Paragraph 8

(1)

Section 98A of the Taxes Management Act 1970 is amended as follows.

(2)

In subsection (1) (regulations which may provide for section 98A to apply) for “section 566 (1) (sub-contractors) of the principal Act” substitute “ section 70(1)(a) or 71 of the Finance Act 2004 (sub-contractors) ”.

(3)

In subsection (2)(b) (penalty for failure to make return continuing beyond 12 months)—

(a)

after “not exceeding” insert—

“(i)
in the case of a provision of PAYE regulations,”, and

(b)

at the end insert

“, or
(ii)
in the case of a provision of regulations under section 70(1)(a) or 71 of the Finance Act 2004, £3,000.”.

(4)

In subsection (4)(a) (penalty for fraudulently or negligently making incorrect return) after “year of assessment” insert “ (in the case of a provision of PAYE regulations) or period (in the case of a provision of regulations under section 70(1)(a) or 71 of the Finance Act 2004) ”.