Office of Public Sector Information
Section 4.
1 In any provision of this Schedule “authorised officer” means an officer of the Board authorised by them for the purposes of that provision.
2 (1) Any amount which—
(a) is due by way of contributions or by way of interest or penalty in respect of contributions, and
(b) does not exceed the prescribed sum,
shall, without prejudice to any other remedy, be recoverable summarily as a civil debt in proceedings commenced in the name of an authorised officer.
(2) All or any of the sums due from any one person in respect of contributions, or interest or penalties in respect of contributions, (being sums which are by law recoverable summarily) may be included in the same complaint, summons, order, warrant or other document required by law to be laid before justices or to be issued by justices, and every such document shall, as respects each such sum, be construed as a separate document and its invalidity as respects any one such sum shall not affect its validity as respects any other such sum.
(3) Proceedings under this paragraph in England and Wales may be brought—
(a) in the case of Class 2 contributions or interest or penalties in respect of such contributions, at any time before the end of the year following the tax year in which the contributor becomes liable to pay the contributions, and
(b) in any other case, not later than the first anniversary of the day on which the contributions became due.
(4) In sub-paragraph (1) above, the expression “recoverable summarily as a civil debt” in respect of proceedings in Northern Ireland means recoverable in proceedings under Article 62 of the [S.I. 1981/1675 (N.I. 26).] Magistrates' Courts (Northern Ireland) Order 1981.
(5) In this paragraph—
“the prescribed sum” means the sum for the time being specified in section 65(1) of the [1970 c. 9.] Taxes Management Act 1970 (recovery of income tax, etc. in magistrates' courts);
“tax year” means the twelve months beginning with 6th April in any year.
3 (1) Without prejudice to any other remedy, any sum which is due by way of contributions or by way of interest or penalty in respect of contributions may—
(a) in England and Wales, and
(b) in Northern Ireland, where the amount does not exceed the limit specified in Article 10(1) of the [S.I. 1980/397 (N.I. 3).] County Courts (Northern Ireland) Order 1980,
be sued for and recovered from the person liable as a debt due to the Crown by proceedings in a county court commenced in the name of an authorised officer.
(2) An authorised officer may conduct any proceedings under this paragraph before a county court in England and Wales, although not a barrister or solicitor.
(3) In this paragraph as it applies in Northern Ireland, “county court” means a county court held for a division under the County Courts (Northern Ireland) Order 1980.
(4) Sections 21 and 42(2) of the [1954 c. 33 (N.I.).] Interpretation Act Northern Ireland) 1954 shall apply as if any reference in those provisions to any enactment included a reference to this paragraph, and Part III of the County Courts (Northern Ireland) Order 1980 (general civil jurisdiction) shall apply for the purposes of this paragraph in Northern Ireland.
4 (1) In Scotland, any sum which is due by way of contributions or by way of interest or penalty in respect of contributions may, without prejudice to any other remedy, be sued for and recovered from the person liable as a debt due to the Crown by proceedings commenced in the sheriff court in the name of an authorised officer.
(2) An authorised officer may conduct any proceedings under this paragraph, although not an advocate or solicitor.
(3) Paragraphs 2 and 3 above shall not apply in Scotland.
5 (1) Proceedings may be brought for the recovery of the total amount of Class 1 or Class 1A contributions which an employer has become liable to pay on a particular date and any sum due by way of interest or penalty in respect of those contributions without distinguishing the amounts which the employer is liable to pay in respect of each employee and without specifying the employees in question; and for the purposes of proceedings under any of paragraphs 2 to 4 above that total amount shall be one cause of action or one matter of complaint.
(2) Nothing in sub-paragraph (1) above shall prevent the bringing of separate proceedings for the recovery of each of the several amounts of Class 1 or Class 1A contributions which the employer is liable to pay.
Section 5.
1 In the Table in section 98 of the [1970 c. 9.] Taxes Management Act 1970 (penalties for failure to produce documents etc.), at the end of the second column there is inserted—
| “Section 110ZA of the Social Security Administration Act 1992.” |
2 (1) Section 110 of the [1992 c. 5.] Social Security Administration Act 1992 is amended as follows.
(2) For subsection (5) there is substituted—
“(5) Where any premises—
(a) are liable to be inspected—
(i) by an officer of the Inland Revenue under section 110ZA below, or
(ii) by an inspector or officer appointed or employed by some other government department, or
(b) are under the control of the Inland Revenue or some other government department,
the Secretary of State may make arrangements with the Inland Revenue or that other department for any of the powers or duties of inspectors under this section to be carried out by an inspector or officer employed by the Inland Revenue or that other department.”
(3) In subsection (8)—
(a) at the end of paragraph (b) there is inserted “except so far as relating to contributions, statutory sick pay or statutory maternity pay”, and
(b) at the end of paragraph (e) there is inserted “except Part III of that Act”.
(4) Subsections (2)(c)(i) and (ii), (6)(a)(i) and (ii) and (7)(e)(i) shall cease to have effect.
3 After section 110 of the Social Security Administration Act 1992 there is inserted—
(1) For the purposes of the enactments to which this section applies, the Inland Revenue may authorise any of their officers to exercise the powers conferred by this section.
(2) An officer authorised under this section shall, for the purposes of the execution of those enactments, have the following powers—
(a) to enter at all reasonable times any premises liable to inspection under this section;
(b) to make such examination and inquiry as may be necessary for ascertaining whether the provisions of the enactments are being, or have been, complied with in any such premises;
(c) to examine, either alone or in the presence of any other person, as he thinks fit, in relation to any matters under the enactments on which he may reasonably require information, every person whom he finds in any such premises or whom he has reasonable cause to believe to be or to have been a person liable to pay—
(i) contributions; or
(ii) a contributions equivalent premium,
and to require every such person to be so examined.
(3) Premises are liable to inspection under this section if an officer has reasonable grounds for believing that—
(a) any persons are employed there;
(b) a trade or business is being carried on from there;
(c) any records relating to a trade or business are kept there; or
(d) a personal or occupational pension scheme is being administered there;
but a private dwelling-house is not liable to inspection under this section unless an officer has reasonable grounds for believing that a trade or business is being carried on from the dwelling-house and that the trade or business is not also being carried on from premises other than a dwelling-house.
(4) Every officer authorised under this section shall be furnished with a certificate of his authorisation, and on applying for admission to any premises for the purpose of the enactments shall, if so required, produce the authorisation.
(5) In accordance with this section, persons shall furnish to an officer all such information, and produce for his inspection all such documents, as he may reasonably require for the purpose of ascertaining—
(a) whether—
(i) any contribution; or
(ii) any contributions equivalent premium,
is or has been payable, or has been duly paid, by or in respect of any person; or
(b) whether statutory sick pay or statutory maternity pay is or was payable to or in respect of any person.
(6) The following persons are under the duty imposed by subsection (5) above—
(a) any person who is or has been an employer or an employee within the meaning of any provision of the Contributions and Benefits Act;
(b) any person carrying on an agency or other business for the introduction or supply to persons requiring them of persons available to do work or to perform services;
(c) any person who is or has at any time been a trustee or manager of a personal or occupational pension scheme;
(d) the servants or agents of any such person as is specified in any of the preceding paragraphs.
(7) This section applies to the following enactments—
(a) the Contributions and Benefits Act so far as relating to contributions, statutory sick pay or statutory maternity pay;
(b) this Act; and
(c) Part III of the Pensions Act.
(8) Any reference in this section to a contributions equivalent premium includes a reference to state scheme premiums payable before 6th April 1997 (the day on which section 141 of the Pensions Act 1995 came into force).”
4 (1) Section 111 of the [1992 c. 5.] Social Security Administration Act 1992 (delay, obstruction etc. of inspector) is amended as follows.
(2) In subsection (1)—
(a) in paragraph (a), after “this Act” there is inserted “other than an Inland Revenue power”, and
(b) in paragraph (b), after “this Act” there is inserted “otherwise than in the exercise of an Inland Revenue power”.
(3) After subsection (2) there is inserted—
“(3) In subsection (1) “Inland Revenue power” means any power conferred on an officer of the Inland Revenue by section 110ZA above or by virtue of section 110(5) above.
(4) Where by virtue of section 110(5) above any power conferred by section 110 above is exercised by an officer of the Inland Revenue, section 98 of the Taxes Management Act 1970 shall apply as if the reference in that section to section 110ZA above included a reference to section 110 above.”
5 In section 113 of the [1992 c. 5.] Social Security Administration Act 1992 (breach of regulations), in subsection (2)—
(a) for “Secretary of State”, in both places where it occurs, there is substituted “Inland Revenue”, and
(b) in paragraph (e), for “his” there is substituted “their”.
6 Section 114A of the Social Security Administration Act 1992 (which imposes penalties relating to contributions but is not yet in force) shall cease to have effect.
7 (1) Section 118 of the Social Security Administration Act 1992 (evidence of non-payment) is amended as follows.
(2) In subsection (1), for “Secretary of State” there is substituted “Inland Revenue”.
(3) Subsections (1A) and (2) shall cease to have effect.
(4) In subsection (3), the words “as is mentioned in subsection (1) or (2) above” are omitted.
(5) In subsection (4), for “Secretary of State” there is substituted “Inland Revenue”.
(6) For subsection (7) there is substituted—
“(7) In this section “authorised officer” means any officer of the Inland Revenue authorised by them for the purposes of this section.”
8 In section 121A of the Social Security Administration Act 1992 (recovery of contributions etc. in England and Wales), in subsection (9), for “Secretary of State” and “him” there are substituted respectively “Inland Revenue” and “them”.
9 In section 121B of the Social Security Administration Act 1992 (recovery of contributions etc. in Scotland)—
(a) in subsection (5), for “Secretary of State,” there is substituted “Inland Revenue”, and
(b) in subsection (6), for “Secretary of State” and “him” there are substituted respectively “Inland Revenue” and “them”.
10 In section 121C of the Social Security Administration Act 1992 (liability of directors etc. for company’s contributions), for “Secretary of State”, in each place where it occurs, there is substituted “Inland Revenue”.
11 (1) Section 121D of the [1992 c. 5.] Social Security Administration Act 1992 (appeals in relation to personal liability notices) is amended as follows.
(2) For any reference to the Secretary of State there is substituted a reference to the Inland Revenue.
(3) In subsection (2), for “an appeal tribunal” there is substituted “the Special Commissioners”.
(4) In subsection (5), for the words from “appeal tribunal” to “his” there is substituted “Special Commissioners shall either dismiss the appeal or remit the case to the Inland Revenue, with any recommendations the Special Commissioners see fit to make, for the Inland Revenue to consider whether to vary their”.
(5) In subsection (6), the definitions of “appeal tribunal” and “revise” are omitted and at the end there is inserted—
““the Special Commissioners” means the Commissioners for the special purposes of the Income Tax Acts;
“vary” means vary under regulations made under section 10 of the Social Security Contributions (Transfer of Functions, etc.) Act 1999.”
12 In section 162 of the Social Security Administration Act 1992 (destination of contributions), after subsection (4) there is inserted—
“(4ZA) There shall be paid into the National Insurance Fund so much of any penalty imposed under section 98 of the Taxes Management Act 1970 in a case relating to section 110ZA of this Act (including any penalty imposed by virtue of section 111(4) of this Act) as remains after deduction by the Inland Revenue of the administrative expenses attributable to its recovery.
(4ZB) Subsections (4)(b) and (c) and (4ZA) above shall have effect notwithstanding any provision which treats a penalty under section 98 or 98A of the Taxes Management Act 1970 as if it were tax charged in an assessment and due and payable.”
Social Security Contributions (Transfer of Functions, Etc.) Act 1999