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44A. In subsection (1) of section 16 of the Social Security Contributions and Benefits Act 1992 (application of Income Tax Acts to class 4 contributions), for paragraph (b) there shall be substituted the following paragraph—
(b) the provisions of Part VA (payment of tax) and Part X (penalties) of the Taxes Management Act 1970,".'.
§ The provision concerns the extension to class 4 national insurance contributions of the administrative machinery rules that apply to income tax. In general, those rules are automatically applied through the operation of section 16 of the Social Security Contributions and Benefits Act 1992 and no specific provision is needed for class 4 national insurance contributions to take account of the introduction of self-assessment.
§ However, self-assessment contains one new element: a surcharge for the late payment of tax introduced by clause 192. I am advised that it is not entirely free from doubt that surcharge could be imposed on unpaid class 4 contributions. The amendment makes it clear that the rules for surcharge in relation to income tax, contained in the Taxes Management Act 1970, are equally applied to unpaid class 4 national insurance contributions.
§ Mr. Nicholas BrownI am afraid that we cannot take responsibility for this amendment. It deals with an oversight in the Government's drafting of the regulations for their surcharge regime. Nevertheless, I am sure that it is reasonable.
§ Amendment agreed to.