Finance Act 2021

Grace period

5 In section 61 of FA 2004 (deductions on account of tax from contract payments), after subsection (3) insert—

“(4) Subsection (5) applies where the contractor is a person falling within section 59(1)(l).

(5) An officer of Revenue and Customs may, if the officer considers it appropriate to do so, by notice in writing—

(a) exempt the contractor from the requirement to deduct sums from contract payments under subsection (1) for a specified period;

(b) treat the contractor as if such an exemption had applied in relation to—

(i) specified contract payments made before the date of the notice, or

(ii) contract payments made during a specified period before the date of the notice.

(6) The period referred to in subsection (5)(a)—

(a) must not exceed 90 days, but

(b) may be extended by one or more further notices under subsection (5).

(7) In subsection (5) “specified” means specified in the notice.”