Payments to the Accounts Office - Penalty regime for unpaid Class 1 NICs and Student loan deductions

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20 March 2008

Last week's newsletter described the changes made to the Social Security (Contributions) Regulations 2001 to allow HMRC to assess an employer for amounts that, based on the employer's pattern of monthly or quarterly payments to the Accounts Office, appear not to have been paid in subsequent months or quarters. The new provisions allow HMRC to estimate a single amount that combines the different elements that could be included in the payment, namely, PAYE tax, Class 1 NICs, tax on account deducted under the Construction Industry Scheme and student loan deductions.

Corresponding changes have now been made to the equivalent provision in the Income Tax (Construction Industry Scheme) Regulations 2005. They apply to contractors in the Construction Industry Scheme in respect of deductions of tax on account made from subcontractors and, if the contractor is also an employer, to any tax, NICs and student loan deductions that are due for payment to the Accounts Office.

The necessary amendments are also being made to the equivalent provisions of the Income Tax (Pay As You Earn) Regulations 2003 and to the Education (Student Loans)(Repayment) Regulations 2000 and the corresponding Northern Ireland Regulations.

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Further information:
The Income Tax (Construction Industry Scheme) (Amendment) Regulations 2008
Explanatory Memorandum to The Income Tax (Construction Industry Scheme) (Amendment) Regulations 2008