8(1)Section 98A of the Taxes Management Act 1970 is amended as follows.U.K.
(2)In subsection (1) (regulations which may provide for section 98A to apply) for “section 566 (1) (sub-contractors) of the principal Act” substitute “ section 70(1)(a) or 71 of the Finance Act 2004 (sub-contractors) ”.
(3)In subsection (2)(b) (penalty for failure to make return continuing beyond 12 months)—
(a)after “not exceeding” insert—
“(i)in the case of a provision of PAYE regulations,”, and
(b)at the end insert “, or
(ii)in the case of a provision of regulations under section 70(1)(a) or 71 of the Finance Act 2004, £3,000.”.
(4)In subsection (4)(a) (penalty for fraudulently or negligently making incorrect return) after “year of assessment” insert “ (in the case of a provision of PAYE regulations) or period (in the case of a provision of regulations under section 70(1)(a) or 71 of the Finance Act 2004) ”.