Section Sch50-“ 24H — Income Tax Act 2007: When entitlement to use tax code ends

“ 24H When entitlement to use tax code ends “ (1) This section applies when an employee is no longer entitled to use a certain tax code. “ (2) The tax code does not apply to a PAYE income payment made to the employee after the date on which the entitlement ends, unless the payment is salary or wages for a current pay period. “ (3) The employee must notify their employer that their entitlement has ended within the period of 4 days after the date on which they became aware that they are no longer entitled to use the tax code. If the employee provides the notification to the Commissioner, they must notify the Commissioner similarly. “ (4) For the purposes of subsection (3), the employee must give the reason why the tax code no longer applies and the date on which entitlement ended. “ (5) If the employee provides their employer with a tax code notification or tax code certificate within the period of 7 days after the date on which they become aware that they are no longer entitled to use a tax code, the tax code in the notification or certificate applies from the date on which the entitlement to use the earlier code ends. “ (6) When an employee’s entitlement to use a certain tax code ends, their employer is not liable for withholding a reduced amount of tax for a payment if they have not received notice that the entitlement has ended. “ (7) An employee is not entitled to use the tax code ‘ ML ’ in a tax year if the employee knows or expects, or should have known or expected, that they will not be entitled to a tax credit under section LC 4 of the Income Tax Act 2007. “ Compare: 2004 No 35 ss NC 8(7), (8), NC 9