Commentary on Sections Glossary Part 2: Employment income: charge to tax Section 36: Election in respect of delayed remittances
146.This section sets out in detail how the election allowed by section 35(3)(b) operates. It is new. See Change 7 in Annex 1.
147.Subsection (1) explains that the section applies when a claim is made and the claimant has blocked earnings.
148.Subsection (2) defines “blocked earnings”.
149.Subsection (3) allows the claimant to decide to which year the delayed remittances are to be allocated.
150.Subsection (4) places a restriction on the tax year to which the income can be allocated.
151.Subsection (5) requires the amount to be allocated to a particular year to be specified in the election if more than one year is specified.
152.Subsection (6) requires that the amounts allocated to an earlier year must not exceed the amount of earnings which could not be remitted in that year.
153.Subsection (7) makes the election part of the claim and irrevocable.
154.Subsection (8) ensures that personal representatives are able to make the election.