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| Changes to Class 2 NIC penalties |
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HMRC have published draft regulations, which will impose new penalties on people failing to notify the authorities when they become liable to pay Class 2 national insurance contributions. The draft Social Security (Contributions) (Amendment No. xx) Regulations 2009 are subject to Parliamentary approval but are expected to come into force from 6 April 2009. Broadly, the Regulations amend the Social Security (Contributions) Regulations 2001 and align the penalty provisions for failure to notify liability to Class 2 contributions with those applying to income tax (Reg. 87). HMRC must be notified by 31 January following the end of the year in which the person concerned first becomes liable to pay Class 2 contributions. New Reg 87B imposes the penalties for failure to notify HMRC in time. The penalties that may be imposed will be as follows:
The draft regulations can be found on the HMRC website at http://www.hmrc.gov.uk/drafts/ss-c-a-092901-con-draft.pdf.
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About The Author  Sarah Laing Sarah is a Chartered Tax Adviser. She has been writing professionally since joining CCH Editions in 1998 as a Senior Technical Editor, contributing to a range of highly regarded publications including the British Tax Reporter, Taxes - The Weekly Tax News, the Red & Green legislation volumes, Hardman's, International Tax Agreements and many others. She became Publishing Manager for the tax and accounting portfolio in 2001 and later went on to help run CCH Seminars (including ABG Courses and Conferences). Sarah originally worked for the Inland Revenue in Newbury and Swindon Tax Offices, before moving out into practice in 1991. She has worked for both small and Big 5 firms. She now works as a freelance author providing technical writing services for the tax and accountancy profession. |
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Article Added Sunday, 01 February 2009 | 3153 Hits |
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