# The Income Tax (Sub-contractors in the Construction Industry) (Amendment) Regulations 1993, Note: Explanatory note


(This note is not part of the Regulations)
These Regulations, which come into force on 6th April 1993, amend the provisions of the Income Tax (Sub-contractors in the Construction Industry) Regulations 1975 (as amended) (“the Sub-contractor Regulations”) which relate to interest on any amount which a contractor in the construction industry is liable under the Sub-contractor Regulations to pay to the Inland Revenue but which remains unpaid (“an unpaid amount”).
The central provision relating to interest on an unpaid amount is the new regulation 7C. This applies in relation to 1992—93 and subsequent years of assessment and provides that, where a contractor has not within 14 days after the end of a year of assessment paid to the collector the total amount which he is liable under the Sub-contractor Regulations to pay, the unpaid amount shall (unless a direction is made under regulation 7B(2) or (3)) carry interest at “the prescribed rate” from “the reckonable date” until the date of payment. The expressions “the prescribed rate” and “the reckonable date” are defined in the new regulation.
The existing provisions in the Sub-contractor Regulations which relate to interest on an unpaid amount appear at regulation 12A. These Regulations amend that regulation so that regulation 12A of the Sub-contractor Regulations does not apply to years of assessment later than 1991—92.
The Regulations also provide, in the new regulation 7D, that, where an amount in respect of the year ended 5th April 1993 or any subsequent year is repaid to a contractor after the end of the following year, and after the end of the year in which the amount was paid, the amount repaid shall carry interest at “the prescribed rate” from the “relevant time” until the order for the repayment is issued. The expressions “the prescribed rate” and “the relevant time” are defined in regulation 7D.

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Source: https://www.legislation.gov.uk/uksi/1993/724/note (the official version)
Page: https://openlegislation.uk/income-tax-sub-contractors-in-the-construction-industry-amendment-regulations-1993/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.