SCHEDULE 4F1Provisions derived from the Income Tax Acts and the Income Tax (Pay As You Earn) Regulations 2003
PART III PAYMENT AND RECOVERY OR EARNINGS-RELATED CONTRIBUTIONS, CLASS 1A CONTRIBUTIONS AND CLASS 1B CONTRIBUTIONS, ETC.
Specified amount of earnings-related contributions payable by the employer15
1
If after F317 days following the end of any F2... tax period the employer has paid no amount of earnings-related contributions to F11HMRC under paragraph 10 or 11 for that F2... tax period and there is reason to believe that the employer is liable to pay such contributions, F11HMRC, upon consideration of the employer’s record of past payments F12whether of earnings-related contributions or of combined amounts, may to the best of F4their judgment specify the amount of earnings-related contributions F13or of a combined amount which F5they consider the employer is liable to pay and give notice to him of that amount.
F71A
For the purposes of this paragraph “combined amount” is an amount which includes earnings-related contributions due under these regulations and one or more of the following—
a
tax due under the PAYE Regulations;
b
amounts due under the Income Tax (Construction Industry Scheme) Regulations 2005;
c
payments of repayments of student loans due under the F25Education (Student Loans) (Repayment) Regulations 2009.
F241B
In arriving at an amount under paragraph (1), HMRC may also take into account any returns made by the employer under this Schedule in the tax period in question or earlier tax periods.
2
If, on the expiration of the period of 7 days allowed in the notice, the specified amount F14... or any part thereof is unpaid, the amount so unpaid—
a
b
may be certified by F16HMRC.
3
The provisions of sub-paragraph (2) shall not apply if, during the period allowed in the notice, the employer pays to F17HMRC the full amount of earnings-related contributions which the employer is liable to pay under paragraph 10 or 11 for that F2... tax period, or the employer satisfies F17HMRC that no amount of such contributions is due.
4
The production of a certificate such as is mentioned in sub-paragraph (2) shall, until the contrary is established, be sufficient evidence that the employer is liable to pay to F18HMRC the amount shown in it; and any document purporting to be such a certificate as aforesaid shall be deemed to be such a certificate until the contrary is proved.
Paragraph 16 shall apply, with any necessary modifications, to the amount shown in the certificate.
5
Where the employer has paid no amount of earnings-related contributions under paragraph 10 or 11 for any F2... tax periods, a notice may be given by F19HMRC under sub-paragraph (1) which extends to two or more consecutive F2... tax periods, and this Schedule shall have effect as if those F2... tax periods were the latest F2... tax period specified in the notice.
6
A notice may be given by F20HMRC under sub-paragraph (1) notwithstanding that an amount of earnings-related contributions has been paid F6... by the employer under paragraph 10 or 11 for any F2... tax period, if, after seeking the employer’s explanation as to the amount of earnings-related contributions paid, F20HMRC is not satisfied that the amount so paid is the full amount which the employer is liable to pay F6... for that period, and this paragraph shall have effect accordingly, save that sub-paragraph (2) shall not apply if, during the period allowed in the notice, the employer satisfies F20HMRC that no further amount of earnings-related contributions is due for the relevant F2... tax period.
7
Where, during the period allowed in a notice given by F8HMRC under sub-paragraph (1), the employer claims, but does not satisfy F8HMRC, that the payment F9... made in respect of any F2... tax period specified in the notice is F10or includes the full amount of earnings-related contributions he is liable to pay to F8HMRC for that period, the employer may require F8HMRC to inspect the employer’s documents and records as if F8HMRC had called upon the employer to produce those documents and records in accordance with F23Schedule 36 to the Finance Act 2008 (information and inspection powers) and the provisions of paragraph 26A shall apply in relation to that inspection, and the notice given by F8HMRC under sub-paragraph (1) shall be disregarded in relation to any subsequent time.
8
Notwithstanding anything in this paragraph, if the employer pays any amount of earnings-related contributions certified by F21HMRC under it F22whether separately or as part of a combined amount and that amount exceeds the amount which he would have been liable to pay in respect of that F2... tax period apart from this paragraph, he shall be entitled to set off such excess against any amount which he is liable to pay to F21HMRC under paragraph 10 or 11 for any subsequent F2... tax period.
9
If, after the end of the year, the employer renders the return required by paragraph 22(1) and the total earnings-related contributions he has paid in respect of that year in accordance with this Schedule exceeds the total amount of such contributions due for that year, any excess not otherwise recovered by set-off shall be repaid.
Sch. 4 heading substituted (6.4.2004) by The Social Security (Contributions, Categorisation of Earners and Intermediaries) (Amendment) Regulations 2004 (S.I. 2004/770), regs. 1(1), 29(2)