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Social Security Bill - continued        House of Commons
PART II, CONTRIBUTIONS - continued
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Amendments of Administration Act
Provision of information.     57. In subsection (1) of section 5 of the Administration Act (regulations about claims for and payments of benefit), there shall be inserted after paragraph (h) the following paragraph-
 
 
    "(hh) for requiring such person as may be prescribed in accordance with the regulations to furnish any information or evidence needed for a determination whether a decision on an award of benefit to which this section applies-
 
      (i) should be revised under section 10 of the Social Security Act 1997; or
 
      (ii) should be superseded under section 11 of that Act;".
Breach of regulations.     58. For section 113 of the Administration Act there shall be substituted the following section-
 
 
"Breach of regulations.     113. - (1) Regulations and schemes under any of the Acts to which section 110 above applies may provide that any person who contravenes, or fails to comply with, any provision contained in regulations made under that Act-
 
    (a) in the case of a provision relating to contributions, shall be liable to a penalty;
 
    (b) in any other case, shall be guilty of an offence under that Act.
      (2) Any regulations or scheme making such provision as is mentioned in subsection (1)(a) above shall-
 
 
    (a) prescribe the amount or rate of penalty, or provide for how it is to be ascertained;
 
    (b) provide for the penalty to be imposed by the Secretary of State-
 
      (i) within six years after the date on which the penalty is incurred; or
 
      (ii) where the amount of the penalty is to be ascertained by reference to the amount of any contributions payable, at any later time within three years after the final determination of the amount of those contributions;
 
    (c) provide for determining the date on which, for the purposes of paragraph (b) above, the penalty is incurred;
 
    (d) prescribe the means by which the penalty is to be enforced; and
 
    (e) provide for enabling the Secretary of State, in his discretion, to mitigate or to remit any such penalty, or to stay or to compound any proceedings for a penalty.
      (3) A person guilty of such an offence as is mentioned in subsection (1)(b) above shall be liable on summary conviction-
 
 
    (a) to a fine not exceeding level 3 on the standard scale;
 
    (b) in the case of an offence of continuing a contravention or failure after conviction, to a fine not exceeding £40 for each day on which it is so continued.
      (4) Any provision contained in regulations which authorises statutory sick pay or statutory maternity pay to be set off against secondary Class 1 contributions is not a provision relating to contributions for the purposes of this section."
 
Offences and penalties relating to contributions.     59. For section 114 of the Administration Act there shall be substituted the following sections-
 
 
"Offences relating to contributions.     114. - (1) Any person who is knowingly concerned in the fraudulent evasion of any contributions which he or any other person is liable to pay shall be guilty of an offence.
 
    (2) A person guilty of an offence under this section shall be liable-
 
 
    (a) on conviction on indictment, to imprisonment for a term not exceeding seven years or to a fine or to both;
 
    (b) on summary conviction, to a fine not exceeding the statutory maximum.
Penalties relating to contributions.     114A. - (1) If a person fails to pay, at or within the time prescribed for the purpose, any contribution which he is liable to pay, he shall be liable to a penalty.
 
      (2) If a person fails to pay, at or within the time prescribed for the purpose, any sums which he is required by regulations made by virtue of paragraph 6 or 7B of Schedule 1 to the Contributions and Benefits Act to pay, he shall be liable to a penalty under subsection (1) above without proof of his failure so to pay any particular contribution.
 
      (3) For the purposes of subsection (1) above, regulations shall-
 
 
    (a) prescribe the amount or rate of penalty, or provide for how it is to be ascertained;
 
    (b) provide for the penalty to be imposed by the Secretary of State-
 
      (i) within six years after the date on which the penalty is incurred; or
 
      (ii) where the amount of the penalty is to be ascertained by reference to the amount of any contributions payable, at any later time within three years after the final determination of the amount of those contributions;
 
    (c) provide for determining the date on which, for the purposes of paragraph (b) above, the penalty is incurred;
 
    (d) prescribe the means by which the penalty is to be enforced; and
 
    (e) provide for enabling the Secretary of State, in his discretion, to mitigate or to remit any such penalty, or to stay or to compound any proceedings for a penalty.
      (4) Subsection (1) above does not apply-
 
 
    (a) to any failure by a person in respect of which he has been convicted of an offence under section 114(1) above; or
 
    (b) to Class 4 contributions recoverable by the Inland Revenue."
Evidence of non-payment.     60. - (1) For subsection (1) of section 118 of the Administration Act (evidence of non-payment) there shall be substituted the following subsections-
 
 
    "(1) A certificate of an authorised officer that any amount by way of contributions, or by way of interest or penalty in respect of contributions, which a person is liable to pay to the Secretary of State for any period has not been paid-
 
 
    (a) to the officer; or
 
    (b) to the best of his knowledge and belief, to any other person to whom it might lawfully be paid,
  shall until the contrary is proved be sufficient evidence in any proceedings before any court that the sum mentioned in the certificate is unpaid and due.
 
      (1A) Subsection (2) below applies with respect to any period during which, under regulations made by virtue of paragraph 6(1) of Schedule 1 to the Contributions and Benefits Act (deduction with PAYE), contributions fall to be paid in like manner as income tax."
 
      (2) In subsection (3) of that section, after the words "such a certificate" there shall be inserted the words "as is mentioned in subsection (1) or (2) above".
 
      (3) In subsection (4) of that section, the words "for a particular contribution card or", and the words "the card in question or", shall cease to have effect.
 
      (4) After subsection (6) of that section there shall be inserted the following subsection-
 
 
    "(7) In this section "authorised officer" means an officer of the Secretary of State authorised by him for the purposes of this section."
 
Recovery of contributions etc.     61. After section 121 of the Administration Act there shall be inserted the following sections-
 
 
"Recovery of contributions etc. in England and Wales.     121A. - (1) If-
 
    (a) a person is served at any time with a copy of a certificate under section 118(1) above; and
 
    (b) he neglects or refuses to pay the contributions, interest or penalty to which the certificate relates within 30 days of that time,
  an authorised officer may distrain upon the goods and chattels of that person ("the person in default").
 
      (2) For the purpose of levying any such distress, a justice of the peace, on being satisfied by information on oath that there is reasonable ground for believing that the conditions in subsection (1) above are fulfilled, may issue a warrant in writing authorising the authorised officer to enter in the daytime, by force if necessary, any premises to which this section applies, calling on the assistance of any constable.
 
      (3) Every such constable shall, when so required, assist the authorised officer in the execution of the warrant and in levying the distress in the premises.
 
      (4) A warrant to enter premises by force shall be executed by the authorised officer, or under his direction and in his presence.
 
      (5) A distress levied by the authorised officer shall be kept for five days, and any costs or charges shall be borne by the person in default.
 
      (6) If the person in default does not pay the sum due, together with the costs and charges, the distress shall be appraised by one or more independent persons appointed by the authorised officer, and shall be sold by public auction by the authorised officer for payment of the sum due and all costs and charges.
 
      (7) Any surplus arising from the distress, after the deduction of the costs and charges and of the sum due, shall be paid to the owner of the goods distrained.
 
      (8) Regulations may make provision with respect to-
 
 
    (a) the fees chargeable on or in connection with the levying of distress; and
 
    (b) the costs and charges recoverable where distress has been levied.
      (9) In this section "authorised officer" means an officer of the Secretary of State authorised by him for the purposes of this section.
 
      (10) The premises to which this section applies are premises where an authorised officer has reasonable grounds for believing that-
 
 
    (a) any persons are employed; or
 
    (b) a trade or business is being carried on;
  but this section does not apply to a private dwelling-house unless an authorised officer has reasonable grounds for believing that a trade or business is being carried on from the dwelling-house and that the trade or business is not also being carried on from premises other than a dwelling-house.
 
Recovery of contributions etc. in Scotland.     121B. - (1) Where any contributions, interest or penalty remains unpaid 30 days after the service of a certificate under section 118(1) above, an authorised officer may apply to the sheriff for the grant of a summary warrant authorising the recovery of the amount remaining unpaid by any of the following diligences-
 
 
    (a) a poinding and sale in accordance with Schedule 5 to the Debtors (Scotland) Act l987;
 
    (b) an earnings arrestment;
 
    (c) an arrestment and action of forthcoming or sale.
      (2) An application under subsection (1) above shall be accompanied by-
 
 
    (a) a copy of the certificate served under section 118(1) above; and
 
    (b) a certificate by the authorised officer-
 
      (i) stating that the certificate was served on the person specified in the application;
 
      (ii) stating that the amount specified in the certificate, or any part of that amount, remains unpaid at the date of the application.
      (3) A summary warrant granted on an application under subsection (1) above shall be in such form as may be prescribed by Act of Sederunt.
 
      (4) Subject to subsection (5) below and without prejudice to paragraphs 25 to 34 of Schedule 5 to the Debtors (Scotland) Act 1987 (expenses of poinding and sale), the sheriff officer's fees, together with the outlays necessarily incurred by him, in connection with the execution of a summary warrant granted on an application under subsection (1) above shall be chargeable against the debtor.
 
      (5) No fee shall be chargeable by the sheriff officer against the debtor for collecting, and accounting to the Secretary of State, for sums paid to him by the debtor in respect of the amount owing.
 
      (6) In this section "authorised officer" means an officer of the Secretary of State authorised by him for the purposes of this section."
 
Class 1B contributions: supplemental.     62. - (1) After section 143 of the Administration Act there shall be inserted the following section-
 
 
"Power to alter Class 1B contributions.     143A. - (1) Without prejudice to section 141 above, the Secretary of State may at any time, if he thinks it expedient to do so-
 
    (a) with a view to adjusting the level at which the National Insurance Fund stands for the time being and having regard to the sums which may be expected to be paid from the Fund in any future period; or
 
    (b) having regard to the percentage rate for secondary Class 1 contributions specified as the appropriate rate for Bracket 4 in section 9(3) of the Contributions and Benefits Act,
  make an order altering the percentage rate specified as the Class 1B percentage in section 10A(6) of the Contributions and Benefits Act.
 
      (2) No order shall be made under this section so as to increase for any tax year the percentage rate of the Class 1B percentage to a percentage rate more than 2 per cent higher than the percentage rate applicable at the end of the preceding tax year."
 
      (2) In subsection (5) of section 162 of that Act (destination of contributions), after paragraph (c) there shall be inserted the following paragraph-
 
 
    "(ca) in the case of Class 1B contributions, 0.9 per cent of the amount estimated to be the aggregate of the emoluments and the amounts of income tax in respect of which those contributions were paid;".
 
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Prepared 10 July 1997