The Social Security Contributions (Amendments in Consequence of Part 4 of the Finance Act 2014) Regulations 2015

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend regulation 12 of the Social Security Contributions (Decisions and Appeals) Regulations 1999 (S.I 1999/1027) and regulation 1 of the Social Security (Contributions) Regulations 2001 (S.I. 2001/1004).

Part 4 of the Finance Act 2014 (c. 26) (“FA 2014”) introduces new anti-avoidance rules on follower notices and accelerated payments. Section 225 of FA 2014 amends the general rule in section 56 of the Taxes Management Act 1970 (c. 9) to make specific provision dealing with the repayment of accelerated payments where HMRC is pursuing a further appeal. Paragraphs 3 and 5 of Schedule 33 to FA 2014 disapply the interaction provisions in paragraph 12 of Schedule 24 to the Finance Act 2007 (c. 11) (penalties for errors) and paragraph 17 of Schedule 55 to the Finance Act 2009 (c. 10) (penalties for failure to make returns), respectively, so that penalties under those Schedules are not reduced by the amount of a penalty charged under Part 4 of FA 2014.

Parts 1 and 3 of Schedule 2 to the National Insurance Contributions Act 2015 (c. 5) apply Part 4 of FA 2014 to National Insurance contributions (“NICs”)(1).

Regulation 2 amends regulation 12 of the Social Security Contributions (Decisions and Appeals) Regulations 1999 in order to make it clear that the amendment of section 56 of the Taxes Management Act 1970 by section 225(1) of FA 2014 will apply to NICs.

Regulation 3 amends regulation 1 of the Social Security (Contributions) Regulations 2001 in order to make it clear that the amendment of paragraph 12 of Schedule 24 to the Finance Act 2007 and paragraph 17 of Schedule 55 to the Finance Act 2009 by paragraphs 3 and 5 of Schedule 33 to FA 2014, respectively, will apply to NICs.

A Tax Information and Impact Note covering this instrument was published on 17th July 2014 alongside the draft clauses and explanatory notes for the National Insurance Contributions Bill and is available on the website at https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins. It remains an accurate summary of the impacts that apply to this instrument.

(1)

Part 1 of Schedule 2 to the National Insurance Contributions Act 2015 applies Part 4 of FA 2014 (follower notices and accelerated payments) to Class 1, 1A, 1B and certain Class 2 contributions (namely Class 2 contributions to which section 11A of the Social Security Contributions and Benefit Act 1992 and section 11A of Social Security Contributions and Benefit (Northern Ireland) Act 1992 do not apply). Part 3 of that Schedule applies Part 4 of FA 2014 to Class 4 contributions.