Textual Amendments
F1Sch. 1: Cross-heading and para. 7B inserted (10.3.1999 for specified purposes and 6.4.1999 otherwise) by S.I. 1998/1506 (N.I. 10), art. 54; S.R. 1999/102, art. 2(b), Sch. Pt. II
F2Sch. 1: words in cross-heading preceding para. 7B substituted (26.3.1999 for specified purposes and 1.4.1999 otherwise) by S.I. 1999/671, art. 24(2), Sch. 8 para. 5(2) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(b)(c), Schs. 1, 2 (subject to arts. 3-6)
[F37B(1)[F4The Treasury may by regulations]] provide that, in such cases or circumstances as may be [F5prescribed, Class 1, Class 1A, Class 1B or Class 2 contributions shall be paid to the Inland Revenue in a manner different from that in which income tax in relation to which regulations under section 203 of the Income and Corporation Taxes Act 1988 (PAYE) apply is payable.]
(2)Regulations under this paragraph may, in particular—
(a)provide for returns to be made to the [F6Inland Revenue] by such date as may be prescribed;
(b)prescribe the form in which returns are to be made, or provide for returns to be made in such form as the [F6Inland Revenue] may approve;
(c)prescribe the manner in which contributions are to be paid, or provide for contributions to be paid in such manner as the [F6Inland Revenue] may approve;
(d)prescribe the due date for the payment of contributions;
(e)F7. . . provide for interest to be charged by the [F6Inland Revenue] on contributions that are not paid by the due date, and for enabling such interest to be remitted or repaid;
(f)provide for interest to be paid on contributions that fall to be repaid;
(g)provide for determining the date from which interest to be charged or paid pursuant to regulations under paragraph (e) or (f) above is to be calculated;
(h)provide for penalties to be imposed in respect of a person who—
(i)fails to submit, within the time allowed, a return required to be made in accordance with regulations under paragraph (a) above;
(ii)in making such a return, fraudulently or negligently fails to provide any information or computation that he is required to provide;
(iii)in making such a return, fraudulently or negligently provides any incorrect information or computation; or
(iv)fails to pay Class 2 contributions by the due date;
(i)provide for a penalty imposed pursuant to regulations under paragraph (h) above to carry interest from the date on which it becomes payable until payment.
(3)Where—
(a)a decision relating to contributions falls to be made under Article 9, 10, 11, 13 or 15 of the Social Security (Northern Ireland) Order 1998 or section 22 of the Administration Act; and
(b)the decision will affect a person’s liability for, or the amount of, any interest due in respect of those contributions,
regulations under sub-paragraph (2)(e) above shall not require any such interest to be paid until the decision has been made.
F8(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5)Regulations under sub-paragraph (2)(h) above shall—
(a)prescribe the rates of penalty, or provide for how they are to be ascertained;
(b)F9. . . provide for the penalty to be imposed by the [F10Inland Revenue]—
(i)within 6 years after the date on which the penalty is incurred; or
(ii)where the amount of the penalty is to be ascertained by reference to the amount of any contributions payable, at any later time within 3 years after the final determination of the amount of those contributions;
(c)provide for determining the date on which, for the purposes of paragraph (b) above, the penalty is incurred;
(d)prescribe the means by which the penalty is to be enforced; and
(e)provide for enabling the [F11Inland Revenue, in their] discretion, to mitigate or to remit the penalty, or to stay or to compound any proceedings for it.
F8(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7)Section 12 above shall not apply in relation to Class 2 contributions in respect of which the [F12Inland Revenue][F12charge] interest or [F12impose] a penalty pursuant to regulations under paragraph (e) or (h) of sub-paragraph (2) above.
(8)Interest or penalties may be charged by virtue of regulations under this paragraph in respect of a period before the coming into operation of Article 54 of the Social Security (Northern Ireland) Order 1998 but only to the extent that interest or penalties would have been chargeable if the contributions in question had been recoverable, in respect of that period, by virtue of regulations under paragraph 6 above.
(9)Any reference to contributions in sub-paragraph (1) above shall be construed as including a reference to any interest or penalty payable, in respect of contributions, by virtue of regulations under paragraph (e) or (h) of sub-paragraph (2) above.
(10)The rate of interest applicable for any purpose of this paragraph shall be—
(a)the rate from time to time prescribed under section 178 of the Finance Act 1989 for the purpose of any enactment (whether or not extending to Northern Ireland) if prescribed by regulations made by virtue of this paragraph; or
(b)such other rate as may be prescribed by such regulations.
Textual Amendments
F3Sch. 1 para. 7B inserted (10.3.1999 for specified purposes and 6.4.1999 otherwise) by S.I. 1998/1506 (N.I. 10), art. 54; S.R. 1999/102, art. 2(b), Sch. Pt. II
F4Words in Sch. 1 para. 7B(1) substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 37 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
F5Words in Sch. 1 para. 7B(1) substituted (26.3.1999 for specified purposes and 1.4.1999 otherwise) by S.I. 1999/671, art. 24(2), Sch. 8 para. 5(3) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(b)(c), Schs. 1, 2 (subject to arts. 3-6)
F6Words in Sch. 1 para. 7B(2) substituted (26.3.1999 for specified purposes and 1.4.1999 otherwise) by S.I. 1999/671, art. 24(2), Sch. 8 para. 5(4)(a) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(b)(c), Schs. 1, 2 (subject to arts. 3-6)
F7Words in Sch. 1 para. 7B(2)(e) repealed (omitted 26.3.1999 for specified purposes only and wholly repealed 1.4.1999) by S.I. 1999/671, art. 24(2)(3), Sch. 8 para. 5(4)(b), Sch. 9 Pt. I (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(b)(c), Schs. 1, 2 (subject to arts. 3-6)
F8Sch. 1 para. 7B(4)(6) repealed (omitted 26.3.1999 for specified purposes only and wholly repealed 1.4.1999) by S.I. 1999/671, art. 24(2)(3), Sch. 8 para. 5(5), Sch. 9 Pt. I (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(b)(c), Schs. 1, 2 (subject to arts. 3-6)
F9Words in Sch. 1 para. 7B(5)(b) repealed (omitted 26.3.1999 for specified purposes only and wholly repealed 1.4.1999) by S.I. 1999/671, art. 24(2)(3), Sch. 8 para. 5(6)(a), Sch. 9 Pt. I (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(b)(c), Schs. 1, 2 (subject to arts. 3-6)
F10Words in Sch. 1 para. 7B(5)(b) substituted (26.3.1999 for specified purposes and 1.4.1999 otherwise) by S.I. 1999/671, art. 24(2), Sch. 8 para. 5(6)(a) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(b)(c), Schs. 1, 2 (subject to arts. 3-6)
F11Words in Sch. 1 para. 7B(5)(e) substituted (26.3.1999 for specified purposes and 1.4.1999 otherwise) by S.I. 1999/671, art. 24(2), Sch. 8 para. 5(6)(b) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(b)(c), Schs. 1, 2 (subject to arts. 3-6)
F12Words in Sch. 1 para. 7B(7) substituted (26.3.1999 for specified purposes and 1.4.1999 otherwise) by S.I. 1999/671, art. 24(2), Sch. 8 para. 5(7) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(b)(c), Schs. 1, 2 (subject to arts. 3-6)
Section 1(4).
1(1)For the purposes of determining whether Class 1 contributions are payable in respect of earnings paid to an earner in a given week and, if so, the amount of the contributions—
(a)all earnings paid to him or for his benefit in that week in respect of one or more employed earner’s employments under the same employer shall, except as may be provided by regulations, be aggregated and treated as a single payment of earnings in respect of one such employment; and
(b)earnings paid to him or for his benefit in that week by different persons in respect of different employed earner’s employments shall in prescribed circumstances be aggregated and treated as a single payment of earnings in respect of one such employment;
and regulations may provide that the provisions of this sub-paragraph shall have effect in cases prescribed by the regulations as if for any reference to a week there were substituted a reference to a period prescribed by the regulations.
(2)Where earnings in respect of employments which include any contracted-out employment and any employment which is not a contracted-out employment are aggregated under sub-paragraph (1) above and the aggregated earnings are not less than the current lower earnings limit, then, except as may be provided by regulations—
(a)the amount of the primary Class 1 contribution in respect of the aggregated earnings shall be determined in accordance with sub-paragraph (3) below; and
(b)the amount of the secondary Class 1 contribution in respect of the aggregated earnings shall be determined in accordance with sub-paragraph (6) below.
[F13(3)The amount of the primary Class 1 contribution shall be the aggregate of the amounts determined under the following paragraphs (applying earlier paragraphs before later ones)—
(a)if the aggregated earnings are paid to or for the benefit of an earner in respect of whom minimum contributions are payable under section 39(1) of the Pensions Act (contributions to personal pension schemes), the amount obtained by applying the rate of primary Class 1 contributions that would apply if all the aggregated earnings were attributable to employments which are not contracted-out to such part of the aggregated earnings so attributable as does not exceed the current upper earnings limit (referred to in this paragraph as “the APPS earnings”);
(b)if some of the aggregated earnings are attributable to COMPS service, the amount obtained by applying the rate of primary Class 1 contributions that would apply if all the aggregated earnings were attributable to COMPS service—
(i)to such part of the aggregated earnings attributable to COMPS service as does not exceed the current upper earnings limit; or
(ii)if paragraph (a) applies, to such part of the earnings attributable to COMPS service as, when added to the APPS earnings, does not exceed the current upper earnings limit;
(c)if some of the aggregated earnings are attributable to COSRS service, the amount obtained by applying the rate of primary Class 1 contributions that would apply if all the aggregated earnings were attributable to COSRS service—
(i)to such part of the aggregated earnings attributable to COSRS service as does not exceed the current upper earnings limit; or
(ii)if paragraph (a) or (b) applies, to such part of the earnings attributable to COSRS service as, when added to the APPS earnings or the part attributable to COMPS service (or both), does not exceed the current upper earnings limit;
(d)the amount obtained by applying the rate of primary Class 1 contributions that would apply if all the aggregated earnings were attributable to employments which are not contracted-out to such part of the aggregated earnings as, when added to the part or parts attributable to COMPS or COSRS service, does not exceed the current upper earnings limit.]
(4)In relation to earners paid otherwise than weekly, any reference in sub-paragraph (2) or (3) above to the lower or upper earnings limit shall be construed as a reference to the prescribed equivalent of that limit.
(5)The power under sub-paragraph (4) above to prescribe an equivalent of a limit includes power to prescribe an amount which exceeds, by not more than £1.00, the amount which is the arithmetical equivalent of that limit.
[F14(6)The amount of the secondary Class 1 contribution shall be the aggregate of the amounts determined under the following paragraphs (applying earlier paragraphs before later ones)—
(a)if the aggregated earnings are paid to or for the benefit of an earner in respect of whom minimum contributions are payable under section 39(1) of the Pensions Act, the amount obtained by applying the rate of secondary Class 1 contributions that would apply if all the aggregated earnings were attributable to employments which are not contracted-out to the APPS earnings;
(b)if some of the aggregated earnings are attributable to COMPS service, the amount obtained by applying the rate of secondary Class 1 contributions that would apply if all the aggregated earnings were attributable to COMPS service to the part of the aggregated earnings attributable to such service;
(c)if some of the aggregated earnings are attributable to COSRS service, the amount obtained by applying the rate of secondary Class 1 contributions that would apply if all the aggregated earnings were attributable to COSRS service to the part of the aggregated earnings attributable to such service;
(d)the amount obtained by applying the rate of secondary Class 1 contributions that would apply if all the aggregated earnings were attributable to employments which are not contracted-out to the remainder of the aggregated earnings.]
(7)Where any single payment of earnings is made in respect of two or more employed earner’s employments under different employers, liability for Class 1 contributions shall be determined by apportioning the payment to such one or more of the employers as may be prescribed, and treating a part apportioned to any employer as a separate payment of earnings by him.
(8)Where earnings are aggregated under sub-paragraph (1)(b) above, liability (if any) for the secondary contribution shall be apportioned, in such manner as may be prescribed, between the secondary contributors concerned.
[F15(8A)Regulations under any provision of this paragraph shall be made by the Inland Revenue.]
[F16(9)In this paragraph—
“COMPS service” means service in employment in respect of which minimum payments are made to a money purchase contracted-out scheme;
“COSRS service” means service in employment which qualifies the earner for a pension provided by a salary related contracted-out scheme.]
Textual Amendments
F13Sch. 1 para. 1(3) substituted (6.4.1996) by S.I. 1995/3213 (N.I. 22), arts. 132, 145(2); S.R. 1996/91, art. 2, Sch. Pt. III
F14Sch. 1 para. 1(6) substituted (6.4.1996) by S.I. 1995/3213 (N.I. 22), arts. 132, 145(3); S.R. 1996/91, art. 2, Sch. Pt. III
F15Sch. 1 para. 1(8A) inserted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 30 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
F16Sch. 1 para. 1(9) added (6.4.1996) by S.I. 1995/3213 (N.I. 22), arts. 132, 145(4); S.R. 1996/91, art. 2, Sch. Pt. III
2N.I.Regulations [F17made by the Inland Revenue] may, for the purposes of Class 1 contributions, make provision as to the intervals at which payments of earnings are to be treated as made.
Textual Amendments
F17Words in Sch. 1 para. 2 inserted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 31 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
3(1)Where earnings are paid to an employed earner and in respect of that payment liability arises for primary and secondary Class 1 contributions, the secondary contributor shall (except in prescribed circumstances), as well as being liable for his own secondary contribution, be liable in the first instance to pay also the earner’s primary contribution, on behalf of and to the exclusion of the earner; and for the purposes of this Act and the Administration Act contributions paid by the secondary contributor on behalf of the earner shall be taken to be contributions paid by the earner.
(2)Notwithstanding any contract to the contrary, no secondary contributor shall be entitled—
(a)to make, from earnings paid by him, any deduction in respect of his own or any other person’s secondary Class 1 contributions, or
(b)otherwise to recover such contributions from any earner to whom he pays earnings.
(3)A secondary contributor shall be entitled, subject to and in accordance with regulations, to recover from an earner the amount of any primary Class 1 contribution paid or to be paid by him on behalf of the earner; [F18and, subject to sub-paragraph (4) below but notwithstanding any other provision in any enactment], regulations under this sub-paragraph shall provide for recovery to be made by deduction from the earner’s earnings, and for it not to be made in any other way.
[F19(4)Sub-paragraph (5) below applies in a case where—
(a)a person (“the employee”) ceases in a particular tax year (“the cessation year”) to be employed by a particular employer (“the employer”); and
(b)the employee receives from the employer in the cessation year, after the cessation of the employment, earnings in a form other than money (“non-monetary earnings”).
(5)If and to the extent that regulations so provide, the employer may recover from the employee in such manner as may be prescribed any primary Class 1 contributions paid or to be paid by him on the employee’s behalf in respect of—
(a)the non-monetary earnings mentioned in sub-paragraph (4) above; or
(b)any non-monetary earnings received by the employee from the employer in the cessation year before the cessation of the employment,
which he was unable to recover by deduction from the employee’s earnings.]
[F20(6)Regulations under any provision of this paragraph shall be made by the Inland Revenue.]
Textual Amendments
F18Words in Sch. 1 para. 3(3) substituted (9.9.1998) by S.I. 1998/1506 (N.I. 10), art. 52(a); S.R. 1998/312, art. 2(a), Sch. Pt. I
F19Sch. 1 para. 3(4)(5) added (9.9.1998) by S.I. 1998/1506 (N.I. 10), art. 52(b); S.R. 1998/312, art. 2(a), Sch. Pt. I
F20Sch. 1 para. 3(6) added (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 32 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
4N.I.Regulations [F21made by the Inland Revenue] may, in relation to Class 1 contributions, make provision—
(a)for calculating the amounts payable according to a scale prepared from time to time by the [F22Inland Revenue] or otherwise adjusting them so as to avoid fractional amounts or otherwise facilitate computation;
(b)for requiring that the liability in respect of a payment made in a tax week, in so far as the liability depends on any conditions as to a person’s age or retirement, shall be determined as at the beginning of the week or as at the end of it;
(c)for securing that liability is not avoided or reduced by a person following in the payment of earnings any practice which is abnormal for the employment in respect of which the earnings are paid; and
(d)without prejudice to sub-paragraph (c) above, for enabling the [F22Inland Revenue], where [F22they are] satisfied as to the existence of any practice in respect of the payment of earnings whereby the incidence of Class 1 contributions is avoided or reduced by means of irregular or unequal payments, to give directions for securing that such contributions are payable as if that practice were not followed.
Textual Amendments
F21Words in Sch. 1 para. 4 inserted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 33 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
F22Words in Sch. 1 para. 4 substituted (24.3.1999 for specified purposes and 1.4.1999 otherwise) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 19 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
Textual Amendments
F23Cross-heading substituted (9.9.1998) by S.I. 1998/1506 (N.I. 10), arts. 1(2), 78(1), Sch. 6 para. 58(6); S.R. 1998/312, art. 2(a), Sch. Pt. I
[F245Regulations [F25made by the Inland Revenue] may—
(a)make provision for calculating the amount of Class 1A contributions so as to avoid fractional amounts;
(b)modify section 10 above in relation to cases where a car is made available by reason of two or more employed earner’s employments under different employers.]
Textual Amendments
F24Sch. 1 para. 5 substituted (9.9.1998) by S.I. 1998/1506 (N.I. 10), arts. 1(2), 78(1), Sch. 6 para. 58(6); S.R. 1998/312, art. 2(a), Sch. Pt. I
F25Words in Sch. 1 para. 5 inserted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 33 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
6(1)Regulations made [F26by] the Inland Revenue may—
[F27(a)provide for Class 1, Class 1A, Class 1B or Class 2 contributions to be paid, accounted for and recovered in a similar manner to income tax in relation to which regulations under section 203 of the Income and Corporation Taxes Act 1988 (PAYE) have effect;]
(b)apply or extend with or without modification in relation to such contributions any of the provisions of the Income Tax Acts or of regulations under that section;
(c)make provision for the appropriation of the payments made by any person between his liabilities in respect of income tax and contributions.
(2)Without prejudice to the generality of sub-paragraph (1) above, the provision that may be made by virtue of paragraph (a) of that sub-paragraph includes in relation to Class 1 [F28, Class 1A or Class 1B]contributions—
(a)provision for requiring the payment of interest on sums due in respect of Class 1 or Class 1A contributions which are not paid by the due date, for determining the date (being, in the case of Class 1 contributions, not less than 14 days after the end of the tax year in respect of which the sums are due) from which such interest is to be calculated and for enabling the repayment or remission of such interest;
(b)provision for requiring the payment of interest on sums due in respect of Class 1 or Class 1A contributions which fall to be repaid and for determining the date F29. . . from which such interest is to be calculated;
(c)provision for, or in connection with, the imposition and recovery of penalties in relation to any returns required to be made which relate to Class 1 or Class 1A contributions, but subject to sub-paragraph (7) and paragraph 7 below;
and any reference to contributions or income tax in paragraph (b) or (c) of sub-paragraph (1) above shall be construed as including a reference to any interest or penalty in respect of contributions or income tax, as the case may be.
(3)The rate of interest applicable for any purpose of this paragraph shall be—
(a)the rate from time to time prescribed for that purpose under section 178 of the M1Finance Act 1989 for the purpose of any enactment (whether or not extending to Northern Ireland) if prescribed by regulations made by virtue of this paragraph; or
(b)such other rate as may be prescribed by such regulations.
[F30(4)Where—
(a)a decision relating to contributions falls to be made under or by virtue of Article 7, 9 or 10 of the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999; and
(b)the decision will affect a person’s liability for, or the amount of, any interest due in respect of those contributions, regulations under sub-paragraph (1) above shall not require any such interest to be paid until the decision has been made.]
[F31(4A)Regulations under [F32sub-paragraph (1) above] shall not require the payment of interest on a sum due in respect of a Class 1B contribution if a relevant tax appeal has been brought but not finally determined; and “a relevant tax appeal” means an appeal against a determination as to the amount of income tax in respect of which the person liable to pay the Class 1B contribution is accountable in accordance with the relevant PAYE settlement agreement.]
(5)[F33The Secretary of State may by regulations made with the concurrence of the Inland Revenue] make such provision as [F33he] considers expedient in consequence of any provision made by or under [F34section 155A] or 163 above.
(6)[F35Provision made in regulations under sub-paragraph (5) above may] in particular require the inclusion—
(a)in returns, certificates and other documents; or
(b)in any other form of record;
which the regulations require to be kept or produced or to which those regulations otherwise apply, of such particulars relating to statutory sick pay, statutory maternity pay or deductions or payments made by virtue of section 163(1) above as may be prescribed by those regulations.
(7)Section 98 of the M2Taxes Management Act 1970 shall apply in relation to regulations made [F36under sub-paragraph (1) or (5)] as it applies in relation to regulations made under section 203 of the M3Income and Corporation Taxes Act 1988 (PAYE).
F37(8). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F26Word in Sch. 1 para. 6(1) substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 34(2) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
F27Sch. 1 para. 6(1)(a) substituted (9.9.1998 for the purpose only of making regulations or orders and 6.4.1999 otherwise) by S.I. 1998/1506 (N.I. 10), art. 78(1), Sch. 6 para. 58(8); S.R. 1998/312, art. 2(b), Sch. Pt. II
F28Words in Sch. 1 para. 6(2) substituted (9.9.1998 for the purpose only of making regulations or orders and 6.4.1999 otherwise) by S.I. 1998/1506 (N.I. 10), art. 78(1), Sch. 6 para. 58(9)(a); S.R. 1998/312, art. 2(b), Sch. Pt. II
F29Words in Sch. 1 para. 6(2)(b) ceased to have effect (9.9.1998 for the purpose only of making regulations or orders and 6.4.1999 otherwise) and repealed (6.4.1999) by virtue of S.I. 1998/1506 (N.I. 10), art. 78(1)(2), Sch. 6 para. 58(9)(b), Sch. 7; S.R. 1998/312, art. 2(b)(d), Sch. Pts. II, III
F30Sch. 1 para. 6(4) substituted (26.3.1999 for specified purposes and 6.4.1999 otherwise) by S.I. 1999/671, art. 17, Sch. 6 para. 7 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(b)(d), Schs. 1, 3 (subject to arts. 3-6)
F31Sch. 1 para. 6(4A) inserted (9.9.1998 for the purpose only of making regulations or orders and 6.4.1999 otherwise) by S.I. 1998/1506 (N.I. 10), art. 78(1), Sch. 6 para. 58(11); S.R. 1998/312, art. 2(b), Sch. Pt. II
F32Words in Sch. 1 para. 6(4A) substituted (1.4.1999) by S.I. 1999/671, art. 24(2), Sch. 8 para. 3 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
F33Words in Sch. 1 para. 6(5) substituted (24.3.1999 for specified purposes and 1.4.1999 otherwise) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 20(a) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
F34Words in Sch. 1 para. 6(5) substituted (6.4.1995) by S.R. 1995/69, art. 6(1)(b)
F35Words in Sch. 1 para. 6(6) substituted (24.3.1999 for specified purposes and 1.4.1999 otherwise) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 20(b) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
F36Words in Sch. 1 para. 6(7) substituted (24.3.1999 for specified purposes and 1.4.1999 otherwise) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 20(c) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
F37Sch. 1 para. 6(8) repealed (1.4.1999) by S.I. 1999/671, arts. 4, 24(3), Sch. 3 para. 34(2), Sch. 9 Pt. I (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
Modifications etc. (not altering text)
C1Sch. 1 para. 6(3)(a) applied (19.4.1993) by S.R. 1979/186, regs. 28A(1), 28B(1) (as inserted (19.4.1993) by S.R. 1993/130, reg. 2)
Marginal Citations
7(1)This paragraph applies where regulations under [F38sub-paragraph (1) of paragraph 6] above make provision requiring any return which is to be made in accordance with a specified provision of regulations under [F38that sub-paragraph] (the “contributions return”) to be made—
(a)at the same time as any specified return required to be made in accordance with a provision of regulations made by the Inland Revenue under section 203(2) (PAYE) or 566(1) (sub-contractors) of the M4Income and Corporation Taxes Act 1988 to which section 98A of the M5Taxes Management Act 1970 applies (the “tax return”); or
(b)if the circumstances are such that the return mentioned in paragraph (a) above does not fall to be made, at a time defined by reference to the time for making that return, had it fallen to be made;
and, in a case falling within paragraph (b) above, any reference in the following provisions of this paragraph to the tax return shall be construed as a reference to the return there mentioned.
(2)Where this paragraph applies, regulations under [F39paragraph 6(1)] above may provide that section 98A of the M6Taxes Management Act 1970 (penalties for late, fraudulent or negligent returns) shall apply in relation to any specified provision of regulations in accordance with which the contributions return is required to be made; and where they so provide then, subject to the following provisions of this paragraph—
(a)that section shall apply in relation to the contributions return as it applies in relation to the tax return; and
(b)sections 100 to 100D and 102 to 104 of that Act shall apply in relation to a penalty under section 98A of that Act to which a person is liable by virtue of this sub-paragraph as they apply in relation to any other penalty under that section.
(3)Where a person is liable to a penalty under paragraph (a) of subsection (2) of section 98A of that Act (first 12 months’ default) in consequence of a failure in respect of a tax return, he shall not also be liable to a penalty under that paragraph in respect of any failure in respect of the associated contributions return.
(4)In any case where—
(a)a person is liable to a penalty under subsection (2)(b) or (4) of that section (tax-related penalties) in respect of both a tax return and its associated contributions return, and
(b)an officer of the Inland Revenue authorised for the purposes of section 100 of that Act has determined that a penalty is to be imposed under that provision in respect of both returns,
the penalty so imposed shall be a single penalty of an amount not exceeding the limit determined under sub-paragraph (5) below.
(5)The limit mentioned in sub-paragraph (4) above is an amount equal to the sum of—
(a)the maximum penalty that would have been applicable under subsection (2)(b) or (4) of section 98A of that Act (as the case may be) for a penalty in relation to the tax return only; and
(b)the maximum penalty that would have been so applicable in relation to the associated contributions return only.
(6)So much of any single penalty imposed by virtue of sub-paragraph (4) above as is recovered by the Inland Revenue shall, after the deduction of any administrative costs of the Inland Revenue attributable to its recovery, [F40for the purposes of making any payment into the National Insurance Fund be apportioned between income tax and contributions] in the ratio T:C, where—
T is the maximum penalty that could have been imposed under the provision in question in relation to the tax return only; and
C is the maximum penalty that could have been so imposed in relation to the associated contributions return only.
F41(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(8)[F42Sub-paragraph (6)] above shall have effect notwithstanding any provision which treats a penalty under section 98A of that Act as if it were tax charged in an assessment and due and payable.
(9)In the application of section 98A of that Act by virtue of this paragraph, any reference to a year of assessment shall be construed, in relation to a contributions return, as a reference to the tax year corresponding to that year of assessment.
(10)In the application of section 100D of that Act (court proceedings for penalties in cases of fraud) by virtue of this paragraph—
(a)subsection (2) shall have effect with the omission of the words “England, Wales or” and paragraphs (a) and (b); and
(b)subsection (3) shall have effect with the omission of the words from “instituted in England and Wales” to “and any such proceedings” and the substitution for “that Part of that Act” of “ Part II of the Crown Proceedings Act 1947 ”.
(11)In the application of section 103 of that Act (time limit for recovery) by virtue of this paragraph—
(a)any reference in subsection (1) to tax shall be taken to include a reference to Class 1 and Class 1A contributions;
(b)any penalty by virtue of sub-paragraph (4) above shall be regarded as a penalty in respect of the tax return in question; and
(c)where, by virtue of subsection (2) (death), subsection (1)(b) does not apply in relation to a penalty under section 98A(2)(b) or (4) of that Act in respect of a tax return, it shall also not apply in relation to a penalty so imposed in respect of the associated contributions return.
[F43(12)A penalty under section 98A of that Act as it applies by virtue of this paragraph shall not be imposed where—
(a)a decision relating to contributions falls to be made under or by virtue of Article 7, 9 or 10 of the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999, and has not yet been made; and
(b)the decision will affect a person’s liability for the penalty, or the amount of it.]
(13)For the purposes of this paragraph—
(a)“contributions return” and “tax return” shall be construed in accordance with sub-paragraph (1) above; and
(b)a contributions return and a tax return are “associated” if the contributions return is required to be made—
(i)at the same time as the tax return, or
(ii)where sub-paragraph (1)(b) above applies, at a time defined by reference to the time for making the tax return.
Textual Amendments
F38Words in Sch. 1 para. 7(1) substituted (24.3.1999 for specified purposes and 1.4.1999 otherwise) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 21(2) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
F39Words in Sch. 1 para. 7(2) substituted (24.3.1999 for specified purposes and 1.4.1999 otherwise) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 21(3) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
F40Words in Sch. 1 para. 7(6) substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 35(2) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
F41Sch. 1 para. 7(7) repealed (1.4.1999) by S.I. 1999/671, arts. 4, 24(3), Sch. 3 para. 35(3), Sch. 9 Pt. I (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
F42Words in Sch. 1 para. 7(8) substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 35(4) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
F43Sch. 1 para. 7(12) substituted (26.3.1999 for specified purposes and 6.4.1999 otherwise) by S.I. 1999/671, art. 17, Sch. 6 para. 8 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(b)(d), Schs. 1, 3 (subject to arts. 3-6)
Marginal Citations
[F447A(1)This paragraph applies where paragraph 7 above applies; and in this paragraph “contributions return” has the same meaning as in that paragraph.N.I.
(2)Without prejudice to paragraph 7(2) above or to the [F45other] powers of the Inland Revenue to penalise omissions or errors in returns, regulations [F46made by the Treasury] may provide for the [F47Inland Revenue] to impose penalties in respect of a person who, in making a contributions return, fraudulently or negligently—
(a)fails to provide any information or computation that he is required to provide; or
(b)provides any such information or computation that is incorrect.
(3)Regulations under sub-paragraph (2) above shall—
(a)prescribe the rates of penalty, or provide for how they are to be ascertained;
(b)provide for the penalty to be imposed by the [F48Inland Revenue] within 6 years after the date on which the penalty is incurred;
(c)provide for determining the date on which, for the purposes of paragraph (b) above, the penalty is incurred;
(d)prescribe the means by which the penalty is to be enforced; and
(e)provide for enabling the [F49Inland Revenue, in their] discretion, to mitigate or to remit the penalty, or to stay or to compound any proceedings for it.]
Textual Amendments
F44Sch. 1 para. 7A inserted (10.3.1999 for specified purposes and 6.4.1999 otherwise) by S.I. 1998/1506 (N.I. 10), art. 53(2); S.R. 1999/102, art. 2(b), Sch. Pt. II
F45Word in Sch. 1 para. 7A(2) inserted (26.3.1999 for specified purposes and 1.4.1999 otherwise) by S.I. 1999/671, art. 24(2), Sch. 8 para. 4(2)(a) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(b)(c), Schs. 1, 2 (subject to arts. 3-6)
F46Words in Sch. 1 para. 7A(2) inserted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 36 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
F47Words in Sch. 1 para. 7A(2) substituted (26.3.1999 for specified purposes and 1.4.1999 otherwise) by S.I. 1999/671, art. 24(2), Sch. 8 para. 4(2)(b) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(b)(c), Schs. 1, 2 (subject to arts. 3-6)
F48Words in Sch. 1 para. 7A(3)(b) substituted (26.3.1999 for specified purposes and 1.4.1999 otherwise) by S.I. 1999/671, art. 24(2), Sch. 8 para. 4(3)(a) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(b)(c), Schs. 1, 2 (subject to arts. 3-6)
F49Words in Sch. 1 para. 7A(3)(e) substituted (26.3.1999 for specified purposes and 1.4.1999 otherwise) by S.I. 1999/671, art. 24(2), Sch. 8 para. 4(3)(b) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(b)(c), Schs. 1, 2 (subject to arts. 3-6)
Textual Amendments
F50Sch. 1: cross-heading and para. 7C inserted (prosp.) by S.I. 1998/1506 (N.I. 10), arts. 1(2), 55 (which inserting article was repealed (1.4.1999) by S.I. 1999/671, art. 24(3), Sch. 9 Pt. I (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6))
F517CN.I.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F51Sch. 1 para. 7C repealed (1.4.1999) by S.I. 1999/671, art. 24(2)(3), Sch. 8 para. 6, Sch. 9 Pt. I (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
8(1)[F52The appropriate authority may by regulations] provide—
(a)for requiring persons to maintain, in such form and manner as may be prescribed, records—
(i)of the earnings paid by them to and in respect of earners, and
(ii)of the contributions paid or payable in respect of earnings so paid,
for the purpose of enabling the incidence of liability for contributions of any class to be determined, and to retain the records for so long as may be prescribed;
(b)for requiring persons to maintain, in such form and manner as may be prescribed, records of such matters as may be prescribed for the purpose of enabling the incidence of liability for Class 1A [F53or Class 1B] contributions to be determined, and to retain the records for so long as may be prescribed;
(c)for treating primary Class 1 contributions, when payable on the primary contributor’s behalf by the secondary contributor, but not paid, as actually paid where the failure to pay is shown not to have been with the consent or connivance of, or attributable to any negligence on the part of, the primary contributor and, in the case of contributions so treated, for treating them also as paid at a prescribed time or in respect of a prescribed period;
(d)for treating, for the purpose of any entitlement to benefit, contributions paid at or after any prescribed time as paid at some other time (whether earlier or later) or, in the case of contributions paid after the due date for payment, or at such later date as may be prescribed, as not having been paid;
(e)for enabling contributions to be treated as paid in respect of a tax year earlier or later than that in respect of which they were actually paid;
(f)for treating (for the purposes of Class 2 contributions) a week which falls partly in one, and partly in another, tax year as falling wholly within one or the other of those tax years;
(g)for treating contributions of the wrong class, or at the wrong rate, or of the wrong amount, as paid on account of contributions properly payable (notwithstanding section 14 above, in the case of Class 3 contributions) or as paid (wholly or in part) in discharge of a liability for a [F54contributions equivalent] premium;
(h)for the repayment, in prescribed cases, of the whole or a prescribed part of any contributions paid by reference to earnings which have become repayable;
(i)for the repayment, in prescribed cases, of a prescribed part of any Class 1A contribution as to which the [F55Inland Revenue are] satisfied in the light of information of a kind mentioned in section 10(6)(a), (b) or (c) above that has become available to [F55them], that too much has been paid;
[F56(ia)for the repayment, in prescribed cases, of the whole or a prescribed part of a Class 1B contribution;]
(j)for the repayment, on the making of an application in the prescribed manner and within the prescribed time, of Class 2 contributions paid by a person in respect of a period which consists of, or falls within, a tax year for which his earnings from employment as a self-employed earner were, or were such as to be treated by regulations under subsection (4) of section 11 above as being, at a lower rate than the one specified in that subsection for that year;
(k)for excepting a person from liability for contributions repaid by virtue of paragraph (j) above, to the extent that he would not have been so excepted by virtue of section 11(4) above;
(l)without prejudice to paragraph (g) above, for enabling—
(i)the whole or part of any payment of secondary Class 1 contributions to be treated as a payment of Class 1A contributions [F57or a Class 1B contribution];
(ii)the whole or part of any payment of Class 1A contributions to be treated as a payment of secondary Class 1 contributions [F58, a Class 1B contribution] or Class 2 contributions;
[F59(iia)the whole or part of anypayment of a Class 1Bcontribution to be treated as a payment of secondary Class 1 contributions, Class 1A contributions or Class 2 contributions;]
(iii)the whole or part of any payment of Class 2 contributions to be treated as a payment of secondary Class 1 contributions [F60, Class 1A contributions or a Class 1B contribution];
(m)for the return of the whole or any prescribed part of any contributions paid either in error or in such circumstances that, under any provision of Part I of this Act or of regulations, they fall to be repaid;
(n)for treating a person as being an employed earner, notwithstanding that his employment is outside Northern Ireland;
(o)for treating a person’s employment as continuing during periods of holiday, unemployment or incapacity for work and in such other circumstances as may be prescribed;
F61(p). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(q)for any other matters incidental to the payment, collection or return of contributions.
[F62(1A)In sub-paragraph (1), “the appropriate authority” means the Treasury, except that, in relation to—
(a)provision made by virtue of paragraph (d) of that sub-paragraph, and
(b)provision made by virtue of paragraph (q) of that sub-paragraph in relation to the matters referred to in paragraph (d),
it means the Department.]
(2)Regulations [F63made by the Inland Revenue] under sub-paragraph (1) above providing for the payment of Class 2 or Class 3 contributions (at the option of the persons liable to pay) either—
(a)by means of adhesive stamps; or
(b)by some alternative method, the use of which involves greater expense in administration to the government departments concerned than would be incurred if the contributions were paid by means of such stamps,
may include provision for the [F64payment to the Inland Revenue] by any person who adopts any alternative method, and for the [F64recovery by the Inland Revenue], of the prescribed fees in respect of any difference in the expense in administration.
(3)Where under regulations made by virtue of sub-paragraph (1) above contributions are payable by means of adhesive stamps, the [F65Inland Revenue]—
(a)may, with the consent of the [F66Treasury], arrange for the preparation and sale of those stamps, and
(b)may by regulations provide for applying, with the necessary modifications as respects those stamps, all or any of the provisions of the M7Stamp Duties Management Act 1891, section 9 of the M8Stamp Act 1891 and section 63 of the M9Post Office Act 1953.
Textual Amendments
F52Words in Sch. 1 para. 8(1) substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 38(2) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
F53Words in Sch. 1 para. 8(1)(b) inserted (9.9.1998 for the purpose only of making regulations or orders and for all other purposes on 6.4.1999) by S.I. 1998/1506 (N.I. 10), art. 78(1), Sch. 6 para. 58(14); S.R. 1998/312, art. 2(b), Sch. Pt. II
F54Words in Sch. 1 para. 8(1)(g) substituted (6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 147, Sch. 3 para. 11; S.R. 1997/192, art. 2 (with transitional adaptations, modification and savings in arts. 3-13)
F55Words in Sch. 1 para. 8(1)(i) substituted (24.3.1999 for specified purposes and 1.4.1999 otherwise) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 22(2) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
F56Sch. 1 para. 8(1)(ia) inserted (9.9.1998 for the purpose only of making regulations or orders and for all other purposes on 6.4.1999) by virtue of S.I. 1998/1506 (N.I. 10), art. 78(1), Sch. 6 para. 58(14)(15); S.R. 1998/312, art. 2(b), Sch. Pt. II
F57Words in Sch. 1 para. 8(1)(l)(i) inserted (9.9.1998 for the purpose only of making regulations or orders and for all other purposes on 6.4.1999) by virtue of S.I. 1998/1506 (N.I. 10), art. 78(1), Sch. 6 para. 58(16)(a); S.R. 1998/312, art. 2(b), Sch. Pt. II
F58Words in Sch. 1 para. 8(1)(l)(ii) inserted (9.9.1998 for the purpose only of making regulations or orders and for all other purposes on 6.4.1999) by virtue of S.I. 1998/1506 (N.I. 10), art. 78(1), Sch. 6 para. 58(16)(b); S.R. 1998/312, art. 2(b), Sch. Pt. II
F59Sch. 1 para. 8(1)(l)(iia) inserted (9.9.1998 for the purpose only of making regulations or orders and for all other purposes on 6.4.1999) by virtue of S.I. 1998/1506 (N.I. 10), art. 78(1), Sch. 6 para. 58(16)(c); S.R. 1998/312, art. 2(b), Sch. Pt. II
F60Words in Sch. 1 para. 8(1)(l)(iii) substituted (9.9.1998 for the purpose only of making regulations or orders and for all other purposes on 6.4.1999) by virtue of S.I. 1998/1506 (N.I. 10), art. 78(1), Sch. 6 para. 58(16)(d); S.R. 1998/312, art. 2(b), Sch. Pt. II
F61Sch. 1 para. 8(1)(p) repealed (1.7.1997) by S.I. 1997/1182 (N.I. 11), art. 19(2), Sch. 2; S.R. 1997/316, art. 2, Sch.
F62Sch. 1 para. 8(1A) inserted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 38(3) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
F63Words in Sch. 1 para. 8(2) substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 38(4) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
F64Words in Sch. 1 para. 8(2) substituted (24.3.1999 for specified purposes and 1.4.1999 otherwise) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 22(3) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
F65Words in Sch. 1 para. 8(3) substituted (24.3.1999 for specified purposes and 1.4.1999 otherwise) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 22(4) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
F66Word in Sch. 1 para. 8(3)(a) substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 38(5) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
Marginal Citations
9N.I.[F67The Treasury may by regulations] provide that—
(a)for the purpose of determining whether a contribution is payable in respect of any person, or
(b)for determining the amount or rate of any contribution,
he is to be treated as having attained at the beginning of a week, or as not having attained until the end of a week, any age which he attains during the course of that week.
Textual Amendments
F67Words in Sch. 1 para. 9 substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 39 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
10(1)[F68The Treasury may by regulations] make provision as to the manner in which, and the person through whom, any sickness payment which, by virtue of section 4(1) above, is to be treated as remuneration derived from employed earner’s employment is to be made.N.I.
(2)In any case where regulations made under sub-paragraph (1) above have the effect of requiring a registered friendly society (within the meaning of the [F69Friendly Societies Act 1974]) to make amendments to its rules, the amendments may, notwithstanding any provision of those rules, be made in accordance with the procedure prescribed by regulations made by the [F69Chief Registrar of Friendly Societies] for the purposes of this paragraph.
[F70(3)The power conferred by sub-paragraph (2) above on the Chief Registrar of Friendly Societies to make regulations shall be exercisable by statutory instrument, and—
(a)the Statutory Instruments Act 1946 shall apply to that power as if the Chief Registrar were a Minister of the Crown, and
(b)section 171(3) to (5) above shall apply to those regulations as they apply to regulations made by the Department.]
Textual Amendments
F68Words in Sch. 1 para. 10(1) substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 40 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
F69Words in Sch. 1 para. 10(2) substituted (1.1.1994) by Friendly Societies Act 1992 (c. 40), s. 120(1), Sch. 21 Pt. I para. 19(1)(a)(b); S.I. 1993/3226, art. 2(1), Sch. 2
F70Sch. 1 para. 10(3) substituted (1.1.1994) by Friendly Societies Act 1992 (c. 40), s. 120(1), Sch. 21 Pt. I para. 19(2); S.I. 1993/3226, art. 2(1), Sch. 2
Section 1(4).
1(1)For the purposes of determining whether Class 1 contributions are payable in respect of earnings paid to an earner in a given week and, if so, the amount of the contributions—
(a)all earnings paid to him or for his benefit in that week in respect of one or more employed earner’s employments under the same employer shall, except as may be provided by regulations, be aggregated and treated as a single payment of earnings in respect of one such employment; and
(b)earnings paid to him or for his benefit in that week by different persons in respect of different employed earner’s employments shall in prescribed circumstances be aggregated and treated as a single payment of earnings in respect of one such employment;
and regulations may provide that the provisions of this sub-paragraph shall have effect in cases prescribed by the regulations as if for any reference to a week there were substituted a reference to a period prescribed by the regulations.
(2)Where earnings in respect of employments which include any contracted-out employment and any employment which is not a contracted-out employment are aggregated under sub-paragraph (1) above and the aggregated earnings are not less than the current lower earnings limit, then, except as may be provided by regulations—
(a)the amount of the primary Class 1 contribution in respect of the aggregated earnings shall be determined in accordance with sub-paragraph (3) below; and
(b)the amount of the secondary Class 1 contribution in respect of the aggregated earnings shall be determined in accordance with sub-paragraph (6) below.
[F13(3)The amount of the primary Class 1 contribution shall be the aggregate of the amounts determined under the following paragraphs (applying earlier paragraphs before later ones)—
(a)if the aggregated earnings are paid to or for the benefit of an earner in respect of whom minimum contributions are payable under section 39(1) of the Pensions Act (contributions to personal pension schemes), the amount obtained by applying the rate of primary Class 1 contributions that would apply if all the aggregated earnings were attributable to employments which are not contracted-out to such part of the aggregated earnings so attributable as does not exceed the current upper earnings limit (referred to in this paragraph as “the APPS earnings”);
(b)if some of the aggregated earnings are attributable to COMPS service, the amount obtained by applying the rate of primary Class 1 contributions that would apply if all the aggregated earnings were attributable to COMPS service—
(i)to such part of the aggregated earnings attributable to COMPS service as does not exceed the current upper earnings limit; or
(ii)if paragraph (a) applies, to such part of the earnings attributable to COMPS service as, when added to the APPS earnings, does not exceed the current upper earnings limit;
(c)if some of the aggregated earnings are attributable to COSRS service, the amount obtained by applying the rate of primary Class 1 contributions that would apply if all the aggregated earnings were attributable to COSRS service—
(i)to such part of the aggregated earnings attributable to COSRS service as does not exceed the current upper earnings limit; or
(ii)if paragraph (a) or (b) applies, to such part of the earnings attributable to COSRS service as, when added to the APPS earnings or the part attributable to COMPS service (or both), does not exceed the current upper earnings limit;
(d)the amount obtained by applying the rate of primary Class 1 contributions that would apply if all the aggregated earnings were attributable to employments which are not contracted-out to such part of the aggregated earnings as, when added to the part or parts attributable to COMPS or COSRS service, does not exceed the current upper earnings limit.]
(4)In relation to earners paid otherwise than weekly, any reference in sub-paragraph (2) or (3) above to the lower or upper earnings limit shall be construed as a reference to the prescribed equivalent of that limit.
(5)The power under sub-paragraph (4) above to prescribe an equivalent of a limit includes power to prescribe an amount which exceeds, by not more than £1.00, the amount which is the arithmetical equivalent of that limit.
[F14(6)The amount of the secondary Class 1 contribution shall be the aggregate of the amounts determined under the following paragraphs (applying earlier paragraphs before later ones)—
(a)if the aggregated earnings are paid to or for the benefit of an earner in respect of whom minimum contributions are payable under section 39(1) of the Pensions Act, the amount obtained by applying the rate of secondary Class 1 contributions that would apply if all the aggregated earnings were attributable to employments which are not contracted-out to the APPS earnings;
(b)if some of the aggregated earnings are attributable to COMPS service, the amount obtained by applying the rate of secondary Class 1 contributions that would apply if all the aggregated earnings were attributable to COMPS service to the part of the aggregated earnings attributable to such service;
(c)if some of the aggregated earnings are attributable to COSRS service, the amount obtained by applying the rate of secondary Class 1 contributions that would apply if all the aggregated earnings were attributable to COSRS service to the part of the aggregated earnings attributable to such service;
(d)the amount obtained by applying the rate of secondary Class 1 contributions that would apply if all the aggregated earnings were attributable to employments which are not contracted-out to the remainder of the aggregated earnings.]
(7)Where any single payment of earnings is made in respect of two or more employed earner’s employments under different employers, liability for Class 1 contributions shall be determined by apportioning the payment to such one or more of the employers as may be prescribed, and treating a part apportioned to any employer as a separate payment of earnings by him.
(8)Where earnings are aggregated under sub-paragraph (1)(b) above, liability (if any) for the secondary contribution shall be apportioned, in such manner as may be prescribed, between the secondary contributors concerned.
[F15(8A)Regulations under any provision of this paragraph shall be made by the Inland Revenue.]
[F16(9)In this paragraph—
“COMPS service” means service in employment in respect of which minimum payments are made to a money purchase contracted-out scheme;
“COSRS service” means service in employment which qualifies the earner for a pension provided by a salary related contracted-out scheme.]
Textual Amendments
F13Sch. 1 para. 1(3) substituted (6.4.1996) by S.I. 1995/3213 (N.I. 22), arts. 132, 145(2); S.R. 1996/91, art. 2, Sch. Pt. III
F14Sch. 1 para. 1(6) substituted (6.4.1996) by S.I. 1995/3213 (N.I. 22), arts. 132, 145(3); S.R. 1996/91, art. 2, Sch. Pt. III
F15Sch. 1 para. 1(8A) inserted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 30 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
F16Sch. 1 para. 1(9) added (6.4.1996) by S.I. 1995/3213 (N.I. 22), arts. 132, 145(4); S.R. 1996/91, art. 2, Sch. Pt. III
2N.I.Regulations [F17made by the Inland Revenue] may, for the purposes of Class 1 contributions, make provision as to the intervals at which payments of earnings are to be treated as made.
Textual Amendments
F17Words in Sch. 1 para. 2 inserted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 31 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
3(1)Where earnings are paid to an employed earner and in respect of that payment liability arises for primary and secondary Class 1 contributions, the secondary contributor shall (except in prescribed circumstances), as well as being liable for his own secondary contribution, be liable in the first instance to pay also the earner’s primary contribution, on behalf of and to the exclusion of the earner; and for the purposes of this Act and the Administration Act contributions paid by the secondary contributor on behalf of the earner shall be taken to be contributions paid by the earner.
(2)Notwithstanding any contract to the contrary, no secondary contributor shall be entitled—
(a)to make, from earnings paid by him, any deduction in respect of his own or any other person’s secondary Class 1 contributions, or
(b)otherwise to recover such contributions from any earner to whom he pays earnings.
(3)A secondary contributor shall be entitled, subject to and in accordance with regulations, to recover from an earner the amount of any primary Class 1 contribution paid or to be paid by him on behalf of the earner; [F18and, subject to sub-paragraph (4) below but notwithstanding any other provision in any enactment], regulations under this sub-paragraph shall provide for recovery to be made by deduction from the earner’s earnings, and for it not to be made in any other way.
[F19(4)Sub-paragraph (5) below applies in a case where—
(a)a person (“the employee”) ceases in a particular tax year (“the cessation year”) to be employed by a particular employer (“the employer”); and
(b)the employee receives from the employer in the cessation year, after the cessation of the employment, earnings in a form other than money (“non-monetary earnings”).
(5)If and to the extent that regulations so provide, the employer may recover from the employee in such manner as may be prescribed any primary Class 1 contributions paid or to be paid by him on the employee’s behalf in respect of—
(a)the non-monetary earnings mentioned in sub-paragraph (4) above; or
(b)any non-monetary earnings received by the employee from the employer in the cessation year before the cessation of the employment,
which he was unable to recover by deduction from the employee’s earnings.]
[F20(6)Regulations under any provision of this paragraph shall be made by the Inland Revenue.]
Textual Amendments
F18Words in Sch. 1 para. 3(3) substituted (9.9.1998) by S.I. 1998/1506 (N.I. 10), art. 52(a); S.R. 1998/312, art. 2(a), Sch. Pt. I
F19Sch. 1 para. 3(4)(5) added (9.9.1998) by S.I. 1998/1506 (N.I. 10), art. 52(b); S.R. 1998/312, art. 2(a), Sch. Pt. I
F20Sch. 1 para. 3(6) added (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 32 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
4N.I.Regulations [F21made by the Inland Revenue] may, in relation to Class 1 contributions, make provision—
(a)for calculating the amounts payable according to a scale prepared from time to time by the [F22Inland Revenue] or otherwise adjusting them so as to avoid fractional amounts or otherwise facilitate computation;
(b)for requiring that the liability in respect of a payment made in a tax week, in so far as the liability depends on any conditions as to a person’s age or retirement, shall be determined as at the beginning of the week or as at the end of it;
(c)for securing that liability is not avoided or reduced by a person following in the payment of earnings any practice which is abnormal for the employment in respect of which the earnings are paid; and
(d)without prejudice to sub-paragraph (c) above, for enabling the [F22Inland Revenue], where [F22they are] satisfied as to the existence of any practice in respect of the payment of earnings whereby the incidence of Class 1 contributions is avoided or reduced by means of irregular or unequal payments, to give directions for securing that such contributions are payable as if that practice were not followed.
Textual Amendments
F21Words in Sch. 1 para. 4 inserted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 33 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
F22Words in Sch. 1 para. 4 substituted (24.3.1999 for specified purposes and 1.4.1999 otherwise) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 19 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
Textual Amendments
F23Cross-heading substituted (9.9.1998) by S.I. 1998/1506 (N.I. 10), arts. 1(2), 78(1), Sch. 6 para. 58(6); S.R. 1998/312, art. 2(a), Sch. Pt. I
[F245Regulations [F25made by the Inland Revenue] may—
(a)make provision for calculating the amount of Class 1A contributions so as to avoid fractional amounts;
(b)modify section 10 above in relation to cases where a car is made available by reason of two or more employed earner’s employments under different employers.]
Textual Amendments
F24Sch. 1 para. 5 substituted (9.9.1998) by S.I. 1998/1506 (N.I. 10), arts. 1(2), 78(1), Sch. 6 para. 58(6); S.R. 1998/312, art. 2(a), Sch. Pt. I
F25Words in Sch. 1 para. 5 inserted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 33 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
Textual Amendments
F71Cross-heading inserted (9.9.1998 for the purpose only of making regulations or orders and for all other purposes on 6.4.1999) by S.I. 1998/1506 (N.I. 10), art. 78(1), Sch. 6 para. 58(7); S.R. 1998/312, art. 2(b), Sch. Pt. II
F725AN.I.Regulations [F73made by the Inland Revenue] may make provision for calculating the amount of Class 1B contributions so as to avoid fractional amounts.]
Textual Amendments
F72Sch. 1 para. 5A inserted (9.9.1998 for the purpose only of making regulations or orders and for all other purposes on 6.4.1999) by S.I. 1998/1506 (N.I. 10), art. 78(1), Sch. 6 para. 58(7); S.R. 1998/312, art. 2(b), Sch. Pt. II
F73Words in Sch. 1 para. 5A inserted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 33 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
6(1)Regulations made [F26by] the Inland Revenue may—
[F27(a)provide for Class 1, Class 1A, Class 1B or Class 2 contributions to be paid, accounted for and recovered in a similar manner to income tax in relation to which regulations under section 203 of the Income and Corporation Taxes Act 1988 (PAYE) have effect;]
(b)apply or extend with or without modification in relation to such contributions any of the provisions of the Income Tax Acts or of regulations under that section;
(c)make provision for the appropriation of the payments made by any person between his liabilities in respect of income tax and contributions.
(2)Without prejudice to the generality of sub-paragraph (1) above, the provision that may be made by virtue of paragraph (a) of that sub-paragraph includes in relation to Class 1 [F28, Class 1A or Class 1B]contributions—
(a)provision for requiring the payment of interest on sums due in respect of Class 1 or Class 1A contributions which are not paid by the due date, for determining the date (being, in the case of Class 1 contributions, not less than 14 days after the end of the tax year in respect of which the sums are due) from which such interest is to be calculated and for enabling the repayment or remission of such interest;
(b)provision for requiring the payment of interest on sums due in respect of Class 1 or Class 1A contributions which fall to be repaid and for determining the date F29. . . from which such interest is to be calculated;
(c)provision for, or in connection with, the imposition and recovery of penalties in relation to any returns required to be made which relate to Class 1 or Class 1A contributions, but subject to sub-paragraph (7) and paragraph 7 below;
and any reference to contributions or income tax in paragraph (b) or (c) of sub-paragraph (1) above shall be construed as including a reference to any interest or penalty in respect of contributions or income tax, as the case may be.
(3)The rate of interest applicable for any purpose of this paragraph shall be—
(a)the rate from time to time prescribed for that purpose under section 178 of the M1Finance Act 1989 for the purpose of any enactment (whether or not extending to Northern Ireland) if prescribed by regulations made by virtue of this paragraph; or
(b)such other rate as may be prescribed by such regulations.
[F30(4)Where—
(a)a decision relating to contributions falls to be made under or by virtue of Article 7, 9 or 10 of the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999; and
(b)the decision will affect a person’s liability for, or the amount of, any interest due in respect of those contributions, regulations under sub-paragraph (1) above shall not require any such interest to be paid until the decision has been made.]
[F31(4A)Regulations under [F32sub-paragraph (1) above] shall not require the payment of interest on a sum due in respect of a Class 1B contribution if a relevant tax appeal has been brought but not finally determined; and “a relevant tax appeal” means an appeal against a determination as to the amount of income tax in respect of which the person liable to pay the Class 1B contribution is accountable in accordance with the relevant PAYE settlement agreement.]
(5)[F33The Secretary of State may by regulations made with the concurrence of the Inland Revenue] make such provision as [F33he] considers expedient in consequence of any provision made by or under [F34section 155A] or 163 above.
(6)[F35Provision made in regulations under sub-paragraph (5) above may] in particular require the inclusion—
(a)in returns, certificates and other documents; or
(b)in any other form of record;
which the regulations require to be kept or produced or to which those regulations otherwise apply, of such particulars relating to statutory sick pay, statutory maternity pay or deductions or payments made by virtue of section 163(1) above as may be prescribed by those regulations.
(7)Section 98 of the M2Taxes Management Act 1970 shall apply in relation to regulations made [F36under sub-paragraph (1) or (5)] as it applies in relation to regulations made under section 203 of the M3Income and Corporation Taxes Act 1988 (PAYE).
F37(8). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F26Word in Sch. 1 para. 6(1) substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 34(2) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
F27Sch. 1 para. 6(1)(a) substituted (9.9.1998 for the purpose only of making regulations or orders and 6.4.1999 otherwise) by S.I. 1998/1506 (N.I. 10), art. 78(1), Sch. 6 para. 58(8); S.R. 1998/312, art. 2(b), Sch. Pt. II
F28Words in Sch. 1 para. 6(2) substituted (9.9.1998 for the purpose only of making regulations or orders and 6.4.1999 otherwise) by S.I. 1998/1506 (N.I. 10), art. 78(1), Sch. 6 para. 58(9)(a); S.R. 1998/312, art. 2(b), Sch. Pt. II
F29Words in Sch. 1 para. 6(2)(b) ceased to have effect (9.9.1998 for the purpose only of making regulations or orders and 6.4.1999 otherwise) and repealed (6.4.1999) by virtue of S.I. 1998/1506 (N.I. 10), art. 78(1)(2), Sch. 6 para. 58(9)(b), Sch. 7; S.R. 1998/312, art. 2(b)(d), Sch. Pts. II, III
F30Sch. 1 para. 6(4) substituted (26.3.1999 for specified purposes and 6.4.1999 otherwise) by S.I. 1999/671, art. 17, Sch. 6 para. 7 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(b)(d), Schs. 1, 3 (subject to arts. 3-6)
F31Sch. 1 para. 6(4A) inserted (9.9.1998 for the purpose only of making regulations or orders and 6.4.1999 otherwise) by S.I. 1998/1506 (N.I. 10), art. 78(1), Sch. 6 para. 58(11); S.R. 1998/312, art. 2(b), Sch. Pt. II
F32Words in Sch. 1 para. 6(4A) substituted (1.4.1999) by S.I. 1999/671, art. 24(2), Sch. 8 para. 3 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
F33Words in Sch. 1 para. 6(5) substituted (24.3.1999 for specified purposes and 1.4.1999 otherwise) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 20(a) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
F34Words in Sch. 1 para. 6(5) substituted (6.4.1995) by S.R. 1995/69, art. 6(1)(b)
F35Words in Sch. 1 para. 6(6) substituted (24.3.1999 for specified purposes and 1.4.1999 otherwise) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 20(b) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
F36Words in Sch. 1 para. 6(7) substituted (24.3.1999 for specified purposes and 1.4.1999 otherwise) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 20(c) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
F37Sch. 1 para. 6(8) repealed (1.4.1999) by S.I. 1999/671, arts. 4, 24(3), Sch. 3 para. 34(2), Sch. 9 Pt. I (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
Modifications etc. (not altering text)
C1Sch. 1 para. 6(3)(a) applied (19.4.1993) by S.R. 1979/186, regs. 28A(1), 28B(1) (as inserted (19.4.1993) by S.R. 1993/130, reg. 2)
Marginal Citations
7(1)This paragraph applies where regulations under [F38sub-paragraph (1) of paragraph 6] above make provision requiring any return which is to be made in accordance with a specified provision of regulations under [F38that sub-paragraph] (the “contributions return”) to be made—
(a)at the same time as any specified return required to be made in accordance with a provision of regulations made by the Inland Revenue under section 203(2) (PAYE) or 566(1) (sub-contractors) of the M4Income and Corporation Taxes Act 1988 to which section 98A of the M5Taxes Management Act 1970 applies (the “tax return”); or
(b)if the circumstances are such that the return mentioned in paragraph (a) above does not fall to be made, at a time defined by reference to the time for making that return, had it fallen to be made;
and, in a case falling within paragraph (b) above, any reference in the following provisions of this paragraph to the tax return shall be construed as a reference to the return there mentioned.
(2)Where this paragraph applies, regulations under [F39paragraph 6(1)] above may provide that section 98A of the M6Taxes Management Act 1970 (penalties for late, fraudulent or negligent returns) shall apply in relation to any specified provision of regulations in accordance with which the contributions return is required to be made; and where they so provide then, subject to the following provisions of this paragraph—
(a)that section shall apply in relation to the contributions return as it applies in relation to the tax return; and
(b)sections 100 to 100D and 102 to 104 of that Act shall apply in relation to a penalty under section 98A of that Act to which a person is liable by virtue of this sub-paragraph as they apply in relation to any other penalty under that section.
(3)Where a person is liable to a penalty under paragraph (a) of subsection (2) of section 98A of that Act (first 12 months’ default) in consequence of a failure in respect of a tax return, he shall not also be liable to a penalty under that paragraph in respect of any failure in respect of the associated contributions return.
(4)In any case where—
(a)a person is liable to a penalty under subsection (2)(b) or (4) of that section (tax-related penalties) in respect of both a tax return and its associated contributions return, and
(b)an officer of the Inland Revenue authorised for the purposes of section 100 of that Act has determined that a penalty is to be imposed under that provision in respect of both returns,
the penalty so imposed shall be a single penalty of an amount not exceeding the limit determined under sub-paragraph (5) below.
(5)The limit mentioned in sub-paragraph (4) above is an amount equal to the sum of—
(a)the maximum penalty that would have been applicable under subsection (2)(b) or (4) of section 98A of that Act (as the case may be) for a penalty in relation to the tax return only; and
(b)the maximum penalty that would have been so applicable in relation to the associated contributions return only.
(6)So much of any single penalty imposed by virtue of sub-paragraph (4) above as is recovered by the Inland Revenue shall, after the deduction of any administrative costs of the Inland Revenue attributable to its recovery, [F40for the purposes of making any payment into the National Insurance Fund be apportioned between income tax and contributions] in the ratio T:C, where—
T is the maximum penalty that could have been imposed under the provision in question in relation to the tax return only; and
C is the maximum penalty that could have been so imposed in relation to the associated contributions return only.
F41(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(8)[F42Sub-paragraph (6)] above shall have effect notwithstanding any provision which treats a penalty under section 98A of that Act as if it were tax charged in an assessment and due and payable.
(9)In the application of section 98A of that Act by virtue of this paragraph, any reference to a year of assessment shall be construed, in relation to a contributions return, as a reference to the tax year corresponding to that year of assessment.
(10)In the application of section 100D of that Act (court proceedings for penalties in cases of fraud) by virtue of this paragraph—
(a)subsection (2) shall have effect with the omission of the words “England, Wales or” and paragraphs (a) and (b); and
(b)subsection (3) shall have effect with the omission of the words from “instituted in England and Wales” to “and any such proceedings” and the substitution for “that Part of that Act” of “ Part II of the Crown Proceedings Act 1947 ”.
(11)In the application of section 103 of that Act (time limit for recovery) by virtue of this paragraph—
(a)any reference in subsection (1) to tax shall be taken to include a reference to Class 1 and Class 1A contributions;
(b)any penalty by virtue of sub-paragraph (4) above shall be regarded as a penalty in respect of the tax return in question; and
(c)where, by virtue of subsection (2) (death), subsection (1)(b) does not apply in relation to a penalty under section 98A(2)(b) or (4) of that Act in respect of a tax return, it shall also not apply in relation to a penalty so imposed in respect of the associated contributions return.
[F43(12)A penalty under section 98A of that Act as it applies by virtue of this paragraph shall not be imposed where—
(a)a decision relating to contributions falls to be made under or by virtue of Article 7, 9 or 10 of the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999, and has not yet been made; and
(b)the decision will affect a person’s liability for the penalty, or the amount of it.]
(13)For the purposes of this paragraph—
(a)“contributions return” and “tax return” shall be construed in accordance with sub-paragraph (1) above; and
(b)a contributions return and a tax return are “associated” if the contributions return is required to be made—
(i)at the same time as the tax return, or
(ii)where sub-paragraph (1)(b) above applies, at a time defined by reference to the time for making the tax return.
Textual Amendments
F38Words in Sch. 1 para. 7(1) substituted (24.3.1999 for specified purposes and 1.4.1999 otherwise) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 21(2) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
F39Words in Sch. 1 para. 7(2) substituted (24.3.1999 for specified purposes and 1.4.1999 otherwise) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 21(3) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
F40Words in Sch. 1 para. 7(6) substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 35(2) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
F41Sch. 1 para. 7(7) repealed (1.4.1999) by S.I. 1999/671, arts. 4, 24(3), Sch. 3 para. 35(3), Sch. 9 Pt. I (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
F42Words in Sch. 1 para. 7(8) substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 35(4) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
F43Sch. 1 para. 7(12) substituted (26.3.1999 for specified purposes and 6.4.1999 otherwise) by S.I. 1999/671, art. 17, Sch. 6 para. 8 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(b)(d), Schs. 1, 3 (subject to arts. 3-6)
Marginal Citations
[F447A(1)This paragraph applies where paragraph 7 above applies; and in this paragraph “contributions return” has the same meaning as in that paragraph.N.I.
(2)Without prejudice to paragraph 7(2) above or to the [F45other] powers of the Inland Revenue to penalise omissions or errors in returns, regulations [F46made by the Treasury] may provide for the [F47Inland Revenue] to impose penalties in respect of a person who, in making a contributions return, fraudulently or negligently—
(a)fails to provide any information or computation that he is required to provide; or
(b)provides any such information or computation that is incorrect.
(3)Regulations under sub-paragraph (2) above shall—
(a)prescribe the rates of penalty, or provide for how they are to be ascertained;
(b)provide for the penalty to be imposed by the [F48Inland Revenue] within 6 years after the date on which the penalty is incurred;
(c)provide for determining the date on which, for the purposes of paragraph (b) above, the penalty is incurred;
(d)prescribe the means by which the penalty is to be enforced; and
(e)provide for enabling the [F49Inland Revenue, in their] discretion, to mitigate or to remit the penalty, or to stay or to compound any proceedings for it.]
Textual Amendments
F44Sch. 1 para. 7A inserted (10.3.1999 for specified purposes and 6.4.1999 otherwise) by S.I. 1998/1506 (N.I. 10), art. 53(2); S.R. 1999/102, art. 2(b), Sch. Pt. II
F45Word in Sch. 1 para. 7A(2) inserted (26.3.1999 for specified purposes and 1.4.1999 otherwise) by S.I. 1999/671, art. 24(2), Sch. 8 para. 4(2)(a) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(b)(c), Schs. 1, 2 (subject to arts. 3-6)
F46Words in Sch. 1 para. 7A(2) inserted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 36 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
F47Words in Sch. 1 para. 7A(2) substituted (26.3.1999 for specified purposes and 1.4.1999 otherwise) by S.I. 1999/671, art. 24(2), Sch. 8 para. 4(2)(b) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(b)(c), Schs. 1, 2 (subject to arts. 3-6)
F48Words in Sch. 1 para. 7A(3)(b) substituted (26.3.1999 for specified purposes and 1.4.1999 otherwise) by S.I. 1999/671, art. 24(2), Sch. 8 para. 4(3)(a) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(b)(c), Schs. 1, 2 (subject to arts. 3-6)
F49Words in Sch. 1 para. 7A(3)(e) substituted (26.3.1999 for specified purposes and 1.4.1999 otherwise) by S.I. 1999/671, art. 24(2), Sch. 8 para. 4(3)(b) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(b)(c), Schs. 1, 2 (subject to arts. 3-6)
Textual Amendments
F50Sch. 1: cross-heading and para. 7C inserted (prosp.) by S.I. 1998/1506 (N.I. 10), arts. 1(2), 55 (which inserting article was repealed (1.4.1999) by S.I. 1999/671, art. 24(3), Sch. 9 Pt. I (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6))
F517CN.I.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F51Sch. 1 para. 7C repealed (1.4.1999) by S.I. 1999/671, art. 24(2)(3), Sch. 8 para. 6, Sch. 9 Pt. I (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
8(1)[F52The appropriate authority may by regulations] provide—
(a)for requiring persons to maintain, in such form and manner as may be prescribed, records—
(i)of the earnings paid by them to and in respect of earners, and
(ii)of the contributions paid or payable in respect of earnings so paid,
for the purpose of enabling the incidence of liability for contributions of any class to be determined, and to retain the records for so long as may be prescribed;
(b)for requiring persons to maintain, in such form and manner as may be prescribed, records of such matters as may be prescribed for the purpose of enabling the incidence of liability for Class 1A [F53or Class 1B] contributions to be determined, and to retain the records for so long as may be prescribed;
(c)for treating primary Class 1 contributions, when payable on the primary contributor’s behalf by the secondary contributor, but not paid, as actually paid where the failure to pay is shown not to have been with the consent or connivance of, or attributable to any negligence on the part of, the primary contributor and, in the case of contributions so treated, for treating them also as paid at a prescribed time or in respect of a prescribed period;
(d)for treating, for the purpose of any entitlement to benefit, contributions paid at or after any prescribed time as paid at some other time (whether earlier or later) or, in the case of contributions paid after the due date for payment, or at such later date as may be prescribed, as not having been paid;
(e)for enabling contributions to be treated as paid in respect of a tax year earlier or later than that in respect of which they were actually paid;
(f)for treating (for the purposes of Class 2 contributions) a week which falls partly in one, and partly in another, tax year as falling wholly within one or the other of those tax years;
(g)for treating contributions of the wrong class, or at the wrong rate, or of the wrong amount, as paid on account of contributions properly payable (notwithstanding section 14 above, in the case of Class 3 contributions) or as paid (wholly or in part) in discharge of a liability for a [F54contributions equivalent] premium;
(h)for the repayment, in prescribed cases, of the whole or a prescribed part of any contributions paid by reference to earnings which have become repayable;
(i)for the repayment, in prescribed cases, of a prescribed part of any Class 1A contribution as to which the [F55Inland Revenue are] satisfied in the light of information of a kind mentioned in section 10(6)(a), (b) or (c) above that has become available to [F55them], that too much has been paid;
[F56(ia)for the repayment, in prescribed cases, of the whole or a prescribed part of a Class 1B contribution;]
(j)for the repayment, on the making of an application in the prescribed manner and within the prescribed time, of Class 2 contributions paid by a person in respect of a period which consists of, or falls within, a tax year for which his earnings from employment as a self-employed earner were, or were such as to be treated by regulations under subsection (4) of section 11 above as being, at a lower rate than the one specified in that subsection for that year;
(k)for excepting a person from liability for contributions repaid by virtue of paragraph (j) above, to the extent that he would not have been so excepted by virtue of section 11(4) above;
(l)without prejudice to paragraph (g) above, for enabling—
(i)the whole or part of any payment of secondary Class 1 contributions to be treated as a payment of Class 1A contributions [F57or a Class 1B contribution];
(ii)the whole or part of any payment of Class 1A contributions to be treated as a payment of secondary Class 1 contributions [F58, a Class 1B contribution] or Class 2 contributions;
[F59(iia)the whole or part of anypayment of a Class 1Bcontribution to be treated as a payment of secondary Class 1 contributions, Class 1A contributions or Class 2 contributions;]
(iii)the whole or part of any payment of Class 2 contributions to be treated as a payment of secondary Class 1 contributions [F60, Class 1A contributions or a Class 1B contribution];
(m)for the return of the whole or any prescribed part of any contributions paid either in error or in such circumstances that, under any provision of Part I of this Act or of regulations, they fall to be repaid;
(n)for treating a person as being an employed earner, notwithstanding that his employment is outside Northern Ireland;
(o)for treating a person’s employment as continuing during periods of holiday, unemployment or incapacity for work and in such other circumstances as may be prescribed;
F61(p). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(q)for any other matters incidental to the payment, collection or return of contributions.
[F62(1A)In sub-paragraph (1), “the appropriate authority” means the Treasury, except that, in relation to—
(a)provision made by virtue of paragraph (d) of that sub-paragraph, and
(b)provision made by virtue of paragraph (q) of that sub-paragraph in relation to the matters referred to in paragraph (d),
it means the Department.]
(2)Regulations [F63made by the Inland Revenue] under sub-paragraph (1) above providing for the payment of Class 2 or Class 3 contributions (at the option of the persons liable to pay) either—
(a)by means of adhesive stamps; or
(b)by some alternative method, the use of which involves greater expense in administration to the government departments concerned than would be incurred if the contributions were paid by means of such stamps,
may include provision for the [F64payment to the Inland Revenue] by any person who adopts any alternative method, and for the [F64recovery by the Inland Revenue], of the prescribed fees in respect of any difference in the expense in administration.
(3)Where under regulations made by virtue of sub-paragraph (1) above contributions are payable by means of adhesive stamps, the [F65Inland Revenue]—
(a)may, with the consent of the [F66Treasury], arrange for the preparation and sale of those stamps, and
(b)may by regulations provide for applying, with the necessary modifications as respects those stamps, all or any of the provisions of the M7Stamp Duties Management Act 1891, section 9 of the M8Stamp Act 1891 and section 63 of the M9Post Office Act 1953.
Textual Amendments
F52Words in Sch. 1 para. 8(1) substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 38(2) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
F53Words in Sch. 1 para. 8(1)(b) inserted (9.9.1998 for the purpose only of making regulations or orders and for all other purposes on 6.4.1999) by S.I. 1998/1506 (N.I. 10), art. 78(1), Sch. 6 para. 58(14); S.R. 1998/312, art. 2(b), Sch. Pt. II
F54Words in Sch. 1 para. 8(1)(g) substituted (6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 147, Sch. 3 para. 11; S.R. 1997/192, art. 2 (with transitional adaptations, modification and savings in arts. 3-13)
F55Words in Sch. 1 para. 8(1)(i) substituted (24.3.1999 for specified purposes and 1.4.1999 otherwise) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 22(2) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
F56Sch. 1 para. 8(1)(ia) inserted (9.9.1998 for the purpose only of making regulations or orders and for all other purposes on 6.4.1999) by virtue of S.I. 1998/1506 (N.I. 10), art. 78(1), Sch. 6 para. 58(14)(15); S.R. 1998/312, art. 2(b), Sch. Pt. II
F57Words in Sch. 1 para. 8(1)(l)(i) inserted (9.9.1998 for the purpose only of making regulations or orders and for all other purposes on 6.4.1999) by virtue of S.I. 1998/1506 (N.I. 10), art. 78(1), Sch. 6 para. 58(16)(a); S.R. 1998/312, art. 2(b), Sch. Pt. II
F58Words in Sch. 1 para. 8(1)(l)(ii) inserted (9.9.1998 for the purpose only of making regulations or orders and for all other purposes on 6.4.1999) by virtue of S.I. 1998/1506 (N.I. 10), art. 78(1), Sch. 6 para. 58(16)(b); S.R. 1998/312, art. 2(b), Sch. Pt. II
F59Sch. 1 para. 8(1)(l)(iia) inserted (9.9.1998 for the purpose only of making regulations or orders and for all other purposes on 6.4.1999) by virtue of S.I. 1998/1506 (N.I. 10), art. 78(1), Sch. 6 para. 58(16)(c); S.R. 1998/312, art. 2(b), Sch. Pt. II
F60Words in Sch. 1 para. 8(1)(l)(iii) substituted (9.9.1998 for the purpose only of making regulations or orders and for all other purposes on 6.4.1999) by virtue of S.I. 1998/1506 (N.I. 10), art. 78(1), Sch. 6 para. 58(16)(d); S.R. 1998/312, art. 2(b), Sch. Pt. II
F61Sch. 1 para. 8(1)(p) repealed (1.7.1997) by S.I. 1997/1182 (N.I. 11), art. 19(2), Sch. 2; S.R. 1997/316, art. 2, Sch.
F62Sch. 1 para. 8(1A) inserted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 38(3) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
F63Words in Sch. 1 para. 8(2) substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 38(4) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
F64Words in Sch. 1 para. 8(2) substituted (24.3.1999 for specified purposes and 1.4.1999 otherwise) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 22(3) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
F65Words in Sch. 1 para. 8(3) substituted (24.3.1999 for specified purposes and 1.4.1999 otherwise) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 22(4) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
F66Word in Sch. 1 para. 8(3)(a) substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 38(5) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
Marginal Citations
9N.I.[F67The Treasury may by regulations] provide that—
(a)for the purpose of determining whether a contribution is payable in respect of any person, or
(b)for determining the amount or rate of any contribution,
he is to be treated as having attained at the beginning of a week, or as not having attained until the end of a week, any age which he attains during the course of that week.
Textual Amendments
F67Words in Sch. 1 para. 9 substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 39 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
10(1)[F68The Treasury may by regulations] make provision as to the manner in which, and the person through whom, any sickness payment which, by virtue of section 4(1) above, is to be treated as remuneration derived from employed earner’s employment is to be made.N.I.
(2)In any case where regulations made under sub-paragraph (1) above have the effect of requiring a registered friendly society (within the meaning of the [F69Friendly Societies Act 1974]) to make amendments to its rules, the amendments may, notwithstanding any provision of those rules, be made in accordance with the procedure prescribed by regulations made by the [F69Chief Registrar of Friendly Societies] for the purposes of this paragraph.
[F70(3)The power conferred by sub-paragraph (2) above on the Chief Registrar of Friendly Societies to make regulations shall be exercisable by statutory instrument, and—
(a)the Statutory Instruments Act 1946 shall apply to that power as if the Chief Registrar were a Minister of the Crown, and
(b)section 171(3) to (5) above shall apply to those regulations as they apply to regulations made by the Department.]
Textual Amendments
F68Words in Sch. 1 para. 10(1) substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 40 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)
F69Words in Sch. 1 para. 10(2) substituted (1.1.1994) by Friendly Societies Act 1992 (c. 40), s. 120(1), Sch. 21 Pt. I para. 19(1)(a)(b); S.I. 1993/3226, art. 2(1), Sch. 2
F70Sch. 1 para. 10(3) substituted (1.1.1994) by Friendly Societies Act 1992 (c. 40), s. 120(1), Sch. 21 Pt. I para. 19(2); S.I. 1993/3226, art. 2(1), Sch. 2