87.—(1) Every person to whom paragraph (2) applies shall immediately notify the relevant date to the Board in writing or by such means of electronic communications as may be approved.
(2) This paragraph applies to a person who [F2on or before 5th April 2009]—
(a)becomes, or ceases to be, liable to pay a Class 2 contribution;
(b)becomes, or ceases to be, entitled to pay a Class 2 contribution although not liable to do so; or
(c)is entitled to pay a Class 3 contribution and wishes either to do so or to cease doing so.
(3) If a person becomes liable to pay a Class 2 contribution and fails immediately to notify the Board in accordance with paragraph (1), he shall be liable to a penalty of £100.
This is subject to the qualification that a person shall be treated as having immediately notified the Board in accordance with paragraph (1) if he—
(a)notifies the Board within such further time, if any, as the Board may allow;
(b)has a reasonable excuse for not notifying the Board, and if that excuse ceases, notifies the Board without unreasonable delay after it ceases; or
(c)shows to the Board’s satisfaction that his earnings met the conditions set out in regulation 45(1) for the purposes of section 11(4) of the Act F3 throughout the period beginning on the date on which he became liable to pay a Class 2 contribution and ending on the date on which he notified the Board.
(4) The penalty referred to in paragraph (3) shall be incurred—
(a)in the case of a failure which first occurs on or after 30th April 2001 and continues throughout the period of three calendar months beginning with the first day of the calendar month following that in which he becomes liable to pay a Class 2 contribution, the date after the day on which that period ends; or
(b)in the case of a failure which first occurs on or after 6th April 2001 but before 30th April 2001 and continues throughout the period ending on 31st July 2001, 1st August 2001.
(5) The penalty referred to in paragraph (3) may be imposed by a notice of decision by an officer of the Board under section 8(1)(k)(ii) of the Transfer Act within six years after the date on which the penalty is incurred in accordance with paragraph (4).
(6) The penalty referred to in paragraph (3)—
(a)shall be due and payable at the end of the period of 30 days beginning with the date of the issue of the notice of decision referred to in paragraph (5); and
(b)shall be recoverable as if it were a Class 2 contribution due and paybale.
(7) The Board may, in their discretion, mitigate or remit any penalty imposed under this regulation, or stay or compound any proceedings for the penalty.
(8) In paragraph (1) “the relevant date” means, in relation to a person to whom—
(a)paragraph (2)(a) applies, the date on which he commences or ceases to be a self-employed earner;
(b)paragraph (2)(b) or (c) applies, the date on which he wishes to commence or cease paying either Class 2 or Class 3 contributions, as the case may be.
Textual Amendments
F1Words in reg. 87 heading added (1.4.2009) (with effect in accordance with reg. 1(2)(b) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 3) Regulations 2009 (S.I. 2009/600), regs. 1(1), 5(a)
F2Words in reg. 87(2) inserted (1.4.2009) (with effect in accordance with reg. 1(2)(b) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 3) Regulations 2009 (S.I. 2009/600), regs. 1(1), 5(b)
F3Section 11(4) was amended by paragraph 12 of Schedule 3 to the Transfer Act and article 3 of S.I. 2001/477.