14 Deduction of USC in respect of notional payments

(1) An employer shall deduct USC in respect of a notional payment from any payment of relevant emoluments actually made by the employer to or on behalf of an employee on—

(a) the day the notional payment is made, or

(b) if no actual payment of relevant emoluments is made to the employee on that day, the next pay day following the day on which the notional payment is made.

(2) Where, by reason of an insufficiency of payments of relevant emoluments actually made to or on behalf of the employee, the employer is unable to deduct

the amount (or full amount) of USC required to be deducted by virtue of paragraph (1), the employer shall be liable to remit that amount of USC to the Collector-General as if the amount to be remitted had been deducted in accordance with this Regulation.

(3) This paragraph applies to relevant emoluments being—

(a) the benefit of the private use of a car or a van which is treated for the purposes of income tax as a benefit in kind by virtue of section 121 or 121A, respectively, of the Act,

(b) the benefit arising from a preferential loan which is treated for the purposes of income tax as a perquisite for the purposes of section 112 of the Act by virtue of section 122 of the Act, or

(c) the benefit arising from an asset which belongs to the employer and the valuation of which is for the purposes of income tax determined in accordance with section 119(4) of the Act.

(4) Where a notional payment for a USC year is in respect of relevant emoluments to which paragraph (3) applies, the amount of that notional payment shall be apportioned over the period for which the benefit is available in that USC year and the employer shall deduct USC by reference to the part of that notional payment apportioned to each week in the period for which the benefit is avail able in that USC year.