2015 No. 521
Social Security

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

Made
Laid before Parliament
Coming into force
The Commissioners for Her Majesty’s Revenue and Customs make the following Regulations in exercise of the powers conferred by section 175(4) of, and paragraph 6(1) and (2) of Schedule 1 to, the Social Security Contributions and Benefits Act 19921; section 171(4) of, and paragraph 6(1) and (2) of Schedule 1 to, the Social Security Contributions and Benefits (Northern Ireland) Act 19922 and now exercisable by them3; sections 13 and 25(5) of the Social Security Contributions (Transfer of Functions, etc.) Act 19994; and Articles 12 and 23(7) of the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 19995 and now exercisable by them6.

The Lord Chancellor concurs in the making of these Regulations in relation to the exercise of the powers in section 13 of the Social Security Contributions (Transfer of Functions, etc.) Act 1999 and Article 12 of the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999.

The Scottish Ministers7 concur in the making of these Regulations in relation to the exercise of the powers in section 13 of the Social Security Contributions (Transfer of Functions, etc.) Act 1999.

Citation and commencement1.

These Regulations may be cited as the Social Security Contributions (Amendments in Consequence of Part 4 of the Finance Act 2014) Regulations 2015 and come into force on 12th April 2015.

Amendment of the Social Security Contributions (Decisions and Appeals) Regulations 19992.

After regulation 12(2) of the Social Security Contributions (Decisions and Appeals) Regulations 19998 (appeals from the tribunal), insert—

“(3)

The reference to section 56 of the Taxes Management Act 19709 in this regulation includes a reference to that section as amended by section 225(1) of the Finance Act 201410 (protection of the revenue pending further appeals).”.

Amendment of the Social Security (Contributions) Regulations 20013.

After regulation 1(3) of the Social Security (Contributions) Regulations 200111(interpretation), insert—

“(3A)

In these Regulations, references to—

(a)

Schedule 24 to the Finance Act 200712 (penalties for errors); and

(b)

Schedule 55 to the Finance Act 200913 (penalties for failure to make a return)

include references to these Schedules as amended by paragraphs 3 and 5 of Schedule 33 to the Finance Act 2014 (Part 4: Consequential Amendments).”.

Nick Lodge
Jennie Granger
Two of the Commissioners for Her Majesty’s Revenue and Customs

The Lord Chancellor and the Scottish Ministers concur in the making of these Regulations as indicated in the preamble.

Signed by the authority of the Lord Chancellor

Shailesh Vara
Parliamentary Under Secretary of State
Ministry of Justice
John Swinney
Authorised to sign by the Scottish Ministers
EXPLANATORY NOTE
(This note is not part of the Regulations)

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

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

Parts 1 and 3 of Schedule 2 to the National Insurance Contributions Act 2015 (c. 5) apply Part 4 of FA 2014 to National Insurance contributions (“NICs”)14.

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

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

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