ECH21140 - Penalties: Class 1A NIC - Prior to 2000-2001

Prior to April 2001 there were two distinct methods for collecting Class 1A NICs

• via the PAYE system, or
• via an Alternative Payment Method (APM).

The penalty regime was as follows:

PAYE System

The Class 1A NIC was included on the End of Year Returns and the penalty legislation was therefore

• S98A(2)(a) and S98A(2)(b) TMA 1970 for failure to submit a return, and
• S98A(4) TMA 1970 for an incorrect return.

Up to and including 1997/98 NO penalties applied.

For 1998/99 and 1999/2000 only

• Regulation 47K(2)(a) and Regulation 47K(2)(b) Social Security (Contributions) (Amendment No. 8) Regulations 2000 for failure to submit a Class 1A APM return, and
• Regulation 47K(1) for an incorrect return.

As these penalties ceased on 5/4/2000 it will be rare for EC staff to be involved in their calculation.

(This text has been withheld because of exemptions in the Freedom of Information Act 2000)

(This text has been withheld because of exemptions in the Freedom of Information Act 2000)