Finance Bill

House of Commons

Session 2006 - 07
Internet Publications
Other Bills before Parliament

Finance Bill

Finance Bill
Part 6 — Investigation, administration etc
64

partner: filing date) substitute—
“(5)
In the case of a partnership which includes one or more companies, a
notice may specify different dates depending on whether a notice in
respect of a relevant period is electronic or non-electronic.
(5A)
The day specified for a non-electronic return must not be earlier than
5
the end of the period of nine months beginning at the end of the
relevant period.
(5B)
The day specified for an electronic return must not be earlier than the
first anniversary of the end of the relevant period.
(5C)
But where the notice is given more than nine months after the end of
10
the relevant period, the day specified for a return (whether or not
electronic) must be after the end of the period of three months
beginning with the date of the notice.
(5D)
For the purposes of this section “relevant period” means the period in
respect of which the return is required.
15
(5E)
The Commissioners—
(a)
shall prescribe what constitutes an electronic return for the
purposes of this section, and
(b)
may make different provision for different cases or
circumstances.”
20
90
Consequential amendments
(1)
In section 9(2) of TMA 1970 (returns to include self-assessment)—
(a)
in paragraph (a), for “30th September” substitute “31st October”, and
(b)
in paragraph (b), for “31st July” substitute “31st August”.
(2)
In section 9ZA of TMA 1970 (amendment of personal or trustee return), for
25
subsection (3) substitute—
“(3)
In this section “the filing date”, in respect of a return for a year of
assessment (Year 1), means—
(a)
31st January of Year 2, or
(b)
if the notice under section 8 or 8A is given after 31st October of
30
Year 2, the last day of the period of three months beginning with
the date of the notice.”
(3)
In section 9A(6) of TMA 1970 (notice of enquiry: “the filing date”), for the
words from “means” to the end substitute “means, in relation to a return, the
last day for delivering it in accordance with section 8 or 8A.”
35
(4)
In section 12ABA of TMA 1970 (amendment of partnership return by
taxpayer), for subsection (4) substitute—
“(4)
In this section “the filing date” means—
(a)
in the case of a partnership which includes one or more
individuals, in respect of a return for a year of assessment (Year
40
1)—
(i)
31st January of Year 2, or

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(ii)
if the notice under section 12AA is given after 31st
October of Year 2, the last day of the period of three
months beginning with the date of the notice, and
(b)
in the case of a partnership which includes one or more
companies, the end of the period specified in section 12AA(5B)
5
or (5C).”
(5)
In section 28C of TMA 1970 (determination of tax where no return delivered),
for subsection (6) substitute—
“(6)
In this section “the filing date” in respect of a return for a year of
assessment (Year 1) means either—
10
(a)
31st January of Year 2, or
(b)
if the notice under section 8 or 8A was given after 31st October
of Year 2, the last day of the period of three months beginning
with the day on which the notice is given.”
(6)
In section 33A of TMA 1970 (error in partnership return)—
15
(a)
in subsection (1), insert at the end “for a year of assessment (Year 1), or
for a relevant period which ends in Year 1”,
(b)
in subsection (2), for “five years after the filing date” substitute “31st
January of Year 6”,
(c)
in subsection (9), omit the definition of “filing date”, and
20
(d)
in that subsection, after the definition of “relevant partner” insert—
““relevant period” means a period in respect of which a
return is required.”
(7)
In section 93(10) of TMA 1970 (penalty for failure to make individual or trustee
return), for the definition of “filing date” substitute—
25
““the filing date” in respect of a return for a year of assessment
(Year 1) means—
(a)
31st January of Year 2, or
(b)
if the notice under section 8 or 8A was given after 31st
October of Year 2, the last day of the period of three
30
months beginning with the day on which the notice is
given.”
(8)
In section 93A of TMA 1970 (failure to make partnership return), after
subsection (7) insert—
“(7A)
For the purposes of this section the filing date for a year of assessment
35
(Year 1) in the case of a partnership which includes one or more
individuals is—
(a)
31st January of Year 2, or
(b)
if the notice under section 12AA was given after 31st October of
Year 2, the last day of the period of three months beginning with
40
the date of the notice.
(7B)
For the purposes of this section the filing date for a year of assessment
(Year 1) in the case of a partnership which includes one or more
companies is—
(a)
the first anniversary of the period for which the return is
45
required, or

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(b)
where the notice is given more than nine months after the end
of the period for which the return is required, the last day of the
period of three months beginning with the date of the notice.”
(9)
In subsection (8) of section 93A, omit the definition of “the filing date”.
(10)
In paragraph 4 of Schedule 15 to FA 2006 (accountancy change: spreading of
5
adjustment)—
(a)
in sub-paragraph (1), after “a tax year” insert “(Year 1)”, and
(b)
in sub-paragraph (2), for “normal self-assessment filing date for the tax
year.” substitute “31st January of Year 2.”
91
Commencement
10
(1)
Sections 87 to 90 have effect—
(a)
in relation to a return under section 8 or 8A of TMA 1970, or a return
under section 12AA of that Act for a partnership which includes one or
more individuals, in respect of a return for a year of assessment
beginning on or after 6th April 2007, and
15
(b)
in relation to a return under section 12AA of that Act for a partnership
which includes one or more companies, in respect of a return for a
relevant period beginning on or after 6th April 2007.
(2)
In subsection (1)(b) “relevant period” means a period in respect of which a
return is required.
20
Other administration
92
Mandatory electronic filing of returns
(1)
Section 135 of FA 2002 (mandatory electronic filing) is amended as follows.
(2)
In subsection (7), after paragraph (b) insert—
“(ba)
to specify other consequences of contravention of, or failure to
25
comply with, the regulations (which may include disregarding
a return delivered otherwise than by the use of electronic
communications);”.
(3)
In subsection (10), for the definition of “taxation matter” substitute—
““taxation matter” means any matter relating to a tax (or duty) for which
30
the Commissioners are responsible.”
(4)
Section 76 of VATA 1994 (assessment) is amended as follows.
(5)
In subsection (1), after paragraph (c) insert—

“or
(d)
a penalty under regulations made under section 135 of the
35
Finance Act 2002 (mandatory electronic filing of returns) in
connection with VAT,”.
(6)
In that subsection, before “may have ceased” insert “or the regulations”.
(7)
In subsection (3), insert at the end—

“; and
40
(f)
in the case of a penalty under regulations made under section
135 of the Finance Act 2002, the relevant period is the prescribed

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accounting period in respect of which the contravention of, or
failure to comply with, the regulations occurred.”
(8)
In section 83 of VATA 1994 (appeals), after paragraph (zb) insert—
“(zc)
a decision of the Commissioners about the application of
regulations under section 135 of the Finance Act 2002
5
(mandatory electronic filing of returns) in connection with VAT
(including, in particular, a decision as to whether a requirement
of the regulations applies and a decision to impose a penalty);”.
(9)
In section 84 of VATA 1994 (appeals), after subsection (6A) insert—
“(6B)
Nothing in section 83(zc) shall be taken to confer on a tribunal any
10
power to vary an amount assessed by way of penalty except in so far as
it is necessary to reduce it to the amount which is appropriate under
regulations made under section 135 of the Finance Act 2002.”
93
Mandatory electronic payment
(1)
Section 204 of FA 2003 (mandatory electronic payment by large employers) is
15
amended as follows.
(2)
For subsections (1) and (2) substitute—
“(1)
The Commissioners for Her Majesty’s Revenue and Customs may
make regulations requiring a person to use electronic means in making
specified payments under legislation relating to a tax (or duty) for
20
which the Commissioners are responsible.
(2)
The regulations may provide for exceptions.”
(3)
In subsection (5)(b), for “the Inland Revenue” substitute “Her Majesty’s
Revenue and Customs”.
(4)
In subsection (6)(a), for “the Inland Revenue” substitute “Her Majesty’s
25
Revenue and Customs”.
(5)
In subsection (8)—
(a)
in paragraph (a), for “a contravention of, or any failure to comply with,”
substitute “a contravention by a large employer of, or any failure by a
large employer to comply with,”, and
30
(b)
in paragraph (b), for “taxation matter within the care and management
of the Commissioners” substitute “matter relating to a tax (or duty) for
which the Commissioners are responsible”.
(6)
In subsection (12)—
(a)
for the definition of “the Inland Revenue” substitute—
35
““Her Majesty’s Revenue and Customs” includes a person acting
under the authority of the Commissioners in relation to
payment by electronic means;”, and
(b)
after that definition insert—
““large employer” means a person paying PAYE income to 250 or
40
more recipients (and regulations under this section may make
provision as to the date or period by reference to which this is
to be determined and the circumstances in which a person is to
be treated as paying PAYE income to a recipient);”.

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(7)
The heading accordingly becomes “Mandatory electronic payment”.
(8)
In section 205(1) of FA 2003 (application of section 204 for other purposes)—
(a)
after “taxation” insert “(or duty)”, and
(b)
for “the Commissioners of Inland Revenue” substitute “the
Commissioners for Her Majesty’s Revenue and Customs”.
5
94
Payment by cheque
(1)
The Commissioners may make regulations providing for a payment to HMRC
made by cheque to be treated as made when the cheque clears, as defined in
the regulations.
(2)
Section 70A of TMA 1970 (payment by cheque treated as made on receipt by
10
HMRC) is subject to regulations under subsection (1).
(3)
Regulations under subsection (1)—
(a)
may make provision generally or only for specified purposes,
(b)
may make different provision for different purposes, and
(c)
may include incidental, consequential or transitional provision.
15
(4)
Regulations under subsection (1)—
(a)
shall be made by statutory instrument, and
(b)
shall be subject to annulment in pursuance of a resolution of the House
of Commons.
(5)
In this section—
20
(a)
“the Commissioners” means the Commissioners for Her Majesty’s
Revenue and Customs, and
(b)
“HMRC” means Her Majesty’s Revenue and Customs.
(6)
In section 204 of FA 2003 (electronic payment), insert at the end—
“(13)
Regulations under section 94(1) of the Finance Act 2007 (payment by
25
cheque) may, in particular, provide for a payment which is made by
cheque in contravention of regulations under this section to be treated
as made when the cheque clears, as defined in the regulations under
that section.”
(7)
In section 70A of TMA 1970 (payments by cheque), insert at the end—
30
“(3)
This section is subject to regulations under section 94(1) of the Finance
Act 2007 (payment by cheque).”
(8)
In VATA 1994, after section 58A insert—
“58B
Payment by cheque
Regulations under section 94(1) of the Finance Act 2007 (payment by
35
cheque) may, in particular, provide for a payment which is made by
cheque in contravention of regulations under section 25(1) above to be
treated as made when the cheque clears, as defined in the regulations
under section 94(1) of that Act.”