National Insurance penalties
HMRC have published a draft order which will result in late payment penalties applying to certain national insurance contributions. The order which is expected to come into force on 6 April 2010 will apply the penalty regime contained in Schedule 56 of the Finance Act 2009 to late payments of Class1, 1A and 1B national insurance contributions.
The existing regulations will continue to have effect in relation to surcharges relating to contributions that were payable on or before 5th April 2010.
A similar draft order was published in December 2009 and which covers late payment of employer and contractor PAYE. The order is also expected to be effective from 6 April 2010.
These changes are part of moves by HMRC designed to harmonise and align the interest regime and penalty structures across all taxes.