) take copies of, or make extracts from, any document or record produced to him for inspection in accordance with paragraph (1);

(b) remove any document or record so produced if it appears to him to be necessary to do so, at a reasonable time and for a reasonable period.

(5) Where any document or record is removed in accordance with paragraph (4)(b), the authorised officer shall provide -

(a) a receipt for the document or record so removed; and

(b) a copy of the document or record, free of charge, within seven days, to the person by whom it was produced or caused to be produced where the document or record is reasonably required for the proper conduct of a business.

    (6) Where a lien is claimed on a document produced in accordance with paragraph (1), the removal of the document under paragraph (4)(b) shall not be regarded as breaking the lien.

    (7) Where records are maintained by computer, the person required to make them available for inspection shall provide the authorised officer with all facilities necessary for obtaining information from them.

Provision of information relating to entitlement to statutory paternity pay or statutory adoption pay
     11. - (1) Where an employer who has been given evidence of entitlement to statutory paternity pay or statutory adoption pay pursuant to regulations made under section 171ZC(3)(c) or section 171ZL(8)(c) of the Contributions and Benefits Act by a person who is or has been an employee decides that he has no liability to make payments of statutory paternity pay or statutory adoption pay to the employee, the employer shall furnish the employee with details of the decision and the reasons for it.

    (2) Where an employer who has been given such evidence of entitlement to statutory adoption pay has made one or more payments of statutory adoption pay to the employee but decides, before the end of the adoption pay period, that he has no liability to make further payments to the employee because he has been detained in legal custody or sentenced to a term of imprisonment which was not suspended, the employer shall furnish the employee with -

(a) details of his decision and the reasons for it; and

(b) details of the last week in respect of which a liability to pay statutory adoption pay arose and the total number of weeks within the adoption pay period in which such a liability arose.

(3) The employer shall -

(a) return to the employee any evidence provided by him as referred to in paragraph (1) or (2); and

(b) comply with the requirements imposed by paragraph (1) within 28 days of -