Citation, commencement and effect

1. —(1) These Regulations may be cited as the Income Tax (Pay As You Earn, etc.), (Amendment) Regulations 2006 and shall come into force on 6th April 2006 subject to the following paragraph.

(2) Regulation 6 has effect for the tax year 2007-08 and subsequent tax years.

Amendment of the Income Tax (Pay As You Earn) Regulations 2003

2.The Income Tax (Pay As You Earn) Regulations 2003( 4 ) are amended as follows.

3. In regulation 70 (quarterly tax periods)—

(a) in paragraph (2) for the formula “(P + N + L + S)−(C + SP + CD)” substitute “(P + N + L + S)−(SP + CD)”;

(b) in paragraph (3)—

(i) in the description of “P” omit “disregarding any WTC adjustment”;

(ii) in the description of “S” omit “, disregarding any WTC adjustment”;

(iii) in the descriptions of “N” and “L” omit paragraph “(b)” and the word “and” immediately preceding it; and

(iv) omit the description of “C”; and

(c) in paragraph (4) omit the definitions of “WTC adjustment” and “WTC Regulations”.

4. In regulation 191(3)(a) (large and medium sized employers) omit “, or by regulation 6(6) of the Working Tax Credit (Payment by Employers) Regulations 2002,”.

5. In regulation 203(4)(b) (default surcharge) omit paragraph (i).

Amendment of the Income Tax (Incentive Payments for Voluntary Electronic Communication of PAYE Returns) Regulations 2003

6. —(1)The Income Tax (Incentive Payments for Voluntary Electronic Communication of PAYE Returns) Regulations 2003( 5 ) are amended as follows.

(2) In regulation 1(3)(a) (person treated as paying PAYE income)—

(a) for “PAYE Regulations,” substitute “PAYE Regulations or by”; and

(b) omit “, or by regulation 6(6) of the Working Tax Credit (Payment by Employers) Regulations 2002”.