11 Calculation and making of deduction or repayment

(1) On any payment of emoluments to or on behalf of an employee in respect of whom a revenue payroll notification has been sent or made available to an employer, the employer, except where these Regulations otherwise provide, shall ascertain—

(a) the cumulative emoluments of that employee in respect of the employment at the date of the payment,

(b) the cumulative gross tax for the pay period in respect of the cumulative emoluments, and

(c) the cumulative tax for the pay period.

(2) (a) The cumulative gross tax for the pay period is calculated as follows—

(A x standard rate of tax) + (B x higher rate of tax)

where—

A is the amount of the cumulative emoluments up to and including the cumulative standard rate cut off point for the pay period (which may be nil), and

B is the amount of the cumulative emoluments that exceeds the cumulative standard rate cut off point for the pay period (which may be nil).

(b) The cumulative standard rate cut-off point for the pay period is calculated as follows—

where—

C represents the number of pay periods, including the current pay period, since the start of the year, and

D represents the total number of pay periods for the year.

(c) The cumulative tax for the pay period is calculated as follows—

E — F

where-

E is the cumulative gross tax for the pay period, and

F is the cumulative tax credits for the pay period.

(d) The cumulative tax credits for the pay period is calculated as follows—

where —

G represents the number of pay periods, including the current pay period, since the start of the year, and

H represents the total number of pay periods for the year.

(3) In this section, a pay period is the normal payment period in respect of which emoluments are paid to an employee and the total number of pay periods for the year is—

(a) 52 where the employee is paid weekly,

(b) 26 where the employee is paid fortnightly, and

(c) 12 where the employee is paid monthly.

(4) If the cumulative tax ascertained in accordance with paragraph (1) of this Regulation exceeds the cumulative tax corresponding to the employee's cumulative emoluments at the date of the last payment of emoluments (hereafter in this paragraph referred to as the “previous cumulative tax”), if any, the employer shall deduct the excess from the emoluments on making the payment in question and if the cumulative tax as so ascertained is less than the previous cumulative tax, if any, the employer shall repay the difference to the employee on making the payment in question. If the cumulative tax is equal to the previous cumulative tax, no tax shall be either deducted or repaid on the making of the payment in question.