531AY Recovery of unpaid universal social charge.

(1) Where any universal social charge in relation to an employee, remains unpaid for a tax year and is not otherwise recovered (in this section referred to as the “underpayment”), the employer shall be treated, on receipt of a notice from an inspector to the effect that this section applies, as making a payment of relevant emoluments to the employee in the subsequent tax year of an amount equal to the amount determined by subsection (2) (in this section referred to as “notional emoluments”).

(2) The amount of the notional emoluments shall be an amount that would produce an amount of universal social charge equal to the amount of the under-payment and which amount shall be set out in the notice issued under subsection (1).

(3) Where an employer is treated as making a payment of notional emoluments in accordance with subsections (1) and (2), the amount of the notional emoluments for the subsequent tax year shall be apportioned over that tax year to each week, in a case where relevant emoluments are paid weekly, or such corresponding period where relevant emoluments are paid for a period either greater or less than a week, and the employer shall deduct universal social charge by reference to the part of the notional emoluments for the tax year apportioned to each such week or a corresponding amount where the period is greater or less than a week.

(4) Where any universal social charge remains unpaid after the end of a tax year, the amount of tax credits (within the meaning of the ^[2]>PAYE Regulations^<[2][2]>Income Tax Regulations^<[2]) and the standard rate cut-off point (within that meaning) appropriate to an employee for any subsequent tax year may be adjusted as necessary by an inspector to collect unpaid universal social charge which is not otherwise recovered.

(5) Where, but for this subsection, no assessment to universal social charge would be made on an individual for a tax year, then an inspector may make an assessment to universal social charge on the individual to the best of the inspector’s judgement of the amounts chargeable to universal social charge, and the provisions of the Tax Acts, including in particular those provisions relating to the assessment, collection and recovery of tax and the payment of interest on unpaid tax, shall apply as respects any assessment to universal social charge made on the individual by virtue of this subsection, other than any such provisions in so far as they relate to the granting of any allowance, deduction or relief.