2 Computation, collection and recovery.

1

In the 1975 Act—

a

in paragraph (a) of section 1(4) (which introduces Schedule 1, containing supplementary provisions relating to contributions); and

b

in the heading for Schedule 1,

after “Classes 1,” there shall be inserted “1A,”.

2

The following paragraph shall be inserted after paragraph 4 of that Schedule—

4A Class 1A contributions where car made available by reason of more than one employment

Regulations may modify section 4A above in relation to cases where a car is made available by reason of two or more employed earner’s employments under different employers.

3

In paragraph 5 of that Schedule (power to combine collection of contributions with tax)—

a

in sub-paragraph (1)(a) after “Class 1” there shall be inserted “, Class 1A”; and

b

in sub-paragraph (1A)—

i

after “Class 1”, in each place where it occurs, there shall be inserted “or Class 1A”; and

ii

in paragraph (a) after “(being” there shall be inserted “, in the case of Class 1 contributions,”.

4

In sub-paragraph (11)(a) of paragraph 5A of that Schedule (special penalties in the case of certain returns) after “Class 1” there shall be inserted “and Class 1A”.

5

In paragraph 6(1) of that Schedule (general regulation-making powers)—

a

the following paragraph shall be inserted after paragraph (a)—

aa

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 contributions to be determined, and to retain the records for so long as may be prescribed;

b

in paragraph (g) for the words from “enabling” to the end there shall be substituted the words

enabling—

i

the whole or part of any payment of secondary Class 1 contributions to be treated as a payment of Class 1A contributions;

ii

the whole or part of any payment of Class 1A contributions to be treated as a payment of secondary Class 1 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 or Class 1A contributions;

c

after paragraph (gg) there shall be inserted—

ggg

for the repayment in prescribed cases, of a prescribed part of any Class 1A contribution as to which the Secretary of State is satisfied in the light of information of a kind mentioned in section 4A(6)(a), (b) or (c) above that has become available to him, that too much has been paid;

6

In section 151 of the 1975 Act (proof of previous offences)—

a

in subsection (3) after the word “contributions,” there shall be inserted the words “or any Class 1A contributions”;

b

the following subsection shall be inserted after that subsection—

3A

If the offence is one of failure to pay a Class 1A contribution, evidence may be given of failure on his part to pay (whether or not in respect of the same person or the same car) such contributions, or any Class 1 contributions or state scheme premiums, on the date of the offence, or during the 2 years preceding that date.

c

in subsection (5), after “(3)” there shall be inserted “, (3A)”.