1. These Regulations may be cited as the Education (Student Loans) (Repayment) (Amendment) Regulations 2004 and shall come into force on 17th May 2004.

2. The Education (Student Loans) (Repayment) Regulations 2000( 3 ) shall be amended as follows.

3. In regulation 27—

(a) insert the following definition as the first definition—

“ “the 2003 Act ” means the Income Tax (Earnings and Pensions) Act 2003 ( 4 ) ; ” ;

(b) omit the definition of “the Income Tax Regulations”; and

(c) at the end insert—

“ “the PAYE Regulations ” means the Income Tax (Pay As You Earn) Regulations 2003 ( 5 ) . ” .

4. For regulation 28 substitute the following—

“ 28. Subject to the provisions contained in this Part, repayments by a borrower who is an employee shall be made, accounted for and recovered in like manner as income tax deducted from the emoluments of an office or employment by virtue of regulations under section 684 of the 2003 Act. ”

5. For paragraph (1) of regulation 32 substitute the following—

“ (1) Where—

(a) an employer has made an election under regulation 98(1) of the PAYE Regulations (Multiple PAYE schemes), and

(b) no improper purpose notice has been issued under regulation 99(1) of those Regulations (Multiple PAYE schemes: election made for improper purpose ineffective), or if one has been issued it has been withdrawn under regulation 99(5),

he shall be treated as having made an election for the purposes of these Regulations. ” .

6. In regulation 33(3) substitute “section 691 of the 2003 Act” for “section 203E of the 1988 Act”.

7. In regulation 35( 6 )—

(a) in paragraph (1) substitute “regulation 40 of the PAYE Regulations, which contains a statement under regulation 50 of these Regulations” for “regulation 25 of the Income Tax Regulations (form P45), which contains a statement under regulation 50 of those Regulations”; and

(b) in paragraph (2)(b) substitute “regulation 40 of the PAYE Regulations” for “regulation 25 of the Income Tax Regulations”.

8. In regulation 38(1) substitute “regulation 67 of the PAYE Regulations” for “regulation 39 of the Income Tax Regulations”.

9. In regulation 39—

(a) in paragraph (1) substitute “paragraphs (1A), (2), (2A) and (3)” for “paragraphs (2) and (3)”;

(b) after paragraph (1) insert the following paragraph—

“ (1A) Where the employer makes a payment in accordance with paragraph (1) by an approved method of electronic communications, he shall make the payment within 17 days of the end of the income tax month. ” ;

(c) in paragraph (2) substitute “paragraphs (2A) and (3)” for “paragraph (3)”; and

(d) after paragraph (2) insert the following paragraph—

“ (2A) Where an employer makes a payment in accordance with paragraph (2) by an approved method of electronic communications, he shall make the payment within 17 days of the end of the income tax quarter. ” .

10. In regulation 39A(1)( 7 ) substitute “17 days” for “14 days”.

11. In regulation 39B(1)( 8 ) substitute “17 days” for “14 days”.

12. In regulation 40( 9 )—

(a) in paragraph (1) substitute “section 684 of the 2003 Act” for “section 203 of the 1988 Act”; and

(b) in paragraph (1A) substitute “regulation 84 of the PAYE Regulations” for “paragraphs (1) to (5) of regulation 54 of the Income Tax (Employments) Regulations 1993(being regulations made under section 203 of the 1988 Act)”.

13. In regulation 41—

(a) insert at the start of paragraph (1) “Subject to paragraph (1A)”;

(b) after paragraph (1) insert the following paragraph—

“ (1A) Where payment is made by an approved method of electronic communications, the interest payable under paragraph (1) shall be calculated as if the date in paragraph (1) was the 17th day after the year of assessment. ” .

14. In regulation 42( 10 )—

(a) in paragraph (4) substitute “17 days” for “14 days”;

(b) in paragraph (5)(b) substitute “22nd April” for “19th April”; and

(c) in paragraph (7) substitute “section 684 of the 2003 Act or section” for “section 203(2) (PAYE) or”.

15. In regulation 43(5)( 11 ) substitute “regulation 26 of the PAYE Regulations” for “regulation 21 of the Income Tax Regulations”.

16. In regulation 50 substitute “regulation 36(2)(a) of the PAYE Regulations” for “regulation 23(1) of the Income Tax Regulations”.

17. In regulation 51—

(a) insert at the start of paragraph (1) “Subject to paragraph (3),”; and

(b) after paragraph (2) add the following paragraph—

“ (3) This regulation shall not apply where an employer has paid an electronic payment default surcharge to the Board in respect of an incorrect payment. ” .

18. There shall be inserted after regulation 52 the following regulations—

“ 52A. In the application of regulation 202 of the PAYE Regulations (default notice and appeal) for the purposes of these Regulations the only ground for appeal shall be that the employer is not in default.

52B. In the application of regulation 203 of the PAYE Regulations (default surcharge) for the purposes of these Regulations—

• “A” is the total amount of repayments payable for the year of assessment in which were made the relevant deductions to which the specified payment relates; and

• “B” is the total of the amounts deducted from A under regulations 39(3) and 39(4) of these Regulations.

52C. In the application of regulation 210 of the PAYE Regulations (penalties and appeals) for the purposes of these Regulations an employer shall not be liable to a penalty as a result of this regulation if the employer has been liable to a penalty for failing to comply with regulation 205 of the PAYE Regulations or regulation 90N of the Social Security (Contributions) Regulations 2001 ( 12 ) in relation to the same year of assessment. ” .