PART 3 Tax Credits and Standard Rate Cut-off Point

Source

Income tax regulations 2001 part 3.

10 Determination of appropriate tax credits and standard rate cut-off point by inspector

(1) The amount of the tax credits and standard rate cut-off point appropriate to an employee for any year 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 amount of the tax credits and standard rate cut-off point is determined, so far as the employee’s title to those reliefs has been established at the time of the determination, but, where the amount of the tax credits and standard rate cut-off point is determined before the beginning of the year for which it is to have effect, the inspector shall disregard any such relief from income tax if he or she is not satisfied that the employee will be entitled to it for that year;

(b) the emoluments of the employee;

(c) where the employee has income (other than emoluments in relation to which the amount of the tax credits and standard rate cut-off point is being determined) the tax credits and standard rate cut-off point appropriate to that employee may be adjusted as necessary to collect the tax due on such income;

(d) where the employee is entitled to reliefs from income tax at the higher rate of tax, the tax credits and standard rate cut-off point appropriate to that employee may be adjusted as necessary to give effect to the relief;

(e) any tax overpaid for any previous year which has not been repaid;

(f) any tax remaining unpaid for any previous year which is not otherwise recovered;

(g) such other adjustments as may be necessary to secure that, so far as possible, the tax in respect of the employee’s emoluments for the year to which the tax credits and standard rate cut-off point relate shall be deducted from the emoluments paid during the year.

(2) When an employee requests the inspector to disregard any particular relief or income referred to in subparagraph (a) or (c) of the foregoing paragraph, the inspector shall disregard it for the purposes of that paragraph.

(3) The inspector may disregard part or all of any expenses in respect of which the employee may be entitled to relief from income tax if it is impracticable to take account of all those expenses in determining the appropriate amount of tax credits and standard rate cut-off point, and, where he or she does so, shall direct the employer to disregard an equivalent amount of the employee’s emoluments in calculating the tax to be deducted or repaid when any payment of emoluments is made to the employee.

11 Notice of determination of tax credits and standard rate cut-off point

(1) After the inspector has determined the amount of the tax credits and standard rate cut-off point for any year in accordance with Regulation 10, he or she shall send, make available or cause to make available notice of his or her determination to the employee.

Amendments

Income Tax (Employments) Regulations 2009 (S.I. 573/2009) reg 3(a).

(2) The inspector shall send to the employer of the employee either a certificate (in these Regulations referred to as a “certificate of tax credits and standard rate cut-off point”) or a tax deduction card incorporating a certificate of tax credits and standard rate cut-off point, certifying—

(a) the amount of the tax credits and standard rate cut-off point of the employee as determined by the inspector, and

(b) where appropriate, details of total emoluments and total tax deducted in respect of the employee’s previous employment or employments for the year; and such details shall be taken into account by the employer for the purposes of calculating the cumulative tax in respect of the cumulative emoluments of the employee in accordance with Regulation 17.

Amendments

Income Tax (Employments) Regulations 2008 (S.I. 592/2008) reg 3(c).

(3) If it appears to the inspector that the employee has more than one employment, he or she shall send, in respect of each employment, to the employer a separate certificate of tax credits and standard rate cut-off point or a separate tax deduction card, as appropriate, showing the tax credits and standard rate cut-off point applicable to the particular employment, but the aggregate amount of the tax credits and standard rate cut-off point on the separate certificates of tax credits and standard rate cut-off point or separate tax deduction cards, as the case may be, shall not exceed the total amount of the tax credits and standard rate cut-off point of the employee for the year.

12 Objection and appeal against amount of tax credits and standard rate cut-off point

(1) If the employee is aggrieved by the inspector’s determination, he or she may give notice in writing of his or her objection to the inspector, stating the grounds of the objection, within 21 days of the date on which the determination was notified to him or her.

(2) On receipt of the notice of objection, the inspector may amend his or her determination by agreement with the employee, and in default of such agreement the employee, on giving notice in writing to the inspector, may appeal to the Appeal Commissioners.

(3) The Appeal Commissioners on appeal shall determine either or both the amount of tax credits and standard rate cut-off point having regard to the same matters as the inspector may have regard to when the amount of the tax credits and standard rate cut-off point is determined by the inspector, and, subject to the provisions of Regulation 13, their determination shall be final.

(4) Where either or both the amount of the tax credits and standard rate cut-off point is amended, either by the inspector or by the Appeal Commissioners, the inspector shall send, make available or cause to make available]1 to the employee a notice of the new determination.

Amendments

Income Tax (Employments) Regulations 2009 (S.I. 573/2009) reg 3(b).

(5) A certificate of tax credits and standard rate cut-off point or a tax deduction card appropriate to the amount of the tax credits and standard rate cut-off point of an employee as determined by the inspector may be issued to the employer, notwithstanding that the inspector’s determination is the subject of an objection or appeal.

(6) An appeal under this Regulation may be heard and determined by one Appeal Commissioner.

13 Amendments of amount of tax credits and standard rate cut-off point

(1) If either or both the amount of tax credits and standard rate cut-off point is found not to be appropriate because the actual circumstances are different from the circumstances by reference to which it was determined by the inspector or the Appeal Commissioners, the inspector may, and if so required by the employee shall, by reference to the actual circumstances, amend, by way of increase or reduction, the previous determination.

(2) After the inspector has amended the determination of the amount of tax credits and standard rate cut-off point, he or she shall give, make available or cause to make available notice of the new determination to the employee not later than the date on which a new certificate of tax credits and standard rate cut-off point or new tax deduction card, as the case may be, is sent to the employer under Regulation 14.

Amendments

Income Tax (Employments) Regulations 2009 (S.I. 573/2009) reg 3(c).

(3) The provisions of Regulation 12 regarding objections and appeals shall apply in relation to the amended determination as they applied in relation to the previous determination.

14 Notice to employer of amended amount of tax credits and standard rate cut-off point

Where a determination of the inspector or of the Appeal Commissioners is amended after a certificate of tax credits and standard rate cut-off point or tax deduction card has been issued, the inspector shall send to the employer, and the employer shall thereafter use, such new certificate of tax credits and standard rate cut-off point or tax deduction card, as may be appropriate.

15 Special provisions for notices and certificates

(1) A determination of the amount of the tax credits and standard rate cut-off point appropriate to an employee for any year under paragraph (1) of Regulation 10 shall, if the inspector deems it proper, have effect for each subsequent year as if a separate determination had been duly made for each such year.

(2) Where the inspector has made a determination of the amount of the tax credits and standard rate cut-off point and the determination is to have effect for each subsequent year under the provisions of paragraph (1) of this Regulation, the notice of determination and the certificate or certificates of tax credits and standard rate cut-off point shall state that the amount of tax credits and standard rate cut-off point indicated thereon shall have effect for that year and for each subsequent year.

(3) The provisions of paragraph (2) of this Regulation shall not preclude an employee from requiring the inspector to determine the amount of the tax credits and standard rate cut-off point for any of the years after the first year included in a notice issued in accordance with the provisions of that paragraph and to send, make available or cause to make available to the employee concerned a notice of such determination, and the provisions of Regulation 12 shall apply to any such determination.

Amendments

Income Tax (Employments) Regulations 2009 (S.I. 573/2009) reg 3(d).

(4) The provisions of Regulation 13 shall apply in relation to each year after the first year included in a notice, certificate or certificates issued, made available or caused to have been made available under paragraph (2) of this Regulation as they apply in relation to the first year.

Amendments

Income Tax (Employments) Regulations 2009 (S.I. 573/2009) reg 3(d).

(5) The provisions of paragraphs (3) and (4) of this Regulation shall, with the necessary modifications, apply to any new determination of the amount of the tax credits and standard rate cut-off point for any year under Regulation 12 or Regulation 13 as if it were a determination under paragraph (1) of Regulation 10.