The Finance Act 2009, Sections 101 and 102 (Interest on Late Payments and Repayments) (Consequential Amendments) Order 2014

• Citation: S.I. 2014/1283
• Sections: 8

Section 1 Citation, commencement and effect

(1) This Order may be cited as the Finance Act 2009, Sections 101 and 102 (Interest on Late Payments and Repayments) (Consequential Amendments) Order 2014 and comes into force on 20th May 2014.

(2) This Order has effect in relation to payments in respect of Class 1 national insurance contributions and construction industry scheme payments made on or after 20th May 2014 which are made for the tax year 2014-15 or for a subsequent tax year.

(3) In paragraph (2) “construction industry scheme payments” means any amount deducted by a contractor from a contract payment under section 61 of the Finance Act 2004 (deductions on account of tax from contract payments) .

Section 2 Consequential amendments

The Schedule to this Order contains amendments in connection with sections 101 and 102 of the Finance Act 2009.

Section 1 Social Security Contributions and Benefits Act 1992

After paragraph 6(4B) of Schedule 1 to the Social Security Contributions and Benefits Act 1992 (power to combine collection of contributions with tax) insert—

(4C) Interest payable under section 101 of the Finance Act 2009 (late payment interest on sums due to HMRC ) on sums due in respect of Class 1 contributions is not to be taken into account in computing any income, profits or losses for any tax purposes.

Section 2 Social Security Administration Act 1992

In section 121C of the Social Security Administration Act 1992 (liability of directors etc. for company’s contributions) —

(a) in subsection (5) for “at the prescribed rate” substitute “at the Class 1 rate on the Class 1 element of the specified sum, and otherwise at the prescribed rate,”;

(b) in subsection (7)(c) after “interest on it” insert “at the Class 1 rate on the Class 1 element of it and otherwise”; and

(c) in subsection (9)—

(i) before the definition of “contributions” insert—

“the Class 1 rate”—

in subsection (5) means the rate from time to time applicable under section 103(1) of the Finance Act 2009; and

in subsection (7)(c) means the rate from time to time applicable under section 103(2) of that Act;

“the Class 1 element”, in relation to any amount, means so much of that amount as is calculated by—

multiplying that amount by so much of the specified amount as consists of Class 1 contributions; and

dividing the product of that multiplication by the specified amount;

(ii) in the definition of “contributions” after “in respect of contributions” insert “(and accordingly, in the definition of “the Class 1 element” given by this subsection, “Class 1 contributions” includes any interest or penalty in respect of Class 1 contributions)”.

Section 3 Social Security Contributions and Benefits (Northern Ireland) Act 1992

In paragraph 6 of Schedule 1 to the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (power to combine collection of contributions with tax) after sub-paragraph (4B) insert—

(4C) Interest payable under section 101 of the Finance Act 2009 (late payment interest on sums due to HMRC) on sums due in respect of Class 1 contributions is not to be taken into account in computing any income, profits or losses for any tax purposes.

Section 4 Social Security Administration (Northern Ireland) Act 1992

In section 115B of the Social Security Administration (Northern Ireland) Act 1992 (liability of directors, etc. for company’s contributions) —

(a) in subsection (5) for “at the prescribed rate” substitute “at the Class 1 rate on the Class 1 element of the specified sums, and otherwise at the prescribed rate,”;

(b) in subsection (7)(c) after “interest on it” insert “at the Class 1 rate on the Class 1 element of it and otherwise”; and

(c) in subsection (9)—

(i) before the definition of “contributions” insert—

“the Class 1 rate”—

in subsection (5) means the rate from time to time applicable under section 103(1) of the Finance Act 2009; and

in subsection (7)(c) means the rate from time to time applicable under section 103(2) of that Act;

“the Class 1 element”, in relation to any amount, means so much of that amount as is calculated by—

multiplying that amount by so much of the specified amount as consists of Class 1 contributions; and

dividing the product of that multiplication by the specified amount;

(ii) in the definition of “contributions” after “in respect of contributions” insert “(and accordingly, in the definition of “the Class 1 element” given by this subsection, “Class 1 contributions” includes any interest or penalty in respect of Class 1 contributions)”.

Section 5 Income Tax (Trading and Other Income) Act 2005

In section 54(2) of ITTOIA 2005 (penalties and interest that are not deductible for the purposes of computing profits of a trade) , for the entry relating to regulations made under section 71 of FA 2004 , substitute—

Section 6 Corporation Tax Act 2009

In section 1303(2) of CTA 2009 (penalties and interest that are not deductible for the purposes of calculating profits) , for the entry relating to regulations made under section 71 of FA 2004, substitute—