SCHEDULES

SCHEDULE 12Construction industry scheme: consequential amendments

Special penalties in the case of certain returns

8

1

Section 98A of the Taxes Management Act 1970 is amended as follows.

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,

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) ”.