F1PART 7AElectronic Communications

Annotations:
Amendments (Textual)

Default surcharge90K

1

An employer in default in respect of any specified payment to whom—

a

a default notice under regulation 90J, and

b

a surcharge notice under regulation 90L,

have been issued, is liable to a surcharge.

2

The surcharge is the sum of the surcharges, calculated in accordance with paragraph (3), in respect of each default relating to the tax year, in which were made the relevant payments to which the specified payment referred to in paragraph (1) relates.

3

The surcharge in respect of each default is the specified percentage of (A - B)

4

In paragraph (3)—

a

A is the total amount of contributions due for the tax year in which the relevant payments to which the specified payment relates were made ;

b

B is the total of the amounts deducted from A under—

F2i

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

ii

regulations 4, 5 and 6 of the Statutory Maternity Pay (Compensation of Employers) and Miscellaneous Amendment Regulations 1994,

iii

regulations 3 and 5 of the Statutory Paternity Pay and Statutory Adoption Pay (Administration) Regulations 2002,

iv

regulation 2 of the Statutory Sick Pay (Compensation of Employers) and Miscellaneous Provisions Regulations 1983 and articles 2 and 3 of the Statutory Sick Pay Percentage Threshold Order 1995, and

v

regulation 44B of the Income Tax (Sub-contractors in the Construction Industry) Regulations1993;

c

the specified percentage is determined by reference to the number of the default during a surcharge period in accordance with Table 1.

Table 1

Specified percentage for each default in a surcharge period

1 Default number (within a surcharge period)

2 Specified percentage

1st

0%

2nd

0%

3rd

0.17%

4th

0.17%

5th

0.17%

6th

0.33%

7th

0.33%

8th

0.33%

9th

0.58%

10th

0.58%

11th

0.58%

12th

0.83%

5

A surcharge period is a period which—

a

begins on the day following the date by which payment is required in accordance with paragraph 10 for the first specified payment in respect of which the employer is in default, and

b

ends at the end of a tax year in relation to which the employer has not been in default in respect of any specified payment.

6

A surcharge payable under this paragraph is payable 30 days after the issue of the surcharge notice.

7

Section 102 of the Management Act (mitigation of penalties) applies to a surcharge payable under this paragraph as if it were a penalty.

F38

Section 108 of the Finance Act 2009 (suspension of penalties during currency of agreement for deferred payment) applies to a surcharge payable under this regulation with the following modifications—

a

in subsections (1)(a), (1)(b) and (4)(a) omit the words “of tax”,

b

for subsection (5) substitute the following—

5

The references to an amount and penalty referred to in subsections (1) and (2) are—

Amount

Penalty

Specified payments within the meaning of regulation 90M of the Social Security (Contributions) Regulations 2001

Surcharge under regulation 90K of the Social Security (Contributions) Regulations 2001

, and

c

omit subsections (7), (8), (9), and (11).