§ Mr. BoswellTo ask the Chancellor of the Exchequer what responsibilities(a) his Department, (b) the Contributions Agency and (c) the Department for Work and Pensions have for ensuring collection and prompt payment by employers of national insurance contributions, including those with contracted in pension schemes; and if he will make a statement on efforts being made to ensure compliance by employers. [65798]
§ Dawn PrimaroloThe functions of the Contributions Agency were transferred to the Inland Revenue from 6 April 1999. The Contributions Agency ceased to exist at that point and the Department for Work and Pensions no longer have any responsibility in relation to the collection of national insurance contributions.
584WEmployers pay over national insurance contributions either monthly or quarterly to the Inland Revenue. The Board of Inland Revenue's Annual Report shows that, in the tax year 2000–01, on average 89.7 per cent. of employers paid within a week of the due date.
The Inland Revenue encourage all employers to make payment electronically via the BACS system which reduces the time taken to clear funds through the banking system.
Where payment is delayed the Inland Revenue take a series of steps to collect that payment. This will begin with a simple phone call and, if the employer still fails to pay, may result in recovery action being taken either by means of distraint or by action in the courts.
The Inland Revenue also act to ensure that all employers comply with their obligations. Employers are subject to regular inspections of their records by Inland Revenue officers. During the year 2001–02 the Inland Revenue carried out over 43,000 of these Employer Compliance Reviews and identified over £257 million of unpaid tax and national insurance contributions.