| Home > Tax News > NICs > NIC regulations published |
| NIC regulations published |
 |
 |
|
Regulations have been laid before Parliament which make provisions requiring, or relating to, the disclosure of information in relation to notifiable National Insurance Contributions arrangements. The regulations align NIC procedures with the existing rules for income tax purposes. The National Insurance Contributions (Application of Part 7 of the Finance Act 2004) Regulations 2007 (SI 2007/785) come into force on 1 May 2007. Finance Act 2004, Part 7, s. 306 – 319 provides for the notification to HMRC of certain tax arrangements or schemes, and proposals for those arrangements or schemes. In particular, s. 306 provides that schemes required to be notified are those which:
Where there has been a failure to fulfil the obligation to notify HMRC may seek to impose a penalty. A person who fails to disclose a scheme is liable to an initial penalty of up to a maximum of £5,000. Where after this initial penalty is imposed the failure continues then a further daily penalty of up to a maximum £600 per day will be imposed. Promoters who fail to give a registration number to their client are also liable to a maximum penalty of £5,000. Initial penalties are determined by the Special Commissioners and there is a right of appeal against the imposition of the penalty. Scheme users who fail to show scheme registration numbers on tax returns are liable to an initial penalty of £100 rising to £500 for a second failure and £,1000 for third and subsequent failures. SI 2007/785 extents the rules governing the disclosure of certain tax arrangements and the associated penalty regime to National Insurance Contributions. Links HMRC: Disclosure of tax avoidance schemes Explanatory Memorandum to SI 2007/785
|
|
|
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. |
|
|
Article Added Tuesday, 13 March 2007 | 1220 Hits |
|
Tax Insider Lite
Each month our tax experts reveal FREE tax strategies to help minimise your taxes. Get Tax Insider Lite:
Tax Books
BOOK OF THE WEEK
Tax Planning 2012/13
BOOK OF THE MONTH
Dealing with HMRC Investigations 2012/13
PROUDLY SUPPORTING
