|
| |
|
(b) | if there is no such assessment, the date on which that amount of tax |
| |
| |
(4) | In sub-paragraph (3)(a) “appeal period” means the period during which— |
| |
(a) | an appeal could be brought, or |
| |
(b) | an appeal that has been brought has not been determined or |
| 5 |
| |
| |
13 (1) | P may appeal against a decision of HMRC that a penalty is payable by P. |
| |
(2) | P may appeal against a decision of HMRC as to the amount of a penalty |
| |
| 10 |
14 (1) | An appeal under paragraph 13 is to be treated in the same way as an appeal |
| |
against an assessment to the tax concerned (including by the application of |
| |
any provision about bringing the appeal by notice to HMRC, about HMRC |
| |
review of the decision or about determination of the appeal by the First-tier |
| |
Tribunal or Upper Tribunal). |
| 15 |
(2) | Sub-paragraph (1) does not apply— |
| |
(a) | so as to require P to pay a penalty before an appeal against the |
| |
assessment of the penalty is determined, or |
| |
(b) | in respect of any other matter expressly provided for by this Act. |
| |
15 (1) | On an appeal under paragraph 13(1) that is notified to the tribunal, the |
| 20 |
tribunal may affirm or cancel HMRC’s decision. |
| |
(2) | On an appeal under paragraph 13(2) that is notified to the tribunal, the |
| |
| |
(a) | affirm HMRC’s decision, or |
| |
(b) | substitute for HMRC’s decision another decision that HMRC had |
| 25 |
| |
(3) | If the tribunal substitutes its decision for HMRC’s, the tribunal may rely on |
| |
| |
(a) | to the same extent as HMRC (which may mean applying the same |
| |
percentage reduction as HMRC to a different starting point), or |
| 30 |
(b) | to a different extent, but only if the tribunal thinks that HMRC’s |
| |
decision in respect of the application of paragraph 9 was flawed. |
| |
(4) | In sub-paragraph (3)(b) “flawed” means flawed when considered in the light |
| |
of the principles applicable in proceedings for judicial review. |
| |
(5) | In this paragraph “tribunal” means the First-tier Tribunal or Upper Tribunal |
| 35 |
(as appropriate by virtue of paragraph 14(1)). |
| |
| |
16 (1) | Liability to a penalty under any paragraph of this Schedule does not arise in |
| |
relation to a failure to make a payment if P satisfies HMRC or (on appeal) the |
| |
First-tier Tribunal or Upper Tribunal that there is a reasonable excuse for the |
| 40 |
| |
(2) | For the purposes of sub-paragraph (1)— |
| |
|
| |
|
| |
|
(a) | an insufficiency of funds is not a reasonable excuse unless |
| |
attributable to events outside P’s control, |
| |
(b) | where P relies on any other person to do anything, that is not a |
| |
reasonable excuse unless P took reasonable care to avoid the failure, |
| |
| 5 |
(c) | where P had a reasonable excuse for the failure but the excuse has |
| |
ceased, P is to be treated as having continued to have the excuse if the |
| |
failure is remedied without unreasonable delay after the excuse |
| |
| |
| 10 |
17 | P is not liable to a penalty under any paragraph of this Schedule in respect |
| |
of a failure or action in respect of which P has been convicted of an offence. |
| |
| |
18 (1) | This paragraph applies for the construction of this Schedule. |
| |
(2) | “HMRC” means Her Majesty’s Revenue and Customs. |
| 15 |
(3) | References to tax include construction industry deductions under Chapter 3 |
| |
| |
(4) | References to a determination, in relation to an amount payable under PAYE |
| |
regulations or under Chapter 3 of Part 3 of FA 2004, include a certificate. |
| |
(5) | References to an assessment to tax, in relation to inheritance tax and stamp |
| 20 |
duty reserve tax, are to a determination. |
| |
| |
| |
Amendments relating to penalties |
| |
| |
Amendments of Schedule 24 to FA 2007 |
| 25 |
1 | Schedule 24 to FA 2007 (penalties for errors) is amended as follows. |
| |
2 | In paragraph 2 (under-assessment by HMRC), insert at the end— |
| |
“(4) | In this paragraph (and in Part 2 of this Schedule so far as relating |
| |
| |
(a) | “assessment” includes determination, and |
| 30 |
(b) | accordingly, references to an under-assessment include an |
| |
| |
3 | In paragraph 5 (normal rule for calculating potential lost revenue), for sub- |
| |
paragraph (4)(b) substitute— |
| |
“(b) | any relief under subsection (4) of section 419 of ICTA |
| 35 |
(relief in respect of repayment etc of loan) which is |
| |
deferred under subsection (4A) of that section;”. |
| |
|
| |
|
| |
|
4 | In paragraph 9(1)(b) and (c) (reductions for disclosure), for “supply or false |
| |
information” substitute “supply of false information”. |
| |
5 | In paragraph 13 (assessment), insert at the end— |
| |
“(7) | In this Part of this Schedule references to an assessment to tax, in |
| |
relation to inheritance tax and stamp duty reserve tax, are to a |
| 5 |
| |
6 | For paragraph 16(2) (appeals) substitute— |
| |
“(2) | Sub-paragraph (1) does not apply— |
| |
(a) | so as to require P to pay a penalty before an appeal against |
| |
the assessment of the penalty is determined, or |
| 10 |
(b) | in respect of any other matter expressly provided for by |
| |
| |
7 (1) | Paragraph 19 (companies: officers’ liability) is amended as follows. |
| |
(2) | In sub-paragraph (3)— |
| |
(a) | after “a body corporate” insert “other than a limited liability |
| 15 |
| |
(b) | in paragraph (a), omit the “or” at the end, and |
| |
(c) | after that paragraph insert— |
| |
| |
(3) | After sub-paragraph (3) insert— |
| 20 |
“(3A) | In the application of sub-paragraph (1) to a limited liability |
| |
partnership, “officer” means a member.” |
| |
| |
“(6) | In this paragraph “company” means any body corporate or |
| |
unincorporated association, but does not include a partnership, a |
| 25 |
local authority or a local authority association.” |
| |
8 | Omit paragraph 28(da) (interpretation of references to assessment). |
| |
9 | In paragraphs 30 and 31 (consequential amendments) for “paragraph 7” |
| |
substitute “paragraphs 7 and 7B”. |
| |
| 30 |
Amendments of Schedule 41 to FA 2008 |
| |
10 | Schedule 41 to FA 2008 (penalties for failure to notify and certain other |
| |
wrongdoing) is amended as follows. |
| |
11 | For paragraph 18(2) (appeals) substitute— |
| |
“(2) | Sub-paragraph (1) does not apply— |
| 35 |
(a) | so as to require P to pay a penalty before an appeal against |
| |
the assessment of the penalty is determined, or |
| |
(b) | in respect of any other matter expressly provided for by |
| |
| |
12 (1) | Paragraph 22 (companies: officers’ liability) is amended as follows. |
| 40 |
|
| |
|
| |
|
(2) | In sub-paragraph (3)— |
| |
(a) | after “a body corporate” insert “other than a limited liability |
| |
| |
(b) | in paragraph (a), omit the “or” at the end, |
| |
(c) | after that paragraph insert— |
| 5 |
| |
(3) | After sub-paragraph (3) insert— |
| |
“(3A) | In the application of sub-paragraph (1) to a limited liability |
| |
partnership, “officer” means a member.” |
| |
| 10 |
“(6) | In this paragraph “company” means any body corporate or |
| |
unincorporated association, but does not include a partnership, a |
| |
local authority or a local authority association.” |
| |
| |
| 15 |
13 (1) | TMA 1970 is amended as follows. |
| |
(2) | In section 100(2) (determination of penalties by officer), omit paragraph (g) |
| |
| |
(3) | After section 103 insert— |
| |
“103A | Disapplication of sections 100 to 103 in the case of certain penalties |
| 20 |
Sections 100 to 103 do not apply to a penalty under— |
| |
(a) | Schedule 24 to FA 2007 (penalties for errors), |
| |
(b) | Schedule 36 to FA 2008 (information and inspection powers), |
| |
(c) | Schedule 41 to that Act (penalties for failure to notify and |
| |
certain other wrongdoing), |
| 25 |
(d) | Schedule 55 to FA 2009 (penalties for failure to make returns |
| |
| |
(e) | Schedule 56 to that Act (penalties for failure to make |
| |
| |
| 30 |
(a) | paragraph 74 of Schedule 36 (information and inspection powers); |
| |
(b) | paragraph 20(3) of Schedule 40 (amendment of Schedule 24 to FA |
| |
| |
| |
| |
Recovery of debts under PAYE regulations |
| 35 |
| |
1 | Section 684 of ITEPA 2003 (PAYE regulations) is amended as follows. |
| |
2 | In subsection (1), omit “for Her Majesty’s Revenue and Customs”. |
| |
|
| |
|
| |
|
3 (1) | Subsection (2) is amended as follows. |
| |
(2) | For “PAYE regulations may, in particular, include” substitute “The |
| |
provision that may be made in PAYE regulations includes”. |
| |
(3) | In the list of provisions, in item 1, in paragraph (a), omit “for Her Majesty’s |
| |
| 5 |
(4) | In item 2, for “or remaining unpaid (or treated as overpaid or remaining |
| |
unpaid)” substitute “(or treated as overpaid) on account of, or any amounts |
| |
other than relevant debts remaining unpaid (or treated as remaining |
| |
| |
| 10 |
| | | | | | | (a) | for deductions to be made in respect of relevant debts of a |
| | | | | | | | | | (b) | as to the circumstances in which such deductions may be |
| | | | | | | 15 | | | (c) | where such deductions are made, as to the date on which |
| | | | | the relevant debts are to be treated as paid.” |
| | |
|
(6) | In item 3, for “income tax has been and is” substitute “amounts have been |
| |
| |
4 | After subsection (3) insert— |
| 20 |
“(3A) | PAYE regulations under item 2A in the above list may not make |
| |
provision enabling deductions totalling more than £2,000 to be made |
| |
from a payee’s income for a tax year without the payee’s consent. |
| |
(3B) | The Treasury may by order amend the amount specified in |
| |
| 25 |
5 | In subsection (7A)(a), after “tax” insert “or other amounts”. |
| |
6 | After that subsection insert— |
| |
“(7AA) | In this section “relevant debt”, in relation to a payee, means— |
| |
(a) | a sum payable by the payee to the Commissioners under or |
| |
by virtue of an enactment, other than an excluded debt, and |
| 30 |
(b) | a sum payable by the payee to the Commissioners under a |
| |
| |
(7AB) | For the purposes of subsection (7AA)— |
| |
(a) | child tax credit or working tax credit that the payee is liable |
| |
to repay is an excluded debt, and |
| 35 |
(b) | if the payee is an employer, any amount that the payee is |
| |
required to deduct from the PAYE income of employees for a |
| |
tax year is an excluded debt until the tax year has ended.” |
| |
7 | In subsection (7C), before the definition of “payer” insert— |
| |
““the Commissioners” means the Commissioners for Her |
| 40 |
Majesty’s Revenue and Customs; |
| |
“contract settlement” means an agreement made in connection |
| |
with the liability of the payee or another person to make a |
| |
|
| |
|
| |
|
payment to the Commissioners under or by virtue of an |
| |
| |
| |
8 | In section 29(5) of the Tax Credits Act 2002 (recovery of overpayments)— |
| |
(a) | for “tax” substitute “income tax”, and |
| 5 |
(b) | insert at the end “that is not a relevant debt (within the meaning of |
| |
section 684 of the Income Tax (Earnings and Pensions) Act 2003))”. |
| |
9 (1) | Part 11 of ITEPA 2003 (pay as you earn) is amended as follows. |
| |
(2) | In section 682(1) (scope of Part), insert at the end “and includes provision in |
| |
respect of the deduction of certain other amounts from, and the repayment |
| 10 |
of certain other amounts with, PAYE income”. |
| |
(3) | In section 685 (tax tables)— |
| |
(a) | in subsection (1), omit “for Her Majesty’s Revenue and Customs”, |
| |
| |
(b) | in subsection (2)(b), for “or 2” substitute “, 2 or 2A”. |
| 15 |
10 (1) | The Treasury may by order make provision— |
| |
(a) | amending or repealing provisions of Part 11 of ITEPA 2003, |
| |
(b) | amending, repealing or revoking provisions of enactments or |
| |
instruments that refer to provisions of that Part, and |
| |
(c) | amending, repealing or revoking provisions of enactments or |
| 20 |
instruments that apply, or confer power to apply, PAYE regulations |
| |
or otherwise refer to such regulations. |
| |
(2) | An order under this paragraph may only make provision to the extent that |
| |
it is appropriate in consequence of, or in connection with, the amendments |
| |
| 25 |
(3) | An order under this paragraph may include transitional provision and |
| |
| |
(4) | An order under this paragraph is to be made by statutory instrument. |
| |
(5) | A statutory instrument containing an order under this paragraph is subject |
| |
to annulment in pursuance of a resolution of the House of Commons. |
| 30 |
| |
| |
Climate change levy: removal of reduced rate |
| |
| |
New provision for removal of reduced rate |
| |
1 | In Schedule 6 to FA 2000 (climate change levy), after paragraph 45A insert— |
| 35 |
“Removal of reduced rate where targets set by climate change agreement not met |
| |
45B (1) | This paragraph applies where, by virtue of such a certificate as is |
| |
mentioned in paragraph 44(1), a facility is to be taken as being |
| |
|
| |
|
| |
|
covered by a climate change agreement for a period specified in |
| |
that certificate (“the certification period”). |
| |
(2) | If it appears to the Secretary of State that the progress made in the |
| |
certification period towards meeting targets set for the facility by |
| |
the agreement has been such as under the provisions of the |
| 5 |
agreement is unsatisfactory, the Secretary of State may issue a |
| |
certificate under this paragraph. |
| |
(3) | The certificate must (in addition to specifying the facility, |
| |
agreement and certification period to which it applies) specify— |
| |
(a) | T, that is, the value (expressed in terms of a reduction in |
| 10 |
tonnes of carbon dioxide equivalent) of achieving the |
| |
targets set for the facility by the agreement, and |
| |
(b) | P, that is, the value (expressed in the same terms) of the |
| |
progress made by the facility, during the certification |
| |
period, towards meeting those targets. |
| 15 |
(4) | Where a certificate has been issued under this paragraph— |
| |
(a) | each taxable supply made to the facility at any time falling |
| |
within the certification period is to be treated as not being |
| |
a reduced-rate supply, and |
| |
(b) | accordingly, an amount (determined in accordance with |
| 20 |
sub-paragraph (5)) is payable by way of levy on that |
| |
| |
(5) | The amount payable under this paragraph on a taxable supply |
| |
is—![equation: cross[(*s11.00s*)over[(*s11.00s*)plus[(*s11.00s*)char[(*s11.00s*)T],minus[(*s11.00s*)char[
(*s11.00s*)P]]],char[(*s11.00s*)T]],times[(*s11.00s*)num[(*s11.00s*)0.8000000000000000,
"0.8"],char[(*s11.00s*)R]]]](missing.gif) |
| |
| 25 |
T and P have the values mentioned in sub-paragraph (3); |
| |
R is the amount which would have been payable by way of |
| |
levy on the supply (had it not been a reduced-rate supply) |
| |
at the time that it was made, in accordance with paragraph |
| |
| 30 |
(6) | The Secretary of State must send the certificate to— |
| |
(a) | the Commissioners, and |
| |
(b) | the person who is the operator of the facility. |
| |
(7) | A certificate under this paragraph may be issued after the |
| |
certification period ends. |
| 35 |
(8) | A person liable to account for levy under this paragraph— |
| |
(a) | is liable to account for it otherwise than by reference to an |
| |
| |
(b) | must not (by virtue of regulations under paragraph 41) |
| |
become liable to pay it as from a date before the date on |
| 40 |
which the certificate under this paragraph is issued. |
| |
(9) | Levy due under this paragraph is payable in addition to any levy |
| |
already payable on any supply made in the certification period. |
| |
| |
|
| |
|