Section 687A — Income Tax (Earnings and Pensions) Act 2003: Payment of employment income under Part 7A

Payment of employment income under Part 7A 687A 1 This section applies if—

a the value of a relevant step counts as employment income under Chapter 2 of Part 7A, and b the relevant step is the payment of a sum of money, and references to A and B are to be read accordingly.

2 For the purposes of PAYE regulations B is treated as making a payment of PAYE income of A of an amount which, on the basis of the best estimate which can reasonably be made, is the amount of the employment income.

3 The payment is treated as made on the latest of the following days—

a the day on which the relevant step is taken, b the day on which A's employment with B starts, and c the day which is 30 days after the day on which FA 2011 is passed.

4 Subsection (2) does not apply if the person who takes the relevant step (whether or not a person to whom PAYE regulations apply) deducts income tax from the payment, and accounts for it, in accordance with PAYE regulations.