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.

APM

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)