2008 No. 636

Social Security

The Social Security (Contributions) (Amendment No. 3) Regulations 2008

Made

Laid before Parliament

Coming into force in accordance with regulation 1

The Commissioners for Her Majesty’s Revenue and Customs make the following Regulations in exercise of the powers conferred by section 175(3) of, and paragraphs 6 and 7 of Schedule 1 to, the Social Security Contributions and Benefits Act 19921 and section 171(3) of, and paragraphs 6 and 7 of Schedule 1 to, the Social Security Contributions and Benefits (Northern Ireland) Act 19922 and now exercisable by them3:

Citation, interpretation and commencement1

1

These Regulations may be cited as the Social Security (Contributions) (Amendment No. 3) Regulations 2008.

2

In these Regulations “the SSCR” means the Social Security (Contributions) Regulations 20014.

3

These Regulations come into force—

a

for the purposes of the amendments to regulation 67(2) of, and paragraphs 22 and 31 of Schedule 4 to, the SSCR on 1st April 2008; and

b

for all other purposes on 6th April 2008.

Amendment of the Social Security (Contributions) Regulations 20012

The SSCR are amended as follows.

Amendment of regulation 67(2)3

In regulation 67(2) omit “In any case to which this regulation applies,”.

Amendment of paragraph 15 of Schedule 44

1

In sub-paragraph (1) of paragraph 15 of Schedule 45 (specified amount of earnings-related contributions payable by the employer)—

a

for each iteration of “the Inland Revenue” substitute “HMRC6”;

b

after the words “upon consideration of the employer’s record of past payments” insert “whether of earnings-related contributions or of combined amounts,”;

c

after the words “specify the amount of earnings-related contributions” insert “or of a combined amount”.

2

After sub-paragraph (1) insert—

1A

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 20057;

c

payments of repayments of student loans due under the Education (Student Loans) (Repayment) Regulations 20008.

3

In sub-pararaph (2)—

a

after the words “the specified amount” omit the words “of earnings-related contributions”;

b

in paragraph (a) after the words “earnings-related contributions” insert “or as including an amount of earnings-related contributions”; and

c

in paragraph (b) for “the Inland Revenue” substitute “HMRC”.

4

In sub-paragraph (3) for each iteration of “the Inland Revenue” substitute “HMRC”.

5

In sub-paragraph (4) for “the Inland Revenue “ substitute “HMRC”.

6

In sub-paragraph (5) for “the Inland Revenue” substitute “HMRC”.

7

In sub-paragraph (6) for each iteration of “the Inland Revenue” substitute “HMRC”.

8

In sub-paragraph (7)—

a

for each iteration of “the Inland Revenue” substitute “HMRC”;

b

after the words “satisfy the Inland Revenue, that the payment”, omit the words “of earnings-related contributions”; and

c

after the words “specified in the notice is”, insert “or includes”.

9

In sub-paragraph (8)—

a

for each iteration of “the Inland Revenue” substitute “HMRC”; and

b

after the words “certified by the Inland Revenue under it” insert “whether separately or as part of a combined amount”.

Amendment of paragraph 16 of Schedule 45

1

In sub-paragraph (1) of paragraph 16 of Schedule 49 (recovery of earnings-related contributions or Class 1B contributions)—

a

for each iteration of “the Inland Revenue” substitute “HMRC”; and

b

in paragraph (a) after the words “he is treated as liable to the Inland Revenue” insert “whether separately or as part of a combined amount”.

2

In sub-paragraph (2) for the words “amount of tax” substitute “other component of a combined amount”.

3

In sub-paragraph (3) —

a

in paragraph (d) for the first occurrence of the word “tax” substitute “other component of a combined amount”;

b

at the end of paragraph (3) for the word “tax” substitute “other component of a combined amount”; and

c

for “the Inland Revenue” substitute “HMRC”.

4

In sub-paragraph (4)—

a

for the word “tax” substitute “other component of the combined amount”; and

b

for “the Inland Revenue” substitute “HMRC”.

5

In sub-paragraph (5)—

a

at the end of paragraph (b) omit the word “or”.

b

after paragraph (c ) add—

d

amounts due under the Income Tax (Construction Industry Scheme) Regulations 2005; or

e

payments of repayments of student loans due under the Education (Student Loans) (Repayment) Regulations 2000.

6

After sub-paragraph (5) add—

6

For the purposes of this paragraph “combined amount” has the meaning given in paragraph 15(1A).

Amendment of paragraph 17 of Schedule 46

1

In sub-paragraph (2) of paragraph 17 of Schedule 410 (interest on overdue earnings-related contributions or Class 1B contributions) for “the Inland Revenue” substitute “HMRC”.

2

In sub-paragraph (5) for “the Inland Revenue” substitute “HMRC”.

3

After sub-paragraph (5) add—

6

HMRC may prepare a certificate certifying the total amount of interest payable in respect of the whole or any component of a combined amount without specifying what component of the combined amount the interest relates to.

Sub-paragraph (5) shall apply, with any necessary modifications, to the certificate.

7

For the purposes of this paragraph “combined amount” has the meaning given in paragraph 15(1A).

Amendment of paragraphs 22 and 31 of Schedule 47

In each of—

a

paragraph 22(7) of Schedule 411; and

b

paragraph 31(9) of Schedule 412,

for “Section 98A of the Taxes Management Act 1970 (penalties for late, fraudulent or negligent returns)” substitute “Section 98A of the Taxes Management Act 197013 (special penalties in the case of certain returns) and Schedule 24 to the Finance Act 2007 (penalties for errors) as that Schedule applies to income tax returns”.

Mike HansonMike ElandTwo of the Commissioners for Her Majesty’s Revenue and Customs
EXPLANATORY NOTE

(This note is not part of the Regulations)

These regulations amend the Social Security (Contributions) Regulations 2001 (“the SSCR”). The amendments form two groups: (i) amendments to the provisions concerning the recovery of earnings-related contributions, and (ii) amendments consequential upon the replacement of the penalties provisions of section 98A(4) of the Taxes Management Act 1970 (“TMA”) by Schedule 24 to the Finance Act 2007.

Regulation 1 provides for the recovery-related provisions to come into force on 6th April 2008 and the penalties consequentials to come into force on 1st April 2008. It also defines the expression “the SSCR”.

Regulation 2 introduces the amendments to the SSCR.

Regulation 3 amends regulation 67(2) of the SSCR, which introduces Schedule 4 to those Regulations. The opportunity presented by these Regulations is taken to make a minor drafting amendment.

Regulation 4 amends paragraph 15 to Schedule 4. The paragraph is amended so that, where earnings-related contributions have been unpaid for 17 days, HMRC may specify the unpaid amount of earnings-related contributions, together with other amounts of income tax, student loan deductions and construction industry deductions that the employer is required pay over to HMRC, without differentiating between each individual item. The opportunity is taken to replace references to the Inland Revenue with references to “HMRC”, here and in paragraphs 16 and 17 of Schedule 4.

Regulation 5 amends paragraph 16, which deals with recovery of earnings-related contributions or Class 1B contributions. This is to enable HMRC to take proceedings to recover unpaid earnings-related contributions where the contributions comprise the whole or part of a combined amount that has been specified under paragraph 15 without the need to identify each individual item.

Regulation 6 amends paragraph 17, which deals with interest on overdue earnings-related contributions. The power that HMRC has to prepare a certificate evidencing the amount of unpaid interest is extended so that the outstanding interest on any element of a combined amount can be set out in one certificate without the need to identify each item.

Regulation 7 makes amendments to paragraphs 22 and 31 of Schedule 4 to the principal Regulations to reflect the replacement of section 98A(4) of TMA.

An impact assessment has not been prepared in respect of this instrument as no impact on the private or voluntary sectors is foreseen.