Finance Act 2004

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) ”.