Regulation 19 Amendment of regulation 47K of the principal Regulations

Regulation 47K of the principal Regulations (penalties for incorrect and incomplete returns) shall be amended as follows.

In the heading for the words “incorrect and incomplete” there shall be substituted the words “failure to make a return and incorrect”.

In paragraph (2) for the words “regulation 47A(1), 47B(2) or 47C(2) of these Regulations, as the case may be,” there shall be substituted the words “regulation 47J(1) of these Regulations”.

For paragraph (3) there shall be substituted the following paragraphs—

“(3)

For the purposes of paragraph (2) of this regulation, “the relevant monthly amount” in the case of a failure to make a return is—

(a)

where the number of earners in respect of whom particulars of the amount of any Class 1A contribution payable should be included in the return is 50 or less, £100; or

(b)

where that number is greater than 50, £100 for each 50 such earners and an additional £100 where that number is not a multiple of 50.

(3A)

The total penalty payable under paragraph (2)(a) of this regulation shall not exceed the total amount of Class 1A contributions payable in respect of the year to which the return in question relates.”

For paragraph (4) there shall be substituted the following paragraph—

“(4)

Any penalty imposed in accordance with the provisions of this regulation shall be recoverable as if it were a Class 1A contribution which the employer is liable to pay to the Inland Revenue under regulation 47A of these Regulations.”

For paragraph (6) there shall be substituted the following paragraph—

“(6)

The Inland Revenue may, in their discretion, mitigate any penalty, or stay or compound any proceedings for any penalty imposed in accordance with the provisions of this regulation, and may also, after judgment, further mitigate or entirely remit such a penalty.”

After paragraph (6) there shall be added the following paragraph—

“(7)

For the purposes of this regulation, a person shall be deemed not to have failed to have done anything required to be done within a limited time if that person—

(a)

did it within such further time, if any, as the Inland Revenue allowed; or

(b)

had a reasonable excuse for not having done it and, if that excuse ceased, did it without unreasonable delay after it had ceased.”