House of Commons portcullis
House of Commons
Session 2002 - 03
Internet Publications
Other Bills before Parliament

National Insurance Contributions and Statutory Payments Bill


National Insurance Contributions and Statutory Payments Bill

8

 

(3)   

After paragraph 7B of Schedule 1 to the Social Security Contributions and

Benefits (Northern Ireland) Act 1992 (c. 7) (collection of contributions

otherwise than through PAYE system) insert—

“7BZA (1)  

  The Inland Revenue may by regulations provide for Class 1, Class

1A, Class 1B or Class 2 contributions to which regulations under

5

paragraph 7B apply to be recovered in a similar manner to income

tax.

      (2)  

Regulations under sub-paragraph (1) may apply or extend with or

without modification in relation to such contributions any of the

provisions of the Income Tax Acts or of PAYE regulations.

10

      (3)  

Any reference to contributions in this paragraph shall be construed

as including a reference to any interest or penalty payable, in respect

of contributions, by virtue of regulations under paragraph (e) or (h)

of paragraph 7B(2).”

Provision of information

15

7       

Class 1, 1A, 1B or 2 contributions: powers to call for documents etc: Great

Britain

For section 110ZA of the Social Security Administration Act 1992 (c. 5) (powers

exercisable by officers of Inland Revenue) substitute—

“110ZA  

Class 1, 1A, 1B or 2 contributions: powers to call for documents etc

20

(1)   

Section 20 of the Taxes Management Act 1970 (power to call for

documents etc) applies (with sections 20B and 20BB) in relation to a

person’s liability to pay relevant contributions as it applies in relation

to a person’s tax liability (but subject to the modifications provided by

subsection (2)).

25

(2)   

Those sections apply as if—

(a)   

the references to the taxpayer, a taxpayer or a class of taxpayers

were to the person, a person or a class of persons required to

pay relevant contributions,

(b)   

the references to an inspector were to an officer of the Inland

30

Revenue,

(c)   

the references to any provision of the Taxes Acts were to any

provision of this Act or the Contributions and Benefits Act

relating to relevant contributions,

(d)   

the references to the assessment or collection of tax were to the

35

assessment of liability for, and payment of, relevant

contributions,

(e)   

the reference to an appeal relating to tax were to an appeal

relating to relevant contributions, and

(f)   

the reference to believing that tax has been, or may have been,

40

lost to the Crown were to believing that the Crown has, or may

have, incurred a loss.

(3)   

In this section “relevant contributions” means Class 1, Class 1A, Class

1B or Class 2 contributions.”

 

 

National Insurance Contributions and Statutory Payments Bill

9

 

8       

Class 1, 1A, 1B or 2 contributions: powers to call for documents etc: Northern

Ireland

For section 104ZA of the Social Security Administration (Northern Ireland) Act

1992 (c. 8) (powers exercisable by officers of Inland Revenue) substitute—

“104ZA  

Class 1, 1A, 1B or 2 contributions: powers to call for documents etc

5

(1)   

Section 20 of the Taxes Management Act 1970 (power to call for

documents etc) applies (with sections 20B and 20BB) in relation to a

person’s liability to pay relevant contributions as it applies in relation

to a person’s tax liability (but subject to the modifications provided by

subsection (2)).

10

(2)   

Those sections apply as if—

(a)   

the references to the taxpayer, a taxpayer or a class of taxpayers

were to the person, a person or a class of persons required to

pay relevant contributions,

(b)   

the references to an inspector were to an officer of the Inland

15

Revenue,

(c)   

the references to any provision of the Taxes Acts were to any

provision of this Act or the Contributions and Benefits Act

relating to relevant contributions,

(d)   

the references to the assessment or collection of tax were to the

20

assessment of liability for, and payment of, relevant

contributions,

(e)   

the reference to an appeal relating to tax were to an appeal

relating to relevant contributions, and

(f)   

the reference to believing that tax has been, or may have been,

25

lost to the Crown were to believing that the Crown has, or may

have, incurred a loss.

(3)   

In this section “relevant contributions” means Class 1, Class 1A, Class

1B or Class 2 contributions.”

Statutory sick pay and statutory maternity pay

30

9       

Compliance regime for statutory sick pay and statutory maternity pay: Great

Britain

(1)   

The Social Security Administration Act 1992 (c. 5) is amended as follows.

(2)   

In section 130 (duties of employers: statutory sick pay and claims for other

benefits), after subsection (4) insert—

35

“(5)   

Regulations made with the concurrence of the Inland Revenue may

require employers to produce wages sheets and other documents and

records to officers of the Inland Revenue, within a prescribed period,

for the purpose of enabling them to satisfy themselves that statutory

sick pay has been paid, and is being paid, in accordance with

40

regulations under section 5 above, to employees or former employees

who are entitled to it.”

(3)   

In section 132 (duties of employers: statutory maternity pay and claims for

 

 

National Insurance Contributions and Statutory Payments Bill

10

 

other benefits), after subsection (3) insert—

“(4)   

Regulations made with the concurrence of the Inland Revenue may

require employers to produce wages sheets and other documents and

records to officers of the Inland Revenue, within a prescribed period,

for the purpose of enabling them to satisfy themselves that statutory

5

maternity pay has been paid, and is being paid, in accordance with

regulations under section 5 above, to employees or former employees

who are entitled to it.”

(4)   

In section 113 (breach of regulations), in subsection (1A)(b) omit “, statutory

sick pay or statutory maternity pay”.

10

(5)   

After that section insert—

“113A   

Statutory sick pay and statutory maternity pay: breach of regulations

(1)   

Where a person fails to produce any document or record, or provide

any information, in accordance with—

(a)   

regulations under section 5(1)(i) and (5), so far as relating to

15

statutory sick pay or statutory maternity pay,

(b)   

regulations under section 130 or 132, or

(c)   

regulations under section 153(5)(b) of the Contributions and

Benefits Act,

   

that person is liable to the penalties mentioned in subsection (2).

20

(2)   

The penalties are—

(a)   

a penalty not exceeding £300, and

(b)   

if the failure continues after a penalty is imposed under

paragraph (a), a further penalty or penalties not exceeding £60

for each day on which the failure continues after the day on

25

which the penalty under that paragraph was imposed (but

excluding any day for which a penalty under this paragraph has

already been imposed).

(3)   

Where a person fails to maintain a record in accordance with

regulations under section 130 or 132, he is liable to a penalty not

30

exceeding £3,000.

(4)   

No penalty may be imposed under subsection (1) at any time after the

failure concerned has been remedied.

(5)   

But subsection (4) does not apply to the imposition of a penalty under

subsection (2)(a) in respect of a failure to produce any document or

35

record in accordance with regulations under section 130(5) or 132(4).

(6)   

Where, in the case of any employee, an employer refuses or repeatedly

fails to make payments of statutory sick pay or statutory maternity pay

in accordance with any regulations under section 5, the employer is

liable to a penalty not exceeding £3,000.

40

(7)   

Section 118(2) of the Taxes Management Act 1970 (extra time for

compliance etc) applies for the purposes of subsections (1), (3) and (6)

as it applies for the purposes of that Act.

(8)   

Schedule 1 to the Employment Act 2002 (penalties relating to statutory

paternity pay and statutory adoption pay: procedures and appeals)

45

 

 

National Insurance Contributions and Statutory Payments Bill

11

 

applies in relation to penalties imposed under this section (with the

modifications set out in subsection (9)).

(9)   

That Schedule applies as if—

(a)   

references to a penalty under section 11 or 12 of that Act were to

a penalty under this section,

5

(b)   

in paragraph 1(2), the reference to section 11(2)(a) of that Act

were to subsection (2)(a) of this section, and

(c)   

the provisions of the Taxes Management Act 1970 having effect

in relation to an appeal mentioned in paragraph 3(2) of that

Schedule did not include section 50(9) of that Act.

10

113B    

Statutory sick pay and statutory maternity pay: fraud and negligence

(1)   

Where a person fraudulently or negligently—

(a)   

makes any incorrect statement or declaration in connection with

establishing entitlement to statutory sick pay or statutory

maternity pay, or

15

(b)   

produces any incorrect document or record or provides any

incorrect information of a kind mentioned in—

(i)   

regulations under section 5(1)(i) and (5), so far as

relating to statutory sick pay or statutory maternity pay,

(ii)   

regulations under section 130 or 132, or

20

(iii)   

regulations under section 153(5)(b) of the Contributions

and Benefits Act,

   

he is liable to a penalty not exceeding £3,000.

(2)   

Where an employer fraudulently or negligently makes an incorrect

payment of statutory sick pay or statutory maternity pay, he is liable to

25

a penalty not exceeding £3,000.

(3)   

Where an employer fraudulently or negligently receives an

overpayment in pursuance of regulations under section 167 of the

Contributions and Benefits Act (statutory maternity pay: advance

payments to employers), he is liable to a penalty not exceeding £3,000.

30

(4)   

Schedule 1 to the Employment Act 2002 (penalties relating to statutory

paternity pay and statutory adoption pay: procedures and appeals)

applies in relation to penalties imposed under this section (with the

modifications set out in subsection (5)).

(5)   

That Schedule applies as if—

35

(a)   

references to a penalty under section 11 or 12 of that Act were to

a penalty under this section, and

(b)   

the provisions of the Taxes Management Act 1970 having effect

in relation to an appeal mentioned in paragraph 3(2) of that

Schedule did not include section 50(9) of that Act.”

40

10      

Compliance regime for statutory sick pay and statutory maternity pay:

Northern Ireland

(1)   

The Social Security Administration (Northern Ireland) Act 1992 (c. 8) is

amended as follows.

(2)   

In section 122 (duties of employers: statutory sick pay and claims for other

45

 

 

National Insurance Contributions and Statutory Payments Bill

12

 

benefits), after subsection (4) insert—

“(5)   

Regulations made with the concurrence of the Inland Revenue may

require employers to produce wages sheets and other documents and

records to officers of the Inland Revenue, within a prescribed period,

for the purpose of enabling them to satisfy themselves that statutory

5

sick pay has been paid, and is being paid, in accordance with

regulations under section 5 above, to employees or former employees

who are entitled to it.”

(3)   

In section 124 (duties of employers: statutory maternity pay and claims for

other benefits), after subsection (3) insert—

10

“(4)   

Regulations made with the concurrence of the Inland Revenue may

require employers to produce wages sheets and other documents and

records to officers of the Inland Revenue, within a prescribed period,

for the purpose of enabling them to satisfy themselves that statutory

maternity pay has been paid, and is being paid, in accordance with

15

regulations under section 5 above, to employees or former employees

who are entitled to it.”

(4)   

In section 107 (breach of regulations), in subsection (1A)(b) omit “, statutory

sick pay or statutory maternity pay”.

(5)   

After that section insert—

20

“107A   

Statutory sick pay and statutory maternity pay: breach of regulations

(1)   

Where a person fails to produce any document or record, or provide

any information, in accordance with—

(a)   

regulations under section 5(1)(j) and (4), so far as relating to

statutory sick pay or statutory maternity pay,

25

(b)   

regulations under section 122 or 124, or

(c)   

regulations under section 149(5)(b) of the Contributions and

Benefits Act,

   

that person is liable to the penalties mentioned in subsection (2).

(2)   

The penalties are—

30

(a)   

a penalty not exceeding £300, and

(b)   

if the failure continues after a penalty is imposed under

paragraph (a), a further penalty or penalties not exceeding £60

for each day on which the failure continues after the day on

which the penalty under that paragraph was imposed (but

35

excluding any day for which a penalty under this paragraph has

already been imposed).

(3)   

Where a person fails to maintain a record in accordance with

regulations under section 122 or 124, he is liable to a penalty not

exceeding £3,000.

40

(4)   

No penalty may be imposed under subsection (1) at any time after the

failure concerned has been remedied.

(5)   

But subsection (4) does not apply to the imposition of a penalty under

subsection (2)(a) in respect of a failure to produce any document or

record in accordance with regulations under section 122(5) or 124(4).

45

 

 

National Insurance Contributions and Statutory Payments Bill

13

 

(6)   

Where, in the case of any employee, an employer refuses or repeatedly

fails to make payments of statutory sick pay or statutory maternity pay

in accordance with any regulations under section 5, the employer is

liable to a penalty not exceeding £3,000.

(7)   

Section 118(2) of the Taxes Management Act 1970 (extra time for

5

compliance etc) applies for the purposes of subsections (1), (3) and (6)

as it applies for the purposes of that Act.

(8)   

Schedule 1 to the Employment (Northern Ireland) Order 2002

(penalties relating to statutory paternity pay and statutory adoption

pay: procedures and appeals) applies in relation to penalties imposed

10

under this section (with the modifications set out in subsection (9)).

(9)   

That Schedule applies as if—

(a)   

references to a penalty under Article 12 or 13 of that Order were

to a penalty under this section,

(b)   

in paragraph 1(2), the reference to Article 12(2)(a) of that Order

15

were to subsection (2)(a) of this section, and

(c)   

the provisions of the Taxes Management Act 1970 having effect

in relation to an appeal mentioned in paragraph 3(2) of that

Schedule did not include section 50(9) of that Act.

107B    

Statutory sick pay and statutory maternity pay: fraud and negligence

20

(1)   

Where a person fraudulently or negligently—

(a)   

makes any incorrect statement or declaration in connection with

establishing entitlement to statutory sick pay or statutory

maternity pay, or

(b)   

produces any incorrect document or record or provides any

25

incorrect information of a kind mentioned in—

(i)   

regulations under section 5(1)(j) and (4), so far as

relating to statutory sick pay or statutory maternity pay,

(ii)   

regulations under section 122 or 124, or

(iii)   

regulations under section 149(5)(b) of the Contributions

30

and Benefits Act,

   

he is liable to a penalty not exceeding £3,000.

(2)   

Where an employer fraudulently or negligently makes an incorrect

payment of statutory sick pay or statutory maternity pay, he is liable to

a penalty not exceeding £3,000.

35

(3)   

Where an employer fraudulently or negligently receives an

overpayment in pursuance of regulations under section 163 of the

Contributions and Benefits Act (statutory maternity pay: advance

payments to employers), he is liable to a penalty not exceeding £3,000.

(4)   

Schedule 1 to the Employment (Northern Ireland) Order 2002

40

(penalties relating to statutory paternity pay and statutory adoption

pay: procedures and appeals) applies in relation to penalties imposed

under this section (with the modifications set out in subsection (5)).

(5)   

That Schedule applies as if—

(a)   

references to a penalty under Article 12 or 13 of that Order were

45

to a penalty under this section, and

 

 

National Insurance Contributions and Statutory Payments Bill

14

 

(b)   

the provisions of the Taxes Management Act 1970 having effect

in relation to an appeal mentioned in paragraph 3(2) of that

Schedule did not include section 50(9) of that Act.”

Miscellaneous and general

11      

Minor and consequential amendments

5

Schedule 1 (which makes minor and consequential amendments) has effect.

12      

Repeals and revocations

The enactments and instruments mentioned in Schedule 2 are repealed or

revoked to the extent specified.

13      

Commencement

10

(1)   

The preceding provisions of this Act come into force in accordance with

provision made by the Treasury by order.

(2)   

The power to make an order under subsection (1) is exercisable by statutory

instrument.

(3)   

An order under this section—

15

(a)   

may include incidental, supplementary, consequential or transitional

provision or savings;

(b)   

may make different provision for different purposes.

14      

Extent

(1)   

Sections 1, 3, 5, 7 and 9 extend to England and Wales and Scotland only.

20

(2)   

Sections 2, 4, 6, 8 and 10 extend to Northern Ireland only.

(3)   

An amendment, repeal or revocation contained in Schedule 1 or 2 has the same

extent as the enactment or instrument to which it relates.

(4)   

Subject to subsections (1) to (3) this Act extends to England and Wales,

Scotland and Northern Ireland.

25

15      

Short title

This Act may be cited as the National Insurance Contributions and Statutory

Payments Act 2004.

 

 

 
previous section contents continue
 
House of Commons home page Houses of Parliament home page House of Lords home page search page enquiries

© Parliamentary copyright 2003
Revised 27 November 2003