PAYE Regulations - Amendments relating to P46(Expat), P46(Car) and PAYE records

Written by Ian Congreave - Filed under: PAYE Procedures on March 30th, 2009

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The following changes have been made to the Income Tax (Pay As You Earn) Regulations 2003, most of which have already been announced.

Expatriates of other countries who are seconded to work in the UK are required, from 6 April 2009, to complete the new P46(Expat) form so that HMRC can identify them as early as possible and ensure that their tax records and codes are set up correctly.
From 6 April 2009, employers are not required to complete and submit form P46(Car) if the reason that a car becomes available or unavailable is that one car is replaced with another.
From 1 April 2009, HMRC has new powers
- to obtain information and documents from taxpayers and/or their agents, and
- to enter business premises and inspect business documents, i.e. documents that form part of any person’s “statutory records”.
The existing requirement in the PAYE Regulations for employers to “produce” their PAYE records is amended so as to require employers instead to “keep and preserve” them, thereby ensuring that these “statutory records” are available for inspection if required under HMRC’s new powers. There are no changes to the PAYE records that must be kept and preserved but the new regulations make it clear that the records may be preserved “in any form or by any means”.

Equivalent changes are also made to Schedule 4 of the Social Security (Contributions) Regulations 2001 in respect of “contribution and election records”.
From 6 April 2009, the simplified PAYE scheme operated by the Ministry of Defence for payments to members of the reserve forces is stopped. Instead of taxing all payments at the basic rate of tax, payments become subject to the ordinary PAYE rules.

Further information:
The Income Tax (Pay As You Earn) (Amendment) Regulations 2009
Explanatory Memorandum to the Income Tax (Pay As You Earn) (Amendment) Regulations 2009
The Social Security (Contributions) (Amendment No. 3) Regulations 2009
Explanatory Memorandum to the Social Security (Contributions) (Amendment No. 3) Regulations 2009

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Written by Ian Congreave -

Filed under: PAYE Procedures on March 30th, 2009