The Social Security (Contributions) (Amendment No. 4) Regulations 2009
Made
Laid before Parliament
Coming into force
22nd July 2009
23rd July 2009
13th August 2009
The Commissioners for Her Majesty’s Revenue and Customs(1) make the following Regulations in exercise of the powers conferred by paragraph 6(1) and (2) of Schedule 1 to the Social Security Contributions and Benefits Act 1992(2) and paragraph 6(1) and (2) of Schedule 1 to the Social Security Contributions and Benefits (Northern Ireland) Act 1992(3) and now exercisable by them:
These Regulations may be cited as the Social Security (Contributions) (Amendment No. 4) Regulations 2009.
(2)
These Regulations come into force on 13th August 2009, immediately after the coming into force of the Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2009.
(3)
The amendments made by regulation 3 shall have effect in relation to deferred payment agreements made on or after 13th August 2009.
(4)
The amendments made by regulations 4 to 8 shall have effect in relation to the tax year 2009-10 and subsequent tax years.
The Social Security (Contributions) Regulations 2001(4) are amended as follows.
3-
In regulation 90K (default surcharge) after paragraph (7) insert—
"(8)
Section 108 of the Finance Act 2009(5) (suspension of penalties during currency of agreement for deferred payment) applies to a surcharge payable under this regulation with the following modifications—
(a)
in subsections (1)(a), (1)(b) and (4)(a) omit the words “of tax”,
(b)
for subsection (5) substitute the following—
"(5)
The references to an amount and penalty referred to in subsections (1) and (2) are—
Amount
Penalty
Specified payments within the meaning of regulation 90M of the Social Security (Contributions) Regulations 2001
Surcharge under regulation 90K of the Social Security (Contributions) Regulations 2001”
, and
(c)
omit subsections (7), (8), (9), and (11).”.
4-
For the heading to regulation 90M (specified information and specified payments) substitute “Paragraph 22 return and specified payments”.
for the definition of “specified information” substitute—
““paragraph 22 return” means the return and accompanying information required by paragraph 22 of Schedule 4 (return by employer at the end of the year);”, and
(b)
in the definition of “specified payments” after “paragraph 10” insert “of Schedule 4”.
Where an employer is required to deliver a relevant annual return by an approved method of electronic communications to Her Majesty’s Revenue and Customs under regulation 205 of the PAYE Regulations(6) (mandatory use of electronic communication for delivering relevant annual returns), the employer must also deliver the paragraph 22 return required in relation to that tax year to an official computer system using an approved method of electronic communications.”,
(b)
omit paragraph (2),
(c)
in paragraph (3) for “205(2)” substitute “205B(1)”(7), and
(d)
after paragraph (4) insert—
"(5)
The expression “relevant annual return” has the meaning given in regulation 206A of the PAYE Regulations.”(8).
7-
In regulation 90O (standards of accuracy and completeness) for “Specified information”, in each place where it occurs, substitute “Any paragraph 22 return”.
in paragraph (1) for “specified information” substitute “a paragraph 22 return”,
(b)
for paragraph (2) substitute the following—
"(2)
Table 2 sets out the penalties for employers for the tax year ending 5th April 2010, depending on the number of employees for whom particulars should have been included with the paragraph 22 return.
Table 2
Penalties: tax year ending 5th April 2010
1 Number of employees for whom particulars should have been included with the return
2 Penalty
1-5
0
6-49
£100
50-249
£600
250-399
£900
400-499
£1200
500-599
£1500
600-699
£1800
700-799
£2100
800-899
£2400
900-999
£2700
1000 or more
£3000
(2A)
Table 3 sets out the penalties for employers for the tax years ending 5th April 2011 and subsequent years, depending on the number of employees for whom particulars should have been included with the paragraph 22 return.
Table 3
Penalties: tax year ending 5th April 2011 and subsequent years
1 Number of employees for whom particulars should have been included with the return
2 Penalty
1-5
£100
6-49
£300
50-249
£600
250-399
£900
400-499
£1200
500-599
£1500
600-699
£1800
700-799
£2100
800-899
£2400
900-999
£2700
1000 or more
£3000
(c)
in paragraph (3)—
(i)
in sub-paragraph (a) for “specified information” substitute “paragraph 22 return”, and
(ii)
for sub-paragraph (b) substitute—
"(b)
been subject to a penalty for failing to comply with regulation 205 of the PAYE Regulations (mandatory use of electronic communication for delivering relevant annual returns) in relation to the same tax year.”.
22nd July 2009
Dave Hartnett
Bernadette Kenny
Two of the Commissioners for Her Majesty’s Revenue
and Customs
