Search Legislation

National Insurance Contributions Act 2015

 Help about what version

What Version

 Help about advanced features

Advanced Features

Changes over time for: SCHEDULE 2

 Help about opening options

Changes to legislation:

There are currently no known outstanding effects for the National Insurance Contributions Act 2015, SCHEDULE 2. Help about Changes to Legislation

Close

Changes to Legislation

Revised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.

Section 4

SCHEDULE 2U.K.Application of Parts 4 and 5 of FA 2014 to national insurance contributions

This schedule has no associated Explanatory Notes

PART 1U.K.Follower notices & accelerated payments: Class 1, 1A, 1B and certain Class 2

IntroductionU.K.

1U.K.Part 4 of FA 2014 (follower notices and accelerated payments) has effect with the following modifications.

GeneralU.K.

2U.K.References to tax or a relevant tax, other than references to particular taxes, include relevant contributions.

3U.K.References to a charge to tax include a liability to pay relevant contributions and references to a person being chargeable to tax, or to tax being charged, are to be construed accordingly.

4U.K.References to an assessment to tax include a NICs decision relating to a person's liability for relevant contributions.

5U.K.References to a tax enquiry include a relevant contributions dispute.

6U.K.A “relevant contributions dispute” arises if—

(a)without making a NICs decision, HMRC notifies a person in writing that HMRC considers the person to be liable to pay an amount of relevant contributions, and

(b)the person notifies HMRC in writing (a “notification of dispute”) that the person disputes liability for some or all of the contributions (“the disputed contributions”).

7U.K.The relevant contributions dispute is in progress, in relation to the notification of dispute, during the period which—

(a)begins with the day on which the person gives the notification of dispute, and

(b)ends (at which point it is to be treated as completed) with the day on which—

(i)the disputed contributions are paid in full,

(ii)HMRC and the person enter into an agreement in writing as to the person's liability for the disputed contributions and any amount of those contributions that the person is to pay under that agreement is paid,

(iii)an officer of Revenue and Customs makes a NICs decision in relation to the person's liability for the disputed contributions, or

(iv)without making a NICs decision, HMRC notifies the person in writing that HMRC no longer considers the person to be liable to pay the disputed contributions.

8U.K.References to a return into which a tax enquiry is in progress include a notification of dispute in relation to which a relevant contributions dispute is in progress.

9U.K.References to a tax appeal include a NICs appeal.

10U.K.A “NICs appeal” means—

(a)an appeal, under section 11 of SSC(TF)A 1999 or Article 10 of the Social Security Contributions (Transfer of Functions, etc) (Northern Ireland) Order 1999 (S.I. 1999/671), against a NICs decision relating to relevant contributions, or

(b)an appeal against any determination of—

(i)an appeal within paragraph (a), or

(ii)an appeal within this paragraph.

11(1)A reference to a provision of Part 7 of FA 2004 (disclosure of tax avoidance schemes) (a “DOTAS provision”) includes a reference to—U.K.

(a)that DOTAS provision as applied by regulations under section 132A of SSAA 1992 (disclosure of contributions avoidance arrangements);

(b)any provision of regulations under that section that corresponds to that DOTAS provision,

whenever the regulations are made.

(2)Regulations under section 132A of SSAA 1992 may disapply, or modify the effect of, sub-paragraph (1).

List of relevant taxesU.K.

12U.K.The definition of “relevant tax” in section 200 (“relevant tax”) has effect as if relevant contributions were listed in it.

Circumstances in which follower notice may be givenU.K.

13U.K.For the purposes of section 204 (circumstances in which a follower notice may be given), Condition B is also met if, in a relevant contributions dispute, a person disputes liability for relevant contributions on the basis mentioned in subsection (3) of that section (regardless of whether the notification of dispute was given on that basis).

Follower notices: corrective action and penaltiesU.K.

14(1)This paragraph applies in a case in which, by virtue of this Part of this Schedule, a follower notice is given by virtue of section 204(2)(a).U.K.

(2)For the purposes of section 208 (penalty if corrective action not taken in response to follower notice), the necessary corrective action is taken in respect of the denied advantage if (and only if)—

(a)in a case in which the denied advantaged can be counteracted by making a payment to HMRC, P makes that payment and notifies HMRC that P has done so, or

(b)in any case, P takes all necessary action to enter into an agreement in writing with HMRC for the purpose of relinquishing the denied advantage.

(3)Accordingly—

(a)subsections (4) to (7) and (9) to (11) of section 208 do not apply, and

(b)the reference in section 209(3)(a) to P amending a return or claim is to be treated as a reference to P making a payment mentioned in sub-paragraph (2)(a).

(4)Terms used in this paragraph that are defined for the purposes of section 208 have the same meaning as in that section.

Follower notices: aggregate penaltiesU.K.

15(1)In section 212 (aggregate penalties), references to a “relevant penalty provision” include—U.K.

(a)any provision mentioned in subsection (4) of that section, as applied in relation to relevant contributions by regulations (whenever made);

(b)section 98A of TMA 1970, as applied in relation to relevant contributions by regulations (whenever made);

(c)any provision specified in regulations made by the Treasury under which a penalty can be imposed in respect of relevant contributions.

(2)The Treasury may by regulations disapply, or modify the effect of, sub-paragraph (1)(a) or (b).

(3)The Treasury may by regulations modify section 212 as it has effect in relation to a relevant penalty provision by virtue of sub-paragraph (1)(b) or (c).

(4)Section 175(3) to (5) of SSCBA 1992 (various supplementary powers) applies to a power to make regulations conferred by this paragraph.

(5)Regulations under this paragraph must be made by statutory instrument.

(6)A statutory instrument containing regulations under this paragraph is subject to annulment in pursuance of a resolution of either House of Parliament.

Circumstances in which accelerated payment notice may be givenU.K.

16U.K.For the purposes of section 219 (circumstances in which an accelerated payment notice may be given), Condition B is also met if, in a relevant contributions dispute, a person disputes liability for relevant contributions on the basis mentioned in subsection (3) of that section (regardless of whether the notification of dispute was given on that basis).

Nature and recovery of accelerated paymentU.K.

17(1)This paragraph applies in relation to an accelerated payment (see section 223(2)) so far as (but only so far as) it represents understated tax (see section 220) that consists of an additional amount that would be due and payable in respect of relevant contributions (“the understated contributions”).U.K.

(2)The accelerated payment is a payment of the understated contributions (and not a payment on account of them).

(3)Accordingly, subsections (3) and (7) to (9) of section 223 do not apply in relation to the accelerated payment.

(4)The accelerated payment must be paid before the end of the payment period regardless of whether P brings a NICs appeal that relates to the understated contributions.

(5)Section 117A of SSAA 1992 and section 111A of SSA(NI)A 1992 (issues arising in proceedings: contributions etc) do not apply to proceedings for the recovery of any amount of the accelerated payment that is unpaid at the end of the payment period.

(6)A certificate of an officer of Revenue and Customs under section 25A of CRCA 2005 (certificates of debt) that the accelerated payment has not been paid is to be treated as conclusive evidence that the amount is unpaid.

(7)If some or all of the understated contributions are subsequently repaid to P—

(a)the contributions repaid are to be treated, for the purposes of determining a person's entitlement to benefit, or the amount of a person's benefit, as not having been paid, but

(b)that does not affect any payments of benefit made to a person before the repayment.

(8)In sub-paragraph (7) “benefit” means a contributory benefit or a statutory payment.

(9)Terms used in this paragraph that are defined for the purposes of section 223 have the same meaning as in that section.

Effect of accelerated payment notice in respect of appealU.K.

18(1)This paragraph applies where—U.K.

(a)a person (“P”) has been given an accelerated payment notice by virtue of section 219(2)(b) (notice given when appeal pending), which has not been withdrawn, and

(b)the appeal by virtue of which the notice could be given was a NICs appeal in relation to relevant contributions.

(2)P must pay the disputed contributions (see sub-paragraph (8))—

(a)if no representations were made under section 222 in respect of the notice, on or before the last day of the period of 90 days beginning with the day the notice is given, and

(b)if representations were so made, on or before whichever is later of—

(i)the last day of the 90 day period mentioned in paragraph (a), and

(ii)the last day of the period of 30 days beginning with the day on which HMRC's determination in respect of those representations is notified under section 222.

(3)Subsections (4) and (5) of section 117A of SSAA 1992 or (as the case may be) of section 111A of SSA(NI)A 1992 (decision of officer of HMRC not conclusive if subject to appeal and proceedings for recovery to be adjourned pending appeal) do not apply to proceedings before a court for recovery of the disputed contributions.

(4)Accordingly, if proceedings have been adjourned under subsection (5) of either of those sections, they cease to be adjourned, so far as they relate to the recovery of the disputed contributions, from the end of the applicable period under sub-paragraph (2).

(5)A certificate of an officer of Revenue and Customs under section 25A of CRCA 2005 (certificates of debt) that the disputed contributions have not been paid is to be treated as conclusive evidence that the disputed contributions are unpaid.

(6)If some or all of the disputed contributions are subsequently repaid to P—

(a)the contributions repaid are to be treated, for the purposes of determining a person's entitlement to benefit, or the amount of a person's benefit, as not having been paid, but

(b)that does not affect any payments of benefit made to a person before the repayment.

(7)In sub-paragraph (6) “benefit” means a contributory benefit or a statutory payment.

(8)In this paragraph “the disputed contributions” means the relevant contributions to which the NICs appeal relates so far as they are disputed tax specified in the notice under section 221(2)(b).

Penalty for failure to pay accelerated paymentU.K.

19(1)Subsection (7) of section 226 (penalty for failure to pay accelerated payment) applies in relation to a penalty under that section imposed by virtue of this Part of this Schedule, but the reference in that subsection to tax does not include relevant contributions.U.K.

(2)But in their application by virtue of sub-paragraph (1), the provisions of Schedule 56 to FA 2009 mentioned in that subsection have effect—

(a)as if references to an assessment to tax were to a NICs decision relating to a person's liability for relevant contributions,

(b)as if a reference to an appeal against an assessment to the tax concerned were a reference to an appeal against a NICs decision,

(c)as if sub-paragraph (3)(b) of paragraph 11 were omitted (but see paragraph 20 of this Schedule), and

(d)with any other necessary modifications.

Recovery of penalties under Part 4 of FA 2014 U.K.

20(1)A penalty under section 208 or 226 imposed by virtue of this Part of this Schedule may be recovered as if it were an amount of relevant contributions which is due and payable.U.K.

(2)Section 117A of SSAA 1992 or (as the case may be) section 111A of SSA(NI)A 1992 (issues arising in proceedings: contributions etc) has effect in relation to proceedings before a court for recovery of the penalty as if the assessment of the penalty were a NICs decision as to whether the person is liable for the penalty.

(3)Accordingly, section 211(4)(b) (assessment of penalty to be enforced as if it were an assessment to tax) does not apply in relation to a penalty under section 208 imposed by virtue of this Part of this Schedule.

Withdrawal, modification or suspension of accelerated payment noticeU.K.

21U.K.In section 227 (withdrawal, modification or suspension of accelerated payment notice), subsection (9) has effect as if the provisions mentioned there included paragraph 18(2) of this Schedule.

InterpretationU.K.

22U.K.In this Part of this Schedule—

  • accelerated payment notice” means an accelerated payment notice under Chapter 3 of Part 4 of FA 2014;

  • contributory benefit” means—

    (a)

    a contributory benefit under Part 2 of SSCBA 1992,

    (b)

    a jobseeker's allowance under JA 1995,

    (c)

    an employment and support allowance under Part 1 of WRA 2007,

    (d)

    state pension or a lump sum under Part 1 of PA 2014,

    (e)

    bereavement support payment under section 30 of that Act, or

    (f)

    any corresponding benefit in Northern Ireland;

  • “the disputed contributions”, other than in paragraph 18, has the meaning given by paragraph 6(b);

  • HMRC” means Her Majesty's Revenue and Customs;

  • NICs appeal” has the meaning given by paragraph 10;

  • NICs decision” means a decision under section 8 of SSC(TF)A 1999 or Article 7 of the Social Security Contributions (Transfer of Functions, etc) (Northern Ireland) Order 1999 (S.I. 1999/671);

  • notification of dispute” has the meaning given by paragraph 6(b);

  • relevant contributions” means the following contributions under Part 1 of SSCBA 1992 or Part 1 of SSCB(NI)A 1992—

    (a)

    Class 1 contributions;

    (b)

    Class 1A contributions;

    (c)

    Class 1B contributions;

    (d)

    Class 2 contributions which a person is, or is alleged to be, liable to pay but in relation to which section 11A of the Act in question (application of certain provisions of the Income Tax Acts in relation to Class 2 contributions under section 11(2) of that Act) does not, or would not, apply;

  • relevant contributions dispute” has the meaning given by paragraphs 6 and 7;

  • statutory payment” means a statutory payment for the purposes of section 4C of SSCBA 1992 or section 4C of SSCB(NI)A 1992;

and references to sections are to sections of FA 2014, unless otherwise indicated.

PART 2U.K.Promoters of avoidance schemes: Class 1, 1A, 1B and certain Class 2

IntroductionU.K.

23U.K.Part 5 of FA 2014 (promoters of tax avoidance schemes) has effect with the following modifications.

Commencement Information

I1Sch. 2 para. 23 partly in force; Sch. 2 para. 23 in force for specified purposes at Royal Assent and otherwise in force at 12.4.2015, see Sch. 2 para. 33(2)

GeneralU.K.

24U.K.References to tax, other than in references to particular taxes, include relevant contributions.

Commencement Information

I2Sch. 2 para. 24 partly in force; Sch. 2 para. 24 in force for specified purposes at Royal Assent and otherwise in force at 12.4.2015, see Sch. 2 para. 33(2)

25U.K.References to a tax advantage include the avoidance or reduction of a liability to pay relevant contributions.

Commencement Information

I3Sch. 2 para. 25 partly in force; Sch. 2 para. 25 in force for specified purposes at Royal Assent and otherwise in force at 12.4.2015, see Sch. 2 para. 33(2)

26(1)A reference to a provision of Part 7 of FA 2004 (disclosure of tax avoidance schemes) (a “DOTAS provision”) includes a reference to—U.K.

(a)that DOTAS provision as applied by regulations under section 132A of SSAA 1992 (disclosure of contributions avoidance arrangements);

(b)any provision of regulations under that section that corresponds to that DOTAS provision,

whenever the regulations are made.

(2)Regulations under section 132A of SSAA 1992 may disapply, or modify the effect of, sub-paragraph (1).

Commencement Information

I4Sch. 2 para. 26 partly in force; Sch. 2 para. 26 in force for specified purposes at Royal Assent and otherwise in force at 12.4.2015, see Sch. 2 para. 33(2)

Duty to notify CommissionersU.K.

27U.K.In section 253 (duty of persons to notify the Commissioners), references to a tax return include a return relating to relevant contributions that is required to be made by or under an enactment.

Commencement Information

I5Sch. 2 para. 27 partly in force; Sch. 2 para. 27 in force for specified purposes at Royal Assent and otherwise in force at 12.4.2015, see Sch. 2 para. 33(2)

Power to obtain information and documentsU.K.

28U.K.In section 255 (power to obtain information and documents), references to a person's tax position include the person's position as regards deductions or repayments of relevant contributions, or of sums representing relevant contributions, that the person is required to make by or under an enactment.

Commencement Information

I6Sch. 2 para. 28 partly in force; sch. 2 para. 28 in force for specified purposes at Royal Assent and otherwise in force at 12.04.2015, see sch. 2 para. 33(2)

Limitation of defence of reasonable careU.K.

29U.K.In section 276 (limitation of defence of reasonable care), the reference in subsection (1) to a document of a kind listed in the Table in paragraph 1 of Schedule 24 to FA 2007 includes a document, relating to relevant contributions, in relation to which that Schedule applies (and, accordingly, the reference to that Schedule in subsection (2) of that section includes that Schedule as it so applies).

Commencement Information

I7Sch. 2 para. 29 partly in force; Sch. 2 para. 29 in force for specified purposes at Royal Assent and otherwise in force at 12.4.2015, see Sch. 2 para. 33(2)

List of taxesU.K.

30U.K.The definition of “tax” in section 283(1) (interpretation) has effect as if relevant contributions were listed in it.

Commencement Information

I8Sch. 2 para. 30 partly in force; Sch. 2 para. 30 in force for specified purposes at Royal Assent and otherwise in force at 12.4.2015, see Sch. 2 para. 33(2)

Threshold conditionsU.K.

[F130A(1) In paragraph 5 of Schedule 34 (non-compliance with Part 7 of FA 2004 ), in sub-paragraph (4)—

(a) paragraph (a) includes a reference to a decision having been made for corresponding NICs purposes that P is to be deemed not to have failed to comply with the provision concerned as P had a reasonable excuse for not doing the thing required to be done, and

(b)the reference in paragraph (c) to a determination is to be read accordingly.

(2) In this paragraph “corresponding NICs purposes” means the purposes of any provision of regulations under section 132A of SSAA 1992.

Textual Amendments

F1Sch. 2 paras. 30A-30B and headings inserted (15.9.2016) by Finance Act 2016 (c. 24), s. 160(18)

Relevant defeatsU.K.

30B(1)Schedule 34A (promoters of tax avoidance schemes: defeated arrangements) has effect with the following modifications.

(2) References to an assessment (or an assessment to tax) include a NICs decision relating to a person’s liability for relevant contributions.

(3)References to adjustments include a payment in respect of a liability to pay relevant contributions (and the definition of “adjustments” in paragraph 24 accordingly has effect as if such payments were included in it).

(4)In paragraph 9(3) the reference to an enquiry into a return includes a relevant contributions dispute (as defined in paragraph 6 of this Schedule).

(5)In paragraph 28(3)—

(a) paragraph (a) includes a reference to a decision having been made for corresponding NICs purposes that the person is to be deemed not to have failed to comply with the provision concerned as the person had a reasonable excuse for not doing the thing required to be done, and

(b)the reference in paragraph (c) to a determination is to be read accordingly.

“Corresponding NICs purposes” means the purposes of any provision of regulations under section 132A of SSAA 1992.]

Textual Amendments

F1Sch. 2 paras. 30A-30B and headings inserted (15.9.2016) by Finance Act 2016 (c. 24), s. 160(18)

InterpretationU.K.

31U.K.In this Part of this Schedule—

[F2(za)NICs decision” means a decision under section 8 of SSC(TF)A 1999 or Article 7 of the Social Security Contributions (Transfer of Functions, etc) (Northern Ireland) Order 1999 (SI 1999/671);]

(a)relevant contributions” means the following contributions under Part 1 of SSCBA 1992 or Part 1 of SSCB(NI)A 1992—

(i)Class 1 contributions;

(ii)Class 1A contributions;

(iii)Class 1B contributions;

(iv)Class 2 contributions which must be paid but in relation to which section 11A of the Act in question (application of certain provisions of the Income Tax Acts in relation to Class 2 contributions under section 11(2) of that Act) does not apply;

(b)references to sections [F3or Schedules are to sections of, or Schedules to] FA 2014, unless otherwise indicated.

Textual Amendments

F2Sch. 2 para. 31(za) inserted (15.9.2016) by Finance Act 2016 (c. 24), s. 160(19)(a)

F3Words in Sch. 2 para. 31(b) substituted (15.9.2016) by Finance Act 2016 (c. 24), s. 160(19)(b)

Commencement Information

I9Sch. 2 para. 31 partly in force; Sch. 2 para. 31 in force for specified purposes at Royal Assent and otherwise in force at 12.4.2015, see Sch. 2 para. 33(2)

PART 3U.K.Application of Parts 4 and 5 of FA 2014: Class 4

32U.K.In section 16 of SSCBA 1992 (application of Income Tax Acts and destination of Class 4 contributions), in subsection (1), at the end of paragraph (c) insert and

(d)the provisions of Part 4 (follower notices and accelerated payments) and Part 5 (promoters of tax avoidance schemes) of the Finance Act 2014,.

PART 4U.K.Commencement and transitory provision

33(1)Parts 1 and 3 of this Schedule come into force at the end of the period of 2 months beginning with the day on which this Act is passed.U.K.

(2)Part 2 of this Schedule comes into force—

(a)for the purposes of making regulations under Part 5 of FA 2014, on the day on which this Act is passed, and

(b)for remaining purposes, at the end of the period of 2 months beginning with the day on which this Act is passed.

34U.K.Before the coming into force of the repeals in section 4C of SSCBA 1992 made by Part 1 of Schedule 14 to Welfare Reform Act 2012 c. 5>WRA 2012 (abolition of benefits superseded by universal credit), the reference in paragraph 22 to a jobseeker's allowance is to be treated as a reference to a contribution-based jobseeker's allowance (within the meaning of JA 1995).

35U.K.Before the coming into force of the repeal of section 22(8) of SSCBA 1992 made by Part 1 of Schedule 14 to Welfare Reform Act 2012 c. 5>WRA 2012 (abolition of benefits superseded by universal credit), the reference in paragraph 22 to an employment and support allowance is to be treated as a reference to a contributory allowance (within the meaning of Part 1 of WRA 2007).

Back to top

Options/Help

Print Options

Close

Legislation is available in different versions:

Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.

Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.

Close

See additional information alongside the content

Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.

Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.

Close

Opening Options

Different options to open legislation in order to view more content on screen at once

Close

Explanatory Notes

Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.

Close

More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources
Close

Timeline of Changes

This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.

Close

More Resources

Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • correction slips

Click 'View More' or select 'More Resources' tab for additional information including:

  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • links to related legislation and further information resources