The Income Tax (Pay As You Earn) Regulations 2003

CHAPTER 4U.K.MANDATORY USE OF ELECTRONIC COMMUNICATIONS [F1: SPECIFIED INFORMATION]

[F2Mandatory use of electronic communicationsU.K.

205.—(1) An employer (as to which see regulation 206) must deliver specified information by an approved method of electronic communications to HMRC.

(2) The Commissioners for Her Majesty’s Revenue and Customs may make a general or specific direction requiring an employer to deliver specified information by a particular approved method of electronic communications.

(3) Specified information may be delivered by a person on behalf of an employer.

(4) This regulation does not apply to specified information which relates to payments of tax due under a retrospective tax provision for a closed year.

(5) References in this Chapter to information and to the delivery of information must be construed in accordance with section 135(8) of the Finance Act 2002 (mandatory e-filing).]

Mandatory use of electronic communication for delivering specified informationU.K.

205A.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

General provisions relating to this ChapterU.K.

205B.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F3Employers]U.K.

206.—(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F4(2) [F5For the purposes of this Chapter, the following shall not be regarded as employers—]

(a)an individual who is a practising member of a religious society or order whose beliefs are incompatible with the use of electronic communications;

(b)a partnership, if all the partners fall within sub-paragraph (a);

(c)a company, if all the directors and company secretary fall within sub-paragraph (a);

(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(e)a care and support employer] [F6and,

(f)an employer to whom a direction has been given under regulation 67D (exceptions to regulation 67B) or regulation 142 (direct collection: employee to report payments)]

(3) In paragraph (2)(c), “company” means a body corporate or unincorporated association but does not include a partnership.

[F7(4) In paragraph (2)(e), “a care and support employer” means an individual (“the employer”) who employs a person to provide domestic or personal services at or from the employer’s home where—

(a)the services are provided to the employer or a member of the employer’s family;

(b)the recipient of the services has a physical or mental disability, or is elderly or infirm;

(c)the employer has not received an incentive payment in respect of any of the last 3 tax years; and

(d)it is the employer who delivers the [F8specified information] (and not some other person on the employer’s behalf).

(5) In this regulation an “incentive payment” means an incentive payment received under the Income Tax (Incentive Payments for Voluntary Electronic Communication of PAYE Returns) Regulations 2003.]

Relevant annual returnU.K.

206A.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Specified informationU.K.

207.—[F9(1) In this Chapter, “specified information” means—

(a)Part 1 of Form P45;

(b)Part 3 of Form P45;

(c)Form P46;

(d)Form P46(Pen);

[F10(e)the return and accompanying information required by regulation 73 (annual return of relevant payments liable to deduction of tax (Forms P35 and P14)).]

[F11(f)the return and accompanying information required by regulation 85 (employers: annual return of other earnings (Form P11D)).]]

(e). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

E-filing notice and appealsU.K.

208.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Standards of accuracy and completenessU.K.

[F12209.—(1) Any ...specified information delivered by a method of electronic communications must meet the standards of accuracy and completeness set by specific or general directions given by the Commissioners for Her Majesty’s Revenue and Customs.

(2) Any ... specified information which fails to meet those standards must be treated as not having been delivered.]

[F13[F14Penalty for failing to deliver... specified information]U.K.

210.—[F15(1) [F16Subject to paragraph (5), an] employer who fails to deliver specified information or any part of it in accordance with regulation 205 is liable to a penalty.

(2) Where the specified information is the return and accompanying information required by regulation 73 (annual return of relevant payments liable to deduction of tax (Forms P35 and P14) the penalty will be determined in accordance with regulation 210AA.]

(3) The penalty must be determined in accordance with [F17regulations 210B and 210BA] in all other cases.

(4) Regulation 210C applies irrespective of how the penalty falls to be determined.

[F18(5) Where the specified information is the return and accompanying information required by regulation 85 (employers: annual return of other earnings (Form P11D)) this regulation does not apply.]

Penalty: relevant annual return for the tax year ending 5th April 2010U.K.

210A.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F19[F20Penalty: forms P35 and P14] U.K.

210AA.  Table 9ZA sets out the penalty for the tax year ending 5th April 2011 and subsequent years, depending on the number of employees for whom particulars should have been included with the [F21specified information].

[F23Penalty: form P45 (Part 1 or Part 3), P46 or P46 (Pen); tax years ending 5th April 2012 and 5th April 2013] U.K.

210B.—[F24(1) This regulation applies for the tax years ending 5th April 2012 and 5th April 2013 (the “relevant period”).]

(2) Table 9A sets out the penalties for the relevant period depending on the number of items of specified information the employer has failed to deliver in each tax quarter falling within that period.

(3) Each of the types of specified information mentioned in sub-paragraphs (a) to (d) of regulation 207(1) counts as a separate item of specified information for this purpose.

(4) An item of specified information counts even if it relates to the same employee as one or more other items.

[F27Penalty: form P45 (Part 1 or Part 3), P46 or P46(Pen); tax years ending 5th April 2014 and subsequent yearsU.K.

210BA.—(1) Table 9AA sets out penalties depending on the number of items of specified information the employer has failed to deliver in each tax quarter falling within the tax year ending 5th April 2014 and subsequent years.

(2) Each of the types of specified information mentioned in sub-paragraphs (a) to (d) of regulation 207(1) counts as a separate item of specified information for this purpose.

(3) An item of specified information counts even if it relates to the same employee as one or more other items.]

Appeals and interestU.K.

210C.—(1) An employer is not liable to a penalty if the employer had a reasonable excuse for failing to comply with regulation 205 ... which had not ceased at the time the ... specified information was delivered.

(2) A notice of appeal against a determination under section 100 of TMA of a penalty can only be on the grounds that—

(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F28(aa)the employer is not regarded as an employer the purposes of this Chapter]

(b)the employer did comply with regulation 205 ...,

(c)the amount of the penalty is incorrect, or

(d)paragraph (1) applies.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) Section 103A of TMA (interest on penalties) applies to this penalty.]