Citation, commencement and effect

1.  (1)  These Regulations may be cited as the Social Security (Contributions) (Amendment No. 3) Regulations 2014 and come into force on 6th May 2014.

(2) These Regulations have effect in relation to amounts which are due and payable for the tax year 2014-15 and subsequent tax years.

Amendment of the Social Security (Contributions) Regulations 2001

2.  Schedule 4 to the Social Security (Contributions) Regulations 2001 (provisions derived from the Income Tax Acts and the Income Tax (Pay As You Earn) Regulations 2003)(4) is amended as follows-

(a)insert after paragraph 10(3A) (payment of earnings-related contributions monthly by employer)(5)-

"(4) Where the amount specified in sub-paragraph (2) has been adjusted to take account of an error as provided for in sub-paragraph (3A) and the value of the adjustment is a negative amount, that amount is treated as having been paid to HMRC(6)-

(a)17 days after the end of the tax month(7) in which the correction is made if payment is made using an approved method of electronic communications(8), and

(b)14 days after the end of the tax month in which the correction is made, in any other case.";

(b)insert after paragraph 11(3A) (payment of earnings-related contributions quarterly by employer)(9)-

"(3B) Where the amount specified in sub-paragraph (2) has been adjusted to take account of an error as provided for in sub-paragraph (3A) and the value of the adjustment is a negative amount, that amount is treated as having been paid to HMRC-

(a)17 days after the end of the tax quarter(10) in which the correction is made if payment is made using an approved method of electronic communications, and

(b)14 days after the end of the tax quarter in which the correction is made, in any other case."; and

(c)insert after paragraph 11ZA(3) (payments to and recoveries from HMRC for each tax period by Real Time Information employers: returns under paragraph 21E(6) or 21EA(3))(11)-

"(3A) Where sub-paragraph (3) applies the negative amount is treated as having been paid to HMRC-

(a)17 days after the end of the final tax period(12) in the year covered by the return where payment is made using an approved method of electronic communication, and

(b)14 days after the end of the final tax period in the year covered by the return in any other case.".

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Social Security (Contributions) Regulations 2001 (S.I. 2001/1004) ("the principal Regulations") which make provision for the assessment, charge, collection and recovery of national insurance contributions.

Regulation 1 provides that these Regulations have effect in relation to amounts which are due and payable in respect of the tax year 2014-15 and subsequent tax years. As a consequence, these Regulations have effect in relation to payments which are due to Her Majesty's Revenue and Customs on, or after, 19th May 2014.

Regulation 2 makes amendments to Part 3 of Schedule 4 to the principal Regulations as a consequence of the charging of interest on national insurance contributions not paid by the due date and the payment of repayment interest on amounts overpaid in accordance with sections 101 and 102 of the Finance Act 2009 (c. 10). The amendments in paragraphs (a), (b) and (c) insert new sub-paragraphs into paragraphs 10, 11 and 11ZA respectively and make provision for the date from which repayment interest will be due where an overpayment arises as a consequence of a correction in a return either during the tax year to which the return relates or after the end of the tax year in question.

A Tax Information and Impact Note has not been prepared for this Instrument as it gives effect to previously announced policy.