4 Determination of appropriate tax credits and standard rate cut-off point

(1) The amount of the tax credits and standard rate cut-off point appropriate to an employee for a year shall be determined by an inspector who for that purpose may have regard to any of the following matters, namely—

(a) the reliefs from income tax to which the employee is entitled for the year so far as the employee's title to those reliefs has been established at the time of the determination;

(b) the emoluments of the employee for the year;

(c) where the employee has income (other than emoluments to which these Regulations apply), adjustment of the tax credits and standard rate cut-off point as necessary to collect the tax due on such income;

(d) where the employee is entitled to reliefs from income tax at the higher rate of tax, adjustment of the tax credits and standard rate cut-off point as necessary to give effect to the relief;

(e) any tax overpaid for any previous year which has not been repaid to the employee;

(f) any tax remaining unpaid for any previous year which has not otherwise been recovered from the employee;

(g) such other adjustments as may be necessary to provide that, as far as possible, the tax in respect of the employee's emoluments for the year to which the tax credits and standard rate cut-off point relate is deducted from the emoluments paid during the year.

(2) When an employee requests an inspector to disregard any particular relief or income referred to in subparagraph (a) or (c) of paragraph (1), the inspector shall disregard it for the purposes of that paragraph.

(3) An inspector may disregard part or all of any expenses in respect of which an employee may be entitled to relief from income tax if it is impracticable to take account of such expenses in determining the appropriate amount of tax credits and standard rate cut-off point and, where he or she does so, shall direct the employer to disregard an equivalent amount of the employee's emoluments in calculating the tax to be deducted or repaid when any payment of emoluments is made to the employee.

(4) Before a determination has been made under paragraph (1), an employee may request that a portion of the tax credits and standard rate cut-off point be allocated to different employments in such manner as the employee directs and where such request is made, any determination shall take that request into account without prejudice to the other matters to be taken into account under this Regulation.