Income Tax (Earnings and Pensions) Act 2003 section 684

PAYE regulations

Section 684 provides the legal framework requiring HMRC to make PAYE regulations governing how income tax is assessed, charged, collected and recovered on all PAYE income, and sets out the wide range of provisions those regulations may contain.

• HMRC must make regulations for the deduction and repayment of income tax from PAYE income, including from benefits in kind, non-PAYE income and relevant debts, with deductions from relevant debts capped at £17,000 per tax year without the payee's consent
• The regulations may authorise recovery of under-deducted tax from the employee rather than the employer, require security for amounts owed, and impose requirements on payment service providers to supply information to HMRC
• Interest on late payments to HMRC must be paid gross (without deduction of income tax) and cannot be used in computing income, profits or losses for tax purposes
• PAYE regulations override other Income Tax Acts but cannot remove existing tribunal appeal rights, and HMRC officers may agree alternative collection arrangements or waive compliance where it is unnecessary or inappropriate