SCHEDULE 2 continued PART 1 continued
National Insurance Contributions BillPage 20
(2) P must pay the disputed contributions (see sub-paragraph (8))—
if no representations were made under section 222 in respect of the
notice, on or before the last day of the period of 90 days beginning
with the day the notice is given, and
(b) if representations were so made, on or before whichever is later of—
the last day of the 90 day period mentioned in paragraph (a),
the last day of the period of 30 days beginning with the day
on which HMRC’s determination in respect of those
representations is notified under section 222.
Subsections (4) and (5) of section 117A of SSAA 1992 or (as the case may be)
of section 111A of SSA(NI)A 1992 (decision of officer of HMRC not
conclusive if subject to appeal and proceedings for recovery to be adjourned
pending appeal) do not apply to proceedings before a court for recovery of
the disputed contributions.
Accordingly, if proceedings have been adjourned under subsection (5) of
either of those sections, they cease to be adjourned, so far as they relate to the
recovery of the disputed contributions, from the end of the applicable period
under sub-paragraph (2).
A certificate of an officer of Revenue and Customs under section 25A of
CRCA 2005 (certificates of debt) that the disputed contributions have not
been paid is to be treated as conclusive evidence that the disputed
contributions are unpaid.
(6) If some or all of the disputed contributions are subsequently repaid to P—
the contributions repaid are to be treated, for the purposes of
determining a person’s entitlement to benefit, or the amount of a
person’s benefit, as not having been paid, but
that does not affect any payments of benefit made to a person before
In sub-paragraph (6) “benefit” means a contributory benefit or a statutory
In this paragraph “the disputed contributions” means the relevant
contributions to which the NICs appeal relates so far as they are disputed tax
specified in the notice under section 221(2)(b).
Subsection (7) of section 226 (penalty for failure to pay accelerated payment)
applies in relation to a penalty under that section imposed by virtue of this
Part of this Schedule, but the reference in that subsection to tax does not
include relevant contributions.
But in their application by virtue of sub-paragraph (1), the provisions of
Schedule 56 to FA 2009 mentioned in that subsection have effect—
as if references to an assessment to tax were to a NICs decision
relating to a person’s liability for relevant contributions,
as if a reference to an appeal against an assessment to the tax
concerned were a reference to an appeal against a NICs decision,
as if sub-paragraph (3)(b) of paragraph 11 were omitted (but see
paragraph 20 of this Schedule), and
National Insurance Contributions BillPage 21
(d) with any other necessary modifications.
A penalty under section 208 or 226 imposed by virtue of this Part of this
Schedule may be recovered as if it were an amount of relevant contributions
which is due and payable.
Section 117A of SSAA 1992 or (as the case may be) section 111A of SSA(NI)A
1992 (issues arising in proceedings: contributions etc) has effect in relation to
proceedings before a court for recovery of the penalty as if the assessment of
the penalty were a NICs decision as to whether the person is liable for the
Accordingly, section 211(4)(b) (assessment of penalty to be enforced as if it
were an assessment to tax) does not apply in relation to a penalty under
section 208 imposed by virtue of this Part of this Schedule.
In section 227 (withdrawal, modification or suspension of accelerated
payment notice), subsection (9) has effect as if the provisions mentioned
there included paragraph 18(2) of this Schedule.
22 In this Part of this Schedule—
“accelerated payment notice” means an accelerated payment notice
under Chapter 3 of Part 4 of FA 2014;
“contributory benefit” means—
a contributory benefit under Part 2 of SSCBA 1992,
a jobseeker’s allowance under JA 1995,
an employment and support allowance under Part 1 of
state pension or a lump sum under Part 1 of PA 2014,
bereavement support payment under section 30 of that Act,
any corresponding benefit in Northern Ireland;
“HMRC” means Her Majesty’s Revenue and Customs;
“NICs appeal” has the meaning given by paragraph 10;
“NICs decision” means a decision under section 8 of SSC(TF)A 1999 or
Article 7 of the Social Security Contributions (Transfer of Functions,
etc) (Northern Ireland) Order 1999 (S.I. 1999/671S.I. 1999/671);
“notification of dispute” has the meaning given by paragraph 6(b);
“relevant contributions” means the following contributions under Part
1 of SSCBA 1992 or Part 1 of SSCB(NI)A 1992—
Class 1 contributions;
Class 1A contributions;
Class 1B contributions;
Class 2 contributions which a person is, or is alleged to be,
liable to pay but in relation to which section 11A of the Act in
National Insurance Contributions BillPage 22
question (application of certain provisions of the Income Tax
Acts in relation to Class 2 contributions under section 11(2) of
that Act) does not, or would not, apply;
“statutory payment” means a statutory payment for the purposes of
section 4C of SSCBA 1992 or section 4C of SSCB(NI)A 1992;
and references to sections are to sections of FA 2014, unless otherwise
Part 5 of FA 2014 (promoters of tax avoidance schemes) has effect with the
References to tax, other than in references to particular taxes, include
References to a tax advantage include the avoidance or reduction of a
liability to pay relevant contributions.
A reference to a provision of Part 7 of FA 2004 (disclosure of tax avoidance
schemes) (a “DOTAS provision”) includes a reference to—
that DOTAS provision as applied by regulations under section 132A
of SSAA 1992 (disclosure of contributions avoidance arrangements);
any provision of regulations under that section that corresponds to
that DOTAS provision,
whenever the regulations are made.
Regulations under section 132A of SSAA 1992 may disapply, or modify the
effect of, sub-paragraph (1).
In section 253 (duty of persons to notify the Commissioners), references to a
tax return include a return relating to relevant contributions that is required
to be made by or under an enactment.
In section 255 (power to obtain information and documents), references to a
person’s tax position include the person’s position as regards deductions or
repayments of relevant contributions, or of sums representing relevant
contributions, that the person is required to make by or under an enactment.
In section 276 (limitation of defence of reasonable care), the reference in
subsection (1) to a document of a kind listed in the Table in paragraph 1 of
National Insurance Contributions BillPage 23
Schedule 24 to FA 2007 includes a document, relating to relevant
contributions, in relation to which that Schedule applies (and, accordingly,
the reference to that Schedule in subsection (2) of that section includes that
Schedule as it so applies).
The definition of “tax” in section 283(1) (interpretation) has effect as if
relevant contributions were listed in it.
31 In this Part of this Schedule—
“relevant contributions” means the following contributions under
Part 1 of SSCBA 1992 or Part 1 of SSCB(NI)A 1992—
(i) Class 1 contributions;
(ii) Class 1A contributions;
(iii) Class 1B contributions;
Class 2 contributions which must be paid but in relation to
which section 11A of the Act in question (application of
certain provisions of the Income Tax Acts in relation to Class
2 contributions under section 11(2) of that Act) does not
references to sections are to sections of FA 2014, unless otherwise
In section 16 of SSCBA 1992 (application of Income Tax Acts and destination
of Class 4 contributions), in subsection (1), at the end of paragraph (c) insert
the provisions of Part 4 (follower notices and accelerated
payments) and Part 5 (promoters of tax avoidance schemes)
of the Finance Act 2014,”.
Parts 1 and 3 of this Schedule come into force at the end of the period of 2
months beginning with the day on which this Act is passed.
(2) Part 2 of this Schedule comes into force—
for the purposes of making regulations under Part 5 of FA 2014, on
the day on which this Act is passed, and
for remaining purposes, at the end of the period of 2 months
beginning with the day on which this Act is passed.
Before the coming into force of the repeals in section 4C of SSCBA 1992 made
by Part 1 of Schedule 14 to WRA 2012 (abolition of benefits superseded by
universal credit), the reference in paragraph 22 to a jobseeker’s allowance is
National Insurance Contributions BillPage 24
to be treated as a reference to a contribution-based jobseeker’s allowance
(within the meaning of JA 1995).
Before the coming into force of the repeal of section 22(8) of SSCBA 1992
made by Part 1 of Schedule 14 to WRA 2012 (abolition of benefits superseded
by universal credit), the reference in paragraph 22 to an employment and
support allowance is to be treated as a reference to a contributory allowance
(within the meaning of Part 1 of WRA 2007).