National Insurance Contributions and Statutory Payments Bill

House of Commons

Session 2003 - 04
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Other Bills before Parliament

National Insurance Contributions and Statutory Payments Bill

National Insurance Contributions and Statutory Payments Bill
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(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
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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
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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).
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National Insurance Contributions and Statutory Payments Bill
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(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
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(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.