CISR17100 - The Scheme: secondary legislation: regulation 9

This regulation sets out HMRC바카라 사이트™s powers, where conditions A or B are met, to recover deductions from the subcontractor where insufficient deductions have been made by the contractor: to be read in conjunction with FA04/S61.

Definitions are provided at SI2005/2045 reg 9(2). of 바카라 사이트˜the deductible amount바카라 사이트™; 바카라 사이트˜the amount actually deducted바카라 사이트™; and 바카라 사이트˜the excess바카라 사이트™.

Condition A requires that the contractor must satisfy HMRC that all reasonable steps were taken to comply with the legislation and that any failure to deduct the correct amount came about as a result of an error made in good faith or a belief that the legislation did not apply to the payment: SI2005/2045 reg 9(3)(a) and (b).

Condition B requires that HMRC must be satisfied that the subcontractor receiving the payment under FA04/S61 was not chargeable to income or corporation tax in respect of those payments or that they have returned the payment on either a personal or company tax return and paid over any monies due: SI2005/2045 reg 9(4)(a) (i) and (ii). and

  • the contractor asks HMRC to make a direction under (5): SI2005/2045 reg 9(4)(b).

HMRC can make a direction that the contractor does not have to pay the excess payment due: SI2005/2045 reg 9(5).

If condition A at SI2005/2045 reg 9(3) is not met, HMRC can refuse to make a direction under SI2005/2045 reg 9(5) but they must give notice to the contractor showing the grounds for the refusal and the date of issue of the refusal notice: SI2005/2045 reg 9(6)(a) and (b).

SI2005/2045 reg 9(7). allows the contractor to appeal against a refusal notice. In making an appeal the contractor must notify HMRC of the grounds for appeal within 30 days of the refusal notice. The contractor바카라 사이트™s grounds for appeal must be that the contractor met the conditions in (3): SI2005/2045 reg 9(8).

If the tribunal determines that a refusal notice should not have been issued they can direct HMRC to make a determination under SI2005/2045 reg 9(5): SI2005/2045 reg 9(9).

If a contractor makes a deduction from a subcontractor payment but does not pay the sum over to HMRC, it will be treated as having been paid when calculating the subcontractor바카라 사이트™s liability: SI2005/2045 reg 9(10).

ENABLING PROVISION - FA04/S71 (1)