National Insurance Act 1965

95 Recovery of contributions on prosecutions under Act.

(1) In any case where an employer or an insured person has been convicted of the offence under section 8(2) of this Act of failing to pay a contribution at or within the time prescribed for the purpose and the contribution remains unpaid at the date of the conviction, he shall be liable to pay to the National Insurance Fund a sum equal to the amount which he failed to pay.

(2) In any case where—

(a) an employer or an insured person is convicted of an offence under section 93(1)(b) of this Act, or of an offence under section 13 of the [1891 c. 38.] Stamp Duties Management Act 1891 as applied by regulations made under section 14(2)(b) of this Act, or of an offence under regulations made under this Act; and

(b) the evidence on which he is convicted shows that he, for the purpose of paying any contribution which he was liable or entitled to pay, has affixed to any insurance card any used insurance stamp within the meaning of the said section 93 ; and

(c) the contribution in respect of which the stamp was affixed remains unpaid at the date of the conviction,

he shall be. liable to pay to the National Insurance Fund a sum equal to the amount of that contribution.

(3) On any such conviction as is mentioned in subsection (1) or (2) of this section, if notice of intention to do so has been served with the summons or warrant, evidence may be given—

(a) in the case of an employer—

(i) of the failure on his part to pay at or within the time prescribed for the purpose on behalf or in respect of the same person other contributions under this Act during the two years preceding the date of the offence, or contributions under the Industrial Injuries Act on that date or during those two years; and

(ii) in the case of any such conviction as is mentioned in the said subsection (1), of the failure on his part so to pay on behalf or in respect of any other person employed by him any contributions under this Act or under the Industrial Injuries Act on that date or during those two years; and

(b) in the case of an insured person (other than an employed person), of the failure on his part so to pay other contributions as such an insured person during those two years;

and on proof of such failure the employer or the insured person shall be liable to pay to the National Insurance Fund or, as the case may require, the Industrial Injuries Fund or each such Fund, a sum equal to the total of all the contributions under this Act or, as the case may be, the Industrial Injuries Act which he is so proved to have failed to pay and which remain unpaid at the date of the conviction.

(4) Where in England or Wales an employer or an insured person charged with such an offence as is mentioned in subsection (1) or (2) of this section is convicted of that offence in his absence under section 1(2) of the [1957 c. 29.] Magistrates' Courts Act 1957, then if—

(a) it is proved to the satisfaction of the court, on oath or in the prescribed manner, that such a notice as is mentioned in subsection (3) of this section has been duly served specifying the other contributions in respect of which the prosecutor intends to give evidence; and

(b) the clerk of the court has received a statement in writing purporting to be made by the accused or by a solicitor acting on his behalf to the effect that if the accused is convicted in his absence of the offence charged he desires to admit failing to pay the other contributions so specified or any of them,

the said subsection (3) shall have effect as if the evidence had been given and the failure so admitted had been proved, and the court shall proceed accordingly.

(5) Where an employer or an insured person is convicted of any such offence as is mentioned in subsection (1) or (2) of this section, and an order is made under Part I of the [1948 c. 58.] Criminal Justice Act 1948 placing the offender on probation or discharging him absolutely or conditionally, the foregoing provisions of this section shall apply as if the conviction were deemed to be a conviction for all purposes.

(6) In England or Wales, any sum ordered to be paid to the National Insurance Fund or the Industrial Injuries Fund under this section shall be recoverable as a penalty.

(7) Any sum paid under the foregoing provisions of this section shall be treated as a payment in satisfaction of the unpaid contributions and no part of any such sum paid by an employer shall be recoverable by him from the insured person in respect of whom it is paid.

(8) If the employer, being a body corporate, fails to pay to the National Insurance Fund or the Industrial Injuries Fund any sum which the employer has been ordered to pay under this section, that sum, or such part thereof as remains unpaid, shall be a debt due to the National Insurance Fund or the Industrial Injuries Fund, as the case may be, jointly and severally from any directors of the body corporate who knew, or could reasonably be expected to have known, of the failure to pay the contribution or contributions in question.

(9) Nothing in this section shall be construed as preventing the recovery of any sums due to the National Insurance Fund or the Industrial Injuries Fund by means of civil proceedings.

(10) In this section, references to contributions include references to payments under section 58 of this Act in lieu of contributions and, except in subsections (1) and (2)—

(a) references to contributions under this Act include references to contributions or payments in lieu of contributions under the National Insurance Acts 1946 to 1964 ;

(b) references to contributions under the Industrial Injuries Act include references to contributions under the National Insurance (Industrial Injuries) Acts 1946 to 1964.

(11) In its application to Scotland, this section shall have effect as if—

(a) for the reference in subsection (3) to the summons or warrant there were substituted a reference to the complaint;

(b) for subsection (5) there were substituted the following subsection:—

“(5) Where an employer or an insured person is convicted on indictment of, or is charged before a court of summary jurisdiction with, any such offence as is mentioned in subsection (1) or (2) of this section, and an order is made under Part I of the [1949 c. 94.] Criminal Justice (Scotland) Act 1949 discharging him absolutely or placing him on probation, the foregoing provisions of this section shall apply as if—

(a) the conviction on indictment were deemed to be a conviction for all purposes; or, as the case may be,

(b) the making of the order by the court of summary jurisdiction were a conviction”.

(12) Regulations may make other provision for the recovery, on prosecutions brought under or by virtue of this Act, of such contributions as are referred to in this section, and any such regulations may vary or revoke any of the foregoing provisions of this section; and nothing in this section shall prejudice any other remedy for a failure to pay any such contribution.