1.In its letter to HM Treasury of 12 May 2021, the Joint Committee requested a memorandum on the following point:
Confirm whether in Article 2 “payable or paid to” ought to read “payable or paid by or to” (to include all limbs of s.102(1) of the Finance Act 2009).
2.This memorandum has been prepared by Her Majesty’s Revenue and Customs on behalf of HM Treasury.
3.The drafting reflects the policy intention which is to commence these sections for payments to HMRC of transferred National Insurance contributions debts (under Part 3AA of Schedule 4 to the Social Security (Contributions) Regulations 2001) in the same way that those sections were commenced by paragraph 29 of Schedule 1 to the Finance Act 2020 for equivalent payments of transferred income tax debts (that paragraph also reads “payable or paid to”).
4.We consider that “in relation to” in Article 2 allows any repayments by HMRC that arise in consequence of a payment to HMRC under Part 3AA to be subject to section 102, whereas including “payable or paid by or to” would imply that Part 3AA specifically provides for payments to be made by HMRC, which is not the case.
Her Majesty’s Revenue and Customs
17 May 2021