The National Insurance Contributions (Application of Part 7 of the Finance Act 2004) (Amendment) Regulations, SI 2022/526, extend the effect of the DOTAS provisions in FA 2021, which allow HMRC to issue notices where it reasonably suspects that arrangements are notifiable tax arrangements, to NICs arrangements.
Changes introduced by Finance Act 2021 enable HMRC to issue notices to those it suspects of being promoters or other suppliers of a tax avoidance scheme. Unless individuals can satisfy HMRC that the scheme described in the notice is not notifiable, HMRC may allocate a reference number. This puts further obligations on the promoter, including a requirement to pass on the reference number to users of the avoidance scheme. Penalties may be charged where the promoter does not comply with the requirements.
These new regulations ensure that rules that correspond to the DOTAS changes enacted in FA 2021 apply to arrangements that seek to obtain an advantage in relation to NICs. This provides a mechanism for ensuring there is transparency for people who are involved in NICs avoidance schemes, and also aims to change the behaviours of those involved in promoting such schemes. The regulations have effect from 1 June 2022.
The National Insurance Contributions (Application of Part 7 of the Finance Act 2004) (Amendment) Regulations, SI 2022/526, extend the effect of the DOTAS provisions in FA 2021, which allow HMRC to issue notices where it reasonably suspects that arrangements are notifiable tax arrangements, to NICs arrangements.
Changes introduced by Finance Act 2021 enable HMRC to issue notices to those it suspects of being promoters or other suppliers of a tax avoidance scheme. Unless individuals can satisfy HMRC that the scheme described in the notice is not notifiable, HMRC may allocate a reference number. This puts further obligations on the promoter, including a requirement to pass on the reference number to users of the avoidance scheme. Penalties may be charged where the promoter does not comply with the requirements.
These new regulations ensure that rules that correspond to the DOTAS changes enacted in FA 2021 apply to arrangements that seek to obtain an advantage in relation to NICs. This provides a mechanism for ensuring there is transparency for people who are involved in NICs avoidance schemes, and also aims to change the behaviours of those involved in promoting such schemes. The regulations have effect from 1 June 2022.
