Ireland—Corporate analysis: This article was written by A&L Goodbody’s Disputes & Investigations Team. The Companies Registration Office (CRO) has made clear its intention to commence further enforcement actions later in 2026.

Before 2012, there was no general requirement for employers to either: • make contributions in respect of their employees, or • make retirement scheme provision for their employees The introduction of the auto-enrolment regime in 2012 altered this general picture, and employers subject to the auto-enrolment legislation are required to contribute to employees’ pension arrangements in accordance with the requirements of that legislation. For further information on the minimum employer contribution rates, see Practice Note: Auto-enrolment—what types of scheme may be used? Requirement to process core financial transactions—DC occupational pension schemes Since 6 April 2015, trustees of relevant schemes (effectively defined contribution (DC) occupational pension schemes, subject to some exceptions) have a duty to ensure that core financial transactions are processed promptly and accurately. Significantly, ‘core financial transactions’ include the receipt and investment of contributions. The Pensions Regulator (TPR) therefore expects schemes to have robust processes to monitor and maintain the timely and accurate payment of employer and member contributions, with particular attention to employer processes and appropriate oversight of any

This Practice Note is about the penalty regime in the Finance Act 2009 (FA 2009) for the late payment of: • income tax and Class 1 NICs via pay as you earn (PAYE) • student loan deductions • income tax due under the construction industry scheme (CIS) • Class 1A and Class 1B NICs, and • the apprenticeship levy Late paid tax will also incur interest, see Practice Note: Interest on late paid tax. The calculation of late payment penalties depends on whether the tax is payable: • monthly or quarterly (this will normally be the case for income tax and Class 1 NICs under PAYE, student loan deductions, CIS payments and apprenticeship levy payments), or • annually (Class 1A and Class 1B NICs) Late payment penalties for income tax that is self assessed (as opposed to being paid through the PAYE system) are covered in Practice Note: Late payment penalties—income tax, capital gains tax and corporation tax. In addition to late payment penalties, there are penalties for the

This Practice Note covers penalties on late paid tax under the income tax self assessment (ITSA) and corporation tax self assessment (CTSA) regimes. The ITSA regime also covers capital gains tax (CGT). Late payment of tax will invariably attract interest (see Practice Note: Interest on late paid tax). In addition, late payment of tax may attract a penalty. There are a number of late payment penalty regimes in place across the various taxes. For example, there are currently different regimes in force for ITSA, VAT and CTSA. The Finance Act 2009 (FA 2009) introduced a late payment penalty regime that was originally intended to harmonise the rules for the different taxes. This has been introduced in stages and is partly but not fully in force. This FA 2009 regime applies in a modified form to taxes and deductions collected through the PAYE system or under the construction industry scheme, which are not covered by this Practice Note. For more information, see Practice Note: Late payment penalties—PAYE, NICs and construction

While interest often accrues on overdue tax, the late payment of certain taxes may also attract a penalty. For information on the interest accruing on overdue tax, see Practice Notes: IHT—payment deadlines on death—Interest on IHT and Interest on late paid tax. There are a number of late payment penalty regimes in place across the various taxes. This Practice Note considers penalties on late paid inheritance tax (IHT), noting that there is currently in force. Finance Act 2009 (FA 2009) introduced a late payment penalty regime that was intended to harmonise the rules for the different taxes. This is being introduced in stages and while it applies to many taxes, it does not yet apply to overdue IHT. It is worth noting that the late payment penalty regime in relation to income tax self-assessment and VAT is replaced by a new sanctions regime introduced by Finance Act 2021 with effect from various dates from 1 January 2023 onwards depending on the type of taxpayer. For the rules relating to other taxes which are paid late, see

Commercial analysis: Tim Wright, a technology, outsourcing and commercial Partner at Fladgate LLP, examines the government’s response to the late payment consultation ‘Time to Pay Up’, published on 24 March 2026, setting out the most significant reforms to tackle late payments in over 25 years. According to government estimates, late payments cost the UK economy almost £11 billion per year and contribute to the closure of approximately 38 businesses every day. The package of reforms includes enhanced powers for the Small Business Commissioner (SBC) to investigate, adjudicate and fine businesses; a ‘hard maximum payment term of 60 days’; mandatory statutory interest at 8% above the Bank of England base rate; a statutory deadline for disputing invoices; and a proposed ban on retention payments in construction contracts. The 60-day cap will be introduced no earlier than 2027. Commercial solicitors will need to prepare for significant changes, with the government intending to legislate as soon as Parliamentary time allows.

A hidden flaw or defect in the workmanship, design, materials or construction of a building that is not visible or patent to a competent person, or with their advice, on inspection.

Latent ambiguity describes uncertainty in a contract, will, deed or other legal document that is not apparent on the face of the wording, but only emerges when the words are applied to external facts. For example, a gift “to my nephew John” where the testator has two nephews called John is latently ambiguous. Across England & Wales, Scotland, Northern Ireland and Ireland, the term is not usually defined by statute but is well recognised in case law and legal commentary, particularly in contract interpretation, will construction and conveyancing. Latent ambiguity is contrasted with patent ambiguity (obvious from the document itself). Its identification is important because it can justify the admission of extrinsic evidence, such as surrounding circumstances, background facts or, in wills, evidence of the testator’s intention, to resolve the uncertainty. Courts in all four jurisdictions follow similar principles: they seek the objective meaning of the language in context, and latent ambiguity can trigger corrective interpretation or, exceptionally, rectification where the document fails to reflect the parties’ or testator’s actual agreement or intention.

Technically, a defect in a finished product is a breach of contract. However, it is widely accepted that defects will occur and manifest themselves on construction projects both during and after the works have been carried out, and most contracts will often provide for any such breach to be rectified during the defects liability period (also known as the rectification period). During this time it is envisaged that the contractor will rectify defects which have become apparent since practical completion (these are generally considered patent defects). For more information on both practical completion and defects liability periods please refer to the respective Practice Notes: What is practical completion? and Defects liability period and rectification of defects. For consideration of what a defect is, see Practice Note: Defects claims in construction—What is a defect? For specific guidance on fire and building safety defects, see Practice Note: Fire safety defect claims for construction lawyers. What are latent defects? In order to establish what a latent (or inherent) defect is, it is important to understand what a patent defect is. The distinction

Defects inherent in the design or construction of a property which are not apparent on inspection.

Insurance which covers damage to a property caused by latent defects which become apparent during the life of the policy. Latent defects insurance normally lasts for 10 or 12 years from practical completion and is taken out on the payment of a single premium. Also known as decennial insurance, although that insurance largely relates to costs associated with the potential (or actual) collapse of the building.

Overview In normal circumstances the only recourse available to a building owner, on discovering a defect, is to seek recovery from the contractor or from the members of the design team. Under traditional procurement methods, the contractor and the design team may have different types of liability and may not be able to accept full responsibility for the cost of remedying the defects in the building. Typical difficulties faced by a building owner in such circumstances include contractor insolvency, the degree of contribution required from each party responsible for the defect, whether the design team’s professional indemnity policy answers to the claim and, if so, whether there has been timely notification under the policy. Latent defects insurance potentially helps the building owner or occupier to avoid many of these pitfalls. It can provide immediate funds to effect repairs for insured losses without the need for borrowing or self-funding. Repairs are likely to be carried out more quickly and legal costs may be avoided. These policies of insurance