2001 No. 1004

SOCIAL SECURITY

The Social Security (Contributions) Regulations 2001

Made15th March 2001

Laid before Parliament15th March 2001

Coming into force in accordance with regulation 1

The Treasury, with the concurrence of the Secretary of State for Social Security and the Department for Social Development in so far as requiredF1, in exercise of the powers set out in column (1) of Part I of Schedule 1 to these Regulations and the Commissioners of Inland Revenue, in exercise of the powers set out in column (1) of Part II of that Schedule 1 (in both cases as amended in particular by the provisions set out in column (2) of that Schedule), and of all other powers enabling them in that behalf, for the purpose only of consolidating the Regulations revoked by this instrumentF2, hereby make the following Regulations—C6 C5

Annotations:

Amendments (Textual)

See sections 3(2) and (5), 4(5) and (6), 116, 117, 118, 119 and 120 of the Social Security Contributions and Benefits Act 1992 (c. 4) (“the Act”) as amended respectively by paragraphs 3, 4, 22, 23, 24, 25 and 26 of Schedule 3 to the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2) (“the Transfer Act”). The functions of the Department of Health and Social Services for Northern Ireland under the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7) and the Social Security Administration (Northern Ireland) Act 1992 (c. 8) were transferred to the Department for Social Development by Article 8(b) of and Part II of Schedule 6 to the Departments (Transfer and Assignment of Functions) Order (Northern Ireland) 1999 (S.R. 1999 No. 481).

See section 176(2)(b) of the Act.

Modifications etc. (not altering text)

Regulations power to amend or modify conferred (31.3.2022) by National Insurance Contributions (Increase of Thresholds) Act 2022 (c. 16), s. 4(4)

Regulations modified (31.3.2022 with effect for the tax year 2022-23) by National Insurance Contributions (Increase of Thresholds) Act 2022 (c. 16), s. 4(2)(3)

PART 1 GENERAL

Citation, commencement and interpretation1

1

These Regulations may be cited as the Social Security (Contributions) Regulations 2001 and shall come into force on 6th April 2001 immediately after—

a

the Social Security (Contributions) (Amendment No. 2) Regulations 2001 F3;

b

the Social Security (Contributions) (Amendment No. 2) (Northern Ireland) Regulations 2001 F4;

c

the Social Security (Contributions) (Amendment No. 3) Regulations 2001 F5;

d

the Social Security (Contributions) (Amendment No. 3) (Northern Ireland) Regulations 2001 F6;

e

the Social Security (Crediting and Treatment of Contributions, and National Insurance Numbers) Regulations 2001) F7; and

f

the Social Security (Crediting and Treatment of Contributions, and National Insurance Numbers) Regulations (Northern Ireland) 2001 F8.

2

In these Regulations, unless the context otherwise requires—

F543“the acquired gender” has the same meaning as it has in the Gender Recognition Act 2004;
“the Act” means the Social Security Contributions and Benefits Act 1992 F9;
“the Administration Act” means the Social Security Administration Act 1992 F10;
F1293“advance payment” for the purposes of regulation 7 and paragraph 21AE of Schedule 4 means a payment of earnings that—
1. a
  is not made at a regular interval,
2. b
  is for an amount that would otherwise be included in the payment at the next regular interval that follows the making of the payment of earnings, and
3. c
  does not exceed the amount that, at the time that payment of earnings is made, reasonably represents completed service in respect of which no other payment of earnings has been made;
“aggregation” means the aggregating and treating as a single payment under paragraph 1(1) of Schedule 1 to the Act (Class 1 contributions; more than one employment) of two or more payments or earnings and “aggregated” shall be construed accordingly;
“apportionment” means the apportioning under paragraph 1(7) of Schedule 1 to the Act to one or more employers of a single payment of earnings made to or for the benefit of an employed earner in respect of two or more employments, or, as the case may be, the apportioning under paragraph 1(8) of that Schedule of contribution liability between two or more employers in respect of earnings which have been aggregated under paragraph 1(1)(b) of that Schedule, and in either case “apportioning” and “apportioned” shall be construed accordingly;
F344“approved method of electronic communications” in relation to the delivery of information or the making of a payment in accordance with a provision of these Regulations, means a method of electronic communications which has been approved, by specific or general directions issued by the Board, for the delivery of information of that kind or the making of a payment of that kind under that provision;
“the Board” means the Commissioners of Inland Revenue, and subject to section 4A of the Inland Revenue Regulation Act 1890F11, includes any officer or servant of theirs;
F345“business travel” has the meaning given in section 236(1) of ITEPA 2003 F1087and includes journeys which are treated as business travel by section 235A of ITEPA 2003 (journeys made by members of local authorities etc).;
F346“cash voucher” has the meaning given to it in section 75 of ITEPA 2003;
F681...
“company” means a company within the meaning of section F7181 of the Companies Act F7182006 or a body corporate to which, by virtue of F646regulations made under section 1043 of F718that Act, any provision of F718that Act applies;
F1294“completed service” means work undertaken or obligations performed by the earner in accordance with the earner’s contract with the employer;
F800...
“conditional interest in shares” means an interest which is conditional for the purposes of F347Chapter 2 of Part 7 of ITEPA 2003 as originally enacted;
F1088...
F1089...
F801
“contribution week” means a period of seven days beginning with midnight between Saturday and Sunday;
“contribution year” shall be construed in accordance with section 12(1) or (as the case requires) section 13(5) of the Act (late paid Class 2 or Class 3 contributions);
F884“contribution-based jobseeker’s allowance” means an allowance under the Jobseekers Act 1995 as amended by the provisions of Part 1 of Schedule 14 to the Welfare Reform Act 2012 that remove references to an income-based allowance, and a contribution-based allowance under the Jobseekers Act 1995 as that Act has effect apart from those provisions;
“contributory benefit” includes a contribution-based jobseeker’s allowance but not an income-based jobseeker’s allowance;
F1204“controller” means the person who controls the disbursement of any money raised by an independent sporting testimonial committee to or for the benefit of an individual who is or has been employed as a professional sports person;
F297...
F1090...
“director” means—
1. a
  in relation to a company whose affairs are managed by a board of directors or similar body, a member of that board or similar body;
2. b
  in relation to a company whose affairs are managed by a single director or similar person, that director or person; and
3. c
  any person in accordance with whose directions or instructions the company’s directors as defined in paragraphs (a) and (b) above are accustomed to act; and for this purpose a person is not to be treated as such a person by reason only that the directors act on advice given by him in his professional capacity;
F991“due date” in Part 6 means, in relation to—
1. a
  any Class 1 contribution, the date by which payment falls to be made;
2. b
  any Class 2 contribution which a person is liable or entitled to pay, the 31st January following the end of the tax year in respect of which it is paid or payable; and
3. c
  any Class 3 contribution, the date 42 days after the end of the year in respect of which it is paid.
“earnings period” means the period referred to in regulation 2;
“earnings-related contributions” means contributions payable under the Act in respect of earnings paid to or for the benefit of an earner in respect of employed earner’s employment;
F326“electronic communications” includes any communications conveyed by means of an electronic communications network.
F992employment and support allowance” has the same meaning as in the Welfare Reform Act 2007;
F544“full gender recognition certificate” means a certificate issued under section 4 of the Gender Recognition Act 2004;
F684“HMRC” means Her Majesty's Revenue and Customs; and
“an income-based jobseeker’s allowance” has the same meaning as in the Jobseekers Act 1995;
F1205“independent sporting testimonial committee” means a committee which acts independently of the secondary contributor in organising a sporting testimonial and making the sporting testimonial payment;
F348...
“national insurance number” means the national insurance number allocated within the meaning of regulation 9 of the Social Security (Crediting and Treatment of Contributions, and National Insurance Numbers) Regulations 2001;
F349“non-cash voucher” has the meaning given to it in section 84 of ITEPA 2003;
F1091...
F1092...
F1093...
F350“official computer system” means a computer system maintained by or on behalf of the Board;
F1179“optional remuneration arrangements” has the meaning given in section 69A of ITEPA 2003;
F993...
“the PAYE Regulations” means the Income Tax (Pay As You Earn) Regulations 2003;
F597...
F1094...
“profits or gains” for the purposes of Part 8 means profits or gains which, subject to the provisions of Schedule 2 to the Act, are chargeable to income tax under Case I or Case II of Schedule D;
“readily convertible asset” has the meaning given in F298section 702 of ITEPA 2003 as amended by the Finance Act 2003;
F1295“reduced regular interval payment” means a payment of earnings made at a regular interval that has been reduced by reference to advance payments made to the earner;
F565“registered pension scheme” has the meaning given in section 150(2) of the Finance Act 2004;
“regular interval” for the purposes of regulations 3, 4 and 7 includes only such interval as is in accordance with an express or implied agreement between the employed earner and the secondary contributor as to the intervals at which payments of earnings normally fall to be made, being intervals of substantially equal length;
F524“relevant employment income” has the meaning given in paragraph 3B(1A) of Schedule 1 to the Act;
F299“restricted securities” and “restricted interest in securities” have the meanings given in sections 423 and 424 of ITEPA 2003 as substituted by the Finance Act 2003;
“retirement benefits scheme” has the meaning given in section 611 of the Taxes Act F12;
F596“retrospective contributions”, in relation to an amount of retrospective earnings, means the amount of earnings-related contributions based on those earnings which the employee is liable to pay under section 6(4)(a) of the Act (primary contributions);
F596“retrospective contributions regulations” means regulations made by virtue of section 4B(2) of the Act and, in relation to an amount of retrospective earnings, “the relevant retrospective contributions regulations” means the regulations which treat that amount as earnings;
F596“retrospective earnings” means an amount retrospectively treated as earnings by retrospective contributions regulations;
F351...
“secondary contributor” means the person who, in respect of earnings from employed earner’s employment, is liable to pay a second Class 1 contribution under section 6(4)(b) of the Act (liability for Class 1 contributions) F13;
F300“securities” and “securities option” have the meaning given by section 420 of ITEPA 2003 as substituted by the Finance Act 2003;
F993...
“serving member of the forces” means a person, other than one mentioned in Part 2 of Schedule 6, who, being over the age of 16, is a member of any establishment or organisation specified in Part I of that Schedule (being a member who gives full pay service) but does not include any such person while absent on desertion;
F1206“sporting testimonial” and “sporting testimonial payment” have the meanings given by section 226E of ITEPA 2003;
“the Taxes Act” means the Income and Corporation Taxes Act 1988F14;
F352“tax month” has the meaning given in paragraph 1(2) of Schedule 4;
F1207“termination award” means a payment or benefit received by an earner, or an earner’s spouse, civil partner, blood relative or dependent, in connection with the termination of the earner’s employment;
“training” means full-time training at a course approved by the Board;
“the Transfer Act” means the Social Security Contributions (Transfer of Functions, etc) Act 1999;
F684“tribunal” means the First-tier tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal.
“week” means tax week, except in relation to Case C of Part 9, where “week” and “weekly” have the meanings given in regulation 115;
“the Welfare Reform Act” means the Welfare Reform and Pensions Act 1999F15;
“year” means tax year;
“year of assessment” has the meaning given to it in section 832(1) of the Taxes Act;

3

For the purposes of regulations 52, 57, 67 and 116, references to “contributions”, “Class 1 contributions” and “earnings-related contributions” shall, unless the context otherwise requires, include any amount paid on account of earnings-related contributions in accordance with regulation 8(6).

F10803A

In these Regulations, references to—

a

Schedule 24 to the Finance Act 2007 (penalties for errors); and

b

Schedule 55 to the Finance Act 2009 (penalties for failure to make a return)

include references to these Schedules as amended by paragraphs 3 and 5 of Schedule 33 to the Finance Act 2014 (Part 4: Consequential Amendments).

4

Where, by any provision of these Regulations—

a

any notice or other document is required to be given or sent to the Board, that notice or document shall be treated as having been given or sent on the day that it is received by the Board; and

b

any notice or other document is required to be given or sent by the Board to any person, that notice or document shall, if sent by post to that person’s last known address, be treated as having been given or sent on the day that is was posted.

5

Unless the context otherwise requires—

a

any reference in these Regulations to a numbered regulation is a reference to the regulation bearing that number in these Regulations;

b

any reference in these Regulations to a numbered Part or Schedule is to the Part of, or Schedule to, these Regulations bearing that number;

c

any reference in a regulation or a Schedule to a numbered paragraph is a reference to the paragraph bearing that number in that regulation or Schedule;

d

any reference in a paragraph of a regulation or a Schedule to a numbered or lettered sub-paragraph is a reference to the sub-paragraph bearing that number or letter in that paragraph; and

e

any reference in a sub-paragraph to a numbered head is a reference to the head in that sub-paragraph bearing that number.

PART 2 ASSESSMENT OF EARNINGS RELATED CONTRIBUTIONS

Earnings periods2

Except where regulation 8 applies, the amount, if any, of earnings-related contributions payable or, where section 6A of the Act F16 applies, treated as having been paid, in respect of earnings paid to or for the benefit of an earner in respect of an employed earner’s employment shall, subject to regulations 7 and 12 to 19, be assessed on the amount of such earnings paid, or treated as paid, in the earnings period specified in regulation 3, 4, 5, 6, or 9.

Earnings period for earnings normally paid or treated as paid at regular intervals3

F2131

If any part of earnings paid to or for the benefit of an earner is normally paid, or is treated under regulation 7 as paid, at regular intervals, the earnings period in respect of those earnings shall be the period found in accordance with the following Table, subject to paragraphs (2) to (6).

Earnings Periods

Case	Applicable earnings period
Earnings paid at an interval of 7 days or more.	The length of the interval.
Earnings paid at intervals of different lengths, each of which is 7 days or more.	The length of the shorter or shortest of those intervals.
Earnings paid at one or more intervals of less than 7 days.	A week.
Earnings paid at one or more intervals of less than 7 days and at one or more intervals of more than 7 days.	A week.

F2132

In any year, the earnings period for the earnings mentioned in paragraph (1) shall only be that found by the Table in that paragraph if the period in which the earnings are paid is one of a succession of periods and—

a

the periods are the same length;

b

the first period begins on the first day of the year; and

c

the subsequent periods begin immediately after the end of the preceding period.

For the purpose of this paragraph, if all the periods in the succession mentioned above, apart from the last in the year in question, are the same length, the last period in the year shall be treated as if it were the same length as the others.

2A

Paragraph (2B) applies if it appears to an officer of the Board that—

a

it is the employer’s practice to pay the greater part of the earnings referred to in paragraph (2) at intervals of greater length than the shorter or shortest of the earnings periods produced by the application of that paragraph; and

b

that practice is likely to continue.

2B

If this paragraph applies the officer may, and if requested to do so by the earner or the secondary contributor shall, decide whether to give a notice to the earner and the secondary contributor specifying the longer or longest of the earnings periods produced by the application of paragraph (2) to be the earnings period applicable to those earnings.

2C

A notice under paragraph (2B) shall—

a

be given to both the earner and the secondary contributor; and

b

specify the date from which the change of earnings period is to take effect.

The date specified shall not be earlier than that on which the notice is given.

2D

A notice given under paragraph (2B) shall have effect until an officer of the Board decides (either of his own motion or on an application by the earner or the secondary contributor) that the practice to which it relates has ceased.

If an officer of the Board decides that a notice is to cease to have effect, he shall notify the earner and the secondary contributor accordingly.

3

If the length of the earnings period determined in accordance with F212paragraph (2B) is a year, then notwithstanding F212paragraph (2) , where the change in the length of the earnings period takes effect during the course of a year, the length of the earnings period in respect of any earnings in that year which are paid or treated as paid on or after the change shall be the number of weeks remaining in that year commencing with the week in which the change takes effect.

F2114

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5

Where—

a

the employment in respect of which the earnings are paid has ended;

b

the employment in respect of which the earnings are paid was one in which, during its continuance, earnings were paid or treated under regulation 7 as paid at a regular interval; and

c

i

if the period to which the payment of earnings relates falls wholly in a year other than the year in which they are paid, be treated as paid in respect of the year in which the period to which the payment of earnings relates falls, or

ii

if the period to which the payment of earnings relates falls partly in the year in which they are paid and partly in one or more other years, be treated as paid proportionately in respect of each of the years in which the period to which the payment of earnings relates falls, or

iii

if the period to which the payment of earnings relates falls wholly in two or more years other than the year in which they are paid, be treated as paid proportionately in respect of each of the years in which the period to which the payment of earnings relates falls.

Earnings period for earnings to be aggregated where the earnings periods for those earnings otherwise would be of different lengths6

1

Paragraphs (2) and (3) apply where—

a

earnings paid in respect of two or more employed earner’s employments fall to be aggregated; and

b

the earnings periods in respect of those earnings are, by virtue of regulation 3, 4 or 5, of different lengths.

2

In a case to which this regulation applies, where (but for its provisions) the earnings period in respect of earnings derived from any of the employments is of a different length from the designated earnings period, the earnings period in respect of any payment of those earnings shall be the designated earnings period.

F10953

In this regulation “the designated earnings period” means the shorter, or as the case may be the shortest, of the earnings periods in respect of earnings derived from such employments.

those other earnings would have been aggregated with the relevant payment had paragraph (3) not applied.

5

A relevant payment shall be aggregated only with the other earnings specified in paragraph (4).

Earnings periods for directors8

1

Where a person is, or is appointed, or ceases to be a director of a company during any year the amount, if any, of earnings-related contributions payable in respect of earnings paid to or for the benefit of that person in respect of any employed earner’s employment with that company shall, subject to regulations 12 and 14 to 17, be assessed on the amount of all such earnings paid (whether or not paid weekly) in the earnings periods specified in paragraphs (2) to (5).

2

Where on one or more than one occasion a person is appointed a director of a company during the course of a year the earnings period in respect of such earnings as are paid in so much of the year as remains in the period commencing with the week in which he is appointed or, as the case may be, first appointed shall be the number of weeks in that period.

3

Where a person is a director of a company at the beginning of a year the earnings period in respect of such earnings shall be that year, whether or not he remains such a director throughout that year.

4

Where the earnings paid in respect of two or more employed earner’s employments fall to be aggregated and the earnings periods in respect of those earnings would be of different lengths, then—

a

if those periods are determined only by paragraphs (1) to (3); or

b

if the length of one or more of those periods is determined by those paragraphs and the length of one or more of the others is determined by any other provision of these Regulations,

the earnings period in respect of all those earnings shall be the period determined by those paragraphs or, where there is more than one such period, the longer or longest period so determined.

5

Where a person is no longer a director of a company and, in any year after that in which he ceased to be a director of that company, he is paid earnings in respect of any period during which he was such a director, then—

a

in paragraph (2)(b) where it first occurs,

has the same meaning as in section 171(1) of the Act.

F2342

If the Board make a payment of statutory maternity pay, F736F964statutory paternity payF955, statutory shared parental payF1209, statutory adoption pay or statutory parental bereavement pay under regulations made under the relevant provision—

a

that payment of statutory maternity pay, F737F964statutory paternity payF955, statutory shared parental pay~~F1209or statutory adoption pay~~F1209, statutory adoption pay or statutory parental bereavement pay (as the case may be) shall not be aggregated with any other earnings; and

b

the earnings period in respect of that payment for any week shall be a week.

2A

In paragraph (2) “the relevant provision” means—

a

in relation to statutory maternity pay, section 164(9)(b),

b

F738in relation to F965... statutory paternity pay, section 171ZD(3),

F966ba

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

c

in relation to statutory adoption pay, section 171ZM(3), F1211F956...

F956d

in relation to statutory shared parental pay, section 171ZX(3), F1210and

e

in relation to statutory parental bereavement pay, section 171ZZ8(3),

of the Act (liability to make payments of the relevant statutory pay to be that of the Board).

3

If the Board make a payment of statutory sick pay under regulations made under section 151(6) F19 of the Act (circumstances in which the Board are liable to pay statutory sick pay), the earnings period for that payment shall be—

a

a period of the same length as the period in respect of which the payment is made, or

b

a week,

whichever is the longer.

Earnings limits and thresholds10

For the purposes of F994sections 5(1)F1096, 9A and 9B of the Act (earnings limits and thresholds to be specified for each tax year in respect of Class 1 contributions), for the tax year which begins on 6th April F12982024—

a

the lower earnings limit (for primary Class 1 contributions) shall be F1249£123;

b

the upper earnings limit (for primary Class 1 contributions) shall be F1231£967;

c

the primary threshold (for primary Class 1 contributions) shall be F1253£242; F995...

d

the secondary threshold (for secondary Class 1 contributions) shall be F1250£175F996; F1098...

e

the upper secondary threshold for secondary Class 1 contributions in relation to the Under 21 group (for the upper limit of the age-related secondary percentage) shall be F1232£967F1097; and

f

the upper secondary threshold for secondary Class 1 contributions in relation to relevant apprentices (for the upper limit of zero-rate secondary Class 1 contributions) shall be F1233£967

Prescribed equivalents11

1

The prescribed equivalents of the lower and upper earnings limitsF1105, the primary and secondary thresholds and the upper secondary thresholds, for the purposes of—

a

sections 6(1), 6A(1), 8(1), F11039(1), 9A(9), and 9B(6) of the Act (which provide liability for Class 1 contributions, notional payment of primary Class 1 contribution where earnings are not less than the lower earnings limit, the calculation of primary Class 1 contributionsF1104, the calculation of secondary Class 1 contributions, the calculation of secondary Class 1 contributions in relation to the Under 21 age group and the calculation of secondary Class 1 contributions in relation to relevant apprentices respectively)F20; F1102and

F710aa

section 22 of the Act (earnings factors); F1106...

F1106b

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

shall be determined in accordance with paragraphs (2) to (5).

F7061A

~~F1107The prescribed equivalents of the upper accrual point for the purposes of—~~

a

~~section 22 of the Act (earnings factors); and~~

b

F7084

The amounts determined in accordance with paragraphs (2)(b) and (c), paragraph (2A)(c) and (d)F754, paragraph (3)(c) and (d)F998, paragraph (3A)(c) and (d)F1100, paragraph (3B)(c) and (d) and paragraph (3C)(c) and (d) if not whole pounds, shall be rounded up to the next whole pound.

5

The amounts determined in accordance with F709paragraph (2)(d), paragraph (2A)(e)F755, paragraph (3)(e)F999, paragraph (3A)(e)F1101, paragraph (3B)(e) and paragraph (3C)(e) shall be calculated to the nearest penny, and any amount of a halfpenny or less shall be disregarded.

6

~~F1110The following provisions of this regulation do not apply to Northern Ireland—~~

a

~~paragraph (1A), and~~

b

~~both references to “the upper accrual point” in paragraph (2), so that the term “the weekly limits” shall be read as referring only to the lower earnings limit in relation to Northern Ireland.~~

Calculation of earnings-related contributions12

F11141

Subject to paragraphs (3) and (4), primary and secondary Class 1 contributions under section 6 of the Act (liability for Class 1 contributions) shall be calculated to the nearest penny and any amount of a halfpenny or less shall be disregarded.

2

In the alternative, but subject to the provisions of paragraphs (3) to (5), the contributions specified in paragraph (1) may be calculated in accordance with the appropriate scale or, for contributions payable on earnings above the upper earnings limit or the prescribed equivalent of that limit, a contributions calculator prepared by the Board.

3

Where the amount of earnings to which—

a

the appropriate scale is to be applied does not appear in the scale, the amount of contributions payable shall be calculated by reference to the next smaller amount of earnings in the appropriate column in the scale;

b

the appropriate contributions calculator is to be applied does not appear in the calculator, the amount of contributions payable shall be calculated—

i

by obtaining from the calculator the amounts of contributions payable on the largest components of the earnings provided for in the calculator, and

ii

by adding together the amounts so obtained.

4

Where a scale or a contributions calculator would, but for the period to which it relates, be appropriate and the earnings period in question is a multiple of the period in the scale or, as the case may be, calculator, the scale or calculator shall be applied by dividing the earnings in question so as to obtain the equivalent earnings for the period to which the scale or calculator relates and—

a

in the case of the scale, by multiplying the amount of contributions shown in the scale as appropriate to those equivalent earnings by the same factor as the earnings were divided;

b

in the case of the calculator, by multiplying the amount of contributions shown in the calculator as appropriate to those equivalent earnings or, where no equivalent earnings are shown, the amount of contributions calculated in accordance with paragraph (3)(b), by the same factor as the earnings were divided.

5

Unless the Board agree to the contrary, all the contributions payable in a year in respect of the earnings paid to or for the benefit of an earner in respect of his employed earner’s employment or, where he has more than one such employment and the earnings from those employments are aggregated under paragraph 1(1) of Schedule 1 to the Act (Class 1 contributions where more than one employment), in respect of those employments, shall be calculated either in accordance with paragraph (1) or paragraph (2) but not partly in accordance with one and partly in accordance with the other of those paragraphs, save that the contributions calculator may also be used where the contributions have been calculated in accordance with paragraph (1).

General provisions as to aggregation13

Where on one or more occasions the whole or any part of a person’s earnings in respect of employed earner’s employment is not paid weekly (whether or not it is treated for the purpose of earnings-related contributions as paid weekly), paragraph 1 of Schedule 1 to the Act (Class 1 contributions where more than one employment) shall have effect as if for the references to “week” there were substituted references to “ earnings period ”.

Aggregation of earnings paid in respect of separate employed earner’s employments under the same employer14

For the purpose of earnings-related contributions, where an earner is concurrently employed in more than one employed earner’s employment under the same employer, the earnings paid to or for the benefit of the earner in respect of those employments shall not be aggregated if such aggregation is not reasonably practicable because the earnings in the respective employment are separately calculated.

Aggregation of earnings paid in respect of different employed earner’s employments by different persons and apportionment of contribution liability15

1

Subject to regulation 7, for the purposes of determining whether earnings-related contributions are payable in respect of earnings paid to or for the benefit of an earner in a given earnings period, and, if so, the amount of contributions, where in that period earnings in respect of different employed earner’s employments are paid to or for the benefit of the earner—

a

by different secondary contributors who in respect of those employments carry on business in association with each other;

b

by different employers, one of whom is, by virtue of Schedule 3 to the Social Security (Categorisation of Earners) Regulations 1978 F21, treated as the secondary contributor in respect of each of those employments; or

c

by different persons, in respect of work performed for those persons by the earner in those employments and in respect of those earnings, some other person is, by virtue of that Schedule, treated as the secondary contributor,

the earnings paid in respect of each of the employments referred to in this paragraph shall, unless in a case falling under sub-paragraph (a) it is not reasonably practicable to do so, be aggregated and treated as a single payment of earnings in respect of one such employment.

2

Where, under paragraph (1), earnings are aggregated, liability for the secondary contributions payable in respect of those earnings shall, in a case falling within paragraph (1)(a), be apportioned between the secondary contributors in such proportions as they shall agree amongst themselves, or, in default of agreement, in the proportions which the earnings paid by each bearer to the total amount of the aggregated earnings.

Aggregation of earnings paid after pensionable age16

Notwithstanding the provisions of regulation 15, a payment of earnings to which regulation 28 applies shall not be aggregated with any other earnings.

Apportionment of single payment of earnings in respect of different employed earner’s employments by different secondary contributors17

Where any single payment of earnings is made in respect of two or more employed earner’s employments under different secondary contributions, liability for earnings-related contributions shall be determined by apportioning the payment as follows—

a

where the secondary contributors are, in respect of those employments, carrying on business in association with each other, to the secondary contributor who makes the payment;

b

where the secondary contributors are not so carrying on business in association with each other, to each of those secondary contributors in the proportion which the earnings due in respect of that secondary contributor’s employment bears to the total of the single payment.

Change of earnings period18

1

Paragraphs (2) and (3) apply where, by reason of a change in the regular interval at which any part of an earner’s earnings is paid or treated as paid in respect of employed earner’s employment (“the regular interval of payment”), that person’s earnings period in any employment or employments under the same secondary contributor is, or is in the process of being, changed.

2

Subject to paragraph (3), in relation to any payments made on or after the date of change the earnings period shall be determined in accordance with the new interval.

3

Where the new period is longer than the old period and during the first new period any payment has also been made at the old interval, the earnings-related contributions payable on any payment made on or after the date of change shall not exceed in amount the total which would have been payable if all the payments during the new period had been made at the new interval.

4

In this regulation—

a

the regular interval of payment which has been discontinued is referred to as “the old interval” and the interval which has, or is to, become the regular interval of payment is referred to as “the new interval”;

b

the earnings period determined according to the old interval is referred to as “the old period” and that determined according to the new interval is referred to as “the new period”;

c

reference to payment means payment of earnings actually made or, as the case may be, treated under regulation 7 as made, at an interval or date; and

d

“date of change” means the date on which the first payment of earnings at the new interval is made.

Holiday payments19

Where as respects an employed earner’s employment in which the earner is paid or would, but for paragraph (b), be treated under regulation 7 as paid at a regular interval of a week or a fixed number of weeks, a payment of earnings includes or comprises a payment in respect of a period of holiday entitlement other than such a payment made to an earner in respect of a period of holiday entitlement outstanding on termination of that employment, for the purposes of calculating the earnings-related contributions payable in respect of that payment of earnings—

a

the earnings period may be the length of the period in respect of which the payment is made, but where the length of that earnings period includes a fraction of a week that fraction shall be treated as a whole week; and

b

where the earnings period is so determined, regulation 7 shall not apply.

F556Joint employment of spouses or civil partners20

For the purposes of earnings-related contributions, where F557spouses or civil partners are jointly employed in employed earner’s employment and earnings in respect of the employment are paid to them jointly, the amount of the earnings of each shall be calculated upon the same basis as that upon which those earnings are calculated for the purposes of income tax and, in the absence of such calculation, upon such basis as may be approved by the Board.

F235 Annual maxima for those with more than one employmentC4 C721

1

For the purposes of section 19(1) and (2) of the Act (power to prescribe maximum amounts of contributions and repayments of excess) if an earner is employed in more than one employment his liability in any year—

a

for primary Class 1 contributions; F1301...

F1300b

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

shall not exceed an amount which equals the amount found in accordance with paragraph (2).

2

The amount is found as follows.

Step One
Calculate—
- Here UEL is the upper earnings limit, and PT the primary threshold, specified for the year.
Step Two
Multiply the result of Step One by F13028% .
Step Three
Add together, in respect of all of the employed earner’s employments, so much of the earnings in each of those employments as exceeds the primary threshold and does not exceed the upper earnings limit.
Step Four
From the sum produced by Step Three subtract the amount found by the formula in Step One.
Step Five
If the result produced by Step Four is a positive value, multiply it by F7882 per cent.
If that result is nil or a negative value, it is treated for the purposes of Step Eight as nil.
Step Six
Add together, in respect of all of the employed earner’s employments, so much of the earnings in each of those employments as exceeds the upper earnings limit.
Step Seven
Multiply the sum produced by Step Six by F7892 per cent.
Step Eight
Add together the amounts produced by Steps Two, Five and Seven.
The result of Step Eight is the annual maximum, subject to the further qualifications in paragraphs (3) and (4).

3

F1115For the purpose only of determining the extent of the earner’s liability for contributions under paragraph (2), the amount of a primary Class 1 contribution which is paid at a rate less than F1286the rate specified as the main primary percentage because the earner is a married woman who has made an election to pay contributions at the reduced rate as mentioned in regulation 127, shall be treated as equal to the amount of the primary Class 1 contribution which would be payable if the election had not been made.

F12994

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5

Notwithstanding paragraphs (1) to (4), an earner shall be liable, in the first instance, for the full amount of the contributions which would have been payable but for this regulation.

F301Amounts to be treated as earnings22

1

For the purposes of section 3 of the Act (earnings)F22, the amounts specified in paragraphs F1117(2) to F1180(14) shall be treated as remuneration derived from an employed earner’s employment.

2

The amount specified in this paragraph is the amount of any payment by a company to or for the benefit of any of its directors if—

a

The amount specified in this paragraph is the amount treated as earnings from the employment by virtue of section 226A of ITEPA 2003 (amount treated as earnings).

F111612

The amount specified in this paragraph is any amount—

a

paid or reimbursed to an employed earner in respect of expenses;

b

provided pursuant to relevant salary sacrifice arrangements within the meaning of section 289A(5) of ITEPA 2003; and

c

which is not a payment or reimbursement of relevant motoring expenditure within the meaning of paragraph (3) of regulation 22A.

13

The amount specified in this paragraph is any amount paid or reimbursed to an employed earner in respect of expenses which is calculated according to a set rate rather than by reference to the actual amount incurred in respect of the expenses where such a rate is not—

a

contained in regulations made by the Commissioners for Her Majesty’s Revenue and Customs under section 289A(6)(a); or

b

approved under section 289B of ITEPA 2003.

F118114

The amount specified in this paragraph is the amount of a termination award which is treated as earnings from the employment of the employed earner by virtue of section 402B of ITEPA 2003.

F205Amounts to be treated as earnings in connection with the use of qualifying vehicles other than cycles22A

1

To the extent that it would not otherwise be earnings, the amount specified in paragraph (2) shall be so treated.

2

The amount is that produced by the formula—

RME - QA

Here—

RME is the aggregate of relevant motoring expenditure within the meaning of paragraph (3) in the earnings period; and
QA is the qualifying amount calculated in accordance with paragraph (4).

F11822A

But the amount in paragraph (2) is taken to be RME (without the subtraction of QA) so far as the aggregate of relevant motoring expenditure is paid pursuant to optional remuneration arrangements.

3

A payment is relevant motoring expenditure if—

a

it is a mileage allowance payment within the meaning of F357section 229(2) of ITEPA 2003;

b

it would be such a payment but for the fact that it is paid to another for the benefit of the employee; or

c

it is any other form of payment, except a payment in kind, made by or on behalf of the employer, and made to, or for the benefit of, the employee in respect of the use by the employee of a qualifying vehicle.

F358Here “qualifying vehicle” means a vehicle to which section 235 of ITEPA 2003 applies, but does not include a cycle within the meaning of section 192(1) of the Road Traffic Act 1988.

4

The qualifying amount is the product of the formula—

M \times R

Here—

M is the sum of—
1. a
  the number of miles of business travel undertaken, at or before the time when the payment is made—
  1. i
    in respect of which the payment is made, and
  2. ii
    in respect of which no other payment has been made; and
2. b
  the number of miles of business travel undertaken—
  1. i
    since the last payment of relevant motoring expenditure was made, or, if there has been no such payment, since the employment began, and
  2. ii
    for which no payment has been, or is to be, made; and
R is the rate applicable to the vehicle in question, at the time when the payment is made, in accordance with F359section 230(2) of ITEPA 2003 and, if more than one rate is applicable to the class of vehicle in question, is the higher or highest of those rates.

F770Amounts to be treated as earnings: Part 7A of ITEPA 200322B

1

For the purposes of section 3 of the Act (earnings), the amount specified in paragraph (2) shall be treated as remuneration derived from an employed earner’s employment.

2

The amount is the amount which counts as employment income of the employed earner by virtue of Chapter 2 of Part 7A of ITEPA 2003.F1197This paragraph is subject to paragraphs (3) and (3A).

3

Paragraph (2) does not apply if the relevant step which gives rise to the amount which counts as employment income by virtue of Chapter 2 of Part 7A of ITEPA 2003 would otherwise give rise to earnings for the purposes of the Act.

F11983A

Paragraph (2) does not apply if—

a

the amount would count as employment income by virtue of Part 7A ITEPA 2003 by reason of a relevant step within paragraph 1 F1215or 1A of Schedule 11 (employment income provided through third parties: loans etc outstanding on 5 April 2019) to the Finance (No. 2) Act 2017, and

b

the secondary contributor in relation to that amount would have been a person treated as a secondary contributor by virtue of regulation 5(1) of, and any of sub-paragraphs (a) to (f) of paragraph 9 of Column (B) of Schedule 3 (employments in respect of which persons are treated as secondary class 1 contributors) to, the Social Security (Categorisation of Earners) Regulations 1978.

4

In F1199paragraphs (3) and (3A) “relevant step” means a relevant step for the purposes of Part 7A of ITEPA 2003.

F1196Amounts to be treated as earnings paid to or for the benefit of the earner: Schedule 11 to the Finance (No. 2) Act 201722C

1

Where an amount is within regulation 22B(2) by reason of a relevant step within paragraph 1 F1216or 1A of Schedule 11 (employment income provided through third parties: loans etc outstanding on 5 April 2019) to the Finance (No. 2) Act 2017 it shall be treated for the purposes of Part 1 of the Act as being paid to or for the benefit of the employed earner in respect of the employed earner’s employment at such time as the relevant step which gives rise to it is treated as being taken under paragraph 1(2) F1217or 1A(3) or (4) of that Schedule.

2

In paragraph (1) “relevant step” means a relevant step for the purposes of Part 7A of ITEPA 2003.

Manner of making sickness payments treated as remuneration23

Where by virtue of section 4(1) of the Act (payments treated as remuneration and earnings) a sickness payment is treated as remuneration derived from an employed earner’s employment, that payment shall be made through the person who is the secondary contributor in relation to the employment concerned except where—

a

the payment is payable by another person;

b

that person has agreed with the secondary contributor to make the payment; and

c

arrangements have been made between them for the person who has agreed to make the payment to furnish the secondary contributor with the information specified in paragraph 3(5)(a) of Schedule 4 (intermediate employers).

Calculation of earnings for the purposes of earnings-related contributions24

For the purpose of determining the amount of earnings-related contributions, the amount of a person’s earnings from employed earner’s employment shall be calculated on the basis of his gross earnings from the employment or employments in question.

This is subject to the provisions of Schedule 2 (calculation of earnings for the purposes of earnings-related contributions in particular cases) and Schedule 3 (payments to be disregarded in the calculation of earnings for the purposes of earnings-related contributions).

Payments to be disregarded in the calculation of earnings for the purposes of earnings-related contributions25

Schedule 3 specifies payments which are to be disregarded in the calculation of earnings from employed earner’s employment for the purpose of earnings-related contributions.

Certain payments by trustees to be disregarded26

1

For the purposes of earnings-related contributions, there shall be excluded from the calculation of a person’s earnings in respect of any employed earner’s employment any payment, or any part of a payment—

a

which is made by trustees before 6th April 1990;

b

the amount of which is or may be dependent upon the exercise by the trustees of a discretion or the performance by them of a duty arising under the trust;

c

not being a sickness payment which by virtue of section 4(1) of the Act (payments treated as remuneration and earnings) is treated as remuneration derived from an employed earner’s employment,

and in respect of which either paragraph (2) or (3) is satisfied.

2

This paragraph is satisfied if the trust, under which the payment is made, was created before 6th April 1985.

3

This paragraph is satisfied if—

a

the trust, under which the payment is made, was created on or after 6th April 1985;

b

that trust took effect immediately on the termination of a trust created before 6th April 1985;

c

the person to whom the payment is made either—

i

was a beneficiary under the earlier trust, or

ii

would have been such a beneficiary if, while the earlier trust was subsisting, he had held the employment in respect of which the payment is made; and

d

there were or are payments under the earlier trust which in the case of payments made on or after 6th October 1987, are payments made in circumstances to which sub-paragraphs (a), (b) and (c) apply.

the director has, or

ii

any person connected with the director has, or

iii

the director and any persons connected with him together have,

control.

5

In this regulation—

a

“company” has the meaning given by section 832(1) F360... of the Taxes Act (interpretation of the Tax Acts) F361and Part 2 of Schedule 1 to ITEPA 2003;

b

“the director” means the director to or for the benefit of whom the payment referred to in paragraph (1) is made; and

c

in paragraph (4)(d)—

i

“control” has the same meaning as in section 840 of the Taxes Act,

ii

“any person connected with the director” means any of the following, namely the spouse, F558civil partner, parent, child, son-in-law or daughter-in-law of the director.

Liability for Class 1 contributions in respect of earnings normally paid after pensionable age28

Where in the year in which an earner attains pensionable age a payment of earnings is made to or for his benefit before the date he reaches pensionable age, and those earnings would normally fall to be paid in a year following that year, he shall be excepted from liability for primary Class 1 contributions payable in respect of those earnings.

Liability for Class 1 contributions of persons over pensionable age29

If—

a

earnings are paid to or for the benefit of an earner after he attains pensionable age; and

b

those earnings would normally fall to be paid before the date on which he reaches pensionable age,

section 6(3) of the Act (liability for Class 1 contributions) F23 shall not operate to except him from liability for primary Class 1 contributions in respect of those earnings.

Abnormal pay practicesF21430

1

If an officer of the Board is satisfied that—

a

a secondary contributor has followed or is following a practice in the payment of earnings which is abnormal for the employment in question (“an abnormal pay practice”); and

b

by reason of that practice the liability for earnings-related contributions is or has been avoided or reduced,

paragraph (2) applies.

2

If this paragraph applies the officer may, and if requested to do so by the earner or the secondary contributor shall, decide any question relating to a person’s earnings-related contributions as if the secondary contributor had not followed an abnormal pay practice, but had followed a practice normal for the employment in question.

3

A decision under this regulation shall not apply to contributions based on payments made more than one year before the beginning of the year in which that decision is given.

F215Practices avoiding or reducing liability for contributions31

1

If an officer of the Board is satisfied that—

a

a practice exists as to the making of irregular or unequal payments of earnings; and

b

by reason of the practice the liability for earnings-related contributions is avoided or reduced,

he may, and if requested to do so by either the earner or the secondary contributor shall, decide whether to issue a direction to secure that the same contributions are payable as would be payable if the practice were not followed.

2

A direction under paragraph (1)—

a

shall specify the date from which it is to have effect, which shall not be earlier than that on which it is given;

b

shall have effect until—

i

the direction is superseded by the giving of a further direction, or

ii

an officer of the Board is satisfied that the practice has ceased, or has ceased to have the effect mentioned in paragraph (1)(b); and

c

shall be given to the earner and the secondary contributor concerned.

This is subject to the qualification in paragraph (3).

3

A direction under paragraph (1) need not be given to an earner if the officer of the Board is for any reason unable to ascertain his identity or whereabouts.

4

This regulation does not limit the operation of regulation 30.

The provision of this regulation does not limit the operation of regulation 30.

PART 3 CLASS 1A CONTRIBUTIONS

Interpretation for the purposes of this PartF34232

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Exception from liability to pay Class 1A contributions in respect of cars made available to members of an employed earner’s family or household in certain circumstancesF34233

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Class 1A contributions payable where two or more cars are made available concurrentlyF34234

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Reduction of certain Class 1A contributions in the case of a car provided or made available by reason of two or more employments or to two or more employed earnersF34235

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Reduction of certain Class 1A contributions on account of the number of employments in the cases of something provided or made available by reason of two or more employments and of something provided or made available to two or more employed earners36

1

This regulation applies if something is provided or made available—

a

an employed earner by reason of two or more employed earner’s employments, whether under the same employer or different employers; or

b

two or more employed earners concurrently by reason of their respective employed earner’s employments under the same employer,

and all of those employed earner’s employments are employments F362other than excluded employments within the meaning of the benefits code (see Chapter 2 of Part 3 of ITEPA 2003).

2

If this regulation applies the amount of any Class 1A contribution payable for the year by the person liable to pay such contribution shall be reduced F363... by deducting from that amount an amount equal to the fraction—

\frac{X - 1}{X}

of the amount which would be payable but for this regulation.

Here X is the total number of employments in respect of which the thing is provided or made available.

Reduction of certain Class 1A contributions in respect of cars made available to disabled employed earnersF36437

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Exception from liability to pay Class 1 contributions in respect of cars made available to disabled employed earners only for business and home to work travel38

1

If the conditions mentioned in paragraphs (2) to (5) are satisfied, the person who would otherwise be liable to pay the Class 1A contribution for that year in respect of the employer earner and the car mentioned in those paragraphs shall be excepted from that liability.

2

The first condition is that the car is made available to an earner who is disabled.

3

The second condition is that the car is made available to the earner by reason of his employment.

4

The third condition is that the car is made available account of the earner’s disability for the purposes of, or for purposes which include assisting, the earner’s travelling between the earner’s home and place of employment.

5

The fourth condition is that the terms on which the car is made available to the earner prohibit private use other than—

a

by the earner to whom it is made available; and

b

in travelling between the earner’s home and place of employment.

6

The fifth condition is that no prohibited private use of the car has been made in the year.

Calculation of Class 1A contributions39

Where a person is liable to pay a Class 1A contribution in accordance with section 10 of the Act (Class 1A contributions: benefits in kind, etc) the amount of that contribution shall be calculated to the nearest penny, and any amount of a halfpenny or less shall be disregarded.

Prescribed F303general earnings in respect of which Class 1A contributions not payable40

1

Class 1A contributions shall not be payable in respect of the F304general earnings prescribed by paragraphs (2) to (7).

2

The F309general earnings prescribed by this paragraph are F310those which are excluded from the calculation of a person’s earnings in respect of any employed earner’s employment by virtue of the following provisions of Schedule 3—

F850za

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

a

in Part VI, F567paragraphs 2(b), 3 to 5, 7, 10 and 11;

F547ab

in Part 7, paragraph 12;

b

in Part VIII, paragraphs F11674 to 5 and 13;

c

in Part IX, paragraphs F3653 to 7A; and

d

in Part X, paragraphs 5, F1969, 11 to 13 and 15.

3

The F309general earnings prescribed by this paragraph are F310those which are payments which are not excluded from the calculation of a person’s earnings in respect of any employed earner’s employment by virtue of paragraph 1 of Part II of Schedule 3 (payments in kind), but which are so excluded by virtue of paragraph 3 of Part VIII of Schedule 3 (qualifying travelling expenses) or paragraph 9 of that Part (specific and distinct expenses).

F8024

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F5465

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F5666

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F5666A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7

F306The general earnings prescribed by this paragraph are so much of any general earnings as are not charged to income tax as employment income by virtue of; any of the following extra-statutory concessions published by the Board as at 1st September 2000—

F197a

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F307b

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

c

A11 (residence in the United Kingdom: year of commencement or cessation of residence);

F308d

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

e

A37 (tax treatment of directors’ fees received by partnerships and other companies);

f

A56 (benefits in kind: tax treatment of accommodation in Scotland provided for employees);

F311g

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F311h

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F311i

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F311j

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F311k

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F311l

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F311m

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F311n

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F311o

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

p

A91 (living accommodation provided by reason of employment);

q

A97 (Jobmatch programme).

Sub-paragraphs (b) and (q) do not apply to Northern Ireland and sub-paragraph (f) applies only to Scotland.

F5468

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1. a
2. b
3. c
4. d
5. e
6. f
F305

F5469

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F945Exception from liability to pay Class 1A contributions in respect of an amount representing an amount on which Class 1 or Class 1A contributions have already been paid pursuant to the Social Security Contributions (Limited Liability Partnership) Regulations 201440A

Class 1A contributions shall not be payable in respect of a benefit in kind provided by an employer to an employed earner which represents an amount on which Class 1 or Class 1A contributions are payable by a limited liability partnership in respect of that earner by virtue of regulation 3 or 4 of the Social Security Contributions (Limited Liability Partnership) Regulations 2014.

F1171Exception from liability to pay Class 1A contributions F1183... in respect of sporting testimonial paymentsF121240B

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Regulations 72 (Class 1A contribution due on succession to business) and 73 (Class 1A contribution due on cessation of business) apply to LP as if LP was the employer referred to in paragraph (1)(a) of each of those regulations.

Calculation of Class 1B contributions41

Where a person is liable to pay a Class 1B contribution in accordance with section 10A of the Act (Class 1B contributions) F24, the amount of that contribution shall be calculated to the nearest penny, and any amount of a half penny or less shall be disregarded.

Exception from liability to pay Class 1B contributions42

1

A person shall be excepted from liability to pay a Class 1B contribution for any year in respect of—

a

the amount of any F366general earnings which are chargeable emoluments under section 10A(4) of the Act of an employee included in a PAYE settlement agreement; and

b

the total amount of income tax in respect of which that person is accountable to the Board in relation to F367general earnings of such an employee in accordance with a PAYE settlement agreement,

where the employee is a person falling within paragraph (2) or (3).

2

The employee falls within this paragraph if he is subject to the legislation of a contracting party, other than the United Kingdom, to the Agreement on the European Economic Area signed at Oporto on 2nd May 1992 as adjusted by the Protocol signed at Brussels on 17th March 1993 F25.

3

The employee falls within this paragraph if he is subject to the legislation of a country outside the United Kingdom in respect of which there is an Order in Council under section 179 of the Administration Act (reciprocal agreements with countries outside the United Kingdom) F26 giving effect to a reciprocal agreement.

4

If a person is excepted from liability to pay a Class 1B contribution for any year under paragraphs (1) to (3), he shall be entitled, if he so wishes, to pay that contribution for that year.

PART 5 EXCEPTION FROM LIABILITY FOR CLASS 2 CONTRIBUTIONS, PROVISIONS ABOUT CLASS 3 CONTRIBUTIONS, AND REALLOCATION AND REFUND OF CONTRIBUTIONS (OTHER THAN CLASS 4)

Exception from F1000... Class 2 contributions43

1

Subject to paragraphs (2) and (3), a self-employed earner F1303shall not be treated under section 11(5B) of the Act as having actually paid a Class 2 contribution for any contribution week—

a

in respect of the whole of which the earner is in receipt of incapacity benefit;

F1001ab

in respect of the whole of which the earner is in receipt of employment and support allowance;

b

throughout the whole of which the earner is incapable of work;

c

in respect of which the earner is in receipt of maternity allowance;

d

throughout the whole of which he is undergoing imprisonment or detention in legal custody; or

e

in respect of any part of which the earner is in receipt of F231carer’s allowanceF1287, carer support payment under the Carer’s Assistance (Carer Support Payment) (Scotland) Regulations 2023 or an unemployability supplement.

2

For the purposes of paragraph (1), in computing the period of a contribution week—

a

subject to sub-paragraph (b), Sunday shall be disregarded;

b

in the case of a self-employed earner who objects on religious grounds to working on a specific day in each contribution week other than Sunday, and does not object to working on Sunday, that specific day shall be disregarded instead of Sunday.

3

If a self-employed earner F1304is not treated as having actually paid a Class 2 contribution for any contribution week by virtue of paragraph (1), he shall be entitled, subject to Part 6, to pay a contribution for that week if he so wishes.

Application for, and duration and cancellation of, certificates of exceptionF98244

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Earnings for the purposes of certificates of exceptionF98245

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Certificates of exception—exception from liability for, and entitlement to pay, Class 2 contributionsF98246

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Return of Class 2 contributions paid by low earnersF98247

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Class 3 contributions48

1

Subject to sections 13(2) and 14(1) of the Act (Class 3 contributions only payable for purposes of satisfying certain F1118... conditions and circumstances in which persons shall not be entitled to pay Class 3 contributions) and these Regulations, any person who is over the age of 16 and fulfils the conditions as to residence or presence in Great Britain or in Northern Ireland prescribed in regulation 145, may, if he so wishes, pay Class 3 contributions.

2

It shall be a condition of a person’s right to pay a Class 3 contribution that he—

a

complies with Part 7 in so far as it applies to persons paying such a contribution, and

b

complies with either of the two conditions specified in paragraph (3).

3

The conditions are that the person specified in paragraph (1) shall either—

a

pay the contribution not later than 42 days after the end of the year in respect of which it is paid; or

b

subject to F637regulations 50, 50AF1002F851... F1269, 50C and 65BA(1) and Part 6, pay the contribution—

i

where the contribution is payable in respect of any year before 6th April 1982, before the end of the second year following the year in respect of which it is paid; and where the contribution is payable in respect of any year after 5th April 1982, before the end of the sixth year following the year in respect of which it is paid; or

ii

where the year in respect of which it is paid includes a period of at least 6 months throughout which the contributor has been undergoing full-time education, or full-time apprenticeship or training for which, in either case, any earnings are less than the lower earnings limit, or has been undergoing imprisonment or detention in legal custody, before the end of the sixth year following the year in which the education, or apprenticeship or training, or imprisonment or detention terminated; and

iii

where the year first mentioned in head (ii) is immediately preceded or followed by a year in which the conditions specified in that head are not satisfied in respect only of the length of the period specified in that head, in respect of that preceding or following year, before the end of the sixth year following the year in which the education, apprenticeship, training, imprisonment or detention described in that head terminated.

Precluded Class 3 contributions49

1

Subject to paragraph (2), no person shall be entitled to pay a Class 3 contribution—

a

in respect of any year if he would, but for the payment of such a contribution, be entitled to be credited with a contribution;

b

in respect of any year in which the aggregate of his earnings factors derived from earnings in respect of which F236primary Class 1 contributions, payable at the main primary percentage, have been paid, credited earnings, or Class 2 or Class 3 contributions paid or credited is less than 25 times the lower earnings limit and either the period has passed within which any Class 3 contributions may be treated as paid for that year under regulation 4 of the Social Security (Crediting and Treatment of Contributions, and National Insurance Numbers) Regulations 2001 F27 or he has sooner, in accordance with regulation 56, applied for the return of any Class 3 contributions paid in respect of that year;

c

in respect of any year if the aggregate of his earnings factors derived from earnings in respect of which F236primary Class 1 contributions, payable at the main primary percentage, have been paid, credited earnings, or Class 2 or Class 3 contributions paid or credited is more than 25 times the lower earnings limit but less than the qualifying earnings factor and either—

i

the period referred to in sub-paragraph (b) has passed, or

ii

he has sooner applied under regulation 56 for the return of any Class 3 contributions paid in respect of that year;

d

in respect of any year if it causes the aggregate of his earnings factors derived from earnings in respect of which F236primary Class 1 contributions, payable at the main primary percentage, have been paid, credited earnings, or Class 2 or Class 3 contributions paid or credited to exceed the qualifying earnings factor by an amount which is half or more than half that year’s lower earnings limit;

F548e

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

f

in respect of the year in which he attains 17 or 18 years of age if in an earlier year he has satisfied the first contribution condition for retirement pension or widow’s pension or widowed mother’s allowance.

F201Sub-paragraphs (a), (b) and (c) are subject to the following qualification.

2

F202... A person shall be entitled to pay a Class 3 contribution in respect of any year if it would enable him to satisfy—

a

the first contribution condition for retirement pension F203widowed mother’s allowance, widowed parent’s allowanceF1174... or widow’s pension and he has not satisfied that condition at the beginning of that year; or

b

the contribution condition forF1175... widow’s payment and he has not satisfied that condition at the beginning of that year.

F5492A

No person shall be entitled to pay a Class 3 contribution in respect of the year in which he attains pensionable age or any subsequent year.

This is subject to the following qualification.

2B

A person—

a

who has attained the age of 60;

b

to whom a full gender recognition certificate is issued; and

c

whose acquired gender is male;

is not precluded from paying Class 3 contributions for the relevant years.

2C

For the purposes of paragraph (2B) the relevant years are—

a

the year in which the person attains the age of 60;

b

any subsequent year before that in which the full gender recognition certificate is issued; and

c

the year in which the full gender recognition certificate is issued.

3

In this regulation “credited” means credited for the purposes of retirement pension, F1119a state pension under section 2 or 4 of the Pensions Act 2014, widowed mother’s allowanceF204, widowed parent’s allowanceF1176... and widow’s pension.

F629Conditions relating to Class 3 contributions: transfers to the Communities’ pension scheme49A

2

If a person (“the contributor”)—

a

was entitled to pay a Class 3 contribution in respect of any of the relevant years under regulation 48, 146(2)(b) or 147;

b

had not, before the coming into force of these Regulations, paid that contribution; and

c

had not, before 1st November 2003, received notice—

i

in the case of a contributor in Great Britain, from the Department for Work and Pensions, the former Department of Social Security or the Board, or

ii

in the case of a contributor in Northern Ireland, from the Department for Social Development, the former Department for Health and Social Services for Northern Ireland or the Board,

that he was entitled to pay a Class 3 contribution for that relevant year;

he may pay the contribution within the period specified in paragraph (3).

3

The period within which the contribution may be paid is the period beginning with the coming into force of these Regulations and ending—

a

in the case of a contributor who has reached or will reach pensionable age before 24th October 2004, on 5th April 2010; and

b

in the case of a contributor who will reach pensionable age on or after 24th October 2004, on 5th April 2009.

4

Nothing in this regulation limits the application of F638regulation 50 or 50B.

Class 3 contributions: tax years 1993-94 to 2007-08F100350B

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F838Class 3 contributions: tax years 2006-07 to 2015-16: unavailability of pension statements 2013-14 to 2016-1750C

1

This regulation applies to Class 3 contributions payable in respect of one or more of the tax years 2006-07 to 2015-16 (“the relevant contribution years”).

2

Paragraph (3) applies if a person (“the contributor”)—

a

was entitled under regulation 48, 146(2)(b) or 147(1)(b) to pay a Class 3 contribution in respect of one or more of the relevant contribution years;

b

had not, before the coming into force of this regulation, paid that contribution; and

c

will reach pensionable age on or after 6th April F8822016.

3

The contributor may pay a Class 3 contribution under this regulation, in respect of any of the relevant contribution years, within the period specified in paragraph (4).

C14

The period within which the contribution may be paid is the period beginning on 6th April 2013 and ending on F12765th April 2025.

5

Notwithstanding section 13(6) of the Act, the amount of a Class 3 contribution payable under this regulation shall be—

a

in respect of contribution years 2006-07 to 2009-10, the amount payable in relation to tax year 2012-13; or

b

in respect of contribution years 2010-11 to 2015-16, the amount payable in the contribution year to which the payment relates.

6

Paragraph (5) does not apply to a Class 3 contribution paid on or after 6th April 2019.

F12706A

Notwithstanding section 13(6) of the Act, the amount of a Class 3 contribution payable under this regulation, which is paid on or after 6th April 2023, shall be the amount payable in relation to tax year 2022-23.

7

Nothing in this regulation limits the application of regulations 50, 50A and 50B.

Disposal of contributions not properly paid51

1

Where contributions (other than Class 1A, Class 1B or Class 4 contributions) are paid which are of the wrong class, or at the wrong rate, or of the wrong amount, F756HMRC may treat them as paid on account of contributions properly payable under the Act.

2

Where the whole or any part of a Class 1A contribution or a Class 1B contribution falls to be returned by F756HMRC to any person under F368regulation 52 or 52A or any part of a Class 1A contribution falls to be repaid by F756HMRCF757to any person under regulation 55(1), or regulation 55A,F756HMRC may treat—

a

the amount of the Class 1A contribution or, as the case may be, any part of such a contribution, as a payment on account of any secondary Class 1 contributions, Class 1B contributions or Class 2 contributions;

b

the amount of that Class 1B contribution or, as the case may be, any part of such a contribution, as a payment on account of any secondary Class 1 contributions, Class 1A contribution or Class 2 contributions,

properly payable by that person.

F343Return of contributions paid in error52

1

This regulation applies if a contribution other than a Class 4 contribution has been paid in error.

This regulation is subject to regulations 51 and 57.

2

If this regulation applies, an application may be made to the Board for the return of the contribution paid in error.

3

An application under paragraph (2) shall be made to the Board—

a

in writing, or in such form and by such means of electronic communications as are approved; and

b

within the time permitted by paragraph (8).

4

On the making of an application under paragraph (2) the Board shall return the contribution paid in error.

This is subject to paragraphs (5) and (6).

5

Paragraph (4) does not require the return of contributions unless the amount to be returned exceeds—

a

in the case of Class 1 contributions, 1/15 of a contribution at the main primary percentage payable on earnings at the upper earnings limit in respect of primary Class 1 contributions prescribed in regulation 10 for the last or only year in respect of which the contributions were paid; or

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Repayment of Class 1A contributions55

1

Subject to regulations 51 and 57 and paragraphs (2) and (3), where, in a case specified in paragraph (2), in the light of information provided to the Board, it appears that too much has been paid in respect of a Class 1A contribution, they shall repay to the person paying that contribution the amount which has been overpaid, unless that amount does not exceed 50 pence.

2

The cases to which paragraph (1) applies are those in which a person has paid a Class 1A contribution and—

a

in calculating the amount of that contribution the person used information which later proves to have been inaccurate or incomplete; or

b

the employee who received the F369general earnings in respect of which the contribution was payable is later found to have been a person not residing in the United Kingdom for the purposes of income tax at the time of receipt.

3

The repayment of part of a Class 1A contribution under paragraph (1) is subject to the condition that the person referred to in that paragraph F217the applicant shall make an application to that effect in writing to the Board and within the period of 6 years from the end of the year in which the Class 1A contribution F218was due to be paid.

This is subject to the following qualification.

If the application is made after the end of that period, an officer of the Board shall admit it if satisfied that—

a

the applicant had reasonable excuse for not making the application within that period; and

b

the application was made without unreasonable delay after the excuse had ceased.

the amount of any contribution which has under regulation 51 been treated as paid on account of other contributions;

b

in the case of such contributions paid in error in respect of any person, the amount, if any, paid to that person (and to any other person on the basis of that error) by way of contributory benefit which would not have been paid had any of the contributions (in respect of which an application for their return is duly made in accordance with F371regulation 52(8)) not been paid in the first instance;

c

the amount of any contributions equivalent premium payable under Chapter III of Part III of the Pensions Act F28;

d

the amount of any minimum contributions paid by the Board under section 43 of the Pensions Act F29 (minimum contributions to personal pension schemes);

e

the amount of any payment made by the Board under section 7 of the Social Security Act 1986 F30 (schemes becoming contracted-out between 1986 and 1993); and

f

in the case of such contributions paid in error in respect of any person, the amount of any payment made by the Board under section 42A(3) of the Pensions Act (age-related rebates) F31.

2

Paragraph (1)(b) is subject to the qualification that, if the Secretary of State certifies that a deduction of an additional amount of income support or income-based jobseeker’s allowance has been made under regulation 13 of the Social Security (Payments on account, Overpayments and Recovery) Regulations 1988 (“the 1988 Regulations”) F32 (sums to be deducted in calculating the recoverable amount), paragraph (3) applies.

3

If this paragraph applies, the amount to be returned shall be reduced by applying the formula—

CB - IS

Here—CB is the amount of contributory benefit specified in paragraph (1)(b) and

IS is the amount of income support or income-based jobseeker’s allowance specified in regulation 13(b) of the 1988 Regulations.

4

In this regulation the expression “contributions equivalent premium” has the same meaning as in section 55(2) F33 of the Pensions Act.

Reallocation of contributions for benefit purposes58

1

Where any payment of earnings is made in one year which, but for regulation 7(3), would by virtue of that regulation have been treated as paid at an interval falling within another year, the contributions paid in respect of those earnings shall, on the application of the employed earner or the direction of the Secretary of State, be treated, for the purposes of entitlement to benefit, as paid in respect of that other year.

2

Where—

a

an employed earner’s employment commences in one year;

b

the first payment of earnings in respect of that employment is made in the following year; and

c

earnings in respect of that employment which fall to be paid in that later year are paid at regular intervals,

the contributions paid in respect of the first payment of earnings shall, on the application of the employed earner to the Secretary of State, be treated, for the purposes of entitlement to benefit, as paid in respect of the year in which the employment commenced.

Circumstances in which two-year limit for refunds of Class 1, 1A or 1B contributions not to apply59

1

Section 19A(1) of the Act F34 (repayment of Class 1, 1A or 1B contributions paid in error) does not apply where the three circumstances prescribed in paragraphs (2), (3) and (4) exist.

2

The first circumstance is that, in respect of the earnings derived in year 1 from an employment of the earner, Class 1, 1A or 1B contributions have been paid.

3

The second circumstance is that in respect of that employment and before the end of year 2—

a

an application for the determination of a question as to the category of earners in which the earner is or was to be included (“the categorisation question”) has been made under section 17(1)(a) of the Administration Act in accordance with regulation 13(1) of the Social Security (Adjudication) Regulations 1995 F35;

b

the question of law arising in connection with the categorisation question has been referred by the Secretary of State to a court under section 18 of the Administration Act;

c

a request in writing has been made that an officer of the Board—

i

decide the categorisation question under section 8(1)(a) of the Transfer Act, or

ii

vary a decision made under that section; or

d

the amount of income tax, which is liable to be paid in respect of year 1 and in respect of which the person liable to pay a Class 1B contribution is accountable, has been the subject of a relevant tax appeal.

4

The third circumstance is that the question, reference, request or appeal referred to in paragraph (3) has not been determined or finally disposed of, as the case may be, at the end of year 2.

5

For the purposes of this regulation—

“relevant tax appeal” has the meaning given by paragraph 6(4A) of Schedule 1 to the Act F36;
“year 1” and “year 2” have the meanings given by section 19A(1) of the Act,

and a question, reference, request or appeal shall only be taken to be determined or finally disposed of when the time for appealing against it has expired or no further appeal is possible.

PART 6 LATE PAID AND UNPAID CONTRIBUTIONS (OTHER THAN CLASS 4 CONTRIBUTIONS)

Treatment for the purpose of contributory benefit of unpaid primary Class 1 contributions where no consent, connivance or negligence on the part of the primary contributor60

1

If a primary Class 1 contribution payable on a primary contributor’s behalf by a secondary contributor is not paid, and the failure to pay that contribution is shown to the satisfaction F219of an officer of the Board not to have been with the consent or connivance of, or attributable to any negligence on the part of the primary contributor, that contribution shall be treated—

a

for the purpose of the first contribution condition of entitlement to a contribution-based jobseeker’s allowance or short term incapacity benefit as paid on the date on which payment is made of the earnings in respect of which the contribution is payable; and

b

for any other purpose of entitlement to contributory benefit, as paid on the due date.

2

In paragraph (1)(a) “the first contribution condition”, in relation to a contribution-based jobseeker’s allowance means the condition specified in section 2(1)(a) of the Jobseeker’s Act 1995F37.

F6013

Where—

a

an amount is retrospectively treated as earnings by retrospective contributions regulations, and

b

the primary Class 1 contribution payable in respect of those earnings is not paid, and the failure to pay that contribution is shown to the satisfaction of an officer of the Board not to have been with the consent or connivance of, or attributable to any negligence on the part of the primary contributor,

that contribution shall be treated in accordance with paragraph (1)(a) and (b).

Voluntary Class 2 contributions not paid within permitted periodF22061

1

If a person who was entitled, but not liable, to pay a Class 2 contribution (“the contributor”) fails to pay that contribution within the period within which it may be paid, and the condition in paragraph (2) is satisfied, the contribution may be paid within such further period as an officer of the Board may direct.

2

The condition is that an officer of the Board is satisfied that—

a

the failure was attributable to the contributor’s ignorance or error; and

b

that ignorance or error was not the result of the contributor’s failure to exercise due care and diligence.

Voluntary Class 2 contributions: tax years 1993-94 to 2007-08F100461A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F839Voluntary Class 2 contributions: tax years 2006-07 to 2015-16: unavailability of pension statements 2013-14 to 2016-1761B

1

This regulation applies to Class 2 contributions which a person (“the contributor”) was entitled, but not liable, to pay in respect of one or more of the tax years 2006-07 to 2015-16 (“the relevant contribution years”).

2

Paragraph (3) applies if the contributor—

a

was entitled F1006... to pay a Class 2 contribution in respect of one or more of the relevant contribution years;

b

had not, before the coming into force of this regulation, paid that contribution; and

c

will reach pensionable age on or after 6th April F8832016.

3

The contributor may pay a Class 2 contribution under this regulation, in respect of any of the relevant contribution years, within the period specified in paragraph (4).

C24

The period within which the contribution may be paid is the period beginning on 6th April 2013 and ending on F12775th April 2025.

5

Notwithstanding section 12(3) of the Act, the amount of a Class 2 contribution payable under this regulation shall be—

a

in respect of contribution years 2006-07 to 2010-11, the amount payable in relation to tax year 2012-13; or

b

in respect of contribution years 2011-12 to 2015-16, the amount payable in the contribution year to which the payment relates.

6

Paragraph (5) does not apply to a Class 2 contribution paid on or after 6th April 2019.

F12716A

Notwithstanding section 12(3) of the Act, the amount of a Class 2 contribution payable under this regulation, which is paid on or after 6th April 2023, shall be the amount payable in relation to tax year 2022-23.

7

Nothing in this regulation limits the application of F1005regulation 61.

Payment of contributions after death of contributor62

If a person dies, any contributions which, immediately before his death he was entitled, but not liable, to pay, may be paid, notwithstanding his death, subject to the same provisions with respect to the time for payment as were applicable to that person.

Class 2 contributions paid late in accordance with a payment undertaking63

1

This regulation applies to any Class 2 contributions which—

a

the earner has failed to pay on or by the due date and which, after that date, is payable in accordance with the provisions of an undertaking to pay such a contribution entered into after that date; and

b

would when paid fall to be computed in accordance with section 12(3) of the Act.

2

In the case of a contribution to which this regulation applies—

a

which is paid in accordance with the provisions of an undertaking entered into in the contribution year or the year immediately following that year, the amount of such a contribution shall be computed by reference to the weekly rate applicable in the contribution year;

b

which is paid in accordance with the provisions of an undertaking entered into in any year other than a year specified in sub-paragraph (a), the amount of such a contribution shall be computed by reference to the highest weekly rate of such a contribution in the period beginning with the contribution week in respect of which the contribution is paid and ending with the day on which the undertaking was entered into;

c

which is not paid in accordance with the provisions of the undertaking, the amount of such a contribution shall be computed by reference to the highest weekly rate of such a contribution—

i

where the contribution is paid in accordance with a further undertaking, in the period beginning with the contribution week in respect of which the contribution is paid and ending with the day on which the further undertaking was entered into, or

ii

where the contribution is paid otherwise than in accordance with a further undertaking, in the period beginning with the contribution week in respect of which the contribution is paid and ending with the day on which it is paid.

3

In this regulation “undertaking” means an arrangement between the Board and an earner under which the Board have agreed to accept payment of arrears of Class 2 contributions by instalments.

F840Collection of unpaid Class 2 contributions through PAYE code63A

1

Where—

a

the amount of any Class 2 contributions (“relevant debt”) would fall to be computed in accordance with section 12(3) of the Act (late paid Class 2 contributions), and

b

paragraph (2) applies,

the amount of the relevant debt must be computed in accordance with paragraph (4).

2

This paragraph applies where—

a

the code (“the PAYE code”) required by regulation 13 of the PAYE Regulations (determination of code by Inland Revenue) for use by an employer for a year in respect of the person liable to pay the relevant debt is determined in accordance with regulation 14A of the PAYE Regulations (determination of code in respect of recovery of relevant debts) so as to effect recovery of the relevant debt;

b

the determination of the PAYE code is made assuming the amount of the relevant debt is the amount computed in accordance with paragraph (4); and

c

the relevant debt is paid in the year in respect of which the PAYE code is determined for use by an employer of the person liable to pay the relevant debt.

3

For the purpose of determining whether a relevant debt is paid in accordance with paragraph (2)(c), the amount of the relevant debt must be assumed to be the amount computed in accordance with paragraph (4).

4

The amount referred to in paragraphs (1), (2)(b) and (3) is the highest weekly rate of a Class 2 contribution in the period beginning with the F1007... week to which the relevant debt relates and ending with the day the PAYE code mentioned in paragraph (2)(a) is determined.

Class 2 and Class 3 contributions paid within a month from notification of amount of arrears64

1

is paid during the period beginning on 6th April 2023 and ending on F12795th April 2025, and

c

when paid during that period, would fall to be computed in accordance with section 12(3) or 13(6) of the Act.

4

Where this paragraph applies, notwithstanding sections 12(3) and 13(6) of the Act—

a

the amount of a Class 3 contribution payable in respect of tax year 2020-21 shall be the amount payable in relation to tax year 2020-21,

F1281aa

the amount of a Class 3 contribution payable in respect of tax year 2021-22 shall be the amount payable in relation to tax year 2021-22,

b

the amount of a Class 2 contribution payable in respect of tax year 2021-22 shall be the amount payable in relation to tax year 2021-22, and

c

the amount of any other contribution to which this paragraph applies shall be the amount payable in relation to tax year 2022-23.

Late payment of voluntary Class 2 and 3 contributions for tax year 2005-06F100865C

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Late payment of voluntary Class 2 and 3 contributions for tax year 2006-07F100965D

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART 7 COLLECTION OF CONTRIBUTIONS (OTHER THAN CLASS 4 CONTRIBUTIONS) AND RELATED MATTERS

Notification of national insurance numbers to secondary contributors66

Every employed earner, in respect of whom any person is liable to pay an earnings-related contribution, shall, on request, supply his national insurance number to that person.

Collection and recovery of earnings-related contributions, and Class 1B contributions67

1

Subject to the provisions of regulations 68 and 70, earnings-related contributions and Class 1B contributions shall be paid, accounted for and recovered in like manner as income tax deducted from the F372F1011PAYE income by virtue of regulations under section 684 of ITEPA 2003 (PAYE Regulations).

F10121A

PAYE income has the meaning given in section 683 of ITEPA 2003.

2

F641...The provisions contained in Schedule 4, (which contains provisions derived from F373the PAYE Regulations with extensions and modifications) shall apply to and for the purposes of earnings-related contributions and Class 1B contributions.

F8033

Schedules 4A (real time returns) and 4B (additional information about payments) apply to and for the purposes of earnings-related contributions.

the reference to section 254(5) of the Finance Act 2004 was a reference to these Regulations.

Other methods of collection and recovery of earnings-related contributions68

1

The Board may authorise arrangements under which earnings-related contributions are to be paid in a different manner from that prescribed by regulation 67.

2

The provisions of regulation 67 shall be in addition to any remedy otherwise available for the recovery of earnings-related contributions.

Transfer of liability from secondary contributor to employed earner: F525relevant employment income69

Schedule 5 contains provisions which have effect with respect to elections made jointly by a secondary contributor and an employed earner that the liability of the secondary contributor in respect of F525relevant employment income shall be transferred to the employed earner.

Payment of Class 1A contributions70

1

In the cases prescribed by paragraph (2), contributions shall be paid to the Board in accordance with regulations 71 to 83.

2

The cases prescribed by this paragraph are cases where an employer is liable to pay a Class 1A contribution to the Board.

3

For the purposes of this regulation and regulations 71 to 83where—

a

any payment to the Board is made by cheque; and

b

the cheque is paid on its first presentation to the banker on whom it is drawn,

the payment shall be treated as made on the day on which the cheque was received by the Board, and related expressions shall be construed accordingly.

4

In this regulation, and in regulations 71 to 83, “employer” F530means the person liable, in accordance with section 10(2) or 10ZA(4) F39 of the Act, to pay a Class 1A contribution.

Due date for payment of a Class 1A contribution71

1

Subject to regulation F121340C(2), 40D(2), 72(2) or 73(2), as the case may be, an employer who is liable to pay a Class 1A contribution to the Board shall pay that contribution to them not later than 19th July F374or, where payment is made by an approved method of electronic communications in respect of earnings paid after 5th April 2004, not later than 22nd July in the year immediately following the end of the year in respect of which it is payable.

2

A Class 1A contribution paid to the Board in accordance with paragraph (1) shall be shown in a return made to them in accordance with regulation 80(1).

Provisions relating to a Class 1A contribution due on succession to business72

1

In this regulation—

“business” includes any trade, concern or undertaking;
“employer” means the employer before the cessation of business referred to in paragraph (1)(a);
F1017...
“relevant final F384tax month” means the F384tax month in which the employer has made any payments of emoluments which were, by reason of the cessation of business referred to in paragraph (1)(a) in respect of the employment of all those persons who were employed by him in that F384tax month, the F385final payment of F1018... earnings to be made by him in the year in which those payments were made; F386...
“emoluments” means so much of a person’s remuneration or profits derived from employed earner’s employment as constitutes earnings for the purposes of the Act;
“relevant final year” means the year in which the relevant final F384tax month occurs.

Employer failing to pay a Class 1A contribution74

1

If—

a

the employer has paid no amount of a Class 1A contribution to the Board by the date which applies to him under regulation 71(1), 72(2) or 73(2) (as the case may be); and

b

the Board are unaware of the amount, if any, which the employer is liable so to pay, they may give notice to the employer requiring him to render, within 14 days, a return in the prescribed form showing the amount of a Class 1A contribution which the employer is liable to pay to them under that regulation in respect of the year in question.

2

A notice may be given by the Board under paragraph (1) notwithstanding that an amount of a Class 1A contribution has been paid to them by the employer under regulation 71(1), 72(2) or 73(2), in respect of the year in question, if they are not satisfied that the amount so paid is the full amount which the employer is liable to pay to them for that year and the provisions of this regulation shall have effect accordingly.

3

Upon receipt of a return made by an employer under paragraph (1) the Board may prepare a certificate showing the amount of a Class 1A contribution which the employer is liable to pay to them for the year in question.

4

The production of the return made by the employer under paragraph (1) and of the certificate of the Board under paragraph (3) shall be sufficient evidence that the amount shown in the certificate is the amount of a Class 1A contribution which the employer is liable to pay to the Board in respect of the year in question.

5

Any document purporting to be a certificate under paragraph (3) shall be presumed to be such a certificate until the contrary is proved.

Specified amount of a Class 1A contribution75

1

If, following the date which applies to him under regulation 71(1), 72(2) or 73(2) (as the case may be), the employer has paid no amount of a Class 1A contribution to the Board in respect of the year in question and there is reason to believe that the employer is liable so to pay, the Board—

a

in the case of the first year in which the employer is liable to pay such a contribution, upon consideration of any information which has been provided to them by the employer relating to his liability to pay such contributions; or

b

in the case of any later year, upon consideration of the employer’s record of past payments;

may to the best of their judgment specify the amount of a Class 1A contribution which they consider the employer is liable to pay and give notice to him of that amount.

2

If, on the expiration of the period of 7 days allowed in the notice, the specified amount of a Class 1A contribution or any part of that amount is unpaid, the amount so unpaid—

a

shall be treated for the purposes of these Regulations to be an amount of a Class 1A contribution which the employer was liable to pay in respect of the year in question in accordance with regulation 71(1), 72(2) or 73(2); and

b

may be certified by the Board.

3

Paragraph (2) does not apply if, during the period allowed in the notice—

a

the employer pays to the Board the full amount of a Class 1A contribution which he is liable to pay under regulation 71(1), 72(2) or 73(2), in respect of the year in question; or

b

the employer satisfies the Board that no amount of such a contribution is due.

4

The production of a certificate such as is mentioned in paragraph (2)(b) shall, until the contrary is established, be sufficient evidence that the employer is liable to pay to the Board the amount shown in the certificate, and any document purporting to be such a certificate shall be deemed to be such a certificate until the contrary is proved.

5

A notice may be given by the Board under paragraph (1) notwithstanding that an amount of a Class 1A contribution has been paid to them by the employer under regulation 71(1), 72(2) or 73(2) in respect of the year in question, if, after seeking the employer’s explanation as to the amount of a Class 1A contribution paid, they are not satisfied that the amount so paid is the full amount which the employer is liable to pay to them in respect of that year, and this regulation shall have effect accordingly, but paragraph (2) shall not apply if, during the period allowed in the notice, the employer satisfies the Board that no further amount of a Class 1A contribution is due in respect of that year.

6

Where, during the period allowed in a notice given by the Board under paragraph (1), the employer claims, but does not satisfy the Board, that the payment of a Class 1A contribution made in respect of the year specified in the notice is the full amount of a Class 1A contribution which he is liable to pay to the Board in respect of that year, the employer may require the Board to inspect his documents and records as if they had called upon him to produce those documents and records in accordance with F685Schedule 36 to the Finance Act 2008 (information and inspection powers).

7

If the employer does require the Board to inspect his documents and records in accordance with paragraph (6), the provisions of F686paragraph 26A of Schedule 4 shall apply in relation to that inspection and the notice given by the Board under paragraph (1) shall be disregarded.

Interest on an overdue Class 1A contribution76

1

Where an employer has not paid a Class 1A contribution, which he is liable to pay, by the date which applies to him under regulation 71(1), 72(2) or 73(2) (as the case may be), any contribution not so paid shall carry interest at the rate applicable under paragraph 6(3) of Schedule 1 to the Act from the reckonable date until payment.

2

Interest payable under this regulation shall be recoverable as if it were a Class 1A contribution which an employer is liable to pay to the Board under regulation 71(1), 72(2) or 73(2), as the case may be).

3

A contribution to which paragraph (1) applies shall carry interest from the reckonable date even if that date is a non-business day within the meaning of section 92 of the Bills of Exchange Act 1882F40.

4

A certificate of the Board that any amount of interest payable under this regulation has not been paid to the Board or, to the best of the Board’s knowledge and belief, to any person acting on their behalf, shall be sufficient evidence that the employer is liable to pay to the Board the amount of interest shown on the certificate and that the sum is unpaid and due to be paid, and any document purporting to be such a certificate shall be deemed to be a certificate until the contrary is proved.

5

For the purposes of this regulation, “the reckonable date” means the 19th July F387or where payment is made by an approved method of electronic communications in respect of earnings paid after 5th April 2004, the 22nd July in the year immediately following the end of the year in respect of which the Class 1A contribution is payable to the Board.

Payment of interest on a repaid Class 1A contribution77

1

Where—

a

a Class 1A contribution paid by an employer to the Board in respect of the year ended 5th April 1999 or any subsequent year is repaid to him; and

b

that repayment is made after the relevant date,

any such repaid contribution shall carry interest at the rate applicable under paragraph 6(3) of Schedule 1 to the Act from the relevant date until the order for the repayment is issued.

2

For the purposes of this regulation, “the relevant date” means—

a

the 14th day after the end of the year in respect of which the Class 1A contribution was paid; or

b

if later than that day, the date on which the contribution was paid.

Repayment of interest paid on a Class 1A contribution78

If an employer has paid interest on a Class 1A contribution, that interest shall be repaid to him where—

a

the interest paid is found not to have been due to be paid, although the contribution in respect of which it was paid was due to be paid;

b

the Class 1A contribution in respect of which interest was paid is returned or repaid to the employer in accordance with the provisions of regulation 52 or 55.

Remission of interest on a Class 1A contribution79

1

Where interest is payable in accordance with regulation 76 it shall be remitted for the period commencing on the first relevant date and ending on the second relevant date in the circumstances specified in paragraph (2).

2

For the purposes of paragraph (1), the circumstances are that the liability, or a greater liability, to pay interest in respect of a Class 1A contribution arises as the result of an official error being made.

3

For the purposes of this regulation—

“official error” means a mistake made, or something omitted to be done, by an officer of, or person employed in relation to, the Board acting as such, where the employer or any person acting on his behalf has not caused, or materially contributed to, that mistake or omission;
“the first relevant date” means the date defined in regulation 76(5) or, if later, the date on which the official error occurs; and
“the second relevant date” means the date 14 days after the date on which the official error is rectified and the employer is advised of its rectification.

where the employer is a body corporate, signed either by the secretary or by a director.

F8043A

Where the return referred to in this regulation is rendered as mentioned in paragraph (1A)(b) the declaration must, instead of being signed, be authenticated by or on behalf of the employer in such a manner as may be approved by HMRC.

4

If, by the date which applies to him under regulation 71(1), 72(2) or 73(2) (as the case may be), an employer has failed to pay a Class 1A contribution which he is liable to pay, the Board may prepare a certificate showing the total amount of a Class 1A contribution remaining unpaid in respect of the year in question and regulation 76(1) and (2) shall, with any necessary modifications, apply to the amount shown in that certificate.

F12145

This regulation is subject to regulations 40C(2) and 40D(2).

Returns rendered electronically on another’s behalfF39180A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1

Section 100 of the Management Act F41 (determination of penalties by an officer of the Board) shall apply with any necessary modifications in relation to the determination of any penalty under regulation 81 as it applies to the determination of a penalty under the Taxes Acts.

2

Section 100D F42 of the Management Act (penalty proceedings before court) shall apply with any necessary modifications in relation to any proceedings for a penalty under regulation 81 as it applies to proceedings for a penalty under the Taxes Acts.

3

Section 104 of the Management Act (saving for criminal proceedings) shall apply with any necessary modifications in relation to the provisions of regulation 81 as it applies to the provisions of the Taxes Acts.

4

Section 105 of the Management Act (evidence in cases of fraudulent conduct) F43 shall apply with any necessary modifications in respect of any proceedings for a penalty under regulation 81, or on appeal against the determination of such a penalty, as it applies in relation to any proceedings for a penalty, or on appeal against the determination of a penalty, under the Management Act.

5

In this regulation—

“the Management Act” means the Taxes Management Act 1970 F44; and
“the Taxes Acts” has the same meaning as in section 118(1) of the Management Act (interpretation) F45.

Set-off of Class 1A contributions falling to be repaid against earnings-related contributions83

1

In the circumstance prescribed by paragraph (2), an amount in respect of a Class 1A contribution that falls to be repaid in accordance with these Regulations may be set off against liabilities under them to the extent prescribed in paragraph (3).

2

The circumstance is that an employer has paid to the Board in accordance with regulations 70 to 82 an amount, in respect of Class 1A contributions, which he was not liable to pay.

3

The extent of the set-off is that the employer shall be entitled to deduct the amount which he was not liable to pay in respect of Class 1A contributions from any payment in respect of secondary earnings-related contributions which he is subsequently liable to pay to a Collector under paragraph 10 or 11 of Schedule 4 for any income tax period in the same year.

4

In this regulation “Collector”, “income tax period” and “year” have the meanings given in paragraph 1(2) of Schedule 4.

F792Requirement to give security or further security for amounts of Class 1A contributions83A

Paragraphs 29M to 29X of Schedule 4 (security for payment of Class 1 contributions) apply in relation to Class 1A contributions as they apply in relation to Class 1 contributions but as if—

a

in paragraph 29N—

the contributions for which, notwithstanding the arrangement, he will remain accountable to the Board, and

c

the period to which the arrangement relates (“the relevant period”).

4

During the relevant period, paragraph 3(1) of Schedule 1 to the Act (method of paying Class 1 contributions) shall not apply to the secondary contributor in respect of those contributions—

a

to which the arrangement relates, and

b

for which he would otherwise have been accountable to the Board,

unless and until the arrangement has been cancelled before the end of the period and the secondary contributor has been notified in writing of its cancellation.

Exception in relation to earnings to which regulation 84 appliesF23885

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Special provisions relating to culpable employed earners and to secondary contributors or employers exempted by treaty etc., from enforcement of the Act or liability under it86

1

As respects any employed earner’s employment—

a

where there has been a failure to pay any primary contribution which a secondary contributor is, or but for the provisions of this regulation would be, liable to pay on behalf of the earner and the failure was due to an act or default of the earner and

F392i

not to any negligence on the part of the secondary contributorF393, or

ii

it is shown to the satisfaction of an officer of the Board that the earner knows that the secondary contributor has wilfully failed to pay the primary contribution which the secondary contributor was liable to pay on behalf of the earner and has not recovered that primary contribution from the earner

b

where the secondary contributor is a person against whom, by reason of any international treaty or convention as mentioned in paragraph 30 of Schedule 4, the provisions of the Act are not enforceable and who is not willing to pay on behalf of the earner any contribution due in respect of earnings paid to or for the benefit of the earner in respect of that employment,

the provisions of paragraph 3(1) of Schedule 1 to the Act (method of paying Class 1 contributions) shall not apply in relation to that contribution.

2

Where, as respects any employed earner’s employment the employer is a person who by reason of any such international treaty or convention is exempt from the provisions of the Act, he may, if he so wishes, pay contributions in respect of any earnings paid to or for the benefit of the earner in respect of the employment, or contributions under section 10 of the ActF394..., in either case to the same extent to which he could have paid such contributions if he had not been so exempt.

3

In this regulation “employer” has the same meaning as it has in paragraph 30 of Schedule 4.

Notification of commencement or cessation of payment of Class 2 or Class 3 contributions F687on or before 5th April 200987

1

Every person to whom paragraph (2) applies shall immediately notify the relevant date to the Board in writing or by such means of electronic communications as may be approved.

2

This paragraph applies to a person who F688on or before 5th April 2009—

a

becomes, or ceases to be, liable to pay a Class 2 contribution;

b

becomes, or ceases to be, entitled to pay a Class 2 contribution although not liable to do so; or

c

is entitled to pay a Class 3 contribution and wishes either to do so or to cease doing so.

F10193

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F10194

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F10195

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F10196

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F10197

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F10198

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F682Notification of commencement or cessation of payment of Class 2 or Class 3 contributions on or after 6th April 2009 F1021but before 6th April 201587A

1

A person (P) to whom paragraph (2) applies shall immediately notify the relevant date to HMRC in writing or by such means of electronic communications as may be approved.

2

This paragraph applies where P on or after 6th April 2009 F1020but before 6th April 2015—

a

becomes, or ceases to be, liable to pay a Class 2 contribution;

b

becomes, or ceases to be, entitled to pay a Class 2 contribution although not liable to do so; or

c

is entitled to pay a Class 3 contribution and wishes either to do so or to cease doing so.

3

In paragraph (1) “the relevant date” means—

a

in relation to a person to whom paragraph (2)(a) applies, the date on which P commences or ceases to be a self-employed earner;

b

in relation to a person to whom paragraph (2)(b) or (c) applies, the date on which P wishes to commence or cease paying either Class 2 or Class 3 contributions, as the case may be.

4

P is to be treated as having immediately notified HMRC in accordance with paragraph (1) if P has notified HMRC within such further time, if any, as HMRC may allow.

F984Notification of commencement or cessation of self-employment or Class 3 contributions on or after 6th April 201587AA

1

A person (P) to whom paragraph (2) applies shall immediately notify the relevant date to HMRC in writing or by such means of electronic communication as may be approved.

2

This paragraph applies where P on or after 6th April 2015—

a

commences or ceases to be a self-employed earner; or

b

is entitled to pay a Class 3 contribution and either wishes to do so or cease doing so.

3

In paragraph (1) “the relevant date” means—

a

in relation to a person to whom paragraph (2)(a) applies, the date on which P commences or ceases to be a self-employed earner;

b

in relation to a person to whom paragraph (2)(b) applies, the date on which P wishes to commence or cease paying Class 3 contributions.

4

P is to be treated as having immediately notified HMRC in accordance with paragraph (1) if P has notified HMRC within such further time, if any, as HMRC may allow.

Penalty for failure to notifyF98387B

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

DisclosureF98387C

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Reduction of penalty for disclosureF98387D

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Special reductionF98387E

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Notice of decision etc.F98387F

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Double jeopardyF98387G

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Notification of change of address88

F1305A person to whom section 11(5B) of the Act (class 2 contributions treated as paid) applies; or paying Class 2 contributions F1306... or Class 3 contributions, shall immediately notify the Board of any change of his address in writing or by such means of electronic communications as may be approved.

Method of, and time for, payment of Class 2 and Class 3 contributions etc.89

1

Where Class 2 or Class 3 contributions are payable by a person other than in accordance with F1022the Taxes Management Act 1970 (as modified by section 11A of the Act) or in accordance with, arrangements approved under regulation 90 F1023or in accordance with regulation 90ZA or 148C, such contributions shall be paid in accordance with paragraphF1024... F760(2A), (3) or (4), as the case may be.

F10251A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

ii

he is entitled although not liable to pay a Class 2 contribution in a F1032tax year, or is entitled to pay a Class 3 contribution in a contribution quarter; and

b

has—

i

not, by the notification date, had written notice issued to him in respect of that week or weeks of the kind referred to in paragraph (2A);

ii

not had written notice issued to him in respect of that week or weeks of a kind mentioned in paragraph (3) and more than 14 days have elapsed since the end of the contribution quarter in question; or

iii

notified HMRC in accordance with regulation 87F1036, 87A or 87AA that he has F1037... ceased to be entitled to pay Class 2 or Class 3 contributionsF1038....

F10336

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F7647

In this regulation—

F1039a

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1039b

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1040c

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

d

“contribution quarter” means one of the four periods of not less than 13 contribution weeks commencing on the first, fourteenth, twenty-seventh or fortieth contribution week, as the case may be, in any year;

e

F1041“notification date” means 31st October following the end of the tax year.

F985Class 2 contributions for tax years up to 2014-1589A

1

This regulation applies where a person (P) is liable to pay a Class 2 contribution in respect of any contribution week in a tax year up to and including the 2014-15 tax year.

2

An officer of HMRC may issue P with written notice of the amount of Class 2 contributions for which P is liable in respect of any tax year up to and including the 2014-15 tax year.

3

P shall pay the amount of contributions for which he is liable no later than the date specified in the notice. This paragraph is subject to paragraphs (4) and (5).

4

Where P—

a

is liable to pay a Class 2 contribution in respect of any contribution week falling within the period defined in paragraph (5) (“the specified contribution period”); and

b

has notified HMRC of such liability in accordance with the provisions of regulation 87 or 87A,

HMRC shall issue P with written notice of the amount of Class 2 contributions for which P is liable to pay in respect of the specified contribution period no later than 1st June 2015 and P shall pay the amount set out in that notice to HMRC no later than 31st July 2015.

5

For the purposes of paragraph (4), the specified contribution period is the period of not less than 26 contribution weeks falling within the 2014-15 tax year commencing with the first day of the twenty seventh contribution week in that year.

Arrangements approved by the Board for method of, and time for, payment of Class 2 and Class 3 contributions90

1

The Board may from time to time approve arrangements under which contributions are paid at times or in a manner different from those prescribed by regulation 89.

This is subject to paragraphs (2) to (4).

2

When granting approval under paragraph (1), the Board may impose such conditions as they see fit.

3

The Board may, in particular, grant approval under paragraph (1) if, as respects any year in which a person is both an employed earner and a self-employed earner, the condition in paragraph (4) is satisfied.

4

The condition is that the Board are satisfied that the F239total amounts of primary Class 1 contributions and Class 2 contributions likely to be paid by or in respect of that person in respect of that year will exceed F240the amount equal to 53 primary Class 1 contributions payable on earnings at the upper earnings limit for that year at the main primary percentage.

5

The provisions of these Regulations shall, subject to the provisions of the arrangements, apply to the person affected by the arrangements.

6

Where in respect of an earner arrangements are approved under paragraph (1) for payment of contributions by way of direct debit of a bank, those arrangements shall be subject to the condition that any payment by way of direct debit on account of such contributions after the authority of the bank to make such payment has for any reason ceased to be effective, shall not be a payment of contributions for the purposes of the Act.

is treated for relevant purposes as having actually paid a Class 2 contribution in respect of that week as a result of section 11(5B) of the Act,

the person may make an application to HMRC for the return of the contribution that was paid.

5

An application under paragraph (4) must be made—

a

in such form and manner as HMRC may require, and

b

on or before 31st January next following the end of the tax year.

6

On the making of an application under paragraph (4) HMRC must return the contribution that was paid.

7

In this regulation “for relevant purposes” has the meaning given by section 11(5C) of the Act.

F341PART 7AElectronic Communications

Annotations:

Amendments (Textual)

F341

Pt. 7A inserted (6.4.2004) by The Social Security (Contributions, Categorisation of Earners and Intermediaries) (Amendment) Regulations 2004 (S.I. 2004/770), regs. 1(1), 23

Whether information has been delivered electronically90A

1

For the purposes of these Regulations, information is taken to have been delivered to an official computer system by an approved method of electronic communications only if it is accepted by that official computer system.

2

References in these Regulations to information and to the delivery of information must be construed in accordance with section 135(8) of the Finance Act 2002 (mandatory e-filing).

Proof of content of electronic delivery90B

1

A document certified by the Board to be a printed-out version of any information delivered by an approved method of electronic communications is evidence, unless the contrary is proved, that the information—

a

to an official computer system,

on behalf of a person is taken to have been delivered by that person.

2

But this does not apply if the person proves that the information was delivered without the person’s knowledge or connivance.

Proof of delivery of information sent electronically90E

1

The use of an approved method of electronic communications is presumed, unless the contrary is proved, to have resulted in the delivery of information—

a

to the Board, if the delivery of the information has been recorded on an official computer system;

b

by the Board, if the despatch of the information has been recorded on an official computer system.

2

The use of an approved method of electronic communications is presumed, unless the contrary is proved, not to have resulted in the delivery of information—

a

to the Board, if the delivery of the information has not been recorded on an official computer system;

b

by the Board, if the despatch of the information has not been recorded on an official computer system.

3

The time of receipt or despatch of any information delivered by an approved method of electronic communications is presumed, unless the contrary is proved, to be the time recorded on an official computer system.

Proof of payment sent electronically90F

1

The use of a method of electronic communications is presumed, unless the contrary is proved, to have resulted in the making of a payment—

a

to the Board, if the making of the payment has been recorded on an official computer system;

b

by the Board, if the despatch of the payment has been recorded on an official computer system.

2

The use of a method of electronic communications is presumed, unless the contrary is proved, not to have resulted in the making of a payment—

a

to the Board, if the making of the payment has not been recorded on an official computer system;

b

by the Board, if the despatch of the payment has not been recorded on an official computer system.

3

The time of receipt or despatch of any payment sent by a method of electronic communications is presumed, unless the contrary is proved, to be the time recorded on an official computer system.

Use of unauthorised method of electronic communications90G

1

This regulation applies to information which is required to be delivered to the Board or to an official computer system under a provision of these Regulations.

2

The use of a method of electronic communications for the purpose of delivering such information is conclusively presumed not to have resulted in the delivery of that information, unless that method of electronic communications is for the time being approved for delivery of that kind under that provision.

Mandatory electronic payment90H

F7221

An employer who is a large employer within the meaning of regulation F723198A (large employers) of the PAYE Regulations must pay the specified payment using an approved method of electronic communications

2

Paragraph (1) applies regardless of whether a payment of tax is due under regulation F80667G or 68 of the PAYE Regulations (payment and recovery of tax by employer).

3

If the Board have given a direction under regulation 199(3) of the PAYE Regulations requiring a particular method of electronic communications to be used in the case of an employer, he must use that method.

F6024

This regulation does not apply to a payment of contributions, whether primary or secondary, in respect of retrospective earnings where those earnings relate to a tax year which is closed (see paragraph 1(2) of Schedule 4) at the time the relevant retrospective contributions regulations come into force

F7245

A specified payment is not treated as received in full by HMRC on or before the date by which that specified payment is required in accordance with paragraph 10 or paragraph 11 of Schedule 4 unless it is made in a manner which secures (in a case where the specified payment is made otherwise than in cash) that, on or before that date, all transactions can be completed which need to be completed before the whole amount of the specified payment becomes available to the Commissioners for Her Majesty’s Revenue and Customs.

Employer in default if specified payment not received by applicable due dateF72590I

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Default notice and appealF72690J

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Default surchargeF72790K

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Surcharge notice and appealF72890L

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F713Paragraph 22 return and specified payments90M

In this Part—

F712“paragraph 22 return” means the return and accompanying information required by paragraph 22 of Schedule 4 (return by employer at the end of the year);
F729“specified payments” means payments of earnings-related contributions under paragraph 10 (payments made monthly by employer) or paragraph 11 (payments made quarterly by employer) of Schedule 4.

F720Mandatory use of electronic communications90N

1

An employer (as to which see regulation 90NA) must deliver a paragraph 22 return to an official computer system using an approved method of electronic communications.

2

If the Commissioners for Her Majesty’s Revenue and Customs have made a direction under regulation F730205(2) of the PAYE Regulations requiring a particular method of electronic communication to be used in the case of an employer, the employer must use that method.

3

This regulation does not apply to a return in respect of retrospective earnings where those earnings relate to a tax year which is closed (see paragraph 1(2) of Schedule 4) at the time the relevant retrospective contributions regulations come into force.

Employers90NA

1

For the purposes of regulation 90N, the following shall not be regarded as employers—

a

an individual who is a practising member of a religious society or order whose beliefs are incompatible with the use of electronic communications,

b

a partnership, if all the partners fall within sub-paragraph (a),

c

a company, if all the directors and company secretary fall within sub-paragraph (a),

F897d

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .; and

e

a care and support employer.

2

In paragraph (1)(c), “company” means a body corporate or unincorporated association but does not include a partnership.

3

In paragraph (1)(e), a “care and support employer” means an individual (“the employer”) who employs a person to provide domestic or personal services at or from the employer’s home where—

a

the services are provided to the employer or a member of the employer’s family,

b

the recipient of the services has a physical or mental disability, or is elderly or infirm,

c

the employer has not received an incentive payment in respect of the last 3 tax years, and

d

it is the employer who delivers the paragraph 22 return (and not some other person on the employer’s behalf).

4

In this regulation “incentive payment” means an incentive payment received under the Income Tax (Incentive Payments for Voluntary Electronic Communication of PAYE Returns) Regulations 2003.

Standards of accuracy and completeness90O

1

F714Any paragraph 22 return delivered by a method of electronic communications must meet the standards of accuracy or completeness set by specific or general directions given by the Board.

2

F714Any paragraph 22 return which fails to meet those standards must be treated as not having been delivered.

Penalties and appeals90P

1

An employer who fails to deliver F715a paragraph 22 return or any part of it in accordance with regulation 90N is liable to a penalty.

F7172

Table 2 sets out the penalties for employers for the tax year ending 5th April 2010, depending on the number of employees for whom particulars should have been included with the paragraph 22 return.

Table 2Penalties: tax year ending 5th April 2010

1 Number of employees for whom particulars should have been included with the return

2 Penalty

1-5

6-49

50-249

250-399

400-499

500-599

600-699

700-799

800-899

900-999

1000 or more

£100

£600

£900

£1200

£1500

£1800

£2100

£2400

£2700

£3000

2A

Table 3 sets out the penalties for employers for the tax years ending 5th April 2011 and subsequent years, depending on the number of employees for whom particulars should have been included with the paragraph 22 return.

Table 3Penalties: tax year ending 5th April 2011 and subsequent years

1 Number of employees for whom particulars should have been included with the return

2 Penalty

1-5

6-49

50-249

250-399

400-499

500-599

600-699

700-799

800-899

900-999

1000 or more

£100

£300

£600

£900

£1200

£1500

£1800

£2100

£2400

£2700

£3000

3

An employer is not liable to a penalty if the employer had—

a

a reasonable excuse for failing to comply with regulation 90N which had not ceased at the time the F716paragraph 22 return was delivered, or

F731b

been subject to a penalty for failing to deliver the return and accompanying information required by regulation 73 of the PAYE Regulations (annual return of relevant payments liable to deduction of tax (Forms P35 and P14)) in accordance with regulation 205 (mandatory use of electronic communication) of those Regulations.

4

A notice of appeal against a determination under section 100 of the Management Act of a penalty under this paragraph can only be on the grounds that—

a

the employer did comply with regulation 90N,

F732aa

the employer is not regarded as an employer for the purposes of regulation 90N,

b

the amount of the penalty is incorrect, or

c

paragraph (3) applies.

5

Section 103A of the Management Act (interest on penalties) applies to penalties payable under this paragraph.

Appeals: supplementary provisions90Q

F6891

Section 31A(5) of the Management Act applies to appeals under regulation 90J as it applies to an appeal under section 31 of that Act.

F6902

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F6903

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interpretation90R

In this Part “the Management Act” means the Taxes Management Act 1970.

PART 8 CLASS 4 CONTRIBUTIONS

Exception from Class 4 liability of persons over pensionable age and persons not resident in the United Kingdom91

Any earner who—

a

at the beginning of a year of assessment is over pensionable age; or

b

for the purposes of income tax is not resident in the United Kingdom in the year of assessment;

shall be excepted from liability for contributions under section 15 of the Act (Class 4 contributions).

Exception of divers and diving supervisors from liability for Class 4 contributions92

A person who performs the duties of an employment to which section 314 of the Taxes Act applies (divers and diving supervisors) shall be excepted from liability for contributions under section 15 of the Act on so much of his profits or gains as are derived from that employment.

Exception of persons under the age of 16 from liability for Class 4 contributions93

1

Where, as respects any year of assessment, a person to whom this regulation applies wishes to be excepted from liability to pay contributions under section 15 of the Act for that year, the following provisions of this regulation shall apply, subject to the provisions of regulations 97 and 98.

2

Any such person shall make application to the Board for a certificate of exception for that year.

3

If it is shown to the satisfaction of the Board that the applicant is a person to whom this regulation applies and the application is made before the beginning of the year of assessment to which it relates, the Board shall issue in respect of the applicant such a certificate of exception for that year.

4

If the application is not made until the beginning of the year of assessment to which it relates, but is made before contributions under that section 15 of the Act for that year become due and payable and it is shown to the satisfaction of the Board that the applicant is a person to whom this regulation applies, the Board may issue in respect of the applicant a certificate of exception for that year.

5

Where under paragraphs (1) to (4) a certificate of exception has been issued in respect of an applicant for any year of assessment, the Board shall not collect any contributions under section 15 of the Act from the applicant for that year.

6

This regulation applies to any person who at the beginning of the year of assessment is under the age of 16.

F241Exception from Class 4 liability in respect of earnings from employed earner’s employment chargeable to income tax under Schedule D.94

F2421

If, for any year of assessment—

a

an earner has earnings from employment which is employed earner’s employment; and

b

those earnings are chargeable to income tax under Schedule D;

the earner shall be excepted from liability to pay contributions under section 15 of the Act on those earnings.

This is subject to the following qualification.

2

It shall be a condition of exception from liability that the earner makes an application for such an exception to the Board before the beginning of the year of assessment to which the application relates, or before such later date as the Board may allow.

3

An application under paragraph (2) shall be made in such manner as the Board may direct and, for the purpose of enabling the Board to determine whether the earner is entitled to the exception, the earner shall furnish the Board with such information and evidence as the Board may require, whether the requirement is made at the time of the application or later.

4

Without prejudice to the earner’s right to any such exception, nothing in paragraphs (1) to (3) shall affect the Board’s powers under regulation 95 to defer, pending the determination of the application, the earner’s liability under section 15 of the Act.

F330Exception from Class 4 liability in respect of certain amounts chargeable to income tax under Schedule D94A

Where —

a

an earner has earnings from employment which is employed earner’s employment; and

b

an amount representing those earnings is included in the calculation of the profits chargeable to income tax under Schedule D,

the earner shall be excepted from liability to pay contributions under section 15 of the Act (Class 4 contributions) on that amount.

F944Liability of a partner in an AIFM firm for Class 4 contributions94B

1

This regulation applies if an AIFM firm makes an election under section 863H of ITTOIA 2005 (election for special provision for alternative investment fund managers to apply).

2

Where a partner (“P”) in an AIFM firm allocates a profit (“the allocated profit”) to that firm as provided for in section 863I(2) of ITTOIA 2005 (allocation of profit to the AIFM firm), no Class 4 contributions are payable in respect of that allocated profit by virtue of the allocation.

3

Paragraph (4) applies if all or part of the allocated profit vests in P at a time when P is carrying on the AIFM trade (whether as a partner in the AIFM firm or otherwise).

4

The amount treated as a profit under section 863J(2) and (5) of ITTOIA 2005 (vesting of remuneration represented by the allocated profit) is to be treated for the purposes of the Act as if it were profits—

a

to which section 15(1) of the Act (class 4 contributions recoverable under the Income Tax Acts) applies; and

b

made by P in the tax year in which that profit is chargeable to income tax under Chapter 2 of Part 2 of ITTOIA 2005.

5

In this regulation—

“AIFM firm” and “AIFM trade” have the meanings given in section 863H(3) and (4) of ITTOIA 2005; and
“ITTOIA 2005” means the Income Tax (Trading and Other Income) Act 2005.

Deferment of Class 4 liability where such liability is in doubt95

Where, as respects any year of assessment F1043before the tax year 2015-16, it appears to the Board that, by virtue of the provisions of this Part, there is doubt as to the extent, if any, of an earner’s liability to pay contributions under section 15 of the Act (Class 4 contributions) for that year, or that at the date on which any application under regulation 96 is made, it is not possible to determine whether, having regard to the provisions of these Regulations, the earner is or will be liable to pay such contributions for that year, the Board may issue in respect of the earner a certificate of deferment deferring that earner’s liability for such contributions F243and for such period as the Board may direct.

Application for deferment of Class 4 liability96

1

If a person wishes his liability to pay contributions under section 15 of the Act for any year of assessment to be deferred, he shall make an application for that purpose to the Board.

2

Any such application—

a

shall be made before the beginning of that year or before such later date as the Board may allow; and

b

is subject to regulations 97 and 98.

General conditions for application for, and issue of, certificates of exception and deferment97

1

Any application made under any of regulations 91 to 96, for a certificate of exception from, or deferment of, liability to pay contributions under section 15 of the Act for any particular year of assessment shall be made in such form and in such manner as the Board may approve.

2

Any person making such application shall furnish, or cause to be furnished, to the Board such information or evidence as they may require for the purpose of enabling them to determine whether such a certificate should be issued in respect of that person.

3

On the issue of such a certificate the person in respect of whom the certificate is issued shall be excepted from liability to pay the contributions to which the certificate relates or his liability for such payment shall be deferred.

This is subject to paragraph (4).

4

If, for the purpose of obtaining a certificate of exception or deferment, the person making the application furnishes or causes to be furnished to the Board information which is erroneous, or fails to furnish or cause to be furnished to them information which is relevant, and but for such furnishing or failure the certificate would not have been issued for any particular year of assessment—

a

the Board may revoke the certificate in so far as it relates to that year; and

b

the person who made the application shall be liable to pay contributions under section 15 of the Act for that year to the extent to which he would have been so liable if the certificate had not been issued.

Revocation of certificates of exception and deferment98

Where under regulation 97(4)(a) the Board revoke a certificate of exception or deferment—

a

they shall be responsible for calculating the contributions due under section 15 of the Act for the year specified in paragraph 97(4)(b) (being the current or a past year) and for the collection of those contributions;

b

the applicant shall—

i

furnish, or cause to be furnished, to the Board all such information or evidence as they may require for the purpose of calculating those contributions, and

ii

within such period as the Board may direct, pay to them the contributions so calculated.

Calculation of liability for, and recovery of, Class 4 contributions after issue of certificate of deferment99

1

Where a certificate of deferment has been issued in respect of any earner under regulations 91 to 98—

has appealed out of time or made a claim or appealed against the decision on a claim made under the Income Tax Acts on any matter concerning the amount of the profits or gains certified as mentioned in paragraph (3), and has notified the Board accordingly; or

b

has appealed against a decision made under section 8 of the Transfer Act relating to those contributions.

7

If the amount of any assessment made under this regulation for any year is altered for any reason, or if a further assessment is made in respect of that year, subsequently to the certification by the Board of the amount of an earner’s profits or gains computed in accordance with the provisions of this regulation and that alteration or further assessment affects the amount of the earner’s profits or gains so computed they shall immediately, or in the case of a further assessment when that further assessment has become final and conclusive, certify to the earner the altered amount of the earner’s profits or gains.

Annual maximum of Class 4 contributions due under section 15 of the ActC8F247100

1

If, in respect of any year, there are payable by or in respect of an earner Class 4 contributions under section 15 of the Act and also—

a

primary Class 1 contributions F1316...

F1317b

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

paragraph (2) applies.

2

If this paragraph applies, the earner’s liability for Class 4 contributions shall not exceed the maximum found in accordance with paragraph (3).

3

The maximum is found as follows.

Step One
Subtract the lower profits limit from the upper profits limit for the year.
Step Two
Multiply the result of Step One by F13106% .
F1312...
Step Four
Subtract from the result of F1313Step Two the aggregate amount of F1314... primary Class 1 contributions paid at the main primary percentage.
The application of the following steps is determined by reference to the following three Cases.
- Case 1
  If the result of this step is a positive value, and exceeds the aggregate of—
  1. a
    primary Class 1 contributions payable at the main primary percentage,
  2. b
    F1315...
  3. c
    Class 4 contributions payable at the main Class 4 percentage,
  in respect of the earner’s earnings, profits and gains for the year, the result of this step is the maximum amount of Class 4 contributions payable.
- Case 2
  If the result of this step is a positive value, but does not exceed the aggregate mentioned in Case 1, the result of this step is the maximum amount of Class 4 contributions payable at the main Class 4 percentage.
- Case 3
  If the result of this step is a negative value, the maximum amount of a Class 4 contribution payable at the main Class 4 percentage is nil and the result of this step is treated as nil.
  If Case 1 applies, Steps Five to Nine do not, but if Case 2 or Case 3 applies those Steps do apply.
Step Five
Multiply the result of Step Four by F1311100/6
Step Six
Subtract the lower profits limit from the lesser of the upper profits limit and the amount of profits for the year.
Step Seven
Subtract the result of Step Five from the result of Step Six.
If the result of this step is a negative value, it is treated as nil.
Step Eight
Multiply the result of Step Seven by F7902 per cent.
Step Nine
Multiply the amount by which the profits and gains for the year exceed the upper profits limit for the year by F7912 per cent.
The maximum amount of Class 4 contributions payable is—
1. a
  where Case 1 of Step Four applies, the result of that step, and
2. b
  where Case 2 or Case 3 of Step Four applies, the amount produced by adding together the results of Steps Four, Eight and Nine.
This is subject to the qualifications in paragraphs (4) to (6).
In this paragraph—
- “lower profits limit” means the lesser of the two monetary sums specified in section 15(3)(a) of the Act; and
- “upper profits limit” means the greater of those sums.

4

F1125For the purpose only of determining the extent of the earner’s liability for contributions under paragraph (3), the amount of a primary Class 1 contribution which would otherwise be payable at the main primary percentage but which is paid at a rate less than F1285the rate specified as the main primary percentage because the earner is a married woman who has made an election to pay contributions at the reduced rate as mentioned in regulation 127, shall be treated as equal to the amount of the primary Class 1 contribution payable at the main primary percentage, which would be so payable if the election had not been made.

F13185

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6

Notwithstanding paragraphs (1) to F1319(4), an earner shall be liable, in the first instance, for the full amount of the contributions which would have been payable but for this regulation.

Disposal of Class 4 contributions under section 15 of the Act which are not due101

Where for any year of assessment any payment is made by an earner as on account of contributions under section 15 of the Act (Class 4 contributions) and—

a

a certificate of exception is issued for that year, or would have been so issued if application had been made for its issue before the beginning of that year;

b

that payment is made in errorF224...;

c

the payment is in excess of the amount which, subject to an exception under regulation 94, is due from that earner for that year or would have been so due if application for exception had been made under that regulation before the beginning of that year; or

d

the payment is in excess of the amount calculated in accordance with regulation 100,

the Board may treat that payment as made on account of other contributions properly payable by that person under the Act.

Repayment of Class 4 contributions under section 15 of the Act which are not due102

1

Subject to paragraph (2), any payment such as is specified in regulation 101 shall, except in so far as it is, under that regulation, treated by the Board as made on account of contributions under the Act, be repaid F225to the earner, unless the net amount of such repayment would not exceed in value 50 pence.

F2262

It is a condition of repayment under this regulation that the earner makes an application for the repayment—

a

in such form and manner as the Board may determine; and

b

in the case of contributions falling within paragraph (b) of regulation 101, within the time prescribed in paragraph (3).

3

1

Any earner to whom regulation 103 applies shall, on request, notify his national insurance number to the person who pays him the earnings referred to in that regulation.

2

The person who pays those earnings shall record on the earner’s deductions working sheet the earner’s national insurance number, and the appropriate category letter as indicated by the Board.

3

In this regulation “deductions working sheet” has the same meaning as in Schedule 4.

Calculation of earnings for the purposes of special Class 4 contributions105

ii

in the case of a claim or appeal against a decision on a claim made under the Income Tax Acts, the date on which the time for appealing against the decision on the claim expires, or the date of the determination of the appeal, whichever is the later;

b

in the case of an appeal under section 8 of the Transfer Act, the date on which the time for appealing against that decision expires or the date of the determination of the appeal, whichever is the later;

c

in the case of an altered amount of profits or gains being certified by the Board, the date on which they are so certified.

Annual maximum of special Class 4 contribution108

1

Where for any year there are payable (or, but for this regulation, there would be payable) by or in respect of an earner a special Class 4 contribution and also any contribution under section 15 of the Act (in this regulation referred to as “an ordinary Class 4 contribution”) or any primary Class 1 contribution or any Class 2 contribution, or any combination of such contributions, the maximum amount of the special Class 4 contribution payable for that year shall not exceed the maximum specified in paragraph (2).

2

The maximum is—

a

in the case of a special Class 4 contribution and an ordinary Class 4 contribution, the amount (if any) equal to the difference between the maximum amount of a special Class 4 contribution for which provision is made in section 18(1) of the Act and the amount of the ordinary Class 4 contributions ultimately payable for that year; or

b

in any other case (whether or not a Class 4 contribution is also payable), the amount (if any) equal to the difference between the maximum amount prescribed in regulation 100 and the amount of such Class 4, primary Class 1 and Class 2 contributions as are ultimately payable for that year.

3

Paragraphs (1) and (2) are without prejudice to the earner’s liability in the first instance for the full amount payable apart from those paragraphs.

Disposal of special Class 4 contributions paid in excess or error109

Where any payment has been made by a person on account of a special Class 4 contribution and that payment has been made in excess of the amount prescribed under regulation 108 or has been made in error, the Board may treat that payment as made on account of other contributions properly payable by that person under the Act.

Return of special Class 4 contributions paid in excess or error110

1

Subject to regulation 109 and paragraphs (2) and (3), where any payment has been made by a person as on account of a special Class 4 contribution and that payment has been made in excess of the amount prescribed in regulation 108 or has been made in error, that payment shall be returned by the Board to that person, unless the net amount to be returned does not exceed 50 pence, if application is made to the Board, in writing or in such other form and manner as the Board may allow, within the time specified in paragraph (3).

2

In calculating the amount of any return of a special Class 4 contribution to be made under paragraph (1) there shall be deducted the amount (if any) treated under regulation 109 as paid on account of other contributions.

3

Any person desiring to apply for the return of a special Class 4 contribution F227the applicant shall make the application within the period of six years from the end of the year in which the contribution F228was due to be paid.

This is subject to the following qualification.

If the application is made after the end of that period, an officer of the Board shall admit it if satisfied that—

a

the applicant had reasonable excuse for not making the application within that period; and

b

the application was made without unreasonable delay after the excuse had ceased.

PART 9 SPECIAL CLASSES OF EARNERS

Case A— Airmen

Interpretation111

In this Case, unless the context otherwise requires—

“airman” means a person who is, or has been, employed under a contract of service either as a pilot, commander, navigator or other member of the crew of any aircraft, or in any other capacity on board any aircraft where—
1. a
  the employment in that other capacity is for the purposes of the aircraft or its crew or of any passengers or cargo or mails carried on that aircraft; and
2. b
  the contract is entered into in the United Kingdom with a view to its performance (in whole or in part) while the aircraft is in flight,
but does not include a person in so far as his employment is as a serving member of the forces;
“British aircraft” means any aircraft belonging to Her Majesty and any aircraft registered in the United Kingdom of which the owner (or managing owner if there is more than one owner) resides or has his principal place of business in the United Kingdom, and references to the owner of an aircraft shall, in relation to an aircraft which has been hired, be taken as referring to the person for the time being entitled as hirer to possession and control of the aircraft by virtue of the hiring or any subordinate hiring.

Modification of employed earner’s employment112

1

Subject to paragraphs (2) and (3), where an airman is employed as such on board any aircraft, and the employer of that airman or the person paying the airman his earnings in respect of the employment (whether or not the person making the payment is acting as agent for the employer) or the person under whose directions the terms of the airman’s employment and the amount of the earnings to be paid in respect of that employment are determined has—

a

in the case of the aircraft being a British aircraft, a place of business in Great Britain or Northern Ireland; or

b

in any other case, his principal place of business in Great Britain or Northern Ireland,

then, notwithstanding that the airman does not fulfil the conditions of section 2(1)(a) of the Act (definition of employed earner), he shall be treated as employed in employed earner’s employment and, for the purposes of regulation 145(1)(a), in respect of that employment, as present in Great Britain or Northern Ireland (as the case requires).

2

Subject to paragraph (3), notwithstanding that an airman is employed in an employment to which the provisions of paragraph (1) applies, if that airman is neither domiciled nor has a place of residence in Great Britain or Northern Ireland (as the case requires) no contributions shall be payable by or in respect of him as an employed earner.

3

Paragraph (2) is subject to any Order in Council giving effect to any reciprocal agreement made under section 179 of the Administration Act (reciprocal agreements with countries outside the United Kingdom).

Application of the Act and regulations113

Part I of the Act and so much of Part VI of the Act as relates to contributions and the regulations made under those provisions, so far as they are not inconsistent with this Case, apply to an airman with the modification that, where an airman is, on account of his being outside the United Kingdom by reason of his employment as an airman, unable to perform an act required to be done either immediately or upon the happening of a certain event or within a specified time, he shall be deemed to have complied with such requirement if he performs the act as soon as is reasonably practicable, although after the happening of the event or the expiration of the specified time.

Case B— Continental Shelf F49

Annotations:

Amendments (Textual)

F49

The enabling power for this Case is section 120 of the Act; there is no equivalent provision in the Social Security Contributions and Benefits (Northern Ireland) Act 1992. However, contributions in respect of employment on the Continental Shelf would fall to be treated as satisfying the corresponding requirement in Northern Ireland by virtue of Article 2 of the Memorandum set out in Schedule 1 to S.I. 1976/1003 and Schedule 1 to S.R. 1976 No. 196. Article 2 of the Memorandum was amended by paragraph 3 of the first letter in the Schedule to S.I. 1999/2227 and S.R. 1999 No. 350.

Application to employment in connection with continental shelf of Part I of the Act and so much of Part VI of the Act as relates to contributions114

1

For the purposes of section 120 of the Act (employment at sea (continental shelf operations)) F46, prescribed employment shall be any employment (whether under a contract of service or not) in any area which may from time to time be designated by Order in Council under section 1(7) of the Continental Shelf Act 1964 F47, where the employment is in connection with any activity mentioned in section 11(2) of the Petroleum Act 1998 F48 in the designated area.

2

Where a person is employed in any employment specified in paragraph (1), the provisions of Part I of the Act and so much of Part VI of the Act as relates to contributions shall, subject to the provisions of paragraph (3), apply as though the area so designated were in Great Britain, and notwithstanding that he does not satisfy the conditions as of residence or presence in Great Britain prescribed in regulation 145(1)(a).

3

Where a person employed in any employment specified in paragraph (1) is, on account of his being outside Great Britain by reason of that employment, unable to perform any act required to be done either immediately or on the happening of a certain event or within a specified time, he shall be deemed to have complied with the requirement if he performs the act as soon as reasonably practicable, although after the happening of the event or the expiration of the specified time.

F9034

Where a continental shelf worker is employed in any employment specified in paragraph (1) and that employment is on or in connection with an offshore installation the secondary contributor is—

a

where the employer is present in Great Britain, the employer; or,

b

where the employer is not present in Great Britain but has an associated company present in Great Britain, the associated company; or,

c

where the employer is not present and does not have an associated company present in Great Britain, the oil field licensee.

Where the employer has more than one associated company present in Great Britain the associated company to which sub-paragraph (b) applies is the company which has the greatest taxable total profit within the meaning of section 4 of the Corporation Tax Act 2010 for the accounting period which precedes the tax year in which the contributions are due.

5

The modifications in paragraph (4) do not apply to a continental shelf worker—

a

who is employed in a capacity described in Column (A) of Table 1,

b

who holds a certificate of a description in Column (B) of that table, and

c

whose presence on the ship is required in order to meet the requirement of F1262regulation 55(2)(c) of the Merchant Shipping (Standards of Training, Certification and Watchkeeping) Regulations 2022.

F1168Column (A): capacity in which the continental shelf worker is employed	F1168Column (B): description of the certificate
Table 1
Master or chief mate on a ship of 3000 gross tonnage or more.	A certificate which complies with F1263regulation 7 of the Merchant Shipping Regulations.
Master on a ship of between 500 gross tonnage and 2999 gross tonnage not engaged on near-coastal voyages.	A certificate which complies with F1263regulation 7 of the Merchant Shipping Regulations.
Chief mate on a ship of between 500 gross tonnage and 2999 gross tonnage.	A certificate which complies with F1263regulation 7 of the Merchant Shipping Regulations.
Officer in charge of an engineering watch in a manned engine-room, or designated duty engineer officer in a periodically unmanned engine-room, on a ship powered by main propulsion machinery of 750 kilowatts propulsion power or more.	A certificate which complies with F1263regulation 7 of the Merchant Shipping Regulations.
Chief engineer officer and second engineer officer on a ship powered by main propulsion machinery of between 750 and 3000 kilowatts propulsion power.	A certificate which complies with F1263regulation 7 of the Merchant Shipping Regulations.
Rating forming part of a navigational watch on a ship of 500 gross tonnage or more (who is not under training and whose duties are skilled in nature).	A certificate which complies with F1264regulation 17 of the Merchant Shipping Regulations.
Rating forming part of an engine-room watch or designated to perform duties in a periodically unmanned engine-room on a ship powered by main propulsion machinery of 750 kilowatts propulsion power or more (who is not under training and whose duties are skilled in nature).	A certificate which complies with F1265regulation 18 of the Merchant Shipping Regulations.

6

In Table 1 “Merchant Shipping Regulations” means F1266the Merchant Shipping (Standards of Training, Certification and Watchkeeping) Regulations 2022.

7

To the extent that where this regulation and regulations 115 to 125 (case C Mariners) apply, this regulation takes precedence.

F893Continental shelf workers: provisions relating to certificates

Annotations:

Amendments (Textual)

F893

Regs. 114A-114D inserted (E.W.S.) (6.4.2014) by The Social Security (Contributions) (Amendment No. 2) Regulations 2014 (S.I. 2014/572), regs. 1, 2(3)

1

Where a UKCS continental shelf workers certificate holder has notified HMRC that the employer intends to supply continental shelf workers to an oil field licensee an officer of Revenue and Customs must issue a UKCS oil field licensee certificate to the oil field licensee.

2

The UKCS oil field licensee certificate must include—

a

the name of the oil field licensee;

b

the registered office of that oil field licensee;

c

the oil field licence number;

d

the name of the UKCS continental shelf workers certificate holder;

e

the date on which it is issued; and

f

a description of the continental shelf workers to whom it applies.

3

Where a UKCS oil field licensee certificate is in force the holder of that certificate is not liable to pay any contributions in respect of any continental shelf worker of a description set out in the certificate.

4

If a UKCS continental shelf workers certificate is cancelled by an officer of Revenue and Customs that officer must also, by notice in writing, cancel the UKCS oil field licensee certificate.

5

A notice under paragraph (4) must—

a

be sent on the same day as the notice cancelling the UKCS continental shelf workers certificate;

b

specify the date of cancellation of the UKCS oil field licensee certificate; and

c

notify the oil field licensee that it is liable to meet its obligations as a secondary contributor.

6

The date of cancellation of the UKCS oil field licensee certificate must be the same date as that specified in the UKCS continental shelf workers certificate cancellation notice.

Interpretation of regulations 114 to 114C114D

In regulations 114 to 114C—

“associated company” means any company within the meaning of section 449 of the Corporation Tax Act 2010;
“an equivalent PAYE provision” means any provision in the PAYE Regulations which has an equivalent effect to the provisions in regulations 114A to 114C;
“employer’s PAYE reference” has the meaning given in regulation 2(1) of the PAYE Regulations;
“offshore installation” means—
1. a
  a structure which is, is to be, or has been, put to a relevant use while in water;
2. b
  but a structure is not an offshore installation if—
  1. i
    it has permanently ceased to be put to a relevant use,
  2. ii
    it is not, and is not to be, put to any other relevant use, and
  3. iii
    since permanently ceasing to be put to a relevant use, it has been put to a use which is not a relevant use;
3. c
  a use is a relevant use if it is—
  1. i
    for the purposes of exploiting mineral resources,
  2. ii
    for the purposes of exploration with a view to exploiting mineral resources,
  3. iii
    for the storage of gas in or under the shore or the bed of any waters,
  4. iv
    for the recovery of gas so stored,
  5. v
    for the conveyance of things by means of a pipe,
  6. vi
    mainly for the provision of accommodation for individuals who work on or from a structure which is, is to be, or has been put to any of the above uses while in the water,
  7. vii
    for the purposes of decommissioning any structure which has been used for or in connection with any of the relevant uses above;
4. d
  a structure is put to use while in water if it is put to use while—
  1. i
    standing in any waters,
  2. ii
    stationed (by whatever means) in any waters, or
  3. iii
    standing on the foreshore or other land intermittently covered with water;
5. e
  a “structure” includes a ship or other vessel except where it is used wholly or mainly—
  1. i
    for the transport of supplies;
  2. ii
    as a safety vessel;
  3. iii
    for a combination of (i) and (ii); or
  4. iv
    for the laying of cables; and
“oil field licensee” means the holder of a licence under Part 1 of the Petroleum Act 1998 in respect of the area in which the duties of the continental shelf worker’s employment are performed;
“UKCS continental shelf workers certificate” means a certificate issued under regulation 114A;
“UKCS oil field licensee certificate” means a certificate issued under regulation 114C(1).

Case C— Mariners

Interpretation115

In this Case—

“British ship” means—
1. a
  any ship or vessel belonging to Her Majesty; or
2. b
  any ship or vessel whose port of registry is a port in the United Kingdom; or
3. c
  a hovercraft which is registered in the United Kingdom;
“foreign-going ship” means any ship or vessel which is not a home-trade ship;
“home-trade ship” includes—
1. a
  every ship or vessel employed in trading or going within the following limits, that is to say, the United Kingdom (including for this purpose the Republic of Ireland), the Channel Islands, the Isle of Man, and the continent of Europe between the river Elbe and Brest inclusive;
2. b
  every fishing vessel not proceeding beyond the following limits—
  - on the South, Latitude 48°30iN.,
  - on the West, Longitude 12°W., and
  - on the North, Latitude 61°N.;
“managing owner” means the owner of any ship or vessel who, where there is more than one such owner, is responsible for the control and management of that ship or vessel;
“mariner” means a person who is or has been in employment under a contract of service either as a master or member of the crew of any ship or vessel, or in any other capacity on board any ship or vessel where—
1. c
  the employment in that other capacity is for the purposes of that ship or vessel or her crew or any passengers or cargo or mails carried by the ship or vessel; and
2. d
  the contract is entered into in the United Kingdom with a view to its performance (in whole or in part) while the ship or vessel is on her voyage;
but does not include a person in so far as his employment is as a serving member of the forces;
“owner” in relation to any ship or vessel, means the person to whom the ship or vessel belongs and who, subject to the right of control of the captain or master of the ship or vessel (“the master’s rights”), is entitled to control of that ship or vessel, and references to the owner of a ship or vessel shall, in relation to a ship or vessel which has been demised, be construed as referring to the person who for the time being is entitled as charterer to possession and, subject to the master’s rights, to control of the ship or vessel by virtue of the demise or any sub-demise;
“passenger” means any person carried on a ship except—
1. a
  a person employed or engaged in any capacity on board the ship on the business of the ship; or
2. b
  a person on board the ship either in pursuance of the obligation to carry shipwrecked, distressed or other persons, or by reason of any circumstance that neither the master nor the owner nor the charterer (if any) could have prevented or forestalled;
“pay period” in relation to any payment of a mariner’s earnings means the period in respect of which the payment is made;
“radio officer” means a mariner employed in connection with the radio apparatus of any ship or vessel and holding a certificate of competence in radio telephony granted by the Secretary of State or by an authority empowered in that behalf by the legislature of some part of the Commonwealth or of the Republic of Ireland and recognised by the Secretary of State as equivalent to the like certificate granted by him;
“share fisherman” means any person who—
1. a
  is ordinarily employed in the fishing industry, otherwise than under a contract of service as the master or a member of the crew of any United Kingdom fishing vessel within the meaning of section 1(3) of the Merchant Shipping Act 1995 F50, manned by more than one person, and who is remunerated in respect of that employment in whole or in part by a share of the profits or gross earnings of the fishing vessel, or
2. b
  has ordinarily been so employed, but who by reason of age or infirmity permanently ceases to be so employed and becomes ordinarily engaged in employment ashore in the United Kingdom, otherwise than under a contract of service, making or mending any gear appurtenant to a United Kingdom fishing vessel or performing other services ancillary to or in connection with that vessel and is remunerated in respect of that employment in whole or in part by a share of the profits or gross earnings of that vessel and has not ceased to be ordinarily engaged in such employment;
“ship or vessel” for the purposes of this Case other than those of regulations 116 to 120 includes hovercraft;
“voyage period” means a pay period comprising an entire voyage or series of voyages (including any period of leave on pay which immediately follows the day on which the termination of that voyage or series of voyages occurs);
“week” means a period of 7 consecutive days and “weekly” shall be construed accordingly.

Modification of section 162(5) of the Administration Act116

In section 162 of the Administration Act (destination of contributions), subsection (5) F51 (which specifies the amount of the national health service allocation to be deducted from each class of contribution prior to their payment into the National Insurance Fund) shall be modified, in the case of contributions paid at the rate reduced in accordance with regulation 119(1), as if, instead of the percentage figure specified in paragraph (b) of that subsection, there were specified the percentage figure “0.6”.

Conditions of domicile or residence117

1

As respects any employment of a person as a mariner and liability for payment of any contribution under the Act as an employed earner by or on behalf, or in respect, of that mariner in respect of that employment—

a

the provisions of Case F of these Regulations relating to conditions as to residence or presence in Great Britain or Northern Ireland (as the case requires) shall not apply; but

b

it shall be a condition of liability to pay a contribution under the Act that the mariner is domiciled or resident in Great Britain or Northern Ireland (as the case requires); and

c

it shall be a condition of liability to pay a secondary contribution under the Act that the secondary contributor is resident or has a place of business in Great Britain of Northeern Irelad (as the case requires).

This is subject to the following qualification.

2

This regulation has effect subject to any Order in Council giving effect to any reciprocal agreement made under section 179 of the Administration Act (reciprocal agreements with countries outside the United Kingdom).

Modification of employed earner’s employment118

Where a mariner—

a

is employed as such and—

i

the employment is on board a British ship, or

ii

the employment is on board a ship and the contract in respect of the employment is entered into in the United Kingdom with a view to its performance (in whole or in part) while the ship or vessel is on her voyage, and

iii

in a case to which sub-paragraph (ii) applies, the person by whom the mariner’s earnings are paid, or, in the case of employment as a master or member of the crew of a ship or vessel, either that person or the owner of the ship or vessel (or the managing owner if there is more than one owner) has a place of business in Great Britain or Northern Ireland (as the case requires); or

b

is employed as a master, member of the crew or as a radio officer on board any ship or vessel, not being a mariner to whom paragraph (a) applies, and—

i

in the case of employment as a radio officer, if the contract under which the employment is performed is entered into in the United Kingdom, the employer or the person paying the radio officer his earnings for that employment has a place of business in Great Britain or Northern Ireland (as the case requires), or

ii

in the case of the employment being a master, member of the crew or as a radio officer, if the contract is not entered into in the United Kingdom, the employer or the person paying the earnings has his principal place of business in Great Britain or Northern Ireland (as the case requires),

then, notwithstanding that he does not fulfil the conditions of section 2(1)(a) of the Act (definition of employed earner), the employment of the mariner as mentioned above shall be treated as employed earner’s employment.

Modification of section 9(2) of the Act119

1

As respects earnings paid to or for the benefit of a mariner for employment as such in any employment specified in paragraph (2), being employment which by virtue of regulation 118 is treated as employed earner’s employment, from the figure specified as the secondary percentage in section 9(2) of the Act F52 there shall be subtracted 0.5 per cent and section 9 of the Act shall be modified accordingly.

2

The employment referred to in paragraph (1) is employment as a master or member of the crew of a ship where—

a

the employment is on a foreign-going ship and the payment of earnings is exclusively in respect of that employment; or

b

the employment is partly on a foreign-going ship and partly otherwise than on such a ship and the payment of earnings in respect of that employment is made during the employment on the foreign-going ship.

3

In this regulation the word “employment” includes any period of leave, other than leave for the purpose of study, accruing from the employment.

Earnings periods for mariners and apportionment of earnings120

1

For the purposes of liability for and calculation of earnings-related contributions, paragraphs (2) to (9) apply where earnings are paid to or for the benefit of a mariner in respect of his employment as such for a voyage period.

2

In this regulation “a relevant change” means a change affecting the calculation of earnings-related contributions under the Act not being—

a

a change in the amount of the mariner’s earnings; or

b

a change in one or more of the following figures applicable in respect of the mariner’s employment—

i

F249the main primary percentage or the additional primary percentage for a primary Class 1 contribution specified in section 8(2) of the Act F53 or the percentage rate for a secondary Class 1 contribution specified in section 9(2) of the Act,

F1126ii

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

iii

the amount by which the percentage rate of a secondary Class 1 contribution is reduced in accordance with regulation 119(1),

iv

the lower or upper earnings limit for primary Class 1 contributions specified in section 5(1) of the Act F54.

3

Where a voyage period falls wholly in one year, then—

a

if no relevant change occurs during the voyage period, the earnings period shall be the voyage period;

b

if one or more than one relevant change occurs during the voyage period the earnings shall be apportioned to such periods as comprise—

i

the day on which the voyage period began and the day immediately before which the change occurred, and for any subsequent change, the day on which the immediately preceding change occurred and the day before which the next succeeding change occurred, and

ii

so much of the voyage period as remains,

according to the amounts earned in each period, and the earnings period in respect of each amount so apportioned shall be the length of the period to which it is apportioned.

4

Where a voyage period falls partly in one or more other years, then if no relevant change occurs during the voyage period—

a

the earnings shall be apportioned to those years according to the amounts earned in each year; and

b

the earnings period in respect of each amount shall be the length of the period to which that amount is apportioned.

5

Where a voyage period falls partly in one and partly in one or more other years and one or more than one relevant change occurs during the voyage period, then—

a

in respect of a year during which a relevant change or more than one relevant change occurs the earnings shall be apportioned to such periods as comprise—

i

the day on which the voyage period began, or where it began in another year, the beginning of the year in which the change occurred, and the day immediately before which the change occurred, and for any subsequence change, the day on which the immediately preceding change occurred and the day before which the next succeeding change occurred, and

ii

a

shall be treated as paid at the end of the year in which the earnings are paid but shall not be aggregated with any other amount of earnings paid or treated as paid at the end of that year; and

b

the earnings period in respect of that amount shall be a period of the same length as that to which it is apportioned.

Calculation of earnings-related contributions for mariners121

1

For the purpose of the calculation of earnings-related contributions payable in respect of earnings paid to or for the benefit of a person in respect of that person’s employment as a mariner—

a

regulation 12(1) shall apply, save that in the case of a contribution payable on earnings above the upper earnings limit or the prescribed equivalent of that limit, the appropriate contributions calculator prepared by the Board may be applied;

b

in the alternative, paragraphs (2), (3) or (4) and (5) of that regulation shall, except in relation to secondary Class 1 contributions payable at a rate reduced in accordance with regulation 119, apply in respect of those earnings.

2

Subject to paragraphs (3), (4) and (5) of regulation 12 where the secondary Class 1 contribution is payable at a rate reduced in accordance with regulation 119, that contribution may be calculated in accordance with the scale prepared by the Board appropriate to that rate or, in the case of such a contribution payable on earnings above the upper limit or the prescribed equivalent of that limit, a contributions calculator appropriate to that rate, prepared by the Board.

Prescribed secondary contributors122

In relation to any payment of earnings to or for the benefit of a mariner in respect of employment to which the provisions of regulation 118 apply, where the person employing the mariner does not satisfy the conditions specified in regulation 117(1)(c), but the person who pays the mariner those earnings does satisfy either of those conditions, that person shall be treated as the secondary contributor, whether or not he makes the payment as agent for the employer.

Payments to be disregardedF807123

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Application of the Act and regulations124

1

Part I of the Act and so much of Part VI of the Act as relates to contributions and the regulations made under those provisions shall, insofar as they are not inconsistent with the provisions of this Case, apply to mariners with the modification set out in paragraph (2).

2

The modification is that, where a mariner is, on account of his being at sea or outside Great Britain or Northern Ireland (as the case requires) by reason of his employment as a mariner, unable to perform an act required to be done either immediately or on the happening of a certain event or within a specified time, he shall be deemed to have complied with that requirement if he performs the act as soon as is reasonably practicable, although after the happening of the event or the expiration of the specified time.

Modification in relation to share fishermen of Part I of the Act and so much of Part VI of the Act as relates to contributions125

Part I of the Act and so much of Part VI of the Act as relates to contributions shall apply to share fishermen with the modification that—

a

employment as a share fisherman shall be employment as a self-employed earner notwithstanding that it is not employment in the United Kingdom;

b

F1320as respects a share fisherman being treated as having actually paid Class 2 contributions under section 11(5B) of the Act (class 2 contributions treated as paid) in respect of his employment as a share fisherman, regulation 117(1)(a) and (b) and (2) shall apply as if the share fisherman were a mariner and as if the reference in regulation 117(1) to an employed earner were a reference to a self-employed earner and as if the words “or on behalf, or in respect, of” were omitted;

c

for the purposes of entitlement to a contribution-based job seeker’s allowance, the weekly rate of any Class 2 contribution payable F1258, or which is treated as having actually been paid under section 11(5B) of the Act (Class 2 contributions treated as paid), by a share fisherman for any contribution week while he is ordinarily employed as a share fisherman shall, notwithstanding the provisions of F950F1321section 11(6) of the Act (Class 2 contributions), be F1275£4.10;

d

regulations 21, 100 and 108 shall apply to contributions payable at the weekly rate specified in paragraph (c) of this regulation as if references in those regulations to Class 2 contributions included, as may be appropriate, references to Class 2 contributions at that rate;

e

regulation 43 shall apply to a share fisherman as if there were included at the end of paragraph (1)(a) of that regulation the words “or is entitled to a contribution-based jobseeker’s allowance or, but for a failure to satisfy the contribution conditions for that benefit, would be so entitled”;

f

insofar as Class 4 contributions in respect of the profits or gains of a share fisherman in respect of his employment as such are not collected by the Board under section 16 of the Act F55 (assessment and collection, etc. of Class 4 contributions) regulations 103 to 110 shall apply as if the share fisherman were a person to whom section 18(1)(a) and (b) of the Act applied (Class 4 contributions for persons treated under section 2(2)(b) of the Act as self-employed earners)F56; and

g

for the purposes of section 12 of the Act F57 and for the purposes of that section as modified by regulations 63 to 65, where an earner was a share fisherman when F1044the earner became entitled to pay Class 2 contributions, any reference in section 12 to an ordinary contribution, and any reference in those regulations to the weekly applicable rate of a contribution, shall be a reference to the rate of Class 2 contributions prescribed for a share fisherman.

Case D— Married Women and Widows

Interpretation126

1

In this Case, unless the context otherwise requires—

“personal death benefit” means any death benefit which, apart from any regulations made under section 73 of the Administration Act (overlapping benefits—general) F58, is payable to a person otherwise than in respect of another person who is a child or an adult dependant;
“Personal Injuries Scheme” means any scheme made under the Personal Injuries (Emergency Provisions) Act 1939 F59 or under the Pensions (Navy, Army, Air Force and Mercantile Marine) Act 1939 F60;
“qualifying widow” has the meaning assigned to it in regulation 127(1);
“reduced rate” means the rate specified in regulation 131;
“regulation 91 of the 1975 Regulations” and “regulation 94 of the 1975 Regulations” mean respectively regulation 91 and regulation 94 of the Social Security (Contributions) Regulations 1975 F61 before section 3(1) of the Social Security Pensions Act 1975 F62 (married women and widows) came into force and sections 5(3) and 130(2) of the Social Security Act 1975 F63 (Class 1 reduced rate and married women and widows) were repealed;
“Service Pensions Instrument” means those provisions and only those provisions of any Royal Warrant, Order in Council or other instrument (not being a 1914–1918 War Injuries Scheme) under which a death or disablement pension (not including a pension calculated by reference to length of service) and allowances for dependants payable with either such pension may be paid out of public funds in respect of any death or disablement, wound, injury or disease due to service in the naval, military or air forces of the Crown or in any nursing service or other auxiliary service of any of those forces or in the Home Guard or in any other organisation established under the control of the Defence Council or formerly established under the control of the Admiralty, the Army Council or the Air Council;
“1914–1918 War Injuries Scheme” means any scheme made under the Injuries in War (Compensation) Act 1914 F64 or under the Injuries in War Compensation Act 1914 (Session 2) F65 or under any Government scheme for compensation in respect of persons injured in any merchant ship or fishing vessel as a result of hostilities during the 1914–1918 War.

2

Where by any provision of this Case notice is required to be or may be given in writing it shall be given on a form approved by the Board or in such other manner, being in writing, as they may accept as sufficient in any case.

Elections by married women and widows127

1

A woman who on 6th April 1977 (the date on which section 3(1) of the F250Social Security Pensions Act 1975 (married women and widows) came into force) was married or was a widow who satisfied the conditions prescribed in paragraph (8) (“a qualifying widow”) may—

a

elect that her liability in respect of primary Class 1 contributions shall be a liability to contribute at the reduced rate; and

b

elect that she shall be under no liability to pay Class 2 contributions.

2

Any election made for the purpose of paragraph (1)(a) shall be treated as also made for the purpose of paragraph (1)(b) and any election made for the purpose of paragraph (1)(b) shall be treated as also made for the purpose of paragraph (1)(a) and any revocation of an election for the one purpose shall be treated also as a revocation of an election for the other purpose.

F2513

Where a woman has made an election to which this regulation applies—

a

any primary Class 1 contributions which are—

i

attributable to section 8(1)(a) of the Act, and

ii

payable in respect of earnings paid to her or for her benefit in the period during which the election has effect under the following provisions of this Case,

shall be payable at the reduced rate; and

b

she shall be under no liability to pay any Class 2 contributionF951, nor shall she be entitled to pay any such contribution, for any contribution week in that period.

4

Subject to regulation 134, no woman shall be entitled to make an election specified in paragraph (1) after 11th May 1977.

5

Every election shall be made by notice in writing to the Board and by notice in writing to the Board may be revoked by the woman who made the election.

6

Any revocation may be cancelled by notice in writing to the Board before the date upon which the notice of revocation is to have effect, and upon cancellation the revocation shall cease to have effect.

7

Every woman who makes an election under this regulation shall furnish such certificates, documents, information and other evidence for the purpose of enabling the Board to consider the validity of the election as the Board may require.

8

The conditions referred to in paragraph (1) are that the widow—

a

was entitled to—

i

widow’s benefit under the Social Security Act 1975,

ii

any personal death benefit which was payable to her as a widow under the provisions of Chapter IV of Part II of that Act at a weekly rate which was not less than the basic pension specified for the time being in section 6(1)(a) of the Social Security Pensions Act 1975 (rate of Category A retirement pension),

iii

any personal death benefit by way of pension or allowance payable to her as a widow under any Personal Injuries Scheme or Service Pensions Instrument or any 1914–1918 War Injuries Scheme (not being a pension or allowance calculated by reference to the needs of the beneficiary), the rate of which is as set out in head (ii) above, or

iv

benefit under section 39(4) of the Social Security Act 1975 (retirement benefits for the aged), other than a Category C retirement pension; and

b

was not disentitled to payment of any such benefit by reason of her living with a man, to whom she was not married, as his wife.

Duration of effect of election128

1

Subject to paragraph (2), any election made under regulation 127 shall have effect from and including 6th April 1977 (the date on which section 3(1) of the Social Security Pensions Act 1975 (married women and widows) came into force) until whichever of the following events first occurs after the date of the election, namely—

a

the date on which the woman ceases to be married otherwise than by reason of the death of her husband;

b

the end of the year in which she ceases to be a qualifying widow;

c

the end of any two consecutive years which begin on or after 6th April 1978 and in which the woman who made the election has no earnings in respect of which any primary Class 1 contributions are payable in those years and in which that woman is not at any time a self-employed earner;

d

in the case of a revocation which has not been cancelled in accordance with regulation 127(6), the end of the week in which the notice of revocation is given or, if the woman so wishes, the end of any subsequent week in the same year specified in the notice;

e

where in any year after 5th April 1982 a payment (“an erroneous payment”) is made by or on behalf of a woman on account of primary Class 1 contributions at the contracted-out rate and the woman wishes to pay contributions at the F252main primary percentage from the beginning of the year next following that year, the end of the year in respect of which the erroneous payment is made; or

f

where—

i

in any year after 5th April 1982 a payment is made by or on behalf of a woman on account of primary Class 1 contributions at the non-contracted-out rate, (“an erroneous payment”), or more than one such payment is made,

ii

from the time of making that payment or, if there is more than one such payment, the first, to the time at which she notifies the Board in accordance with head (v), no contributions have been paid by her or on her behalf at the reduced rate and no contributions have been payable by her or on her behalf in respect of any contracted-out employment.

iii

she has not procured a refund in respect of any erroneous payment,

iv

she wishes to pay contributions at the F253main primary percentage from the date on which the only or first erroneous payment was made, and

v

after 5th April 1983 and on or before the 31st December in the next complete calendar year following the end of the year in which any erroneous payment was made, she notifies the Board of her wish to pay contributions at the F254main primary percentage in accordance with head (iv),

the date on which the only or first erroneous payment was made.

2

Where a woman, to whom paragraph (1)(b) applies, remarries or again becomes a qualifying widow before the end of the year in which she ceases to be a qualifying widow, that woman’s election shall, notwithstanding that sub-paragraph, but without prejudice to the application of paragraph (1)(c), (d), (e) or (f), continue to have effect from the end of that year.

Continuation of elections under regulation 91 of the 1975 Regulations129

Where, but for regulation 91 of the 1975 Regulations ceasing to have effect on 6th April 1977 (the date on which section 130(2) of the Social Security Act 1975 was repealed) an election made under that regulation before that date would have continued to have effect on that date, that election shall be treated as made under regulation 127 and this Case shall apply accordingly.

Continuation of elections on widowhood130

1

If on 6th April 1977 (the date on which section 3(1) of the Social Security Pensions Act 1975 came into force) a woman—

a

was married and subsequently becomes a widow; or

b

was a widow and subsequently remarries and again becomes a widow,

paragraph (2) applies to her.

2

Where this paragraph applies to a woman any election—

a

which she had made under regulation 127 before the death of the husband which renders a widow; or

b

which she is, by virtue of regulation 129, treated as having made under regulation 127 before that death;

and which is still effective at the time of the husband’s death, shall, subject to paragraphs (4) and (5) and notwithstanding regulation 128, continue to have effect until the end of the appropriate period.

3

For the purposes of this regulation the end of the appropriate period is—

a

the earliest of—

i

the end of the second year specified in regulation 128(1)(c),

ii

the end of the period specified in regulation 128(1)(d) or (e), or

iii

the date specified in regulation 128(1)(f); or

b

subject to sub-paragraph (a) and paragraphs (4) and (5)—

i

where the husband’s death occurs before 1st October in any year, the end of that year,

ii

where the husband’s death occurs after 30th September in any year, the end of the year next following that in which the death occurs.

4

Subject to regulation 128(1)(c), (d), (e) and (f) and to paragraph (5), if at the end of the year specified in head (i) or head (ii) of paragraph (3)(b) there is pending a claim or application made by or on behalf of the woman as a widow within 182 days (including Sundays) of her husband’s death for any benefit specified in head (i) or (iv) or, irrespective of its rate, in head (ii) or (iii) of regulation 127(8)(a), the end of the appropriate period shall be the end of the year in which the claim or application is determined.

5

If at the end of the year specified in head (i) or (ii) of paragraph (3)(b) or, as the case may be, in paragraph (4) the woman is a qualifying widow or married, the election shall continue to have effect, unless she is then a person to whom regulation 128(1)(c), (d), (e) or (f) applies.

F232 Reduced rate of primary Class 1 contributions otherwise payable at the main primary percentageC9 C10 C11131

F1289... The reduced rate of contribution for the purposes of section 19(4) of the Act (power to regulate liability in respect of certain married women and widows) in respect of so much of a married woman’s liability for primary Class 1 contributions as is attributable to section 8(1)(a) of the Act shall be F13221.85%.

Class 3 contributions132

A woman who has made, or is under the regulations 126 to 131 treated as having made, an election under regulation 127 shall be precluded from paying Class 3 contributions for any year in respect of the whole of which that election has effect.

is informed by the woman to whom it was issued that she intends to revoke her election and is requested to return the certificate to her so that she may return it to the Board; or

b

the employment by him of the woman to whom the certificate was issued has terminated,

he shall immediately return the certificate to her.

10

Where under the foregoing provisions of this Case an election has been made by a woman F255to pay at the reduced rate in respect of so much of her liability for primary Class 1 contributions as is attributable to section 8(1)(a) of the Act and that election ceases to have effect, it shall be the duty of that woman to inform the secondary contributor accordingly.

11

Any certificate issued for the purpose of an election made or deemed to have been made under the regulation 91 of the 1975 Regulations shall, if by virtue of regulation 124 the election is treated as made under regulation 127, continue in force for the purposes of that regulation.

who has not, in relation to the application of paragraph (1), given the notice prescribed in paragraph (7),

may, subject to the conditions prescribed in paragraph (6), make an election under and in accordance with regulation 127, notwithstanding that she has not done so before the date prescribed in that regulation, and regulations 126 to 133 shall apply accordingly from the end of the year in which paragraph (1) ceases to apply to her.

6

The conditions referred to in paragraph (5) are that the woman—

a

shall make the election not later than 11th May next following the end of the year in which paragraph (1) ceases to apply to her; and

b

is, at the beginning of the year next following the year in which paragraph (1) so ceases to apply, married or a qualifying widow.

7

Any woman to whom, by virtue of paragraph (2)(a) or (b), paragraph (1) applies may give notice in writing to the Board that she does not wish paragraph (1) to apply to her and upon the giving of such notice it shall accordingly cease to apply.

Deemed election of married women and widows excepted from contribution liability under the National Insurance Act 1965135

Where immediately before 6th April 1975 there was, or is deemed to have been, in issue a current certificate of exception under regulation 9(3) or (4A) of the National Insurance (Contributions) Regulations 1969 F66 (exception for certain widows), or there was current an election under regulation 2(1)(a) of the National Insurance (Married Women) Regulations 1973 F67 (married women who are employed persons), or a women then was, or but for any exception under or by virtue of another provision of the National Insurance Act 1965 F68 would have been, excepted under regulation 3(1)(a) of the 1973 Regulations (married women who are self-employed persons) from liability for contributions as a self-employed person under that Act and in any of these cases on that day the woman is a widow or, as the case may be, a married woman, that woman shall be deemed to have made an election under regulation 91 of the 1975 Regulations.

Special transitional provisions regarding deemed elections136

1

If, under regulation 135 a woman is deemed to have made an election under regulation 91 of the 1975 Regulations, this regulation applies.

2

Before the woman first becomes liable to pay a primary Class 1 contribution she may revoke any such election by notice in writing given to the Board and, if she so specified in that notice, the revocation shall have effect from and including the beginning of the year in which the notice is given.

3

If no notice of revocation is given and—

a

in the first year (not being more than 2 years after 6th April 1978) in which the woman becomes liable to pay primary Class 1 contributions—

i

she shall be entitled to choose whether with effect from the beginning of that year, to pay such contributions at the F259main primary percentage or at the reduced rate,

ii

she shall notify any secondary contributor whether he is to pay such contributions on her behalf at the F260main primary percentage or the reduced rate, and

iii

such secondary contributor shall pay those contributions in accordance with that notification until the woman notifies him to the contrary in accordance with the provisions of regulation 133(10);

b

in that first year (not being more than 2 years after 6th April 1978) any primary Class 1 contribution at the standard rate is paid by or on behalf of the woman, unless it is shown to the satisfaction of the Board that the woman did not intend, by the making of that payment, to revoke the election she shall be deemed to have revoked the election.

Application of regulations 126 to 134 to elections and revocation of elections deemed made under regulations 135 and 136137

1

Subject to paragraph (2), regulations 126 to 134, save only in so far as inconsistent with regulations 135 and 136, shall apply to any election deemed to have been made under regulation 91 of the 1975 Regulations by virtue of regulation 135 as if it had been made under, and in accordance with, regulation 127 except that the Board shall not be obliged to issue a certificate, and as if any revocation which is deemed to be made under regulation 136 were made under, and in accordance with, regulation 127(5).

2

Where a woman who under regulation 135 is not liable for a primary Class 1 contribution otherwise than at the reduced rate and to whom no certificate of election under the Act has been issued becomes employed in employed earner’s employment, she shall make application in writing to the Board for such a certificate and, notwithstanding paragraph (1), the Board shall issue such a certificate to her.

Savings138

For the purpose of facilitating the introduction of the scheme of social security contributions within the meaning of paragraph 9(1)(a)(i) of Schedule 3 to the Social Security (Consequential Provisions) Act 1975 F69 regulations 2(2) (married women who are employed persons), 3(2) (married women who are self-employed persons), 4(2) (married women who are non-employed persons) and 16 (notice of marriage) of the National Insurance (Married Woman) Regulations 1973 shall be saved.

Modification of the Act139

F261Part 1, Part 2 (except section 60), and Parts 3 and 4 of the Act shall have effect as respects married woman and widows subject to the modifications contained in this Case.

Case E— Members of the Forces F71

Annotations:

Amendments (Textual)

F71

This Case applies to Northern Ireland by virtue of the powers conferred by section 116 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 on the Treasury. These powers are exercisable, as in Great Britain, with the concurrence of the Secretary of State (and not the Department for Social Development).

Establishments and organisations of which Her Majesty’s forces are taken to consist140

Except in relation to the employment in any of the establishments or organisations specified in Part I of Schedule 6 of any person specified in Part II of that Schedule, Her Majesty’s forces shall, for the purpose of the Act, be taken to consist of the establishments and organisations specified in Part I of that Schedule, and this Case shall be construed accordingly.

Treatment of serving members of the forces as present in Great Britain141

For the purposes of regulation 145(1)(a) a serving member of the forces shall, in respect of his employment as such, be treated as present in Great Britain F70.

Treatment of contributions paid after that date142

For the purpose of any entitlement to benefit, any earnings-related contributions paid after the due date in respect of earnings paid to or for the benefit of a person in respect of his employment as a member of the forces shall be treated as paid on that date.

Special provisions concerning earnings-related contributions143

1

For the purposes of earnings-related contributions, there shall be excluded from the computation of a person’s earnings as a serving member of the forces any payment in so far as it is—

a

a payment of or in respect of an Emergence Service grant;

b

a payment of any sum referred to in F396sections 297 and 298 of ITEPA 2003 (armed forces' food, drink and mess allowances and reserve and auxiliary forces' training allowances); or

c

a payment of liability bounty in recognition of liability for immediate call-up in times of emergency.

2

The earnings period for a person who is a serving member of the forces shall be as follows—

a

in the case of a person serving in the regular naval, military or air forces of the Crown, whatever is the accounting period from time to time applying in his case under the Naval Pay Regulations or, as the case may be, the Army Pay Warrant, Queen’s Regulations for the Army or for the Royal Air Force or the Air Council Instructions; or

b

in the case of a person undergoing training in any of the establishments or organisations specified in paragraphs 2 to 9 of Part I of Schedule 6, a month.

Application of the Act and regulations144

1

The provisions of Part I of the Act and so much of Part VI of the Act as relates to contributions and the regulations made under those provisions shall, in so far as they are not inconsistent and the provisions of this Case, apply in relation to persons who are serving members of the forces with the modification prescribed in paragraph (2).

2

The modification is that where any such person is, on account of his being at sea or outside the United Kingdom by reason of his employment as a serving member of the forces, unable to perform an act required to be done either immediately or on the happening of a certain event or within a specified time, he shall be deemed to have complied with that requirement if he performs the act as soon as is reasonably practicable, although after the happening of the event or the expiration of the specified time,

Case F— Residence and Persons Abroad

Condition as to residence or presence in Great Britain or Northern Ireland145

1

Subject to F809paragraph (2), for the purposes of section 1(6) of the Act (conditions as to residence or presence in Great Britain for liability or entitlement to pay Class 1 or Class 2 contributions, liability to pay Class 1A or Class 1B contributions or entitlement to pay Class 3 Contributions) F72 the conditions as to residence or presence in Great Britain or Northern Ireland (as the case requires) shall be—

a

as respects liability of an employed earner to pay primary Class 1 contributions in respect of earnings for an employed earner’s employment, that the employed earner is resident or present in Great Britain or Northern Ireland(or but for any temporary absence would be present in Great Britain or Northern Ireland) at the time of that employment or is then ordinarily resident in Great Britain or Northern Ireland (as the case may be);

b

as respect liability to pay secondary Class 1 contributions, Class 1A contributions or Class 1B contributions that the person who, but for any conditions as to residence or presence in Great Britain or Northern Ireland (as the case may be and including the having of a place of business in Great Britain or Northern Ireland), would be the secondary contributor or the person liable for the payment of Class 1B contributions (in this Case referred to as “the employer”) is resident or present in Great Britain or Northern Ireland when such contributions become payable or then has a place of business in Great Britain or Northern Ireland (as the case may be), so however that nothing in this paragraph shall prevent the employer paying the said contributions if he so wishes;

c

as respects entitlement of a self-employed earner to pay Class 2 contributions, that that earner is present in Great Britain or Northern Ireland (as the case may be) in the contribution week for which the contribution is to be paid;

d

F1324as respects the application of section 11(5B) of the Act (self-employed earners treated as having actually paid Class 2 contributions for relevant purposes), that the self-employed earner is ordinarily resident in Great Britain or Northern Ireland (as the case may be), or, if he is not so ordinarily resident, that before the period in respect of which any such contributions are to be F1325... F1323treated as having actually been paid, he has been resident in Great Britain (as the case may be) for a period of at least 26 out of the immediately preceding 52 contribution weeks under the Act, the Social Security Act 1975 F73 or the National Insurance Act 1965 F74 or under some or all of those Acts.

e

as respects entitlement of a person to pay Class 3 contributions in respect of any year, either that—

i

that person is resident in Great Britain or Northern Ireland (as the case may be) throughout the year,

ii

that person has arrived in Great Britain or Northern Ireland (as the case may be) during that year and has been or is liable to pay Class 1 F1327... contributions F1326or has been or will be treated as having actually paid Class 2 contributions (as a result of section 11(5B) of the Act) in respect of an earlier period during that year,

iii

that person has arrived in Great Britain or Northern Ireland (as the case may be) during that year and was either ordinarily resident in Great Britain or Northern Ireland (as the case may be) throughout the whole of that year or became ordinarily resident during the course of it, or

iv

that person not being ordinarily resident in Great Britain or Northern Ireland (as the case may be), has arrived in that year or the previous year and has been continuously present in Great Britain or Northern Ireland (as the case may be) for 26 complete contribution weeks, entitlement where the arrival has been in the previous year arising in respect only of the next year.

2

Where a person is ordinarily neither resident nor employed in the United Kingdom and, in pursuance of employment which is mainly employment outside the United Kingdom by an employer whose place of business is outside the United Kingdom (whether or not he also has a place of business in the United Kingdom) that person is employed for a time in Great Britain or Northern Ireland (as the case may be) as an employed earner and, but for the provisions of this paragraph, the provisions of sub-paragraph (a) of paragraph (1) would apply, the conditions prescribed in that sub-paragraph and in sub-paragraph (b) of that paragraph shall apply subject to the proviso that—

a

no primary or secondary Class 1 contribution shall be payable in respect of the earnings of the employed earner for such employment;

b

no Class 1A contribution shall be payable in respect of something which is made available to the employed earner or to a member of his family or household by reason of such employment; and

c

no Class 1B contribution shall be payable in respect of any PAYE settlement agreement in connection with such employment, after the date of the earner’s last entry into Great Britain or Northern Ireland (as the case may be) and before he has been resident in Great Britain or Northern Ireland (as the case may be) for a continuous period of 52 contribution weeks from the beginning of the contribution week following that in which that date falls.

F8083

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Payment of contributions for periods abroad146

1

Where an earner is gainfully employed outside the United Kingdom, and that employment, if it had been in Great Britain or Northern Ireland, would have been employed earner’s employment, that employment outside the United Kingdom shall be treated as employed earner’s employment for the period for which under paragraph (2)(a) contributions are payable in respect of the earnings paid to the earner in respect of that employment provided that—

a

the employer has a place of business in Great Britain or Northern Ireland (as the case may be);

b

the earner is ordinarily resident in Great Britain or Northern Ireland (as the case may be); and

c

immediately before the commencement of the employment the earner was resident in Great Britain or Northern Ireland (as the case may be).

2

Where, under paragraph (1), the employment outside the United Kingdom is treated as an employed earner’s employment, the following provisions shall apply in respect of the payment of contributions—

a

primary and secondary Class 1 contributions shall be payable in respect of any payment of earnings for the employment outside the United Kingdom during the period of 52 contribution weeks from the beginning of the contribution week in which that employment begins to the same extent as that to which such contributions would have been payable if the employment had been in Great Britain or Northern Ireland (as the case may be);

b

subject to F631regulations 148 and 148A, any earner by or in respect of whom contributions are or have been payable under sub-paragraph (a) shall be entitled to pay Class 3 contributions in respect of any year during which the earner is outside the United Kingdom from and including that in which the employment outside the United Kingdom begins until that in which he next returns to Great Britain or Northern Ireland (as the case may be);

c

Class 1A contributions and Class 1B contributions shall be payable in respect of the period specified in sub-paragraph (a).

Class 2 and Class 3 contributions for periods abroad147

1

Subject to F632regulations 148 and 148A, a person (other than a person to whom regulation 146(2)(a) applies) may, notwithstanding the provisions of regulation 145(1)(c) and (e), if he so wishes and if he satisfies the conditions specified in paragraph (3) below pay contributions in respect of periods during which he is outside the United Kingdom as follows—

a

in respect of any contribution week throughout which he is gainfully employed outside the United Kingdom in employment which is not employment in respect of earnings from which Class 1 contributions are payable, he may, if immediately before he last left Great Britain or Northern Ireland (as the case may be), he was ordinarily an employed earner or a self-employed earner, pay a contribution as a self-employed earner;

b

in respect of any year which includes a period during which he is outside the United Kingdom he may pay Class 3 contributions.

2

A person who is gainfully employed outside Great Britain and falls within the provisions of paragraph (1)(a) shall for the purposes of that paragraph be treated as being outside the United Kingdom for any period during which he is temporarily in the United Kingdom.

3

Subject to paragraph (4), the conditions referred to in paragraph (1) are that—

a

the person has been resident in Great Britain or Northern Ireland (as the case may be) for a continuous period of not less than three years at any time before the period for which the contributions are to be paid;

b

there have been paid by or on behalf of that person contributions of the appropriate amount—

i

for each of 3 years ending at any time before the relevant period,

ii

for each of 2 years ending at any time before the relevant period and, in addition, 52 contributions under either or both the Social Security Act 1975 or the National Insurance Act 1965, or

iii

for any one year ending at any time before the relevant period and, in addition, 104 contributions under either or both the Social Security Act 1975 or the National Insurance Act 1965, or

c

there have been paid by or on behalf of that person 156 contributions under either or both the Social Security Act 1975 or the National Insurance Act 1965.

4

In paragraph (3)—

“contributions of the appropriate amount” means contributions under the Act the earnings factor derived from which is not less than 52 times the lower earnings limit for the time being for primary Class 1 contributions;
“contributions under either or both the Social Security Act 1975 or the National Insurance Act 1965” means contributions of any class under section 4, 7 or 8 of the Social Security Act 1975 or section 3 of the National Insurance Act 1965 in respect of any period; and
“the relevant period” means the period for which it is desired to pay the Class 2 or Class 3 contributions specified in paragraph (1).

Conditions of payment of Class 2 or Class 3 contributions for periods abroad148

Entitlement to pay Class 2 or Class 3 contributions under regulations 146 and 147 shall be subject to the following conditions—

a

that the payment is made within the period specified in regulation 48(3)(b)(i); and

b

that the payment is made only to the extent to which it could have been made if the contributor had been present in Great Britain or Northern Ireland (as the case may by) and otherwise entitled to make it.

F630Conditions of payment of Class 3 contributions: transfers to the Communities’ pension scheme148A

1

Entitlement to pay Class 3 contributions under regulations 146 and 147 is subject to the condition set out in paragraph (2).

2

The condition is that a person may not pay a Class 3 contribution for any part of the period to which that person’s Communities transfer relates.

3

For the purposes of this regulation—

a “Communities transfer” means a transfer to the Communities pension scheme of rights to relevant benefits;
“the Communities’ pension scheme” means the pension scheme provided for officials and other servants of Community institutions and bodies in accordance with regulations adopted by the Council of the European Communities;
“relevant benefits” means benefits under—
1. a
  Parts 2 to 5 and 10 of the Act,
2. b
  sections 36 and 37 of the National Insurance Act 1965 (graduated retirement benefit), and
3. c
  sections 1(2) and 2 of the Jobseekers Act 1995 (contribution-based jobseeker’s allowance).

F987148B

1

This regulation applies, in relation to a tax year, in respect of a person who is in that tax year—

a

in employment as a self-employed earner; and

b

a person to whom the Act applies by virtue of Regulation (EC) No 1408/71 or Regulation (EC) No 883/2004.

2

Section 11 of the Act has effect in relation to the employment as if for subsection (3) there were substituted—

3
“Relevant profits” means profits from the employment in respect of which Class 4 contributions would be payable under section 15 for the relevant tax year if—
a
for the purposes of income tax, the earner were resident in the United Kingdom in that year;
b
the employment were carried on by the earner in Great Britain;
c
the amount of the profits were to exceed the amount specified in subsection (3)(a) of that section in excess of which the main Class 4 percentage is payable; and
d
any applicable arrangements having effect under section 2 of the Taxation (International and Other Provisions) Act 2010 (double taxation arrangements) were to be disregarded.

F988148C

1

This regulation applies in relation to a person (P)—

a

who is F1328... entitled under section 11(6) of the Act, to pay one or more Class 2 contributions F1259or is treated, as a result of section 11(5B) of the Act, as having actually paid one or more Class 2 contributions, in respect of a contribution week in a relevant tax year;

b

who does not carry on a trade, profession or vocation the profits of which (if any) would be chargeable to income tax under Chapter 2 of Part 2 of the Income Tax (Trading and Other Income) Act 2005 for the relevant tax year; and

c

in respect of whom regulation 148B applies in relation to the relevant tax year.

2

Section 11(5) of the Act (Class 2 contributions payable in the same manner as Class 4 contributions) does not apply in relation to the Class 2 contributions (if it would otherwise do so).

F13303

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F13314

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5

If P is entitled to pay a Class 2 contribution under section 11(6) of the Act, P may—

a

make a return in such form as may be approved by HMRC; and

b

pay the contribution.

F12605A

If P is treated (as a result of section 11(5B) of the Act) as having actually paid a Class 2 contribution, P must, no later than 31st January next following the end of the relevant tax year, make a return in such form as may be approved by HMRC.

6

P must keep such records as may be necessary for the purposes of calculating P’s—

a

relevant profits from the employment for the purposes of F1332section 11(5B) of the Act; and

b

F1329... entitlement to pay a Class 2 contribution, F1261or entitlement to be treated as having actually paid such a contribution,

the weekly rate of any Class 2 contributions payable by a volunteer development worker for any contribution week while he is ordinarily employed as a volunteer development worker shall, notwithstanding the provisions of section F104711(2) of the Act (Class 2 contributions) be 5 per cent. of the lower earnings limit for the year in which falls the week in respect of which the contribution is paid;

c

for the purpose of determining the extent of an earner’s liability for contributions under regulation 21 the amount prescribed in that regulation shall be reduced by the amount of any contributions paid in respect of the year in question by virtue of regulation 151; and

d

regulation 89 shall not apply.

Late paid contributions153

1

This regulation applies to any Class 2 contribution a volunteer development worker is entitled to pay by virtue of regulation 151, which is paid in respect of a week falling within a tax year (“the contribution year”) earlier than the tax year in which it is paid.

2

Section 12 of the Act (late paid Class 2 contributions) shall not apply.

3

Subject to paragraph (4), the amount of a contribution to which this regulation applies shall be the amount which the volunteer development worker would have had to pay if he had paid the contribution in the contribution year.

4

In any case where—

a

the volunteer development worker pays a contribution to which this regulation applies after the end of the tax year immediately following the contribution year; and

b

the weekly rate of contributions applicable under regulation 152(b), for the week in respect of which the contribution is paid, differs from the weekly rate so applicable at the time of payment,

the amount of the contributions shall be computed by reference to the highest weekly rate of contrinbutions applicable in the period from the week in respect of which the contribution is paid to the day on which it is paid.

Modification of the Act and these Regulations154

Part 1 of the Act and these Regulations shall have effect as respects volunteer development workers subject to the modification contained in this Case.

F1086CASE H

Annotations:

Amendments (Textual)

F1086

Reg. 154A inserted (6.4.2016) by The Social Security (Contributions) (Amendment) Regulations 2016 (S.I. 2016/117), regs. 1, 2(2)

Apprentices: zero-rate secondary Class 1 contributions

154A

1

For the purposes of section 9B (zero-rate secondary Class 1 contributions for certain apprentices) of the Act, an apprentice is a person who falls within paragraphs (2) and (3).

2

The person is employed under—

a

an approved English apprenticeship agreement within the meaning of section A1 of the Apprenticeships, Skills, Children and Learning Act 2009 (“the 2009 Act”),

b

an English apprenticeship agreement within the meaning of section 32 of the 2009 Act as saved by paragraph 2 of Part 2 of the Schedule to the Deregulation Act 2015 (Commencement No. 1 and Transitional and Saving Provisions) Order 2015,

c

a Welsh apprenticeship agreement within the meaning of section 32 of the 2009 Act,

d

arrangements made by the Secretary of State or the Scottish Ministers under section 2 of the Employment and Training Act 1973,

e

arrangements made by the Secretary of State or the Scottish Ministers under section 2 of the Enterprise and New Towns (Scotland) Act 1990, or

f

arrangements made by the Secretary of State or Northern Ireland Ministers under section 1 of the Employment and Training Act (Northern Ireland) 1950.

3

The person is being trained pursuant to arrangements—

a

in relation to which the Secretary of State has secured the provision of financial resources under section 100 of the 2009 Act, or

b

which are set out in a written agreement made between that person, the employer and the training provider containing the following information—

i

the type of apprenticeship framework or standard being followed,

ii

the start date of the apprenticeship, and

iii

the expected completion date of the apprenticeship.

PART 10 MISCELLANEOUS PROVISIONS

Treatment of contribution week falling in two years155

For the purposes of Class 2 contributions, where a contribution week falls partly in one year and partly in another, it shall be treated as falling wholly within the year in which it begins.

F210Decisions taken by officers of the Inland Revenue in respect of contributions which are prescribed for the purposes of section 8(1)(m) of the Transfer Act155A

1

For the purposes of section 8(1)(m) of the Transfer Act the decisions specified in paragraphs (2) to (5) are prescribed.

2

The decisions specified in this paragraph are—

a

whether a notice should be given under regulation 3(2B) and, if so, the terms of such a notice;

b

whether a notice given under regulation 3(2B) should cease to have effect;

c

whether a direction should be given under regulation 31 and, if so, the terms of the direction;

d

whether the condition in regulation 50(2) is satisfied;

e

whether a late application under F397regulation 52(8) for the refund of a contribution should be admitted;

F1127f

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

g

whether a late application under regulation 55(3) for the repayment of a Class 1A contribution should be admitted;

h

whether, in a case where the secondary contributor has failed to pay a primary Class 1 contribution on behalf of the primary contributor, that failure was with the consent or connivance of the primary contributor or attributable to any negligence on the part of the primary contributor, as mentioned in regulation 60;

i

whether the condition in regulation 61(2) is satisfied;

j

whether, in the case of a Class 2 contribution remaining unpaid by the due date, the reason for the non-payment is the contributor’s ignorance or error, and, if so, whether that ignorance or error was due to his failure to exercise due care and diligence, as mentioned in regulation 65(2);

k

whether the reason for a contributor’s failure to pay a Class 3 contribution within the period prescribed for its payment is his ignorance or error, and, if so, whether that ignorance or error was due to his failure to exercise due care and diligence, as mentioned in regulation 65(3);

l

whether the reason for a contributor’s failure to pay a Class 3 contribution falling to be computed under section 13(6) of the Act and which remains unpaid after the end of the second year following the contribution year, is his ignorance or error and if so whether that ignorance or error was due to his failure to exercise due care and diligence, as mentioned in regulation 65(4); and

m

whether a late application under regulation 110(3) for the return of a special Class 4 contribution should be admitted.

3

The decisions specified in this paragraph are—

a

whether a contribution (other than a Class 4 contribution) has been paid in error as mentioned in F398regulation 52(1); and

b

whether there has been a payment of contributions in excess of the amount specified in regulation 21, as mentioned in F399regulation 52A(1),

to the extent that they are not decisions falling within section 8(1)(c) or (d) (decisions as to liability and entitlement to pay contributions) of the Transfer Act.

4

The decisions specified in this paragraph are—

a

whether the delay in making payment of a contribution, payable by an employer on behalf of an insured person, was neither with the consent or connivance of the insured person nor attributable to any negligence on the part of the insured person, as mentioned in regulation 23 of the National Insurance (Contributions) Regulations 1969;

b

whether, in the case of a contribution paid after the due date, the failure to pay the contribution before that time was attributable to ignorance or error on the part of the insured person, and, if so, whether that ignorance or error was due to the failure on the part of the insured person to exercise due care and diligence, as mentioned in regulation 24 of those Regulations; and

c

whether the failure to pay a contribution to which regulation 32 of those Regulations applies within the prescribed period was attributable to ignorance or error on the part of the person entitled to pay it and, if so, whether that ignorance or error was due to the failure of the person entitled to pay the contribution to exercise due care and diligence.

5

The decisions specified in this paragraph are—

a

whether the delay in making payment of a primary Class 1 contribution which is payable on a primary contributor’s behalf by a secondary contributor was neither with the consent or connivance of the primary contributor nor attributable to any negligence on the part of the primary contributor, as mentioned in regulation 5 of the Social Security (Crediting and Treatment of Contributions, and National Insurance Numbers) Regulations 2001 (treatment for the purpose of any contributory benefit of late paid primary Class 1 contributions where there was no consent, connivance or negligence by the primary contributor); and

b

whether, in the case of a contribution paid by or in respect of a person after the due date, the failure to pay the contribution before that time was attributable to ignorance or error on the part of that person or the person making the payment and if so whether that ignorance or error was due to the failure on the part of such person to exercise due care and diligence, as mentioned in regulation 6 of the Social Security (Crediting and Treatment of Contributions, and National Insurance Numbers) Regulations 2001 (treatment for the purpose of any contributory benefit of contributions under the Act paid late through ignorance or error).

Northern Ireland156

1

Except where otherwise provided, the provisions of these Regulations shall apply to Northern Ireland as they apply to Great Britain.

2

Paragraph (1) does not apply to the provisions of Case BF262... of Part 9 of these Regulations.

3

In the application of these Regulations to Northern Ireland other than this regulation, a reference to a provision of an enactment, which applies only to Great Britain shall be construed so far as necessary as including a reference to the corresponding enactment applying in Northern Ireland.

4

Schedule 7 contains a Table showing, in column (1) details of enactments applying in Great Britain for which the enactment shown in column (2) is the corresponding enactment in Northern Ireland.

Neither this paragraph nor Schedule 7 limits the operation of paragraph (3).

5

The reference—

a

to an Order in Council under section 179 of the Administration Act shall be taken to include a reference to an order under section 155 of the Social Security Administration (Northern Ireland) Act 1992 F76; and

b

to the Secretary of State in regulation 59(3)(b) shall be taken to include a reference to the Department of Health and Social Services for Northern Ireland, but any other reference to the Secretary of State shall be taken to include a reference to the Department for Social Development.

6

The rate of interest prescribed for the purposes of regulations 75 and 76(1) and paragraphs 17(1) and 18(1) and (3) of Schedule 4, in their application to Northern Ireland, is the rate applicable under paragraph 6(3)(a) of Schedule 1 to the Social Security Contributions and Benefits (Northern Ireland) Act 1992 F77 for the purpose of paragraph 6(3) of Schedule 1 to the Social Security Contributions and Benefits Act 1992.

Revocations157

1

The Regulations specified in column (1) of Parts I and II of Schedule 8 are revoked to the extent mentioned in column (3) of that Schedule.

Part I of Schedule 8 contains revocations of provisions which extend either to Great Britain or to the whole of the United Kingdom, whilst Part II contains revocations of provisions which extend only to Northern Ireland.

2

Anything done, permitted to be done or required to be done, under any provision of the instruments revoked by these Regulations shall be treated as though it had been done or were permitted or required to be done (as the case may be) under the corresponding provision of these Regulations.

3

Without prejudice to the generality of paragraph (2), a person who would have been liable, immediately before the revocation of regulation 53A(4) of the Social Security (Contributions) Regulations 1979 F78 by paragraph (1) to a penalty in respect of a failure which commenced before these Regulations come into force shall continue to be liable to that penalty.

4

The revocation by these Regulations of an instrument which itself revoked an earlier instrument subject to savings does not prevent the continued operation of those savings, insofar as they are capable of continuing to have effect.

5

In this regulation “instrument” includes a Statutory Rule of Northern Ireland.

Clive Betts Greg PopeTwo of the Lords Commissioners of Her Majesty’s Treasury

The Secretary of State hereby concurs

Jeff RookerMinister of State,Department of Social Security

The Department of Social Development hereby concurs

Sealed with the Official Seal of the Department for Social Development on12th March 2001.

John O’NeillSenior Officer of theDepartment for Social Development

Nick Montagu Dave HartnettTwo of the Commissioners of Inland Revenue

SCHEDULE 1 PROVISIONS CONFERRING POWERS EXERCISED IN MAKING THESE REGULATIONS

Preamble

In this Schedule—

“the 1998 Act” means the Social Security Act 1998 F79;
“the 1988 Order” means the Social Security (Northern Ireland Order 1998 F80;
“the 2000 Act” means the Child Support, Pensions and Social Security Act 2000 F81;
“the Transfer Act” means the Social Security Contributions (Transfer of Functions, etc.) Act 1999 F82
“the Transfer Order” means the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 F83; and
“the Welfare Reform Act” means the Welfare Reform and Pensions Act 1999 F84.

PART I POWERS EXERCISED BY THE TREASURY

Annotations:

Amendments (Textual)

F85

1992 c. 4.

F86

Section 6A was inserted by paragraph 3 of Schedule 9 to the Welfare Reform Act.

F87

Section 10 was substituted by section 74(2) of the 2000 Act.

F88

Section 10A was inserted by section 53 of the 1998 Act.

F89

Section 19A was inserted by section 54 of 1998 Act.

F90

1995 c. 18.

F91

Section 122(1) is cited because of the meaning ascribed to “prescribe”.

F92

Paragraph 7A was inserted by section 56(2) of the 1998 Act.

F93

Paragraph 7B was inserted by section 57 of the 1998 Act.

F94

Paragraph 8(1)(ca) was inserted by paragraph 77(4) of the 2000 Act.

F95

Paragraph 8(1)(ia) was inserted by paragraph 77(15) of Schedule 7 to the 1998 Act.

F96

Paragraph 8(1A) was inserted by paragraph 39(3) of Schedule 3 to the Transfer Act.

F97

1995 c. 26.

F98

1992 c. 7.

F99

Section 6A was inserted by paragraph 3 of Schedule 10 to the Welfare Reform Act.

F100

Section 10 was substituted by section 78(2) of the 2000 Act.

F101

Section 10A was inserted by Article 50 of the 1998 Order.

F102

1995/2705 (N.I. 15).

F103

Section 121(1) is cited because of the meaning ascribed to “prescribe”.

F104

Section 171(10) was substituted by paragraph 28(3) of Schedule 3 to the Transfer Order.

F105

S.I. 1994/1898 (N.I. 12).

F106

Paragraph 7A was inserted by Article 53(2) of the 1998 Order.

F107

Paragraph 7B was inserted by Article 54 of the 1998 Order.

F108

Paragraph 8(1)(ca) was inserted by section 81(4) of the 2000 Act.

F109

Paragraph 8(1)(ia) was inserted by paragraph 58(15) of Schedule 6 to the 1998 Order.

F110

S.I. 1995/3212 (N.I. 22).

F111

Paragraph 8(1A) was inserted by paragraph 38(3) of Schedule 3 to the Transfer Order.

F112

1992 c. 40.

Column (1)	Column (2)
Enabling power	Relevant amendment
Social Security Contributions and Benefits Act 1992 F85
Section 1(6) and (7)	Paragraph 56(3) of Schedule 7 to the 1998 Act and paragraph 1(3) of Schedule 3 to the Transfer Act.
Section 3(2), (2A), (3) and (5)	Section 48 and 49 of the 1998 Act and paragraph 3 of Schedule 3 to the Transfer Act.
Section 4(5), (6) and (7)	Section 50 of the 1998 Act, paragraph 4 of Schedule 3 to the Transfer Act and section 74(3) of the 2000 Act.
Section 5(1), (4) and (6)	Paragraph 1 of Schedule 9 to the Welfare Reform Act.
Section 6(3), (6) and (7)	Paragraph 2 of Schedule 9 to the Welfare Reform Act.
Section 6A(2) and (7) F86	Paragraph 3 of Schedule 9 to the Welfare Reform Act.
Section 10(9) F87
Section 10A(7) F88	Paragraph 11 of Schedule 3 to the Transfer Act.
Section 11(3), (4) and (5)	Paragraph 12 of Schedule 3 to the Transfer Act and article 3 of S.I. 2001/477.
Section 12(6)	Paragraph 13 of Schedule 3 to the Transfer Act.
Section 13(1) and (7)	Paragraph 14(2) and (4) of Schedule 3 to the Transfer Act, and article 4 of S.I. 2001/477.
Section 14(1), (2) and (5)	Paragraph 15 of Schedule 3 to the Transfer Act.
Section 19(1) to (5A)	Paragraph 19(2) of Schedule 3 to the Transfer Act.
Section 19A(2) and (3) F89	Paragraph 20 of Schedule 3, and paragraph 4 of Schedule 9, to the Transfer Act.
Section 116(2) and (3)	Paragraph 28 of Schedule 2 to the Jobseekers Act 1995, paragraph 67 of Schedule 7 to the 1998 Act and paragraph 22 of Schedule 3, and paragraph 5 of Schedule 7 to the Transfer Act. F90
Section 117	Paragraph 68 of Schedule 7 to the 1998 Act and paragraph 23 of Schedule 3 to, and paragraph 6 of Schedule 7 to, the Transfer Act.
Section 118	Paragraph 24 of Schedule 3 to the Transfer Act.
Section 119	Paragraph 69 of Schedule 7 to the 1998 Act and paragraph 25 of Schedule 3, and paragraph 7 of Schedule 7 to, the Transfer Act.
Section 120	Paragraph 70 of Schedule 7 to the 1998 Act and paragraph 26 of Schedule 3, and paragraph 8 of Schedule 7 to the Transfer Act.
Section 122(1) F91
Section 175(3), (4) and (5)	Paragraph 29(4) of Schedule 3 to the Transfer Act.
Schedule 1
Paragraph 7A F92	Paragraph 37 of Schedule 3 to, and paragraph 6 of Schedule 9 to, the Transfer Act.
Paragraph 7B F93	Paragraph 38 of Schedule 3, and paragraph 7 of Schedule 9, and the relevant entry in Part I of Schedule 10, to the Transfer Act, and section 76(3) and (4) of the 2000 Act.
Paragraph 8(1)(a), (c), (ca) F94, (e), (f), (g), (h), (ia) F95 , (j), (k), (l), (m) and (q) and (1A) F96	Paragraph 14 of Schedule 5 to the Pensions Act 1995 F97, paragraph 77(15) and (16) of Schedule 7 to the 1998 Act, paragraph 39 of Schedule 3 to the Transfer Act and section 74(5) and 77(4) and (5) of the 2000 Act.
Paragraph 11	Paragraph 41 of Schedule 3 to the Transfer Act.
Social Security Contributions and Benefits (Northern Ireland) Act 1992 F98
Section 1(6) and (7)	Paragraph 38(3) of Schedule 6 to the 1998 Order and paragraph 2 of Schedule 3 to the Transfer Order.
Section 3(2), (2A), (3) and (5)	Articles 45 and 46 of the 1998 Order and paragraph 4 of Schedule 3 to the Transfer Order.
Section 4(5), (6) and (7)	Paragraph 5 of Schedule 3 to the Transfer Order and section 78(3) of the 2000 Act.
Section 5(1), (4) and (6)	Paragraph 1 of Schedule 10 to the Welfare Reform Act.
Section 6(3), (6) and (7)	Paragraph 2 of Schedule 10 to the Welfare Reform Act.
Section 6(A)(2) and (7) F99
Section 10(9) F100
Section 10A(7) F101	Paragraph 12 of Schedule 3 to the Transfer Order.
Section 11(3), (4) and (5)	Paragraph 13 of Schedule 3 to the Transfer Order and article 3 of S.I. 2001/477.
Section 12(6)	Paragraph 14 of Schedule 3 to the Transfer Order.
Section 13(1) and (7)	Paragraph 15(2) and (4) of Schedule 3 to the Transfer Order and article 4 of S.I. 2001/477.
Section 14(1), (2) and (5)	Paragraph 16 of Schedule 3 to the Transfer Order.
Section 19(1) to (5A)	Paragraph 19(2) of Schedule 3 to the Transfer Order.
Section 116(2) and (3)	Paragraph 11 of Schedule 2 to the Jobseekers (Northern Ireland) Order 1995, paragraph 49 of Schedule 6 to the 1998 Order and paragraph 22 of Schedule 3, and paragraph 4 of Schedule 6 to the Transfer Order. F102
Section 117	Paragraph 50 of Schedule 6 to the 1998 Order and paragraph 23 of Schedule 3, and paragraph 5 of Schedule 6 to, the Transfer Order.
Section 118	Paragraph 24 of Schedule 3 to the Transfer Order.
Section 119	Paragraph 51 of Schedule 6 to the 1998 Order and paragraph 25 of Schedule 3, and paragraph 6 of Schedule 6 to the Transfer Order.
Section 121(1) F103
Section 171(3), (4), (5) and (10) F104	Paragraph 36 of Schedule 1 to the Social Security (Incapacity for Work) (Northern Ireland) Order 1994 F105
Schedule 1
Paragraph 7A F106	Paragraph 36 of Schedule 3, and paragraph 4 of Schedule 8, to the Transfer Order.
Paragraph 7B F107	Paragraph 37 of Schedule 3, and paragraph 5 of Schedule 8, and the relevant entry in Part 1 of Schedule 9 to the Transfer Order and section 80(3) and (4) of the 2000 Act.
Paragraph 8(1)(a), (c), (ca) F108, (e), (f), (g), (h), (ia) F109, (j), (k), (l), (m) and (q) and (1A) F110	Paragraph 11 of Schedule 3 to the Pensions (Northern Ireland) Order 1995 F111, paragraph 58(15) and (16) of Schedule 6 to the 1998 Order, paragraph 38 of Schedule 3 to the Transfer Order and sections 78(5) and 81(4) and (5) of the 2000 Act.
Paragraph 10	Paragraph 19 of Schedule 21 to the Friendly Societies Act 1992 and paragraph 40 of Schedule 3 to the Transfer Order. F112

PART II POWERS EXERCISED BY THE COMMISSIONERS OF THE INLAND REVENUE

Annotations:

Amendments (Textual)

F113

Section 122(1) is cited because of the meaning ascribed to “prescribe”.

F114

Paragraph 3B was inserted by section 77(2) of the 2000 Act.

F115

Paragraph 5A was inserted by paragraph 77(7) of Schedule 7 to the 1998 Act.

F116

Paragraph 7BA was inserted by section 76(5) of the 2000 Act.

F117

1992 c. 5.

F118

Section 191 is cited because of the meaning ascribed to “prescribe”.

F119

Section 121(1) is cited because of the meaning ascribed to “prescribe”.

F120

Paragraph 3B was inserted by section 81(2) of the 2000 Act.

F121

Paragraph 5A was inserted by paragraph 58(7) of Schedule 6 to the 1998 Order.

F122

Paragraph 7BA was inserted by section 80(5) of the 2000 Act.

F123

1992 c. 8.

F124

2000 c. 4 (N.I.).

F125

Section 167(1) is cited because of the meaning ascribed to “prescribe”.

F126

1999 c. 16.

Column (1)	Column (2)
Enabling power	Relevant amendment
Social Security Contributions and Benefits Act 1992
Section 17(1), (2), (3) and (4)	Paragraph 6 of Schedule 1, paragraph 17 of Schedule 3, and the relevant entry in Part I of Schedule 10 to, the Transfer Act.
Section 18	Paragraph 7 of Schedule 1, and paragraph 18 of Schedule 3, to the Transfer Act and article 5 of S.I. 2001/477.
Section 122(1) F113
Schedule 1
Paragraph 1	Section 148(2), (3) and (4) of the Pensions Act 1995, paragraph 77(2), (3) and (4) of Schedule 7 to the 1998 Act, paragraph 31 of Schedule 3 to the Transfer Act and paragraph 78(2) to (5) of Schedule 12 to, and Part VI of Schedule 13, to the Welfare Reform Act.
Paragraph 2	Paragraph 32 of Schedule 3 to the Transfer Act.
Paragraph 3	Section 55 of, and paragraph 77(5) of Schedule 7 to the 1998 Act, paragraph 33 of Schedule 3 to the Transfer Act, section 77(1) of and Part VIII of Schedule 9 to the 2000 Act.
Paragraph 3B(11) F114
Paragraph 4	Paragraph 16 of Schedule 1 and paragraph 34 of Schedule 3 to the Transfer Act.
Paragraph 5	Paragraph 77(6) of Schedule 7 to the 1998 Act, paragraph 34 of Schedule 3 to the Transfer Act and section 74(4) of the 2000 Act.
Paragraph 5A F115	Paragraph 34 of Schedule 3 to the Transfer Act.
Paragraph 6	Paragraph 77(8), (9), and (11) of Schedule 7 to, and the relevant entry in Schedule 8 to the 1998 Act and paragraph 17 of Schedule 1, paragraph 35 of Schedule 3, paragraph 9 of Schedule 7, paragraph 5 of Schedule 9, and the relevant entry in Part 1 of Schedule 10, to the Transfer Act
Paragraph 7BA F116
The Social Security Administration Act 1992 F117
Section 113	Section 60 of the 1998 Act, paragraph 5 of Schedule 5 to the Transfer Act and paragraph 7 of Schedule 6 to the 2000 Act.
Section 162(12)	Paragraph 52(11) of Schedule 3 to the Transfer Act.
Section 191 F118
Social Security Contributions and Benefit (Northern Ireland) Act 1992
Section 17	Paragraph 7 of Schedule 1, paragraph 17 of Schedule 3, and the relevant entry in Part I of Schedule 9 to, the Transfer Order.
Section 18	Paragraph 8 of Schedule 1 to, and paragraph 18 of Schedule 3 to the Transfer Order and article 5 of S.I. 2001/477.
Section 121(1) F119
Schedule 1
Paragraph 1	Article 145(2), (3) and (4) of the Pensions (Northern Ireland) Order 1995, paragraph 58(1) to (4) of Schedule 6 to the 1998 Order, paragraph 30 of Schedule 3 to the Transfer Order and paragraph 86(2) to (5) of Schedule 12, and the relevant entry in Part VI of Schedule 13 to, the Welfare Reform Act.
Paragraph 2	Paragraph 31 of Schedule 3 to the Transfer Order.
Paragraph 3	Article 52 of, and paragraph 58(5) of Schedule 6 to, the 1998 Order, paragraph 32 of Schedule 3 to the Transfer Order, section 81(1) of, and the relevant entry in Part VIII of Schedule 9 to, the 2000 Act.
Paragraph 3B(11) F120
Paragraph 4	Paragraph 16 of Schedule 1, and paragraph 33 of Schedule 3 to the Transfer Order.
Paragraph 5	Paragraph 58(6) of Schedule 7 to the 1998 Order, paragraph 34 of Schedule 3 to the Transfer Order and section 78(4) of the 2000 Act.
Paragraph 5A F121	Paragraph 33 of Schedule 3 to the Transfer Order.
Paragraph 6	Paragraph 58(8), (9) and (11) of Schedule 6, and the relevant entry in Schedule 7, to the 1998 Order, paragraph 20 of Schedule 1, paragraph 34 of Schedule 3, paragraph 7 of Schedule 6, paragraph 3 of Schedule 8, and the relevant entry in Part I of Schedule 9 to the Transfer Order.
Paragraph 7BA F122
Social Security Administration (Northern Ireland) Act 1992 F123
Section 107	Article 56 of the 1998 Order, paragraph 5 of Schedule 4 to the Transfer Order and paragraph 7 of Schedule 6 to the Child Support, Pensions and Social Security Act (Northern Ireland) 2000. F124
Section 142(12)	Paragraph 45(12) of Schedule 3 to the Transfer Order.
Section 167(1) F125
Finance Act 1999 F126
Section 133(1)

SCHEDULE 2 CALCULATION OF EARNINGS FOR THE PURPOSES OF EARNINGS-RELATED CONTRIBUTIONS IN PARTICULAR CASES

Regulation 24

Calculation of earnings1

This Schedule contains rules for the calculation of earnings in the assessment of earnings-related contributions in particular cases.

Calculation of earnings in respect of beneficial interest in assets within Part IV of Schedule 32

1

Except where paragraph 3, 4, 5 or 6 applies, the amount of earnings comprised in any payment by way of the conferment of any beneficial interest in any asset specified in Part IV of Schedule 3, which falls to be taken into account in the computation of a person’s earnings shall be calculated or estimated at a price which that beneficial interest might reasonably be expected to fetch if sold in the open market on the day on which it is conferred.

2

For the purposes of sub-paragraph (1), where any asset is not quoted on a recognised stock exchange within the meaning of section 841 of the Taxes Act, it shall be assumed that, in the open market which is postulated, there is available to any prospective purchaser of the beneficial interest in the asset in question all the information which a prudent prospective purchaser might reasonably require if he were proposing to purchase if from a willing vendor by private treaty and at arm’s length.

Valuation of beneficial interest in units in a unit trust scheme3

The amount of earnings which is comprised in any payment by way of the conferment of a beneficial interest in any units in a unit trust scheme (within the meaning of section F200237 of the Financial Services and Markets Act 2000 having a published selling price and which falls to be taken into account in the calculation of a person’s earnings shall be calculated or estimated by reference to the published selling price on the day in question.

Here “published selling price” means the lowest selling price published on the date on which the payment in question is made, and where no such price is published on that date, it means the lowest selling price published on the last previous date on which such a price was published.

Conferment of a beneficial interest in an option to acquire asset falling within Part IV of Schedule 34

The amount of earnings which is comprised in a payment by way of the conferment of a beneficial interest in an option to acquire any asset falling within Part IV of Schedule 3 shall be calculated or estimated by reference to the amount which would be comprised in accordance with paragraph 2, or, if paragraph 3, 5 or 6 would apply in accordance with that paragraph, in a payment by way of the conferment of a beneficial interest—

a

in the asset which may be acquired by the exercise of the option; or

b

where that asset (the first asset) may be exchanged for another asset (the second asset) and the value of the beneficial interest in the second asset is greater than that in the first, in that second asset,

on the day on which the beneficial interest in the option is conferred.

falls within paragraph 9 or 10 of Part IV of Schedule 3 (payments by way of alcoholic liquor on which duty has not been paid or by way of gemstones not to be disregarded as payments in kind), and

ii

is not a readily convertible asset;

b

a voucher, stamp or similar document which falls within paragraph 12 of Part IV of that Schedule and which is not capable of being exchanged for a readily convertible asset; or

c

a non-cash voucher not excluded by virtue of Part 5 of that Schedule and which falls within paragraph 12 of Part IV of that Schedule (assets not to be disregarded as payments in kind) which is not capable of being exchanged for a readily convertible asset;

shall be calculated or estimated on the basis of the cost of the asset in question.

Here “the cost of the asset” in relation to any voucher, stamp or similar document includes the cost of any asset for which that voucher, stamp or similar document is capable of being exchanged.

Convertible and restricted interests in securities and convertible and restricted securitiesF5217

1

The amount of earnings comprised in any payment by way of the conferment of—

a

a convertible interest in securities;

b

a restricted interest in securities; or

c

an interest in convertible or restricted securities,

falling to be taken into account in computing a person’s earnings from employed earner’s employment shall be computed in the same manner, and shall be taken into account at the same time, as applies under Chapters 1 to 5 of Part 7 of ITEPA 2003, for the purpose of computing his employment income.

This is subject to the following qualification.

2

For the purpose of sub-paragraph (1) no account shall be taken of any relief obtained under sections 428A or 442A of ITEPA 2003 (relief for secondary Class 1 contributions met by employee).

Convertible interest in sharesF2828

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F282

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Assignment or release of right to acquire shares where neither right nor shares readily convertibleF2829

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Assignment or release of a right, acquired as director or employee before 6th April 1999, to acquire shares where neither right nor shares readily convertibleF28210

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Exercise of a replacement right to acquire shares, obtained as an earner before 6th April 1999F28311

1

This paragraph applies if—

a

an earner obtained, before 6th April 1999, a right to acquire shares in a body corporate;

b

the earner subsequently obtained a replacement right (within the meaning given in paragraph 16A(3) of Part 9 of Schedule 3);

c

the replacement right is exercised;

d

paragraph 11A of this Schedule does not apply; and

e

paragraph 16A of Part 9 of Schedule 3 does not apply because sub-paragraph (4) of that paragraph is not satisfied.

2

If this paragraph applies, the amount of earnings comprised in any payment realised by the exercise of the replacement right shall be calculated or estimated in accordance with sub-paragraph (3).

3

The basis for calculating the amount of a gain realised by the exercise of the replacement right shall be the best estimate that can reasonably be made of the amount found as follows.

F276Exercise, assignment or release of share option — market value of option or resulting shares increased by things done otherwise than for genuine commercial purposes11A

1

This paragraph applies for calculating or estimating the amount of earnings which is comprised in a payment which—

a

would be disregarded in the computation of earnings for the purposes of earnings-related contributions by virtue of paragraph 16 of Part 9 of Schedule 3; but

b

is not disregarded because paragraph 17 of that Part applies to it.

2

If this paragraph applies, the amount of earnings to be taken into account for the purpose of earnings related contributions is the amount which would, but for paragraph 16 F313or 16A of Part 9 of Schedule 3, have been taken into account by virtue of section 4(4)(a) of the Act.

This is subject to the following qualification.

3

If—

a

the right to acquire shares in a body corporate is not capable of being exercised more than ten years after the date on which it was obtained,

b

an amount of earnings was taken into account for the purpose of earnings-related contributions in respect of the earner’s obtaining that right, at the time he obtained it (“the deductible amount”), and

c

no exercise, assignment or release of the whole or any part of—

i

that right,

ii

any right replacing that right (“a replacement right”), or

iii

any subsequent replacement right,

has occurred on or after 10th April 2003,

the deductible amount may be deducted from the amount otherwise to be taken into account by virtue of this paragraph.

Interpretation of paragraphs 9, 10 and 11F31412

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

In those paragraphs—

a

“the total market value” means the price which the shares which are the subject of the right in question might reasonably be expected to fetch on sale in the open market;

b

the total market value of the subsequent right is similar to the total market value of the first right if it is not substantially greater than the first right;

c

“total discount” means the difference between the total value of the exercise price of the shares that are the subject of the right in question and the total market value of that right;

d

neither the consideration given for the grant of the right nor any entire consideration shall be taken to include the performance of any duties of or in connection with the office or employment by reason of which the right was granted and no part of the amount or value of the consideration given for the grant shall be deducted more than once;

e

“shares”, so far as the context permits, includes stock; and

f

“body corporate” includes—

i

a body corporate constituted under the law of a country or territory outside the United Kingdom; and

ii

an unincorporated association wherever constituted.

Apportionment of a payment to a retirement benefits scheme for the benefit of two or more peopleF56913

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Valuation of non-cash vouchers14

1

The amount of earnings comprised in any payment by way of a non-cash voucher which is not otherwise disregarded by these Regulations and which falls to be taken into account in calculating an employed earner’s earnings shall be calculated on the basis set out in sub-paragraph (2).

F11841A

This paragraph is subject to paragraph 14A (valuation of non-cash vouchers provided under optional remuneration arrangements).

2

The basis referred to in sub-paragraph (1) is that of an amount equal to the expense incurred (“the chargeable expense”)—

a

by the person at whose cost the voucher and the money, goods or services, for which it is capable or being exchanged, are provided;

b

in, or in connection with that provision,

and any money, goods or services obtained by the employed earner or any other person in exchange for the voucher shall be disregarded.

This is subject to the following F551qualifications.

F8523

For the purposes of sub-paragraph (2) the chargeable expense shall be reduced by any part of that which the employed earner makes good to the person incurring it.

F5504

The valuation of qualifying childcare vouchers is determined in accordance with paragraph 7 of Part 5 of Schedule 3.

in accordance with this paragraph so far as it is made pursuant to optional remuneration arrangements; and

b

in accordance with any other treatment that is applicable so far as it is made otherwise than pursuant to such arrangements.

Apportionment of earnings comprised in a cash or non-cash voucher provided for benefit of two or more employed earners15

1

The amount of earnings comprised in any payment by way of a cash voucher or a non-cash voucher provided for the benefit of two or more employed earners and which falls to be taken into account in computing the earnings of each of those earners shall be calculated or estimated on the basis set out in whichever of sub-paragraphs (2) or (3) applies.

2

If the respective proportion of the benefit of the voucher to which each of those earners is entitled is know at the time of the payment, the basis is that of a separate payment equal to that proportion.

3

In any case where the respective proportions are not know at the time of the payment, the basis is equal apportionment between all those earners.

4

In this paragraph—

a

“chargeable expense” has the same meaning, and is calculated in the same way, as in paragraph 14; and

b

if an employed earner makes good any part of the chargeable expense to the person incurring it, that chargeable expense in relation to that employed earner shall be reduced by that part.

SCHEDULE 3 PAYMENTS TO BE DISREGARDED IN THE CALCULATION OF EARNINGS FOR THE PURPOSES OF EARNINGS-RELATED CONTRIBUTIONS

Regulation 26

PART I INTRODUCTORY

Introduction

1

This Schedule contains provisions about payments which are to be disregarded in the calculation of earnings for the purposes of earnings-related contributions.

2

Part II contains provisions about the treatment of payments in kind.

3

Part III and IV specifies payments by way of assets which are not to be disregarded by virtue of paragraph 1 of Part II.

4

Part V specifies non-cash vouchers which are to be disregarded by virtue of paragraph 1 of Part II.

5

In computing earnings there are also to be disregarded—

a

the pensions and pension contributions specified in Part VI;

b

the payments in respect of training and similar courses specified in Part VII;

c

the travelling, relocation and overseas expenses specified in Part VIII;

d

the F316incentives by way of securities specified in Part IX; and

e

the miscellaneous payments specified in Part X.

is treated for the purposes of that Order as falling within Part II of that Schedule by Article 3(3) of that Order,

that contract shall be treated as a contract of long-term insurance.

PART III PAYMENTS BY WAY OF READILY CONVERTIBLE ASSETS NOT DISREGARDED AS PAYMENTS IN KIND

F2841

A readily convertible asset within the meaning of section 702 of ITEPA 2003.

F2842

An asset which, in accordance with section 697 of ITEPA 2003 (PAYE: enhancing the value of an asset), would be treated, for the purposes of section 696 of that Act, as a readily convertible asset.

3

Any voucher, stamp or similar document—

a

whether used singularly or together with other such vouchers, stamps or documents; and

b

which is capable of being exchanged for an asset falling within paragraph 1 or 2.

PART IV PAYMENTS BY WAY OF SPECIFIC ASSETS NOT DISREGARDED AS PAYMENTS IN KIND

F285 Securities1

a

whether used singularly or together with other such vouchers, stamps or documents; and

b

which is capable of being exchanged for an asset falling within any other paragraph of this Part.

PART V CERTAIN NON-CASH VOUCHERS TO BE DISREGARDED AS PAYMENTS IN KIND

1

Subject to sub-paragraph (2), a non-cash voucher provided, to or for the benefit of the employed earner, by the employer or any other person on his behalf is to be disregarded in the calculation of an employed earner’s earnings by virtue of paragraph 1 of Part II only if it falls within any of paragraphs 2 to F6359.

F2072

A non-cash voucher may also be disregarded—

a

by virtue of paragraph 7D of Part VIII (car fuel); F647...

F648aa

by virtue of paragraph 7E of Part 8 (van fuel); or

b

in the circumstances specified in paragraph 4 of Part X (payments by way of F353incidental overnight expenses).

2

A non-cash voucher which is not treated as F354general earnings from employment for the purposes of F355section 86 of ITEPA 2003 (transport vouchers under pre-26th March arrangements).

F356This paragraph only applies in the case of an employee who is in lower paid employment, within the meaning of section 217 of ITEPA 2003

F3393

h

“scheme” means the manner by which an employer provides qualifying childcare vouchers and an employee is taken to join a scheme or have joined a scheme when the employer has agreed that vouchers will be provided to the employee under the scheme and there is a child falling within Condition A of paragraph 7(7); and

i

the administration costs for a voucher means the difference between the cost of provision of a voucher and its face value and the face value is the amount stated on or recorded in the voucher as the value of the provision of care for a child that may be obtained by using it.

F554F766Qualifying childcare vouchers for F1187eligible employees who joined a scheme before 6th April 20117

1

F771A qualifying childcare voucher, where an F1195eligible employee joined a scheme—

a

before 6th April 2011;

b

before 6th April 2011 but ceased to be employed by the employer and was subsequently re-employed by the employer and re-joined the scheme before 6th April 2011; or

c

before 6th April 2011 and there was a continuous period of 52 weeks ending before 6th April 2011 throughout which vouchers were not being provided for the employee under the scheme,

subject to the qualifications in sub-paragraphs (2) and (5).

F772F7651A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2

Where the chargeable expense of the voucher exceeds the exempt amount, only that amount shall be disregarded by virtue of sub-paragraph (1).

3

The exempt amount is the amount found by the formula—

Here—

E is the sum of—

a
F571£55; and
b
the administration costs for the qualifying childcare voucher;

QW is the number of qualifying weeks—

a
for which the earner has been employed by the secondary contributor during the tax year in which the qualifying childcare voucher is provided; and
b
for which no other qualifying childcare voucher has been provided by the secondary contributor.

4

Where an earner has two or more employed earner's employments, the earnings from which fall to be aggregated in accordance with regulation 14 or 15, the reference to the secondary contributor in paragraph (b) of the definition of QW is a reference to the secondary contributor in respect any of those employments.

5

An earner is only entitled to one exempt amount even if childcare vouchers are provided in respect of more than one child.

6

F767In this paragraph “qualifying childcare voucher” means a non-cash voucher in relation to which Conditions A to C are met.

F7497

Condition A is that the voucher is provided to enable an employee to obtain care for a child who—

a

is a child or stepchild of the employee and is maintained (wholly or partly) at the employee’s expense; or

b

is resident with the employee and is a person in respect of whom the employee has parental responsibility.

8

Condition B is that the voucher can only be used to obtain qualifying child care.

9

Condition C is that the vouchers are provided under a scheme that is open—

a

to the employer’s F1185eligible employees generally; or

b

generally to those at a particular location,

subject to sub-paragraph (10).

10

Where the scheme under which the vouchers are provided involves—

a

relevant salary sacrifice arrangements; or

b

relevant flexible remuneration arrangements,

Condition C is not prevented from being met by reason only that the scheme is not open to relevant low-paid employees.

F750F780Qualifying childcare vouchers for F1190eligible employees who joined a scheme on or after 6th April 2011, or before 6th April 2011 where there has been a break in employment or a 52 week break in receiving vouchers recommencing on or after 6th April 20117A

1

A qualifying childcare voucher, where an F1188eligible employee joined a scheme—

a

on or after 6th April 2011;

b

before 6th April 2011 but ceased to be employed by the employer and was subsequently re-employed by the employer and re-joined the scheme on or after 6th April 2011; or

c

before 6th April 2011 and there was a continuous period of 52 weeks ending on or after 6th April 2011 throughout which vouchers were not being provided for the employee under the scheme,

subject to the qualifications in sub-paragraphs (3) and (6).

2

In this paragraph a “qualifying childcare voucher” means a non-cash voucher in relation to which conditions A to D (see sub-paragraphs (7) to (11)) are met.

3

Where the chargeable expense of the voucher exceeds the exempt amount, only that amount shall be disregarded by virtue of sub-paragraph (1).

4

The exempt amount is the amount found by the formula—

Here—

E is, in the case of an employee the sum of—
1. a
  F863£25, if the relevant earnings amount for the tax year, as estimated in accordance with Condition D, exceeds the higher rate limit for the tax year;
2. b
  £28, if the relevant earnings amount for the tax year, as estimated in accordance with Condition D, exceeds the basic rate limit but does not exceed the higher rate limit for the tax year; or
3. c
  £55, in any other case; and
4. d
  the administration costs for the qualifying childcare voucher;
QW is the number of qualifying weeks—
1. a
  for which the earner has been employed by the secondary contributor during the tax year in which the qualifying childcare voucher is provided; and
2. b
  for which no other qualifying childcare voucher has been provided by the secondary contributor.

5

Where an earner has two or more employed earner’s employments, the earnings from which fall to be aggregated in accordance with regulation 14 or 15, the reference to the secondary contributor in paragraph (b) of the definition of QW is a reference to the secondary contributor in respect of any of those employments.

6

An earner is only entitled to one exempt amount even if childcare vouchers are provided in respect of more than one child.

7

Condition A is that the voucher is provided to enable an employee to obtain care for a child who—

a

is a child or stepchild of the employee and is maintained (wholly or partly) at the employee’s expense; or

b

is resident with the employee and is a person in respect of whom the employee has parental responsibility.

8

b

otherwise, the beginning of the tax year.

13

In sub-paragraph (11) the “relevant earnings amount”, in the case of an employee provided with vouchers by an employer for any qualifying week in a tax year, and subject to sub-paragraph (14), means—

a

the aggregate of—

i

the amount of any relevant earnings (see sub-paragraph (15)) for the tax year from employment by the employer; and

ii

any amounts to be treated under Chapters 2 to 12 of Part 3 of ITEPA 2003 as earnings from such employment; less

b

the aggregate of any excluded amounts (see sub-paragraph (16)).

14

But if the employee becomes employed by the employer during the tax year, what would otherwise be the amount of the aggregate mentioned in sub-paragraph (13)(a) is the relevant multiple of that amount; and the relevant multiple is—

where—

RD is the number of days in the period beginning with the day on which the employee becomes employed by the employer and ending with the tax year.

15

In sub-paragraph (13)(a) “relevant earnings” means—

a

salary, wages or fees, F781...

F769b

guaranteed contractual bonuses;

c

contractual commission;

d

guaranteed overtime payments;

e

location or cost of living allowances;

f

shift allowances;

g

skills allowances;

h

retention and recruitment allowances; and

i

market rate supplements.

16

For the purposes of sub-paragraph (13)(b) the following are “excluded amounts”—

a

contributions under a F783... pension scheme allowed under section 193(2) of Finance Act 2004 (relief under net pay arrangements) to be deducted by the employer from the employee’s employment income for the tax year F784in accordance with the PAYE Regulations;

F782za

e

benefits subject to the unauthorised payment charge imposed by section 208 of the Finance Act 2004 as applied to a relevant non-UK scheme by virtue of paragraph 1 of Schedule 34 to that Act.

F5872

Expressions defined in Schedule 34 to the Finance Act 2004 have the same meaning in this paragraph as they have there.

Funded unapproved retirement benefit schemes.

4

A payment by way of relevant benefits pursuant to a retirement benefits scheme which has not been approved by the Board for the purposes of Chapter I of Part XIV of the Taxes Act and attributable to payments prior to 6th April 1998.

Here “relevant benefits” has the meaning given in section 612 of the Taxes Act.

Payments to pension previously taken into account in calculating earnings5

A payment by way of any benefit pursuant to a retirement benefits scheme which has not been approved by the Board for the purposes of Chapter I of Part XIV of the Taxes Act and attributable to payments on or after 6th April 1998 F573and before 6th April 2006 which have previously been included in a person’s earnings for the purpose of the assessment of his liability for earnings-related contributions.

Payments in good faith to scheme solely for providing approved benefits.F5746

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F552Payments to F779and benefits from pension schemes exempt from UK taxation under double taxation agreements7

1

A payment to a pension scheme which is afforded relief from taxation by virtue of F778any of the following provisions, and any benefit referable to that payment—

a

Article 25(8) of the Convention set out in the Schedule to the Double Taxation Relief (Taxes on Income) (France) Order 1968F131;

b

financed by payments made by or on behalf of the secondary contributor, and

b

providing only a pension (and which is accordingly not an employer-financed retirement benefits scheme because it does not provide relevant benefits).

Here “relevant benefits” has the meaning given in section 393B of ITEPA 2003.

Payments from employer-financed retirement benefits schemes and employer-financed pension only schemes10

1

This paragraph applies to payments in paragraphs 8(b) and 9(1)(b) which—

a

if the scheme had been a registered pension scheme—

i

would have been authorised member payments under any of the provisions of section 164 of the Finance Act 2004 (authorised member payments) listed in sub-paragraph (4); and

ii

would satisfy any of the conditions in sub-paragraph (5); and

b

are made after the employment of the employed earner by—

i

the secondary contributor,

ii

a subsidiary of the secondary contributor, or

iii

a person connected with the secondary contributor or a subsidiary of the secondary contributor,

has ceased.

For the purposes of this sub-paragraph—
“subsidiary” has the meaning given in section 838 of the Taxes Act 1988; and
an employer is connected with any of the persons with respect to whom he would be a connected person by virtue of section 839 of that Act.

ii

for sub-paragraph (2) there were substituted—

2
But if a lump sum falling within sub-paragraph (1) exceeds the permitted lump sum, no part of it shall be disregarded.

iii

sub-paragraph (4) were omitted; and

iv

for sub-paragraph (5) there were substituted—

5
Paragraph 2 defines the permitted lump sum.

b

for paragraph 2 there were substituted—

2
The permitted lump sum is the higher of—
where—
MVF is the market value of the employee’s employer-financed retirement benefits scheme fund at the time the benefit is paid to the individual,
LS is the amount of the lump sum, and
MAP is the maximum annual pension which could be paid to the member under the arrangement.

c

paragraph 3 were omitted;

d

in paragraph 4, paragraphs (b) and (c) of sub-paragraph (1) and ~~F777sub-paragraph (2)~~F777sub-paragraphs (2) and (3) were omitted.

7

No payment by way of benefits shall be disregarded by virtue of this paragraph if they are payable in respect of a period during which an earner is—

a

engaged as a self-employed earner under a contract for services with, or

b

re-employed as an employed earner by,

the secondary contributor from employment with whom the benefits were derived.

C3F841Armed forces early departure scheme payments10A

A payment under a scheme established by the Armed Forces Early Departure Payments Scheme Order 2005 (S.I. 2005/437) F962or by the Armed Forces Early Departure Payments Scheme Regulations 2014 (S.I. 2014/2328).

Superannuation funds to which section 615(3) of the Taxes Act applies11

A payment by way of employer’s contribution to a superannuation fund to which section 615(3) of the Taxes Act applies, and a payment by way of F593a pension or an annuity paid by such a fund F594....

F989Independent advice in respect of conversions and transfers of pension scheme benefits12

A payment or reimbursement to which no liability to income tax arises by virtue of section 308B of ITEPA 2003 (independent advice in respect of conversions and transfers of pension scheme benefits).

A compensation payment made under or by virtue of Part 1 (Public Service Pension Schemes) of the Public Service Pensions and Judicial Offices Act 2022.

F1288War Widows Recognition payments 15

A payment made by the Ministry of Defence to a person under the War Widows Recognition Payment Scheme.

PART VII PAYMENTS IN RESPECT OF TRAINING AND SIMILAR COURSES

Payments in respect of training and similar payment disregarded1

The training payments and vouchers mentioned in this Part are disregarded in the calculation of an employed earner’s earnings.

~~F555Paragraphs 5 to 9~~F555paragraphs 5 to 8 do not apply to Northern Ireland.

Work-related training2

A payment of, or contribution towards, expenditure incurred on providing work-related training which, by virtue of F400sections 250 to 254 of ITEPA 2003 (exemption for work-related training), is not to be taken as F401general earnings of the office or employment in connection with which it is provided.

Education and training funded by employers3

A payment in respect of expenditure which, by virtue of F402section 255 of ITEPA 2003 (exemption for contributions to individual learning account training), is not to be taken as F403general earnings of the office or employment in connection with which it is provided.

New Deal 50plus: employment grant and training credit4

A payment to a person, as a participant in the scheme arranged under section 2(2) of the Employment and Training Act 1973 and known as New Deal 50plus, of an employment credit or a training grant under that scheme.

Retraining courses for recipients of jobseeker’s allowance5

A payment to a person as a participant in a scheme of the kind mentioned in section 60(1) of the Welfare Reform and Pensions Act 1999 (special schemes for claimants for jobseeker’s allowances) F134.

Payments to Jobmatch participants6

A payment made to a participant in a Jobmatch Scheme (including a pilot) arranged under section 2(1) of the Employment and Training Act 1973 F135 in his capacity as such.

Vouchers provided to Jobmatch participants7

A payment by way of the discharge of any liability by the use of a voucher given to a participant in a Jobmatch Scheme (including a pilot), arranged under section 2(1) of the Employment and Training Act 1973, in his capacity as such.

F327Employment Retention and Advancement payments8

A payment made to a participant in an Employment Retention and Advancement Scheme, arranged under section 2(1) of the Employment and Training Act 1973, in his capacity as such.

F329Return to Work Credit9

A payment made to a participant in a Return to Work Credit Scheme, arranged under section 2(1) of the Employment and Training Act 1973 in his capacity as such.

F338Working Neighbourhoods Pilot10

A payment made to a participant in a Working Neighbourhoods Pilot, arranged under section 2(1) of the Employment and Training Act 1973, in his capacity as such.

In-Work Credit11

A payment made to a participant in an In-Work Credit scheme, arranged under section 2(1) of the Employment and Training Act 1973, in his capacity as such.

F541Payments made by employers to earners in full-time attendance at universities &c.12

1

A payment to an employed earner receiving full-time instruction at a university, technical college or similar educational establishment (within the meaning of section 331 of the Taxes Act) if the conditions in sub-paragraphs (2) to (6) are satisfied, but subject to the exclusion in sub-paragraph (7).

2

The employed earner must have enrolled at the educational establishment for a course lasting at least one academic year at the time when payment is made.

3

The secondary contributor must require the employed earner to attend the course for an average of at least twenty weeks in an academic year.

4

The educational establishment—

a

must be open to members of the public generally,

b

must offer more than one course of practical or academic instruction.

5

The educational establishment must not be run by—

a

the secondary contributor, or a person who would be treated by section 839 of the Taxes Act as connected with him; or

b

a trade organisation of which the secondary contributor is a member.

6

The total amount of earnings payable to the earner in respect of his attendance, including lodging, travelling and subsistence allowances, but excluding any tuition fees, must not exceed F636£15,480 in respect of an academic year.

7

This paragraph does not apply to any payment made by the secondary contributor to the employed earner for, or in respect of, work done for the secondary contributor by the earner (whether during vacations or otherwise).

8

This paragraph has effect in respect of payments made in relation to the academic year beginning on 1st September 2005 and subsequent academic years.

9

In this paragraph—

“academic year” means the period beginning on 1st September of one calendar year and ending on 31st August of the following calendar year.
“trade organisation” means an organisation of secondary contributors (in their capacity as employers) the members of which carry on a particular profession or trade for the purposes of which the organisation exists.

F1229Payments exempted from income tax under section 254A of ITEPA 200313

A care leaver’s apprenticeship bursary payment which is exempted from income tax under section 254A of ITEPA 2003.

PART VIII TRAVELLING, RELOCATION AND OTHER EXPENSES AND ALLOWANCES OF THE EMPLOYMENT

Travelling, relocation and incidental expenses disregarded1

The travelling, relocation and other expenses and allowances mentioned in this Part are disregarded in the calculation of an employed earner’s earnings.

F10821A

For the purposes of this paragraph none of the following amounts are to be disregarded in the calculation of an employed earner’s earnings—

a

any amount paid or reimbursed pursuant to relevant salary sacrifice arrangements as provided for in section 289A(5);

b

any amount paid or reimbursed to an employed earner which falls within regulation 22(13); and

c

any amount paid to an employed earner in respect of anticipated expenses that have yet to be incurred (whether or not such expenses are actually incurred after the payment is made).

the place where he performs, or is to perform, the duties of his employment (in a case falling within paragraph (3)(a);

b

the place where he performs, or is to perform, the duties of his employment (in a case falling within paragraph (3)(b); or

c

the new place where he performs, or is to perform, the duties of his employment (in a case falling within paragraph (3)(c).

References in this sub-paragraph and sub-paragraph (5) to the place where the employee performs, or is to perform, the duties of his employment are references to the place where he normally performs, or is normally to perform, the duties of the employment.

5

The fourth condition is that the employee’s former residence must not be within a reasonable daily travelling distance of the place where the employee performs or is to perform the duties of the employment.

F8376

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F4067

For the purposes of this paragraph, Chapter 7 of Part 4 of ITEPA 2003 shall be read as if sections 272 (1)(b), 272 (3)(b), 274 and 287 were omitted

Travelling expenses—general3

A payment of, or a contribution towards, F433travel expenses which the holder of an office or employment is obliged to incur and F434pay as the holder of that office or employment F1128but this paragraph is subject to paragraph 1A.

For the purposes of this paragraph—

F1130za

the employee regularly attends in the performance of the duties of the employment, and

ii

is not a temporary workplace.

This is subject to sub-paragraphs (3) to (7).

2

In sub-paragraph (1)(b) “temporary workplace”, in relation to an employment, means a place which the employee attends in the performance of the duties of the employment—

a

for the purpose of performing a task of limited duration, or

b

d

the area would be a permanent workplace if sub-paragraphs (1)(b), (2), (4), (5) and (6) referred to the area where they refer to a place.

F1083Travel for necessary attendance: employment intermediaries3ZB

1

This paragraph applies where an individual (“the worker”)—

a

personally provides services (which are not excluded services) to another person (“the client”), and

b

6F

In determining for the purposes of sub-paragraph (6D) or (6E) whether one of conditions A to C in regulation 14 is or would be met in relation to the employment intermediary, read references to the intermediary as references to the employment intermediary.

7

In determining whether this paragraph applies, no regard is to be had to any arrangements the main purpose, or one of the main purposes, of which is to secure that this paragraph does not to any extent apply.

8

In this paragraph—

“arrangements” includes any such scheme, transaction or series of transactions, agreement or understanding, whether or not enforceable, and any associated operations;
“employment intermediary” means a person, other than the worker or the client, who carries on a business (whether or not with a view to profit and whether or not in conjunction with any other business) of supplying labour;
“engagement” means any such provision of services as is mentioned in sub-paragraph (1)(a);
“excluded services” means services provided wholly in the client’s home;
“managed service company” means a company which—
1. a
  is a managed service company within the meaning given by section 61B of ITEPA 2003, or
2. b
  would be such a company disregarding subsection (1)(c) of that section.

A payment of, or contribution towards, the expenses of the earner’s employment to the extent that those expenses are travel expenses which are exempt from income tax in accordance with section 241B of ITEPA 2003 (travel where directorship held as part of a trade or profession).

Travel between linked employments3C

A payment of, or contribution towards, the expenses of the earner’s employment to the extent that those expenses are travel expenses deductible for income tax purposes in accordance with section 340A of ITEPA 2003 (travel between linked employments).

F1132This paragraph is subject to paragraph 1A.

F340Travel at start or finish of overseas employment4

A payment of, or a contribution towards, the expenses of the earner’s employment to the extent that those expenses—

a

are deductible for income tax purposes in accordance with section 341 of ITEPA 2003 (travel at start or finish of overseas employment); or

b

would be so deductible if—

i

Conditions B and C were omitted from that section; and

ii

the earnings of the employment were subject to income tax as employment income under that Act.

F1134This paragraph is subject to paragraph 1A.

Travel between employments where duties performed abroad4A

Foreign accommodation and subsistence costs and expenses (overseas employments)4D

So much of an employed earner’s earnings as equals the amount of the deduction—

a

permitted for income tax purposes under section 376 of ITEPA 2003 (foreign accommodation and subsistence costs and expenses (overseas employments)); or

b

which would be so permitted if the earnings of the employment were subject to tax as employment income under ITEPA 2003.

F1137This paragraph is subject to paragraph 1A.

F559Travel costs and expenses of non-domiciled employee or the employee’s spouse, civil partner or child where duties performed in the United Kingdom5

So much of an employed earner’s earnings as equals the aggregate amount of the deductions—

a

permitted for income tax purposes under sections 373 and 374 of ITEPA 2003 (travel costs and expenses of a non-domiciled employee or the employee’s spouseF562, civil partner or child where duties are performed in the United Kingdom ); or

b

which would be so permitted if the earnings of the employment were subject to tax as employment income under ITEPA 2003.

F1135This paragraph is subject to paragraph 1A.

Travelling expenses of workers on offshore gas and oil rigs6

A payment of, or a contribution towards, expenses where that payment or contribution is disregarded for the purposes of calculating the emoluments F438general earnings under section 305 of ITEPA 2003 (offshore oil and gas workers: mainland transfers).

F407Payments connected with cars and vans and exempt heavy goods vehicles provided for private use7

F11911

A payment—

a

by way of the discharge of any liability which by virtue of F408section 239(1) of ITEPA 2003 (payments and benefits connected with taxable cars and vans and exempt heavy goods vehicles); or

b

of expenses, which by virtue of F409section 239(2) of that Act;

is not treated as F410general earnings of the employment chargeable to income taxF411....

F11932

Sub-paragraph (1) does not apply so far as the payment is made pursuant to optional remuneration arrangements.

F206Qualifying amounts of relevant motoring expenditure7A

F11911

To the extent that it would otherwise be earnings, the qualifying amount calculated in accordance with regulation 22A(4).

F11922

Sub-paragraph (1) does not apply so far as the payment of relevant motoring expenditure within the meaning of regulation 22A(3) is made pursuant to optional remuneration arrangements.

Qualifying amounts of mileage allowance payment in respect of cycles7B

1

To the extent that it would otherwise be earnings, the qualifying amount of a mileage allowance payment in respect of a cycle.

2

The qualifying amount is that which would be produced by the formula in regulation 22A(4) if the value for R were the rate for the time being approved under F412section 230(2) of ITEPA 2003 in respect of a cycle.

3

In this paragraph—

“cycle” has the meaning given in section 192(1) of the Road Traffic Act 1988; and
“mileage allowance payment” has the meaning given in F413section 229(2) of ITEPA 2003.

Qualifying amounts of passenger payment7C

1

To the extent that it would otherwise be earnings, the qualifying amount of a passenger payment.

2

The qualifying amount is that which would be produced by the formula in regulation 22A(4) if—

a

references to business travel were to business travel for which the employee F414receives passenger payments within the meaning of section 233(3) of ITEPA 2003; and

b

the value for R were the rate for the time being approved for a passenger payment under F415section 234 of ITEPA 2003.

3

In this paragraph—

“passenger payment” has the meaning given in F416section 233(3) of ITEPA 2003; and
F417...

F418Car fuel7D

1

A payment by way of the provision of car fuel which is chargeable to income tax under section 149 of ITEPA 2003.

F644Van fuel7E

A payment by way of the provision of van fuel which is chargeable to income tax under section 160 of ITEPA 2003.

Car parking facilities8

A payment of, or a contribution towards, the provision of car parking facilities at or near the earner’s place of employment which, by virtue of F419section 237 of ITEPA 2003, is not regarded as F420general earnings of the earner’s employment.

F1084Amounts exempted from income tax under section 289A of ITEPA 20038A

Any amount which is exempted from income tax under section 289A of ITEPA 2003.

F1202Payments exempted from income tax under section 299B of ITEPA 20038B

A payment to a person who holds a voluntary office in respect of expenses which is exempted from income tax under section 299B of ITEPA 2003.

Specific and distinct payments of, or towards, expenses actually incurred9

F2081

For the avoidance of doubt, F1140there shall be disregarded any specific and distinct payment of, or contribution towards, expenses which an employed earner actually incurs in carrying out his employment.

F209This is subject to the following F1141qualifications.

F11942

Sub-paragraph (1) does not authorise the disregard of any amount by way of relevant motoring expenditure, within the meaning of paragraph (3) of regulation 22A—

a

in excess of that permitted by the formula in paragraph (4) of that regulation; or

b

so far as it is paid pursuant to optional remuneration arrangements.

F11393

Sub-paragraph (1) does not authorise the disregard of any amount which—

a

falls within paragraphs (12) or (13) of regulation 22; or

b

is paid to an employed earner in respect of anticipated expenses that have yet to be incurred (whether or not such expenses are actually incurred after the payment is made).

F421council tax or water or sewerage charges on accommodation provided for employee’s use

Annotations:

Amendments (Textual)

F421

Words in sch. 3 Pt. 8 para. 10 substituted (6.4.2004) by The Social Security (Contributions, Categorisation of Earners and Intermediaries) (Amendment) Regulations 2004 (S.I. 2004/770), regs. 1(1), 28(6)(j)(i)

10

A payment of, or a contribution towards meeting a person’s liability for F422council tax or water or sewerage charges in respect of accommodation occupied by him and provided for him by reason of his employment if by virtue of F424sections 99 or 100 of ITEPA 2003 (accommodation provided for performance of duties or as a result of a security threat), F423he is not liable to income taxF427... in respect of the provision of that accommodation.

This paragraph does not extend to Northern Ireland.

F428rates or water or sewerage charges on accommodation provided for employee’s use

Annotations:

Amendments (Textual)

F428

Words in sch. 3 Pt. 8 para. 11 heading substituted for (6.4.2004) by The Social Security (Contributions, Categorisation of Earners and Intermediaries) (Amendment) Regulations 2004 (S.I. 2004/770), regs. 1(1), 28(6)(l)

11

A payment of, or a contribution towards meeting, a person’s liability for F429rates or water or sewerage charges in respect of accommodation occupied by him and provided for him by reason of his employment if by virtue of F425sections 99 or 100 of ITEPA 2003 (accommodation provided for performance of duties or as a result of a security threat), he is not liable to income taxF426... in respect of the provision of that accommodation.

This paragraph extends only to Northern Ireland.

Foreign service allowance12

A payment by way of an allowance which is not regarded as income for any income tax purpose by virtue of F430section 299 of ITEPA 2003 (Crown employees' foreign service allowance).

F812HM Forces’ Operational Allowance12A

1

A payment of the Operational Allowance to members of the armed forces of the Crown.

2

The Operational Allowance is an allowance designated as such under a Royal Warrant made under section 333 of the Armed Forces Act 2006.

F813HM Forces’ Council Tax Relief12B

1

A payment of Council Tax Relief to members of the armed forces of the Crown.

2

Council Tax Relief is a payment designated as such under a Royal Warrant made under section 333 of the Armed Forces Act 2006.

F793HM Forces’ Continuity of Education Allowance12C

1

A payment of the Continuity of Education Allowance to or in respect of members of the armed forces of the Crown.

2

The Continuity of Education Allowance is an allowance designated as such under a Royal Warrant made under section 333 of the Armed Forces Act 2006.

F1200HM Forces’ Accommodation Allowance12D

A payment to which no liability to income tax arises by virtue of section 297D of ITEPA 2003 (armed forces: accommodation allowances).

Commonwealth War Graves Commission and British Council: extra cost of living allowance13

A payment by way of an allowance to a person in the service of the Commonwealth War Graves Commission or the British Council paid with a view to compensating him for the extra cost of living outside the United Kingdom in order to perform the duties of his employment.

Overseas medical treatment

14

A payment of, or a contribution towards, expenses incurred in—

a

providing an employee with medical treatment outside the United Kingdom (including providing for him to be an in-patient) in a case where the need for the treatment arises while the employee is outside the United Kingdom for the purposes of performing the duties of his employment; or

b

providing insurance for the employee against the cost of such treatment in a case falling within sub-paragraph (a).

Here “medical treatment” includes all forms of treatment for, and all procedures for diagnosing, any physical or mental ailment, infirmity or defect.

F947Recommended medical treatment14A

A payment or reimbursement to which no liability to income tax arises by virtue of section 320C of ITEPA 2003 (recommended medical treatment).

F337Experts Seconded to European Commission15

A payment in respect of daily subsistence allowances paid by the European Commission to persons whose services are made available to the Commission by their employers under the detached national experts scheme which is exempt from income tax by virtue of section 304 of ITEPA 2003 (experts seconded to European Commission).

F751Experts seconded to a body of the European Union15A

A payment in respect of subsistence allowances paid—

a

by a body of the European Union that is located in the United Kingdom and listed in the table below;

b

to persons who, because of their expertise in matters relating to the subject matter of the functions of the body, are seconded to the body by their employers.

Bodies of the European Union located in the United Kingdom

The European Medicines Agency

The European Police College

The European Banking Authority

F744Expenses of MPs and other representatives16

A payment to which no liability to income tax arises by virtue of any of the following provisions of ITEPA 2003—

a

section 292 (accommodation expenses of MPs);

b

section 293 (overnight expenses of other elected representatives);

c

section 293A (UK travel and subsistence expenses of MPs);

F888ca

section 293B (UK travel expenses of other elected representatives);

d

section 294 (European travel expenses of MPs and other representatives).

F1085Travel expenses of members of local authorities etc17

A payment to which no liability to income tax arises by virtue of section 295A of ITEPA 2003 (travel expenses of members of local authorities etc).

PART IXF288Incentives by way of securities.

Annotations:

Amendments (Textual)

F288

Sch. 3 Pt. IX heading substituted (1.9.2003) by The Social Security (Contributions) (Amendment No. 5) Regulations 2003 (S.I. 2003/2085), regs. 1, 12(2)

F289Certain payments by way of securities, restricted securities and restricted interests in securities, and gains arising from them, disregarded1

F2891

Payments by way of securities, restricted securities and restricted interests in securities, and gains arising from them, are disregarded in the calculation of an employed earner’s earnings to the extent mentioned in this Part.

2

For the purposes of paragraphs 13, 15 and 16—

a

“body corporate” includes—

i

a body corporate constituted under the law of a country or territory outside the United Kingdom, and

ii

an unincorporated association wherever constituted;

b

“total discount” means the difference between the total value of the exercise price of the shares that are subject to the right in question and the total market value of that right;

c

“total market value” means the price which the shares that are subject to the right in question might reasonably be able to fetch in the open market; and

d

the total market value of the subsequent right is similar to the total market value of the first right if it is not substantially greater than the first right.

Shares in secondary contributor or associated bodyF3242

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F290 Rights to acquire securities3

A payment by way of a right to acquire securities.

“Short” share options granted on or after 6th April 1999F3213A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Enterprise management incentivesF3224

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F291Priority share allocationsF2915

A payment by way of an allocation of shares in priority to members of the public in respect of which no liability to income tax arises by virtue of section 542 of ITEPA 2003.

Partnership share agreements6

A payment that is deducted from the earnings of the employment under a partnership share agreement.

Here “partnership share agreement” has the meaning given in F315paragraph 44 of Schedule 2 to ITEPA 2003.

F292Shares under share incentive plans7

A payment by way of an award of shares under a share incentive plan within the meaning of Schedule 2 to ITEPA 2003.

Securities and interests in securities which are not readily convertible assets7A

A payment by way of the acquisition of securities, interests in securities or securities options in connection with employed earner’s employment if, or to the extent that, what is acquired is not a readily convertible asset.

Here “acquisition” includes acquisition pursuant to an employment-related securities option within the meaning of section 471(5) of ITEPA 2003 as substituted by the Finance Act 2003.

Shares under approved profit sharing schemesF3238

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F293 Restricted securities and restricted interests in securities9

1

A payment by way of the acquisition of restricted securities, or a restricted interest in securities, where those securities are, or that interest is, employment-related, if no charge to income tax arises under section 425 of ITEPA 2003 other than by virtue of subsection (2) of that section.

This is subject to the following qualification.

2

This paragraph does not apply if an election has been made as mentioned in subsection (3) of section 425 of ITEPA 2003.

3

References in this paragraph to section 425 of ITEPA 2003 are to that section as substituted by paragraph 3(1) of Schedule 22 to the Finance Act 2003.

Conditional interest in shares: gains from exercise etc. of share optionsF29410

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Convertible sharesF29411

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Convertible shares: gains from the exercise etc. of share optionsF29412

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Share option gains by directors and employeesF29413

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Shares acquired under options granted before 9th April 1998F29414

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Assignment or release of optionF29415

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F295 Exercise of replacement share options where original option acquired before 6th April 199916

1

A gain realised by the exercise of a replacement right to acquire shares in a body corporate where the original right was obtained before 6th April 1999 provided that—

a

sub-paragraph (4) is satisfied, and

b

paragraph 17 does not apply,

The disregard conferred by this paragraph is subject to the following limitation.

2

Only the value of the shares acquired by the exercise of the replacement right shall be disregarded.

3

In this paragraph and paragraph 17—

“the original right” means the right, acquired before 6th April 1999, to acquire shares in a body corporate; and
“replacement right” means a right to acquire shares, obtained, whether as the result of one transaction or a series of transactions, and whether directly or indirectly, in consequence of—
1. a
  the assignment or release of the original right; or
2. b
  the assignment or release of a right which was itself obtained in consequence of the assignment or release of that right.

4

This sub-paragraph is satisfied in respect of a transaction through which the replacement right was obtained if A is not substantially greater than R.

Here—
- A is the market value of the shares which may be obtained by the exercise of the right acquired on that occasion, less any consideration which would have to be given on that occasion by or on behalf of the earner if that right were to be exercised immediately after its acquisition (disregarding any restriction on its exercise); and
- R is the market value of the shares subject to the right assigned or released on that occasion, immediately before that occasion, less any consideration which would have been required to be given by or on behalf of the earner for the exercise of that right, disregarding any restriction on its exercise, subject to the following qualification.
- If a transaction involves only a partial replacement of an earlier right, the amount of the earlier consideration to be deducted in computing R shall be proportionately reduced.

F277Payments resulting from exercise, assignment or release of options which are not disregarded by virtue of paragraph 1617

1

This paragraph applies to a payment—

a

made on or after 10th April 2003, and

b

which would otherwise fall to be disregarded by virtue of paragraph 16 F318or 16A of this Part,

where the market value of the shares has been increased by more than 10% by things done, on or after 6th April 1999, otherwise than for genuine commercial purposes.

2

For the purposes of sub-paragraph (1) “the shares” includes—

a

the shares subject to the right currently being exercised; and

b

where the right to acquire shares held on 6th April 1999 has been replaced by a F319replacement right, includes the shares subject to F320a replacement right.

3

The following are among the things that are, for the purposes of this paragraph, done otherwise than for genuine commercial purposes—

a

anything done as part of a scheme or arrangement the main purpose, or one of the main purposes, of which is the avoidance of tax or of contributions under the Act; and

b

any transaction between companies which, at the time of the transaction, are members of the same group on terms which are not such as might be expected to be agreed between persons acting at arm’s length.

4

But sub-paragraph (3)(b) does not apply to a payment for group relief within the meaning given in section 402(6) of the Taxes Act.

5

In sub-paragraph (3)(b) “group” means a body corporate and its 51% subsidiaries (within the meaning of section 838 of the Taxes Act), and other expressions used in this paragraph which are defined in, or for the purposes of, paragraph 16 have the same meaning here as they have in that paragraph.

F990Payments made to internationally mobile employees18

1

So much of any payment as equals the amount in sub-paragraph (3).

2

For the purposes of calculating the amount in sub-paragraph (3) treat amounts which count as employment income under Chapters 2 to 5 of Part 7 of ITEPA 2003 as having been paid in equal instalments on each day of the “relevant period” as determined in accordance with section 41G of ITEPA 2003.

3

The amount in this sub-paragraph is calculated by adding together every instalment which would satisfy the condition in sub-paragraph (4), (5) or (6) on the day on which the instalment is treated as having been paid.

4

The condition in this sub-paragraph is that the instalment does not give rise to a liability to pay earnings-related contributions because the employed earner does not fulfil the prescribed conditions as to residence or presence in Great Britain or Northern Ireland (as the case requires) set out in paragraph (1) of regulation 145 or because the proviso in paragraph (2) of that regulation applies.

5

The condition in this sub-paragraph is that the instalment does not give rise to a liability to pay earnings-related contributions because the employed earner is determined in accordance with Title II of Regulation No (EC) 883/2004 and Title II of Regulation No (EC) 987/2009 to be subject only to the legislation of another EEA State or Switzerland.

6

The condition in this sub-paragraph is that the instalment does not give rise to a liability to pay earnings-related contributions because the employed earner is determined to be subject only to the legislation of a country outside the United Kingdom pursuant to an Order in Council having effect under section 179 of the Administration Act.

The cost of provision of any non-cash voucher shall be included in the calculation of earnings and anything for which the voucher can be exchanged shall be disregarded in that calculation.

6

Any payment by way of a benefit in kind shall be disregarded in the calculation of earnings.

F4377

In this paragraph—

“the cost of provision” in relation to a non-cash voucher is the cost incurred by the person at whose expense the voucher is provided;
“the permitted amount” has the meaning given in section 241(3) of ITEPA 2003; and
“qualifying period” has the meaning given in section 240(1)(b) and (4) of ITEPA 2003.

the person making the payment does so in his capacity as a tronc-master.

5

A payment made to the earner is within this sub-paragraph if it is made by a trustee holding property for any persons who include, or any class of persons which includes, the earner.

In this sub-paragraph “trustee” does not include a tronc-master.

6

A person is connected with the secondary contributor for the purposes of this paragraph if his relationship with the secondary contributor, or where the employer and secondary contributor are different, with either of them, is as described in subsection (2), (3), (4), (5), (6) or (7) of section 839 of the Taxes Act (connected persons).

Redundancy payments6

For the avoidance of doubt, in calculating the earnings paid to or for the benefit of an earner in respect of an employed earner’s employment, any payment by way of a redundancy payment shall be disregarded.

Sickness payments attributable to contributions made by employed earner7

If the funds for making a sickness payment under arrangements of the kind mentioned in section 4(1)(b) of the Contributions and Benefits Act are attributable in part to contributions to those funds made by the employed earner, for the purposes of section 4(1) of that Act the part of that payment which is attributable to those contributions shall be disregarded.

F733Expenses and other payments not charged to income tax under miscellaneous exemptions8

A payment which is not charged to tax under any of the following provisions of ITEPA 2003—

a

section 245 (travelling and subsistence during public transport strikes);

b

section 246 (transport between work and home for disabled employees: general);

c

section 248 (transport home: late night working and failure of car-sharing arrangements);

d

section 290A (accommodation outgoings of ministers of religion);

e

section 290B (allowances paid to ministers of religion in respect of accommodation outgoings);

f

section 321 (suggestion awards).

VAT on the supply of goods and services by employed earner9

If—

a

goods or services are supplied by an earner in employed earner’s employment;

b

earnings paid to or for the benefit of the earner in respect of that employment include the remuneration for the supply of those goods or services; and

c

value added tax is chargeable on that supply;

an amount equal to the value added tax chargeable on that supply shall be excluded from the calculation of those earnings.

F1170Employee’s liabilities and indemnity insurance10

F1170 A payment which by virtue of section 346 of ITEPA 2003 (deduction for employee liabilities) is deductible from the general earnings of the employment chargeable to tax under that Act.

F1142This paragraph is subject to paragraph 1A of Part 8 of this Schedule.

Fees and subscriptions to professional bodies, learned societies etc11

A payment of, or a contribution towards any fee, contribution or annual subscription which, under section 201(1) of the Taxes Act (fees and subscriptions to professional bodies, learned societies etc) is deductible from the emoluments of any office or employment. F1143This paragraph is subject to paragraph 1A of Part 8 of this Schedule.

Holiday pay12

~~F639A payment in respect of a period of holiday entitlement where—~~

a

~~the sum paid is derived directly or indirectly from a fund—~~

i

~~to which more than one secondary contributor contributes, and~~

ii

~~the management and control of which are not vested in those secondary contributors; or~~

b

~~the person making the payment is entitled to be reimbursed from such a fund.~~

Payments to ministers of religion13

A payment of a fee in respect of employment as a minister of religion which does not form part of the stipend or salary paid in respect of that employment.

F540 Payments to miners and former miners, etc. in lieu of coal

Annotations:

Amendments (Textual)

F540

Sch. 3 Pt. 10 para. 14 substituted (6.4.2004) by The Social Security (Contributions, Categorisation of Earners and Intermediaries) (Amendment) Regulations 2004 (S.I. 2004/770), regs. 1(1), 28(7)(e)

14

“charge card” means a credit card, the terms of which include the obligations to settle the account in full at the end of a specified period;
“cheque guarantee card” means a card issued by a bank or building society for the purpose of guaranteeing a payment or supporting the encashment of a cheque up to a specified value;
“credit card” means a card which—
1. a
  may be used on its own to pay for goods or services or to withdraw cash, and
2. b
  enables the holder to make purchases and to draw cash up to a prearranged limit; and
“debit card” means a card linked to a bank or building society current account, used to pay for goods or services by debiting the holder’s account.

F230Student loans16

1

A payment made in accordance with Regulations made under section 186 of the Education Act 2002 in respect of the repayment, reduction or extinguishing of the amounts payable in respect of a loan.

2

A payment for the purpose of discharging any liability of the earner to income tax for any tax year where the income tax in question is tax chargeable in respect of—

a

the payment referred to in paragraph (1), or

b

the payment made for the purpose of discharging the income tax liability itself.

F296Payment of PAYE tax in respect of notional payment17

A payment by way of income tax for which the employer is required to account to the Board under section 710(1) of ITEPA 2003 (notional payments: accounting for tax).

F645Payments made from the In-Work Emergency Discretion Fund18

Any In-Work Emergency Discretion Fund payment made to a person pursuant to arrangements made by the Secretary of State under section 2 of the Employment and Training Act 1973.

This paragraph does not apply in Northern Ireland.

Payments made from the In-Work Emergency Fund19

Any In-Work Emergency Fund payment made to a person pursuant to arrangements made by the Department of Economic Development under section 1 of the Employment and Training Act (Northern Ireland) 1950.

This paragraph applies only in Northern Ireland.

F679Up-Front Childcare Fund payments20

Any Up-Front Childcare Fund payment made pursuant to arrangements made by the Secretary of State under section 2 of the Employment and Training Act 1973.

This paragraph does not apply to Northern Ireland.

F680Better off in Work Credit payments21

Any Better off in Work Credit payment made pursuant to arrangements made by the Secretary of State under section 2 of the Employment and Training Act 1973.

This paragraph does not apply to Northern Ireland.

F745Fees relating to the Protection of Vulnerable Groups (Scotland) Scheme22

A payment of a fee in respect of an application to join the scheme administered under section 44 of the Protection of Vulnerable Groups (Scotland) Act 2007 (scheme to collate and disclose information about individuals working with vulnerable persons).

F885Fees relating to the Disclosure and Barring Service23

1

A fee paid by virtue of section 116A(4)(b) or (5)(b) of the Police Act 1997 (“the Police Act”) (fee for up-dating certificates).

2

A fee paid under—

a

section 113A(1)(b) of the Police Act (fee for criminal record certificates);

b

section 113B(1)(b) of the Police Act (fee for enhanced criminal record certificates);

c

section 114(1)(b) of the Police Act (fee for criminal record certificates: Crown employment); or

d

section 116(1)(b) of the Police Act (fee for enhanced criminal record certificates: judicial appointments and Crown employment);

where the application is made at the same time as an application under section 116A(4) or (5) of the Police Act for the certificate to be subject to up-date arrangements.

F886Advice relating to proposed employee shareholder agreements24

1

A payment, or reimbursement, in accordance with section 205A(7) of the Employment Rights Act 1996 (employee shareholder status), of any reasonable costs in obtaining relevant advice.

2

“Relevant advice” has the same meaning as section 326B(2) of ITEPA 2003 (advice relating to proposed employee shareholder agreements).

F946Payments on which Class 1 or Class 1A contributions have been paid pursuant to the Social Security Contributions (Limited Liability Partnership) Regulations 201425

A payment made by an employer to an employed earner which represents an amount on which Class 1 or Class 1A contributions are payable by a limited liability partnership in respect of that earner by virtue of regulation 3 or 4 of the Social Security Contributions (Limited Liability Partnership) Regulations 2014.

F1267Post Office Horizon compensation payments26

1

A payment of compensation made by Post Office Limited to a person in respect of a historic conviction that was quashed because it involved evidence from the Horizon system.

2

A payment of compensation made by the Department for Business and Trade to a person who was a party to a claim against Post Office Limited in respect of the Horizon system that was subject to a group litigation order.

3

In this paragraph—

“the Horizon system” means any version of the computer system used by Post Office Limited known as Horizon, Horizon Legacy, Horizon Online or HNG-X;
“Post Office Limited” means the private company limited by shares incorporated and registered in England and Wales with company number 02154540.

F1283Post Office Horizon Shortfall Scheme compensation payments27

1

A top-up payment made by Post Office Limited to a recipient of a compensation payment from the Horizon Shortfall Scheme for the purpose of topping-up that compensation payment to account for sums lost to tax.

2

In this paragraph—

“Horizon Shortfall Scheme” means the compensation scheme created on 1st May 2020 by Post Office Limited to compensate people who were adversely affected by accounting shortfalls related to the Horizon system;
“the Horizon System” and “Post Office Limited” have the same meaning as in paragraph 26(3).

F1290Group Litigation Order nominated individual compensation payments, onward payments of Post Office compensation payments, Post Office Process Review Scheme compensation payments and Suspension Remuneration Review compensation payments 28

1

A payment made by the Department for Business and Trade to a nominated individual under the Group Litigation Order compensation scheme.

2

A payment that is a relevant onward payment of a—

a

Group Litigation Order compensation scheme payment,

b

Horizon Shortfall Scheme top-up payment made to a recipient of a compensation payment from the Horizon Shortfall Scheme for the purpose of topping-up that compensation payment to account for sums lost to tax,

c

Suspension Remuneration Review compensation payment, or

d

Post Office Process Review Scheme compensation payment.

3

A payment made by Post Office Limited under the Post Office Process Review Scheme.

4

A payment (including any top-up payment) made by Post Office Limited under the Suspension Remuneration Review.

5

In this paragraph—

“Group Litigation Order compensation scheme” means the scheme announced by His Majesty’s Government on 22 March 2022 with the objective of ensuring that persons who were party to a claim against Post Office Limited in respect of the Horizon system that was subject to a group litigation order have access to compensation for losses related to that system;
“Horizon Shortfall Scheme” has the same meaning as in paragraph 27(2);
“the Horizon system” has the same meaning as in paragraph 26(3);
“nominated individual” means any person who was a shareholder or a director of a company or a partner in a partnership which ceased to exist and was a party to a claim against Post Office Limited in respect of the Horizon system that was subject to a group litigation order;
“Post Office Limited” has the same meaning as in paragraph 26(3);
“Post Office Process Review Scheme” means the review established by Post Office Limited to provide redress to postmasters who were financially impacted by previous processes or policies in relation to balance discrepancies unrelated to the Horizon system;
“relevant onward payment” means a payment made by a company who receives a compensation payment, to an individual who is or was a director or employee of the company and it is reasonable to conclude from the circumstances that the payment is made by the company to the individual for the purpose of passing on all or part of the compensation payment to the individual;
“Suspension Remuneration Review” means the review established by Post Office Limited to provide redress to postmasters contracted to deliver Post Office services through branches who were suspended before March 2019 and did not receive remuneration during their period of suspension.

F1291Parental Transitions Support scheme payments29

Any Parental Transitions Support scheme payment made by a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994 under section 20 of the Local Government in Scotland Act 2003.

Jobs Plus Pilot payments30

Any Jobs Plus Pilot scheme payment made pursuant to arrangements made by the Secretary of State under section 2 of the Employment and Training Act 1973.

SCHEDULE 4F335Provisions derived from the Income Tax Acts and the Income Tax (Pay As You Earn) Regulations 2003

Regulation 67(2)

Annotations:

Amendments (Textual)

F335

Sch. 4 heading substituted (6.4.2004) by The Social Security (Contributions, Categorisation of Earners and Intermediaries) (Amendment) Regulations 2004 (S.I. 2004/770), regs. 1(1), 29(2)

PART I GENERAL

Interpretation1

F4441

In this Schedule the “PAYE Regulations” means the Income Tax (Pay As You Earn) Regulations 2003.

2

In this Schedule, except where the context otherwise requires—

“aggregated” means aggregated and treated as a single payment under paragraph 1(1) of Schedule 1 to the Act;

“allowable pension contributions” means any sum paid by an employee by way of contribution towards a pension fund or scheme which is withheld from the payment of PAYE income and for which a deduction must be allowed from employment income under section 592(7) or 594(1) of the Taxes Act (exempt approved schemes and exempt statutory schemes);

F603“closed tax year” means any year preceding the current year and cognate expressions shall be construed accordingly;

“Compensation of Employers Regulations” means the Statutory Maternity Pay (Compensation of Employers) and Miscellaneous Amendments Regulations 1994 F937...

“deductions working sheet” means any form of record on or in which are to be kept the matters required by this Schedule in connection with an employee’s general earnings and earnings-related contributions F899... F898...

“earnings-related contributions” means contributions payable under the Act by or in respect of an employed earner in respect of employed earner’s employment;

“employed earner” and “employed earner’s employment” have the same meaning as in the Act;

“employee” means any person in receipt of F1049... earnings;

“employer” means the secondary contributor determined—

a

by section 7 of the Act;

b

under regulation 5 of, and Schedule 3 to, the Social Security (Categorisation of Earners) Regulations 1978; or

c

under regulation 122;

F1050...

F692...

“Inland Revenue” means any officer of the Board of Inland Revenue;

“mariner” has the same meaning as in regulation 115;

F815“non-Real Time Information employer” means an employer other than one within sub-paragraph (4);

F815“Real Time Information employer” has the meaning given in sub-paragraph (4);

F816...

“tax month” means the period beginning on the 6th day of any calendar month and ending on the 5th day of the following calendar month;

“tax period” means a tax quarter where paragraph 11 has effect, but otherwise means a tax month;

“tax quarter” means the period beginning on 6th April and ending on 5th July, or beginning on 6th July and ending on 5th October, or beginning on 6th October and ending on 5th January, or beginning on 6th January and ending on 5th April;

“voyage period” has the same meaning as in regulation 115;

“year” means tax year;

and other expressions have the same meaning as in the Income Tax Acts.

3

For the purposes of paragraphs 7(13), 9, 10, 11 and 22, “primary Class 1 contributions” and “earnings-related contributions” shall, unless the context otherwise requires, include any amount paid on account of earnings-related contributions in accordance with the provisions of regulation 8(6).

F8144

The following are Real Time Information employers for the purposes of this Schedule—

a

an employer who has entered into an agreement with HMRC to comply with the provisions of this Schedule which are expressed as relating to Real Time Information employers;

b

an employer within sub-paragraph (5);

F856c

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ; and

d

on and after 6th October 2013, all employers.

5

An employer is within this paragraph if the employer has been given a general or specific direction by the Commissioners for Her Majesty's Revenue and Customs before 6th October 2013 to deliver to HMRC returns under paragraph 21A of this Schedule (real time returns of information about payments of F1051... earnings).

Multiple employersF4452

1

If—

a

an employer has made an election under regulation 98 of the PAYE Regulations to be treated as a different employer in respect of each group of employees specified in the election, and

b

no improper purpose notice has been given, or if one has been given it has been withdrawn,

he shall be treated as having made an identical election for the purposes of this Schedule.

2

In this paragraph an “improper purpose notice” is a notice issued to the employer stating that it appears to the Inland Revenue that the election is made wholly or mainly for an improper purpose within the meaning of regulation 99(2) of the PAYE Regulations.

Intermediate employers3

1

Where an employee works for a person who is not his immediate employer, that person shall be treated as the employer for the purpose of this Schedule, and the immediate employer shall furnish the principal employer with such particulars of the employee’s F1052F439... earnings as may be necessary to enable the principal employer to comply with the provisions of this Schedule.

This is subject to the qualification in sub-paragraph (4).

2

In this paragraph—

“the principal employer” means the person specified as the relevant person in the direction referred to in sub-paragraph (4), and
“the immediate employer” means the person specified as the contractor in that direction.

3

If the F440employee’s F1052... earnings are actually paid to him by the immediate employer—

a

the immediate employer shall be notified by the principal employer of the amount of earnings-related contributions which may be deducted when F441those earnings are paid to the employee, and may deduct the amount so notified to him accordingly; and

b

the principal employer may make a corresponding deduction on making to the immediate employer the payment out of which F442those earnings will be paid.

4

This paragraph only applies if a direction has been given by the Board under F443section 691 of ITEPA 2003 (PAYE: mobile UK workforce)F137.

by a person connected with him, or

b

by trustees holding property for any persons who include, or class of persons which includes, the employee.

3

Section 839 of the Taxes Act (connected persons) applies for the purposes of this paragraph.

F432Continuation of proceedings etc.5

Any legal proceedings or administrative act authorised by or done for the purposes of this Schedule and begun by one Inland Revenue officer may be continued by another officer, and any officer may act for any division or other area.

PART II DEDUCTION OF EARNINGS-RELATED CONTRIBUTIONS

Deduction of earnings-related contributions6

1

Every employer, on making during any year to any employee any payment of F1054F474... earnings in respect of which earnings-related contributions are payable, or are treated as payableF1055...—

a

shall, if he has not already done so, prepare F900... a deductions working sheet for that employee, and

b

may deduct earnings-related contributions in accordance with this Schedule.

F6041A

Where a liability to pay retrospective contributions has arisen in respect of an employee, an employer shall amend the relevant deductions working sheet or where necessary prepare one in respect of that employee.

2

Subject to sub-paragraph (3), an employer shall not be entitled to recover any earnings-related contributions paid or to be paid by him on behalf of any employee otherwise than by deduction in accordance with this Schedule.

3

Sub-paragraph (2) does not apply to secondary Class 1 contributions in respect of which an election has been made jointly by the secondary contributor and the employed earner for the purposes of paragraph 3B(1) of Schedule 1 to the Act (election in respect of transfer of secondary contribution liability on F526relevant employment income) F139 if the election provides for the collection of the amount in respect of which liability is transferred.

Calculation of deduction7

1

Subject to sub-paragraph (2), on making any payment of F1056F446... earnings to the employee, the employer may deduct from those F1056F446... earnings the amount of the earnings-related contributions based on those F1056F446... earningsF532... which the employee is liable to pay under section 6(4) of the Act F539(the “section 6(4)(a) amount”).

F11771A

On making any chain payment the F1240deemed employer may deduct the amount of earnings related contributions calculated by reference to the deemed direct earnings which the F1240deemed employer is liable to pay.

F12411B

In sub-paragraph (1A) “chain payment”, “deemed direct earnings” and “deemed employer” have the meanings given in regulations 14(2)(a), 14(3) and 20(5) respectively of the Social Security Contributions (Intermediaries) Regulations 2000.

2

Where two or more payments of F1056F446... earnings fall to be aggregated, the employer may deduct the amount of the earnings-related contributions based on those F1056F446... earnings, which are payable by the employee, either wholly from one such payment or partly from one and partly from the other or any one or more of the others.

F5353

If the employer–

a

on making any payment of F1056F446... earnings to an employee does not deduct from those F1056F446... earnings the full section 6(4)(a) amount, or

b

is treated as making a payment of F1056F446... earnings by paragraph 4A,

he may recover, in a case falling within paragraph (a) the amount not so deducted or, in a case falling within paragraph (b) the section 6(4)(a) amount, by deduction from any subsequent payment of F1056F446... earnings made by the employer to that employee during F278the same year and, where the case falls within paragraph (b) F463or sub-paragraph 4(a) or (f).

This sub-paragraph is subject to sub-paragraphs (4) and (5).

F6053A

Where an amount has been treated as retrospective earnings paid to or for the benefit of an employee, the employer may deduct the retrospective contributions based on those earnings from any payment of F1056... earnings made by him to that employee—

a

after the relevant retrospective contributions regulations come into force, and

b

during the same and the following year.

This sub-paragraph is subject to sub-paragraph (5).

4

Sub-paragraph (3) applies only where—

a

the under-deduction occurred by reason of an error made by the employer in good faith;

b

the F1056F446... earnings in respect of which the under-deduction occurred are treated as earnings by virtue of regulations made under section 112 of the Act (certain sums to be earnings)F140;

F1144c

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

d

the F1056F446... earnings in respect of which the under-deduction occurred are, by virtue of regulation 23, not paid through the secondary contributor in relation to the employment; F476...

Sub-paragraph (8) applies where an employer makes a payment consisting either soley of non-monetary earnings, or a combination of monetary and non-monetary earnings, to—

a

an employee;

b

an ex-employee,

and at the time of the payment of those earnings there are no, or insufficient, monetary earnings from which the employer could deduct the F538section 6(4)(a) amount.

7

In sub-paragraph (6)(b) “ex-employee” means a person who—

a

ceases to be employed by the employer in a particular year (“the cessation year”); and

b

receives such earnings from the employer after the cessation of employment but in the cessation year.

F5378

Where, in the circumstances specified in sub-paragraph (6), the employer–

a

does not deduct from the earnings referred to in that sub-paragraph the full section 6(4)(a) amount, or

b

is treated as making a payment of F1056F446... earnings by paragraph 4A,

he may recover, in a case falling within paragraph (a) the amount not so deducted or, in a case falling within paragraph (b) the section 6(4)(a) amount, by deduction from any subsequent payment of monetary earnings to that employee, or ex-employee (as the case may be) during the same year.

This sub-paragraph is subject to sub-paragraph (5).

9

Sub-paragraph (11) applies if—

a

a person (“the ex-employee”) ceases in a particular tax year (“the cessation year”) to be employed by a particular employer (“the employer”); and

b

the ex-employee receives from the employer in the cessation year, after the cessation of employment, earnings in the form of—

i

a beneficial interest in F477securities,

ii

a conditional interest in F477securities or a beneficial interest in convertible F477securities treated as earnings under F478regulation 22(5), (6) or (7),

iii

any gain on which the ex-employee is chargeable to tax by virtue of F479section 4(4)(a) of the Act; and

c

at the time of the payment of those earnings there are no monetary earnings, or insufficient monetary earnings, from which the employer could deduct the F536section 6(4)(a) amount.

F48010

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F481...

c

the amount of any earnings in respect of which primary Class 1 contributions were payable which exceed the current primary threshold but do not exceed the F1148current upper earnings limitF1149...;

F1150ca

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

d

the amount of the earnings, if any, recorded under paragraphs (b) and (c), above the current lower earnings limit, in respect of which primary Class 1 contributions were payable or, where section 6A of the Act and regulation 127 applies, were treated as having been paid, at the reduced rate;

e

the amount of primary Class 1 contributions paid by the employee;

F267f

the amount of statutory maternity pay paid to the employee;

F740g

the amount of F969... statutory paternity pay paid to the employee;

F970ga

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F971...

h

the amount of statutory adoption pay paid to the employeeF958; F1225...

i

the amount of statutory shared parental pay paid to the employee;F1227; and

j

the amount of statutory parental bereavement pay paid to the employee;

and shall enter the amounts under F268paragraph (e) under the appropriate category letter indicated by the F466Inland Revenue.

2

Where the employer is not required to give the employee a certificate in accordance with F447regulation 67 of the PAYE Regulations, because no tax has been deducted from the employee’s F819relevant payments during the year concernedF734..., F281but the employee—

a

has paid, or

b

is treated, by virtue of section 6A of the Act, as having paid,

primary Class 1 contributions in that year, the employer shall nevertheless give the employee such a certificate showing the information referred to in sub-paragraph (1).

F8203

In sub-paragraph (2), “relevant payments” has the meaning given in the PAYE Regulations.

PART III PAYMENT AND RECOVERY OR EARNINGS-RELATED CONTRIBUTIONS, CLASS 1A CONTRIBUTIONS AND CLASS 1B CONTRIBUTIONS, ETC.

Payment of earnings-related contributions monthly by employer10

1

Subject to F608sub-paragraph (1A) and paragraph 11 and 15(8), the employer shall pay the amount specified in sub-paragraph (2) to the F485Inland Revenue within 14 days F486or, if payment is made by an approved method of electronic communications in respect of earnings paid after 5th April 2004, within 17 days of the end of every F487... tax month.

F6091A

This paragraph does not apply in respect of amounts of retrospective earnings.

2

The amount specified in this sub-paragraph is the total amount of earnings-related contributions due in respect of F1057F448... earnings paid by the employer in that F449... tax month, F821(and, where required, reported under paragraph 21A or 21D) other than amounts deductible under paragraph 7(2) which he did not deduct and amounts which he deducted under the Compensation of Employers RegulationsF823....

3

For the purposes of sub-paragraph (2), if two or more payments of F1057F488... earnings fall to be aggregated, the employer shall be treated as having deducted from the last of those payments the amount of any earnings-related contributions deductible from those payments which he did not deduct from the earlier payments.

F8223A

The amount specified in sub-paragraph (2) must be adjusted to take account of errors corrected under paragraph 21E(5), other than in cases where paragraph 21E(4) appliesF854, or failures rectified under paragraph 21EA(2).

F9244

Where the amount specified in sub-paragraph (2) has been adjusted to take account of an error as provided for in sub-paragraph (3A) and the value of the adjustment is a negative amount, that amount is treated as having been paid to HMRC—

a

17 days after the end of the tax month in which the correction is made if payment is made using an approved method of electronic communications, and

b

14 days after the end of the tax month in which the correction is made, in any other case.

Payments of earnings-related contributions quarterly by employer11

1

Subject to F610sub-paragraph (1A) and paragraph 15(8), the employer shall pay the amount specified in sub-paragraph (2) to the F489Inland Revenue within 14 days of the end of every F490... tax quarter F491or, if payment is made by an approved method of electronic communications in respect of earnings paid after 5th April 2004, within 17 days of the end of every tax quarter where—

a

the employer has reasonable grounds for believing that the condition specified in sub-paragraph (4) applies and chooses to pay the amount specified in sub-paragraph (2) quarterly; or

F492b

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F6111A

This paragraph does not apply in respect of amounts of retrospective earnings.

2

The amount specified in this sub-paragraph is the total amount of earnings-related contributions due in respect of F1058F450... earnings paid by the employer in that F451... tax quarter, F825(and, where required, reported under paragraph 21A or 21D) other than amounts deductible under paragraph 7(2) which he did not deduct and amounts which he deducted under the Compensation of Employers RegulationsF828....

3

For the purposes of sub-paragraph (2), where two or more payments F493of F1058... earnings fall to be aggregated, the employer shall be deemed to have deducted from the last of those payments the amount of any earnings-related contributions deductible from those payments which he did not deduct from the earlier payments.

F8243A

The amount specified in sub-paragraph (2) must be adjusted to take account of errors corrected under paragraph 21E(5), other than in cases where paragraph 21E(4) appliesF855, or failures rectified under paragraph 21EA(2).

F9253B

a

17 days after the end of the tax quarter in which the correction is made if payment is made using an approved method of electronic communications, and

b

14 days after the end of the tax quarter in which the correction is made, in any other case.

F2634

The condition specified in this sub-paragraph is that for F452tax months falling within the current year, the average monthly amount found by the formula below will be less than £1500.

The formula is—

F577(N + P + L + S) − (SP + CD)

The expressions used in the formula have the following values.
- N is the amount which would be payable to the F453Inland Revenue under the Social Security Contributions and Benefits Act 1992 and these Regulations but disregarding—
  1. a
    any amount of secondary Class 1 contributions in respect of which liability has been transferred to the employed earner by an election made jointly by the employed earner and the secondary contributor for the purpose of paragraph 3B(1) of Schedule 1 to the Act (transfer of liability to be borne by the earner); and
  2. aa
    F612any amount payable in respect of retrospective earnings;
  3. c
    F580...
- F613“P” is the amount which would be payable to HMRC under regulation F826 67G or 68 of the PAYE Regulations but disregarding any amount payable in respect of retrospective employment income (within the meaning of regulation 2 of those Regulations);
- L is the amount which would be payable to the F453Inland Revenue under F827regulation 54(1) of the Education (Student Loans) (Repayment) Regulations 2009 (payment of repayments deducted to HMRC) if the reduction referred to in paragraph (3) of that regulation F578...were disregarded.
- S is the sum of the amounts which the employer would be liable to deduct, under section 559 of the Taxes Act and the Income Tax (Sub-contractors in the Construction Industry) Regulations 1993, from payments made by him.
- F579...
- SP is the amount—
  1. a
    recoverable by the employer from F454the Inland Revenue, or
  2. b
    deductible from amounts for which the employer would otherwise be accountable to F454the Inland Revenue,
  in respect of payments to his employees by way of F938... statutory maternity pay, F741F972statutory paternity payF959, statutory shared parental payF1223, statutory adoption pay and statutory parental bereavement pay.
- CD is the amount which would be deducted by others from sums due to the employer, in his position as a sub-contractor, under section 559 of the Taxes Act.

F795Payments to and recoveries from HMRC for each tax period by Real Time Information employers: returns under paragraph 21E(6) F858or 21EA(3)11ZA

1

This paragraph applies if, during any tax period, an employer makes a return under paragraph 21E(6) (returns under paragraph 21A and 21D: amendments) other than by virtue of paragraph 21E(4)F857, or paragraph 21EA(3) (failure to make a return under paragraph 21A or 21D of Schedule 4).

2

The amount specified in paragraph 10(2) or, as the case may be, 11(2) for the final tax period in the year covered by the return is to be adjusted to take account of the information in the return.

3

If the value of the adjustment required by paragraph (2) is a negative amount, the employer may recover that amount—

a

by setting it off against the amount the employer is liable to pay under paragraph 10(2) or, as the case may be, 11(2) for the tax period the return is made in; or

b

from the Commissioners for Her Majesty's Revenue and Customs.

F9263A

Where sub-paragraph (3) applies the negative amount is treated as having been paid to HMRC—

a

17 days after the end of the final tax period in the year covered by the return where payment is made using an approved method of electronic communication, and

b

14 days after the end of the final tax period in the year covered by the return in any other case.

4

But paragraph (3) does not apply in relation to primary Class 1 contributions in a case where those contributions were deducted in error and the excess deduction has not been refunded to the employee.

F595Payments of earnings-related contributions in respect of retrospective earnings11A

1

This paragraph applies where there are retrospective earnings in respect of which contributions (whether primary or secondary contributions) are payable.

2

The employer shall pay the contributions referred to in sub-paragraph (1) to HMRC within 14 days or, if payment is made in respect of the current year by an approved method of electronic communications, 17 days of the end of the tax month immediately following the tax month in which the relevant retrospective contributions regulations came into force.

Payment of earnings-related contributions by employer (further provisions)12

F4941

The Inland Revenue shall give a receipt to the employer for the total amount paid under paragraph F61410, 11 or 11A if so requested, but if a receipt is given for the total amount of earnings-related contributions and any tax paid at the same time, a separate receipt need not be given for earnings-related contributions.

2

Subject to sub-paragraph (3), if the employer has paid to the F495Inland Revenue on account of earnings-related contributions under paragraph F61410, 11 or 11A an amount which he was not liable to pay, or which has been refunded in accordance with regulation 2 of the Social Security (Refunds) (Repayment of Contractual Maternity Pay) Regulations 1990 (refunds of contributions)F142, the amounts which he is liable to pay subsequently in respect of other payments of F1059F496... earnings made by him during the same year shall be reduced by the amount overpaid, so however that if there was a corresponding over-deduction from any payment of F1059F496... earnings to an employee, this paragraph shall apply only in so far as the employer has reimbursed the employee for that over-deduction.

3

Sub-paragraph (2) applies only if—

a

the over-deduction occurred by reason of an error by the employer in good faith;

F1152b

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

c

a refund has been made under regulation 2 of the Social Security (Refunds) (Repayment of Contractual Maternity Pay) Regulations 1990.

Payment of Class 1B contributions13

1

A person who is liable to pay a Class 1B contribution (“the employer”), shall pay that Class 1B contribution to the F497Inland Revenue not later than 19th October F498or, if payment is made by an approved method of electronic communications in respect of earnings paid after 5th April 2004, not later than 22nd October in the year immediately following the end of the year in respect of which that contribution is payable.

2

If the employer has paid to the F497Inland Revenue under this paragraph an amount in respect of Class 1B contributions which he was not liable to pay, he shall be entitled to deduct the amount overpaid from any payment in respect of secondary earnings-related contributions which he is liable to pay subsequently to the F497Inland Revenue under paragraph 10 or 11 for any F499... tax period in the same year.

Employer failing to pay earnings-related contributions14

1

If within F45517 days of the end of any F457... tax period F829a non-Real Time Information employer has paid no amount of earnings-related contributions to the F456Inland Revenue under paragraph 10 or 11 for that F457... tax period and the F456Inland Revenue is unaware of the amount, if any, which the employer is liable so to pay, the F456Inland Revenue may give notice to the employer requiring him to render, within 14 days, a return in the prescribed form showing the amount of earnings-related contributions which the employer is liable to pay to the F456Inland Revenue under that paragraph in respect of the F457... tax period in question.

2

Where a notice given by the F456Inland Revenue under sub-paragraph (1) extends to two or more consequent income tax periods, the provisions of this Schedule shall have effect as if those F457... tax periods were one F457... tax period.

3

If the F456Inland Revenue is not satisfied that an amount of earnings-related contributions paid F500... under paragraph 10 or 11 for any F457... tax period is the full amount which the employer is liable to payF500..., the F456Inland Revenue may give a notice under sub-paragraph (1) despite the payment of that amount.

Specified amount of earnings-related contributions payable by the employer15

1

If after F46717 days following the end of any F458... tax period the employer has paid no amount of earnings-related contributions to F653HMRC under paragraph 10 or 11 for that F458... tax period and there is reason to believe that the employer is liable to pay such contributions, F653HMRC, upon consideration of the employer’s record of past payments F654whether of earnings-related contributions or of combined amounts, may to the best of F468their judgment specify the amount of earnings-related contributions F655or of a combined amount which F469they consider the employer is liable to pay and give notice to him of that amount.

F6491A

For the purposes of this paragraph “combined amount” is an amount which includes earnings-related contributions due under these regulations and one or more of the following—

a

tax due under the PAYE Regulations;

b

amounts due under the Income Tax (Construction Industry Scheme) Regulations 2005;

c

payments of repayments of student loans due under the F831Education (Student Loans) (Repayment) Regulations 2009.

F8301B

In arriving at an amount under paragraph (1), HMRC may also take into account any returns made by the employer under this Schedule in the tax period in question or earlier tax periods.

2

If, on the expiration of the period of 7 days allowed in the notice, the specified amount F656... or any part thereof is unpaid, the amount so unpaid—

a

shall be treated for the purposes of this Schedule as an amount of earnings-related contributions F657or as including an amount of earnings-related contributions which the employer was liable to pay for that F458... tax period in accordance with paragraph 10 or 11; and

b

may be certified by F658HMRC.

3

The provisions of sub-paragraph (2) shall not apply if, during the period allowed in the notice, the employer pays to F659HMRC the full amount of earnings-related contributions which the employer is liable to pay under paragraph 10 or 11 for that F458... tax period, or the employer satisfies F659HMRC that no amount of such contributions is due.

4

The production of a certificate such as is mentioned in sub-paragraph (2) shall, until the contrary is established, be sufficient evidence that the employer is liable to pay to F660HMRC the amount shown in it; and any document purporting to be such a certificate as aforesaid shall be deemed to be such a certificate until the contrary is proved.

Paragraph 16 shall apply, with any necessary modifications, to the amount shown in the certificate.

5

Where the employer has paid no amount of earnings-related contributions under paragraph 10 or 11 for any F458... tax periods, a notice may be given by F661HMRC under sub-paragraph (1) which extends to two or more consecutive F458... tax periods, and this Schedule shall have effect as if those F458... tax periods were the latest F458... tax period specified in the notice.

6

A notice may be given by F662HMRC under sub-paragraph (1) notwithstanding that an amount of earnings-related contributions has been paid F470... by the employer under paragraph 10 or 11 for any F458... tax period, if, after seeking the employer’s explanation as to the amount of earnings-related contributions paid, F662HMRC is not satisfied that the amount so paid is the full amount which the employer is liable to pay F470... for that period, and this paragraph shall have effect accordingly, save that sub-paragraph (2) shall not apply if, during the period allowed in the notice, the employer satisfies F662HMRC that no further amount of earnings-related contributions is due for the relevant F458... tax period.

7

Where, during the period allowed in a notice given by F650HMRC under sub-paragraph (1), the employer claims, but does not satisfy F650HMRC, that the payment F651... made in respect of any F458... tax period specified in the notice is F652or includes the full amount of earnings-related contributions he is liable to pay to F650HMRC for that period, the employer may require F650HMRC to inspect the employer’s documents and records as if F650HMRC had called upon the employer to produce those documents and records in accordance with F693Schedule 36 to the Finance Act 2008 (information and inspection powers) and the provisions of paragraph 26A shall apply in relation to that inspection, and the notice given by F650HMRC under sub-paragraph (1) shall be disregarded in relation to any subsequent time.

8

Notwithstanding anything in this paragraph, if the employer pays any amount of earnings-related contributions certified by F663HMRC under it F664whether separately or as part of a combined amount and that amount exceeds the amount which he would have been liable to pay in respect of that F458... tax period apart from this paragraph, he shall be entitled to set off such excess against any amount which he is liable to pay to F663HMRC under paragraph 10 or 11 for any subsequent F458... tax period.

9

If, after the end of the year, the employer renders the return required by paragraph 22(1) and the total earnings-related contributions he has paid in respect of that year in accordance with this Schedule exceeds the total amount of such contributions due for that year, any excess not otherwise recovered by set-off shall be repaid.

Recovery of earnings-related contributions or Class 1B contributions16

1

The F459... Tax Acts and any regulations underF143F471section 684 of ITEPA 2003 (PAYE regulations) relating to the recovery of tax shall apply to the recovery of—

a

any amount of earnings-related contributions which an employer is liable to pay F671HMRC for any F459... tax period in accordance with paragraph 10 or 11 or which he is treated as liable to F671HMRCF667whether separately or as part of a combined amount for any F459... tax period under paragraph 15; or

b

any amount of Class 1B contributions which an employer is liable to pay to the F671HMRC in respect of any year in accordance with paragraph 13(1),

as if each of those amounts had been charged to tax by way of an assessment on the employer F472as employment income under ITEPA 2003.

2

Sub-paragraph (1) is subject to the qualification that, in the application to any proceedings taken, by virtue of this paragraph, of any of the relevant provisions limiting the amount which is recoverable in those proceedings, there shall be disregarded any F668other component of a combined amount which may, by virtue of sub-paragraphs (3) to (5), be included as part of the cause of action or matter of complaint in those proceedings.

3

Proceedings may be brought for the recovery of the total amount of—

a

earnings-related contributions which the employer is liable to pay to F675HMRC for any F459... tax period;

tax which the employer is liable to pay for any F459... tax period in respect of each of his several employees.

F666d

amounts due under the Income Tax (Construction Industry Scheme) Regulations 2005; or

e

payments of repayments of student loans due under the F832Education (Student Loans) (Repayment) Regulations 2009.

F6656

For the purposes of this paragraph “combined amount” has the meaning given in paragraph 15(1A).

Interest on overdue earnings-related contributions or Class 1B contributions17

1

F502Subject to F615sub-paragraph (4A) and paragraph 21, where, in relation to the year ended 5th April 1993 or any subsequent year, an employer has not—

F927a

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

b

paid a Class 1B contribution by 19th October F503or, if payment is made by an approved method of electronic communications in respect of earnings paid after 5th April 2004, not later than 22nd October next following the year in respect of which it was due,

any contribution not so paid shall carry interest at the rate applicable under paragraph 6(3) of Schedule 1 to the Act from the reckonable date until payment.

2

Interest payable under this paragraph shall be recoverable as if it were an earnings-related contribution or a Class 1B contribution, as the case may be, in respect of which an employer is liable under paragraph 10, 11, or 13 to pay to F676HMRC.

3

For the purposes of this paragraph—

a

“employer” means, in relation to a Class 1B contribution, the person liable to pay such a contribution in accordance with section 10A of the ActF145;

b

“the reckonable date” means, in relation to—

F928i

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

ii

a Class 1B contribution, the 19th October F504or, if payment was made by an approved method of electronic communications in respect of earnings paid after 5th April 2004, the 22nd October next following the year in respect of which it was due.

F616iii

a contribution payable in respect of retrospective earnings relating to a tax year which is closed at the time that the relevant retrospective contributions regulations come into force, the 14th day after the end of the tax month immediately following the tax month in which those regulations came into force.

4

A contribution to which sub-paragraph (1) applies shall carry interest from the reckonable date even if the date is a non-business day within the meaning of section 92 of the Bills of Exchange Act 1882F146.

F6174A

Where an employer has not paid contributions in respect of retrospective earnings relating to a closed tax year by the date set out in paragraph 11A, any contribution not so paid shall carry interest at the rate applicable under paragraph 6(3) of Schedule 1 to the Act from the reckonable date until payment.

F4735

A certificate of F677HMRC that, to the best of their knowledge and belief, any amount of interest payable under this paragraph has not been paid by an employer or employee is sufficient evidence that the amount mentioned in the certificate is unpaid and due to be paid, and any document purporting to be such a certificate shall be presumed to be a certificate until the contrary is proved.

F6786

HMRC may prepare a certificate certifying the total amount of interest payable in respect of the whole or any component of a combined amount without specifying what component of the combined amount the interest relates to.

Sub-paragraph (5) shall apply, with any necessary modifications, to the certificate.

7

For the purposes of this paragraph “combined amount” has the meaning given in paragraph 15(1A).

F336Application of paragraphs 16 and 17 in cases of wilful failure to pay17A

1

If regulation 86(1)(a) applies paragraphs 16 and 17F929, and section 101 of the Finance Act 2009, in respect of an earnings-related contribution, shall apply to the employed earner to the extent of the primary contribution which the secondary contributor wilfully failed to pay.

2

For the purpose of sub-paragraph (1) any reference in paragraph 16 and 17 to an employer shall be construed as a reference to the employed earner.

the interest paid is found not to have been due to be paid, although the contribution in respect of which it was paid was due to be paid;

b

the earnings-related contribution or Class 1B contribution in respect of which interest was paid is returned or repaid to him in accordance with the provisions of regulation F50152, 52A or 55.

Remission of interest for official error20

1

Where interest is payable in accordance with paragraph 17F933, or section 101 of the Finance Act 2009 in relation to any earnings-related contribution, it shall be remitted for the period commencing on the first relevant date and ending on the second relevant date in the circumstances specified in sub-paragraph (2).

2

For the purposes of sub-paragraph (1), the circumstances are that the liability, or a greater liability, to pay interest in respect of an earnings-related contribution or a Class 1B contribution arises as the result of an official error being made.

3

In this paragraph—

a

“an official error” means a mistake made, or something omitted to be done, by an officer of the Board, where the employer or any person acting on his behalf has not caused, or materially contributed to, that mistake or omission;

b

“the first relevant date” means the reckonable date as defined in paragraph 17(3) or, if later, the date on which the official error occurs;

c

“the second relevant date” means the date 14 days after the date on which the official error has been rectified and the employer is advised of its rectification.

Application of paragraphs 10, 12, 16, 17, 18, 19 and 2021

1

This paragraph applies where—

a

which for the tax year 2015-16 meets Conditions A and C,

may instead for that tax year deliver to HMRC the information specified in Schedule 4A (real time returns) in respect of every payment of F1061... earnings made to an employee in a tax month on or before making the last payment of F1061... earnings in that month.

1B

Condition A is that at 5th April 2014 the employer is one to whom HMRC has issued an employer’s PAYE reference.

F9021C

Condition B is that at 6th April 2014 the Real Time Information employer employs no more than 9 employees.

1D

Condition C is that at 6th April 2015 the Real Time Information employer employs no more than 9 employees.

1E

In this paragraph “employer’s PAYE reference” means—

a

the combination of letters, numbers, or both, used by HMRC to identify an employer for the purposes of the PAYE Regulations, and

b

the number which identifies the employer’s HMRC office.

2

The information must be included in a return.

3

Subject to paragraph (4), if payments of F1061... earnings are made to more than one employee at the same time, the return under sub-paragraph (2) must include the information required by Schedule 4A in respect of each employee to whom a payment of F1061... earnings is made at that time.

4

If payments of F1061... earnings are made to more than one employee at the same time but the employer operates more than one payroll, the employer must make a return in respect of each payroll.

5

The return is to be made using an approved method of electronic communications and regulation 90N(2) (mandatory use of electronic communications) applies as if the return was a paragraph 22 return within the meaning given by regulation 90M (paragraph 22 return and specified payments).

F8606

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F8607

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8

Schedule 24 to the Finance Act 2007 (penalties for errors), as that Schedule applies to income tax returns, shall apply in relation to the requirement to make a return contained in sub-paragraph (2).

F845Employees in respect of whom employer is not required to maintain a deductions worksheet21AA

1

This paragraph applies if an employer makes a payment of F1062... earnings to an employee in respect of whom the employer is not required to maintain a deductions working sheet.

2

The employer need not deliver the information required by paragraph 21A in respect of that employee on or before making the payment.

3

The employer must deliver that information no later than the end of the period of 7 days starting with the day following the day on which the payment is made.

Employees paid in specified circumstances21AB

1

This paragraph applies if—

a

an employer makes a payment of F1063... earnings to an employee, and

b

all of the circumstances in sub-paragraph (2) apply.

2

The circumstances are that—

a

the payment includes an amount of F1063... earnings which is for work undertaken by the employee on—

i

the day the payment is made, or

ii

provided that the payment is made before the employee leaves the place of work at the end of the employee’s period of work, the day before the payment is made,

b

in respect of the work mentioned in paragraph (a), it was not reasonably practicable for the employer to calculate the payment due before the completion of the work, and

c

it is not reasonably practicable for the employer to deliver the information required by paragraph 21A on or before making the payment.

3

The employer need not deliver the information required by paragraph 21A on or before making the payment.

4

The employer must deliver that information no later than the end of the period of 7 days starting with the day following the day on which the payment is made.

Paragraphs 21AA and 21AB: supplementary21AC

Where paragraph 21AA or 21AB applies, the information required by paragraph 21A in respect of the payment of F1064... earnings may be included in a return with the information for any other payment of F1064 ... earnings.

Benefits and expenses – returns under regulations 85 to 87 of the PAYE Regulations21AD

1

This paragraph applies if an employer makes a payment of F1065... earnings to an employee which, for the purposes of tax, falls to be included in a return under—

a

regulations 85 and 86 of the PAYE Regulations (employers: annual return of other earnings (Forms P11D and P9D) – information which must be provided for each employee), or

b

regulations 85 and 87 of the PAYE Regulations (employers: annual return of other earnings (Forms P11D and P9D) – information which must also be provided for benefits code employees) or would fall to be so included if the employee’s employment was subject to the benefits code for the purposes of regulation 85 of the PAYE Regulations.

2

If the employer is unable to comply with the requirement in paragraph 21A(1) to deliver the information required by that paragraph on or before making the payment, the employer must instead deliver the information as soon as reasonably practicable after the payment is made and in any event no later than 14 days after the end of the tax month in which the payment is made.

F1292Employees paid advance payments of earnings21AE

1

Sub-paragraph (2) applies where an employer—

a

normally makes a payment of earnings to an employee at regular intervals of no shorter than a week and no longer than a month,

b

makes an advance payment to the employee, and

c

makes a reduced regular interval payment to the employee.

2

Where this paragraph applies—

a

the requirements of paragraphs 6(1)(a) (deduction of earnings-related contributions), 7(13) (calculation of deduction), 21A (real time returns of information about payments of earnings) and Schedule 4A (real time returns) do not apply to advance payments in the period beginning with the making of the advance payment and ending with the making of the reduced regular interval payment, and

generate a reference and include it in that return,

b

notify the service provider that the payment is a payment of F1067... earnings, and

c

generate a sub-reference in respect of the payment of F1067... earnings and notify the service provider of that sub-reference.

2

A service provider who receives a notification under paragraph (1)(b) must notify HMRC of the information it holds that is required for generating a reference in relation to the payment of F1067... earnings.

3

In sub-paragraphs (1) and (2), “service provider” means the provider of the approved method of electronic communications by which the payment is made.

4

For the purposes of sub-paragraphs (1) and (3), an “approved method of electronic communications” is any method of electronic communications which has been approved for the purposes of regulation 90H (mandatory electronic payment).

5

Any direction given under regulation 67CA of the PAYE Regulations (notification of relevant payments to and by providers of certain electronic payment methods) applies for the purposes of the obligations in this paragraph as if it referred to payments of F1067 ... earnings.

F794Exceptions to paragraph 21A21D

1

This paragraph applies to—

a

an individual who is a practising member of a religious society or order whose beliefs are incompatible with the use of electronic communications;

b

a partnership, if all the partners fall within sub-paragraph (a);

c

a company, if all the directors and the company secretary fall within sub-paragraph (a);

d

a care and support employer.

F866e

an employer to whom a direction has been given under sub-paragraph (12).

F908But this is subject to sub-paragraph (2B).

2

A Real Time Information employer to whom this paragraph applies may proceed in accordance with this paragraph instead of paragraph 21A.

F8642A

Before 6th April 2014, a Real Time Information employer to whom this paragraph applies may proceed as if the employer were a non-Real Time Information employer and accordingly the provisions of this Schedule apply to such an employer.

F9042B

This paragraph does not apply if a Real Time Information employer within sub-paragraph (1) makes a return using an approved method of electronic communications.

3

F867On and after 6th April 2014, the Real Time Information employer must deliver to HMRC the information specified in Schedule 4A in respect of each employee to whom a payment of F1068... earnings is made in a tax F905quarter unless the employer is not required to maintain a deductions working sheet for any employees and, for the purposes of this paragraph, references in Schedule 4A to a payment of F1068 ... earnings shall be read as if they were references to all the payments made to the employee in the tax F905quarter.

4

The information must be included in a return in such a form as HMRC may approve or prescribe.

5

The return required under sub-paragraph (4) must be delivered within 14 days after the end of the tax F906quarter the return relates to.

6

If payments of F1068... earnings have been made to more than one employee in the tax F907quarter, the return under sub-paragraph (4) must include the information required by Schedule 4A in respect of each employee to whom a payment of F1068 ... earnings has been made.

F8687

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F8688

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9

Schedule 24 to the Finance Act 2007, as that Schedule applies to income tax returns, shall apply in relation to the requirement to make a return contained in sub-paragraph (4).

10

In sub-paragraph (1)(c), “company” means a body corporate or unincorporated association but does not include a partnership.

11

In sub-paragraph (1)(d), “care and support employer” means an individual (“the employer”) who employs a person to provide domestic or personal services at or from the employer's home where—

a

the services are provided to the employer or a member of the employer's family;

b

the recipient of the services has a physical or mental disability, or is elderly or infirm; and

c

it is the employer who delivers the return (and not some other person on the employer's behalf).

F86512

Where the Commissioners for Her Majesty’s Revenue and Customs are satisfied that—

a

it is not reasonably practicable for an employer to make a return using an approved method of electronic communications, and

b

it is the employer who delivers the return (and not some other person on the employer’s behalf),

they may make a direction specifying that the employer is not required to make a return using an approved method of electronic communications.

F794Returns under paragraphs 21A and 21D: amendments21E

1

This paragraph applies where F912there is an inaccuracy in a return, whether careless or deliberate, made under paragraph 21A (real time returns of information about payments of F1069... earnings) or 21D (exceptions to paragraph 21A) and sub-paragraph (2), (3) or (4) applies.

2

This sub-paragraph applies where the F909inaccuracy relates to the information given in the return in respect of an employee under F869one or more of paragraphs 3A, 7, 10(b), 10(d), F1242... 14, 15, 16F1243, 17A or 18 of Schedule 4A (real time returns).

3

This sub-paragraph applies where the F910inaccuracy was the omission of details of a payment of F1069 ... earnings to an employee.

4

This sub-paragraph applies where retrospective earnings increase the total amount of the F1069 ... earnings paid to the employee for any tax year in which the employer was a Real Time Information employer.

F9115

When the employer becomes aware of an inaccuracy in a return under paragraph 21A or 21D, the employer must provide the correct information in the next return for the tax year in question.

6

But if the information given has not been corrected before 20th April following the end of the tax year in question, the employer must make a return under this sub-paragraph.

7

A return under sub-paragraph (6)—

a

must include the following—

i

the information specified in paragraphs F8702 to 7 and 10 to 12 of Schedule 4A,

F871ii

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

iii

F1245if the return relates to the tax year 2017-18 or an earlier tax year, the value of the adjustment, if any, to the information given under each of the paragraphs of Schedule 4A referred to in sub-paragraph (2) in the final return under paragraph 21A or 21D containing information in respect of the employee in the tax year in question,

F1244iiia

if the return relates to the tax year 2020-21 or a subsequent tax year, the amount which should have been given under one or more of the paragraphs of Schedule 4A referred to in sub-paragraph (2) in the final return under paragraph 21A or 21D containing information in respect of the employee in the tax year in question,

iiib

if the return relates to the tax year 2018-19 or 2019-20—

aa

the value of the adjustment to the information given under, or

bb

the amount which should have been given under,

one or more of the paragraphs of Schedule 4A referred to in sub-paragraph (2) in the final return under paragraph 21A or 21D containing information in respect of the employee in the tax year in question,

F1247iv

if the inaccuracy relates to the information which was or which should have been given under paragraph 7 or 10(b) or (d) of Schedule 4A, the information specified in paragraph 6 of that Schedule,

v

if the inaccuracy relates to the information which was or which should have been given under paragraph 10(d) of Schedule 4A and the correct information decreases the amount reported under that paragraph, an indication of whether the employer has refunded the primary Class 1 contributions paid in error to the employee, and

vi

if the inaccuracy relates to the information which was or which should have been given under paragraph 16 of Schedule 4A, the information specified in paragraph 17 of that Schedule if it has not already been provided;

b

must be made as soon as reasonably practicable after the F913employer becomes aware of the inaccuracy; and

c

must be made using an approved method of electronic communications F872and regulation 90N(2) (mandatory use of electronic communications) applies as if the return was a paragraph 22 return within the meaning given by regulation 90M (paragraph 22 return and specified payments).

8

In the application of sub-paragraphs (6) and (7) to cases within sub-paragraph (3), if no information was given in any returns under paragraph 21A or 21D in respect of the employee in the tax year, the value of any adjustments required F1246by sub-paragraph (7)(a)(iii) or (iiib) must be calculated as if there was a final return containing information for the employee in the year and the figure requiring adjustment was zero.

9

Sub-paragraph (7)(c) does not apply if the employer is one to whom paragraph 21D applies but in those circumstances the return must be in such a form as HMRC may approve or prescribe.

F847Failure to make a return under paragraph 21A or 21D21EA

1

This paragraph applies where an employer does not make a return required by paragraph 21A (real time returns of information about payments of F1070... earnings) or 21D (exceptions to paragraph 21A).

2

The employer must provide the information in the next return made under paragraph 21A or 21D for the tax year in question.

3

But if the information has not been provided before 20th April following the end of the tax year in question, the employer must submit a return under this sub-paragraphF890....

4

A return under sub-paragraph (3) must—

a

include the information specified in Schedule 4A,

b

be made as soon as reasonably practicable after the discovery of the failure to make the return, and

c

be made using an approved method of electronic communications and regulation 90N(2) (mandatory use of electronic communications) applies as if the return were a paragraph 22 return within the meaning given by regulation 90M (paragraph 22 return and specified payments).

5

Sub-paragraph (4)(c) does not apply if the employer is one to whom paragraph 21D applies but in those circumstances the return must be in such a form as HMRC may approve or prescribe.

6

F891If a return under sub-paragraph (3) is not made before 20th May following the tax year in question section 98A of TMA 1970 (special penalties in the case of certain returns) applies to F892that returnF939, but this sub-paragraph does not apply to a return in respect of the tax year 2014-15 or a subsequent tax year.

if the notification is under sub-paragraph (7A)(b)(i), include the date of cessation;

b

is to be made using an approved method of electronic communications.

F8789

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10

For the purposes of sub-paragraph (8)(b), regulation 90N(2) (mandatory use of electronic communications) applies as if the return was a paragraph 22 return within the meaning given by regulation 90M (paragraph 22 return and specified payments).

11

The requirement to use an approved method of electronic communications does not apply if the employer is one to whom paragraph 21D (exceptions to paragraph 21A) applies but in those circumstances the return must be in such a form as HMRC may approve or prescribe.

12

Schedule 24 to the Finance Act 2007 (penalties for errors), as that Schedule applies to income tax returns, shall apply in relation to the requirement to make a return contained in sub-paragraph (2) or (7).

F934Penalty: failure to comply with paragraph 21A or 21D21G

1

Where a Real Time Information employer fails to deliver a return in accordance with paragraph 21A (real time returns of information about payments of F1072... earnings) to paragraph 21AB (employees paid in specific circumstances), paragraph 21AD (benefits and expenses – returns under the PAYE Regulations), paragraph 21B (modification of the requirements of paragraph 21A: notional payments) or paragraph 21D (exceptions to paragraph 21A), Schedule 55 to the Finance Act 2009 (amount of penalty: real time information for PAYE) and regulations 67I to 67K of the PAYE Regulations (penalties) apply in relation that failure as if—

a

the return under paragraph 21A (real time returns of information about payments of F1072... earnings) or paragraph 21D (exceptions to paragraph 21A), as the case may be, were a return falling within item 4 of the Table in paragraph 1 of Schedule 55, and

b

references to the PAYE Regulations were references to these Regulations,

but this is subject to F1153sub-paragraphs (2) and (2A).

2

Where a Real Time Information employer (P) is liable to a penalty in consequence of a failure to deliver a return (“the tax return”) under regulation 67B (real time returns of information about relevant payments) or regulation 67D (exceptions to regulation 67B) of the PAYE Regulations, P shall not also be liable to a penalty in respect of any failure in relation to an associated return under paragraph 21A (real time returns of information about payments of F1072... earnings) or 21D (exceptions to paragraph 21A).

F11542A

Sub-paragraph (2) does not apply to a penalty imposed under paragraph 6D of Schedule 55 to the Finance Act 2009 (amount of penalty: real time information for PAYE).

3

A tax return and a return under paragraph 21A or 21D are “associated” if the return under paragraph 21A or 21D is required to be delivered at the same time as the tax return.

the total amount of revised earnings-related contributions payable in respect of all those employees,

e

the difference between the amount certified in paragraph (b) and paragraph (d) of this sub-paragraph in respect of all of those employeesF1157.

F1158f

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F9403

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4

If the employer is a body corporate, F621the declarations and F622the certificates referred to in F623sub-paragraphs (2) and (2B) shall be signed by the secretary or by a director of the body corporate.

5

If, within 14 days of the end of any year, an employer has failed to pay to the F619HMRC the total amount of earnings-related contributions which he is liable so to pay, the F619HMRC may prepare a certificate showing the amount of such contributions remaining unpaid for the year in question, excluding any amount deducted by the employer by virtue of the Compensation of Employers Regulations.

The provisions of paragraph 17 shall apply with any necessary modifications to the amount shown in that certificate.

6

Notwithstanding sub-paragraphs (2) to (5), F624the returns referred to in sub-paragraphs (1) and (2A) may be made in such other form as F619HMRC and the employer approve, and in that case—

a

sub-paragraphs (2) to (5) shall not apply; and

b

the making of F625the returns shall be subject to such conditions as F619HMRC may direct as to the method of making it.

7

F642Section 98A of the Taxes Management Act 1970 (special penalties in the case of certain returns) and Schedule 24 to the Finance Act 2007 (penalties for errors) as that Schedule applies to income tax returns as modified by the provisions of paragraph 7 of Schedule 1 to the Act shall apply in relation to the requirement to make a return contained in sub-paragraph (1) F620and (2A).

F1073Notification by employer at end of year that an agreement described in paragraph 3A(2) or an election under paragraph 3B(1) of Schedule 1 to the Act has been operated in relation to a Secondary Class 1 contribution23

1

An employer must notify HMRC on or before 6th July if a relevant agreement or relevant election has been operated in relation to a Secondary Class 1 contribution payable in respect of the relevant employment income of a person (“the earner”) in the year immediately preceding the year in which that day falls.

2

A relevant agreement has been operated in relation to the contribution described in sub-paragraph (1) if the employer has recovered the whole or any part of it pursuant to an agreement described in paragraph 3A(2) of Schedule 1 to the Act.

3

A relevant election has been operated in relation to the contribution described in sub-paragraph (1) if the liability for the whole or any part of it has been transferred to the earner pursuant to an election under paragraph 3B of that Schedule.

Special return by employer at end of voyage period24

1

This paragraph applies where earnings-related contributions are assessed in accordance with regulation 120(4) or (5) (earnings periods for mariners and apportionment of earnings).

2

Not later than 14 days after the end of the voyage period the employer shall render to the F461Inland Revenue in such form as the F461Inland Revenue may authorise a return in respect of each mariner showing—

a

his name, discharge book number and national insurance number;

b

the earnings periods and the amounts of F462F1074 earnings apportioned to each such period in the voyage period;

c

the appropriate category letter for each apportionment of F1074F462... earnings;

d

the amounts of all the earnings-related contributions payable on each apportionment of F1074F462... earnings otherwise than under paragraph 7(3);

e

the amounts of primary Class 1 contributions included in the amounts shown under paragraph (d) for each apportionment of F1074F462... earningsF1160and;

f

F1161the total amount of any earnings in respect of which primary Class 1 contributions were payable.

F1159g

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F835h

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Return by employer of recovery under the Statutory Sick Pay Percentage Threshold OrderF94125

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F683Retention by employer of contribution and election records26

Certificate of employer's liability to pay contributions after inspection of documents26A

F633PART 3ADEBTS OF MANAGED SERVICE COMPANIES

Annotations:

Amendments (Textual)

F633

Sch. 4 Pt. 3A inserted (6.8.2007) by The Social Security (Contributions) (Amendment No. 5) Regulations 2007 (S.I. 2007/2068), regs. 1, 2

Interpretation of this Part29A

1

In this Part of this Schedule—

“HM Revenue and Customs” means Her Majesty’s Revenue and Customs;
“lower amount” means the amount mentioned in paragraph 29C(5);
“managed service company” has the meaning given by section 61B of ITEPA;
“paragraph (b) associate” means a person who—
1. a
  is within section 688A(2)(d), and
2. b
  is within that provision by virtue of a connection with a person who is within section 688A(2)(b);
“paragraph (c) associate” means a person who—
1. a
  is within section 688A(2)(d), and
2. b
  is within that provision by virtue of a connection with a person who is within section 688A(2)(c);
“qualifying period” means a tax period beginning on or after 6th August 2007;
“relevant contributions debt” means a debt specified in paragraph 29B;
“specified amount” means the amount mentioned in paragraph 29C(1)(b);
“transfer notice” means the notice mentioned in paragraph 29C(4);
“transferee” means the person mentioned in paragraph 29C(4).

2

In this Part of this Schedule references to section 688A, however expressed, are references to section 688A of ITEPA.

1

This paragraph applies if—

a

a managed service company has a relevant contributions debt, and

b

an officer of Revenue and Customs is of the opinion that the relevant contributions debt or a part of the relevant contributions debt (the “specified amount”) is irrecoverable from the managed service company within a reasonable period.

2

HM Revenue and Customs may make a direction authorising the recovery of the specified amount from the persons specified in section 688A(2) (managed service companies: recovery from other persons).

3

Upon the making of a direction under sub-paragraph (2), the persons specified in section 688A(2) become jointly and severally liable for the relevant contributions debt, but subject to what follows.

4

HM Revenue and Customs may not recover the specified amount from any person in accordance with a direction made under sub-paragraph (2) until they have served a notice (a “transfer notice”) on the person in question (the “transferee”).

5

If an officer of Revenue and Customs is of the opinion that it is appropriate to do so, HM Revenue and Customs may accept an amount less than the specified amount (the “lower amount”) from a transferee; but this acceptance shall not prejudice the recovery of the specified amount from any other transferee.

6

HM Revenue and Customs may not serve a transfer notice on a person mentioned in section 688A(2)(c), or on a paragraph (c) associate, if the relevant contributions debt is incurred before 6^th January 2008.

7

HM Revenue and Customs may not serve a transfer notice on a person mentioned in section 688A(2)(c), or on a paragraph (c) associate, unless an officer of Revenue and Customs certifies that, in his opinion, it is impracticable to recover the specified amount from persons mentioned in paragraphs (a) and (b) of section 688A(2) and from paragraph (b) associates.

8

In determining, for the purposes of sub-paragraph (7), whether it is impracticable to recover the specified amount from the persons mentioned in paragraphs (a) and (b) of section 688A(2) and from paragraph (b) associates the officer of Revenue and Customs may have regard to all managed service companies in relation to which a person is a person mentioned in paragraph (a) or (b) of section 688A(2) or a paragraph (b) associate.

9

In determining which of the persons mentioned in section 688A(2)(c) and which of the paragraph (c) associates are to be served with transfer notices and the amount of those notices, HM Revenue and Customs must have regard to the degree and extent to which those persons are persons who (directly or indirectly) have encouraged or been actively involved in the provision by the managed service company of the services of the individual mentioned in that provision.

Time limits for issue of transfer notices29D

1

A transfer notice must be served before the end of the period specified in this paragraph.

2

Sub-paragraphs (3) to (7) apply if the transfer notice is served on a person mentioned in paragraph (a) or (b) of section 688A(2) or on a paragraph (b) associate.

3

In a case in which condition A in paragraph 29B is met, the transfer notice must be served before the end of a period of 12 months beginning with the date on which the decision became final and conclusive.

4

In a case in which condition B in paragraph 29B is met, the transfer notice must be served before the end of a period of 12 months beginning with the date on which HM Revenue and Customs received the return delivered under paragraph 22.

5

In a case in which condition C in paragraph 29B is met, the transfer notice must be served before the end of a period of 12 months beginning with the date on which HM Revenue and Customs prepare the certificate under paragraph 14(1).

6

In a case in which condition D in paragraph 29B is met, the transfer notice must be served before the end of a period of 12 months beginning with the date on which HM Revenue and Customs serve notice to the employer under paragraph 15(1).

7

In a case in which condition E in paragraph 29B is met, the transfer notice must be served before the end of a period of 12 months beginning with the date on which HM Revenue and Customs carry out the inspection of the employer’s contribution records under F695Schedule 36 to the Finance Act 2008.

8

If the transfer notice is served on a person mentioned in paragraph (c) of section 688A(2), or on a paragraph (c) associate, the transfer notice must be served before the end of a period of three months beginning with the date on which the officer of Revenue and Customs certifies the matters specified in paragraph 29C(7).

Contents of transfer notice29E

1

A transfer notice must contain the following information—

a

the name of the managed service company to which the relevant contributions debt relates;

b

the address of the managed service company to which the relevant contributions debt relates;

c

the amount of the relevant contributions debt;

d

the tax periods to which the relevant contributions debt relates;

e

if the tax periods to which the relevant contributions debt relates are comprised in more than one tax year, the apportionment of the relevant contributions debt among those tax years;

f

which of the conditions A to E specified in paragraph 29B is met;

g

the transferee’s name;

h

the transferee’s address;

j

whether the transferee is a person mentioned in paragraph (a), (b) or (c) of section 688A, a paragraph (b) associate or a paragraph (c) associate;

k

if the transferee is a person mentioned in paragraph (c) of section 688A or a paragraph (c) associate—

i

the date on which the officer of Revenue and Customs certified the matters specified in paragraph 29C(7), and

ii

the names of the persons from whom it has been impracticable to recover the specified amount;

l

the specified amount;

m

a

that the relevant contributions debt (or part of the relevant contributions debt) is not due from the managed service company to HM Revenue and Customs;

b

that the specified amount does not relate to a company which is a managed service company;

c

that the specified amount is not irrecoverable from the managed service company within a reasonable period;

d

that the transferee is not a person mentioned in section 688A(2);

e

that the transferee was not a person mentioned in section 688A(2) during the tax periods to which the specified amount relates;

f

that the transferee was not a person mentioned in section 688A(2) during some part of the tax periods to which the specified amount relates;

g

that the transfer notice was not served before the end of the period specified in paragraph 29D;

h

that the transfer notice does not satisfy the requirements specified in paragraph 29E;

j

in the case of a transferee mentioned in section 688A(2)(c) or of a paragraph (c) associate, that it is not impracticable to recover the specified amount from persons mentioned in paragraphs (a) and (b) of section 688A(2) or from paragraph (b) associates;

k

in the case of a transferee mentioned in section 688A(2)(c) or of a paragraph (c) associate, that the amount specified in the transfer notice does not have regard to the degree and extent to which the transferee is a person who (directly or indirectly) has encouraged or been actively involved in the provision by the managed service company of the services of the individual mentioned in that provision.

4

Sub-paragraph (3)(a) is subject to paragraph 29H(4).

F6975

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Procedure on appeals29H

1

On an appeal F698that is notified to the tribunal, the tribunal shall uphold or quash the transfer notice.

2

The general rule in sub-paragraph (1) is subject to the following qualifications.

3

In the case of the ground of appeal specified in paragraph 29G(3)(a), the F699tribunal shall investigate the matter and shall—

a

uphold the amount of the relevant contributions debt specified in the transfer notice, or

b

reduce or increase the amount of the relevant contributions debt specified in the transfer notice to such amount as in F700the tribunal’s opinion is just and reasonable.

4

If the F701tribunal determines the amount of the relevant contributions debt of a managed service company under sub-paragraph (3), that amount is conclusive as to the amount of that relevant contributions debt in any later appeal relating to that debt.

5

In the case of the ground of appeal specified in paragraph 29G(3)(f), the F702tribunal may reduce the amount specified in the transfer notice to an amount determined in accordance with the equation—

R A = \frac{P}{T P} \times A S

6

In paragraph (5)—

RA means the reduced amount;
P means the number of days in the tax periods specified in the transfer notice during which the transferee was a person mentioned in section 688A(2);
TP means the number of days in the tax periods specified in the transfer notice;
AS means the amount specified in the transfer notice.

7

In the case of the ground of appeal specified in paragraph 29G(3)(k), the F703tribunal may reduce the amount specified in the transfer notice to such amount as in F704the tribunal’s opinion is just and reasonable.

Withdrawal of transfer notices29J

1

A transfer notice shall be withdrawn if the F705tribunal quashes it.

2

A transfer notice may be withdrawn if, in the opinion of an officer of Revenue and Customs, it is appropriate to do so.

3

If a transfer notice is withdrawn, HM Revenue and Customs must give written notice of that fact to the transferee.

Application of Part 6 of the Taxes Management Act 197029K

1

For the purposes of this Chapter, Part 6 of the Taxes Management Act 1970 (collection and recovery) applies as if—

a

the transfer notice were an assessment of tax on employment income, and

b

the amount of earnings-related contributions specified in the transfer notice, and any interest payable on that amount under sub-paragraph (3) or (4) of paragraph 29F were income tax charged on the transferee;

and that Part of that Act applies with the modification specified in sub-paragraph (2) and any other necessary modifications.

2

Summary proceedings for the recovery of the specified amount may be brought in England and Wales or Northern Ireland at any time before the end of a period of 12 months beginning immediately after the expiry of the period mentioned in paragraph 29F(2).

3

The specified amount is one cause of action or one matter of complaint for the purposes of proceedings under sections 65, 66 and 67 of the Taxes Management Act 1970 (magistrates’ courts, county courts and inferior courts in Scotland).

4

But sub-paragraph (3) does not prevent the bringing of separate proceedings for the recovery of each of the amounts which the transferee is liable to pay for any tax period.

Repayment of surplus amounts29L

1

This paragraph applies if the amounts paid to HM Revenue and Customs in respect of a relevant contributions debt exceed the specified amount.

2

HM Revenue and Customs shall repay the difference on a just and equitable basis and without unreasonable delay.

3

Interest on any sum repaid shall be paid in accordance with paragraph 18 (payment of interest on repaid earnings-related contributions).

F1230PART 3AA

Annotations:

Amendments (Textual)

F1230

Sch. 4 Pt. 3AA inserted (6.4.2021 immediately after S.I. 2020/1150 comes into force) by The Social Security Contributions (Intermediaries) (Miscellaneous Amendments) Regulations 2020 (S.I. 2020/1220), regs. 1(2), 3(3)

DEBTS ARISING UNDER PART 2 OF THE SOCIAL SECURITY CONTRIBUTIONS (INTERMEDIARIES) REGULATIONS 2000

Recovery from relevant persons29LA

1

A deemed employer NICs debt may be recovered from a relevant person but this is subject to sub-paragraph (2).

2

A deemed employer NICs debt may only be recovered from a person described in paragraph (a) of the definition of relevant person in sub-paragraph (3) if an officer of Revenue and Customs considers there is no realistic prospect of recovery of all or part of it within a reasonable period of time from a person described in paragraph (b) of that definition.

3

In this Part—

“deemed employer NICs debt” means an amount—
1. a
  that a person (“the deemed employer”) is liable to pay under Schedules 4 and 4A in consequence of being treated under regulation 14(3) of the Intermediaries Regulations as having made a payment of deemed direct earnings to a worker F1248(other than by virtue of regulation 24 of the Social Security Contributions (Intermediaries) Regulations 2000), and
2. b
  that an officer of Revenue and Customs considers there is no realistic prospect of recovering from the deemed employer within a reasonable period;
“Intermediaries Regulations” means the Social Security Contributions (Intermediaries) Regulations 2000;
“relevant person”, in relation to a deemed employer NICs debt, means a person who is not the deemed employer and who—
1. a
  is the highest person in the chain identified under regulation 14(1) of the Intermediaries Regulations in determining that the deemed employer is to be treated as having made the payment of deemed direct earnings, or
2. b
  is the second highest person in that chain and is a qualifying person (within the meaning given by regulation 14(8) of the Intermediaries Regulations) at the time the deemed employer is treated as having made that payment of deemed direct earnings.

e

if the tax periods to which the deemed employer NICs debt relates are comprised in more than one year, the apportionment of the deemed employer NICs debt between those years;

f

the date on which the relevant period in relation to the deemed employer NICs debt began and whether the period began in accordance with paragraph 29LC(2)(a) or (b);

g

the relevant person's name and address;

h

whether the relevant person is a person described in paragraph (a) or (b) of the definition of relevant person in paragraph 29LA(3).

2

The recovery notice must also contain a statement, made by the officer of Revenue and Customs giving the notice, that the officer is of the view that there is no realistic prospect of recovering the deemed employer NICs debt within a reasonable period from—

a

the deemed employer; and

b

the person mentioned in paragraph (b) of the definition of relevant person in paragraph 29LA(3) in the case of a recovery notice given to a person mentioned in paragraph (a) of that definition.

Payment of deemed employer NICs debt and interest29LE

1

The relevant person must pay the amount of the deemed employer NICs debt to HMRC within 30 days beginning with the date on which the notice is given.

2

Interest accruing on the deemed employer NICs debt by virtue of section 101 of the Finance Act 2009 after expiry of the period of time mentioned in sub-paragraph (1) shall be treated as chargeable to the relevant person under that section.

Appeals29LF

1

A person who is given a recovery notice in relation to a deemed employer NICs debt may appeal against the notice on one or more of the grounds set out in sub-paragraph (3).

2

A notice of appeal must—

a

be given to HMRC within 30 days beginning with the day the recovery notice is given, and

b

specify the grounds of the appeal.

3

The grounds of appeal are—

a

that all or part of the amount specified in the notice in accordance with paragraph 29LD(1)(c) does not relate to a deemed employer NICs debt;

b

that there is a realistic prospect of recovering the deemed employer NICs debt from the deemed employer within a reasonable period of time;

c

that there is a realistic prospect of recovering the deemed employer NICs debt from the person described in paragraph (b) of the definition of relevant person in paragraph 29LA(3) within a reasonable period of time;

d

that the person is not a relevant person in respect of the deemed employer NICs debt;

e

that the recovery notice was not given within the relevant period;

f

that the recovery notice does not satisfy the requirements specified in paragraph 29LD.

4

But a person may not appeal on the ground mentioned in sub-paragraph (3)(a) if it has already been determined, on an appeal, that the deemed employer NICs debt is payable by the deemed employer.

5

Subject to sub-paragraph (6), on an appeal that is notified to the tribunal, the tribunal may uphold or quash the recovery notice.

6

In a case in which the ground of appeal mentioned in sub-paragraph (3)(a) is raised, the tribunal may also reduce or increase the amount specified in accordance with paragraph 29LD(1)(c) so that it does relate to a deemed employer NICs debt.

Withdrawal of recovery notices29LG

1

A recovery notice is withdrawn if the tribunal quashes it.

2

An officer of Revenue and Customs may withdraw a recovery notice if the officer considers it appropriate to do so.

3

If a recovery notice is withdrawn in accordance with sub-paragraph (2), HMRC must give notice of that fact to the person to whom the notice was given.

Application of Part 6 of TMA29LH

Part 6 of the Taxes Management Act 1970 (collection and recovery) applies as if—

a

the amount of the deemed employer NICs debt were income tax charged on the relevant person,

b

the recovery notice were an assessment, and

c

the giving of the recovery notice were the matter complained of for the purposes of section 65(3) of that Act.

F796PART 3BSecurity for the payment of Class 1 contributions

Annotations:

Amendments (Textual)

F796

Sch. 4 Pt. 3B inserted (6.4.2012) by The Social Security (Contributions) (Amendment No. 3) Regulations 2012 (S.I. 2012/821), regs. 1(1), 18

Interpretation29M

In this Part—

“employer” has the meaning given in paragraph 29O(1);
“a further notice” has the meaning given in paragraph 29U(3);
“PGS” has the meaning given in paragraph 29S(1).

Requirement for security29N

In circumstances where an officer of Revenue and Customs considers it necessary for the protection of Class 1 contributions, the officer may require a person described in paragraph 29P(1) to give security or further security for the payment of amounts which an employer is or may be liable to pay to HMRC under paragraph 10, 11F879, 11ZA or 11A.

Employers29O

1

An “employer” is any employer within the meaning given in paragraph 1(2) other than—

a

the Crown;

b

a person to whom sub-paragraph (2) applies;

F916c

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .; and

d

a care and support employer within the meaning given in regulation 90NA(3) of these Regulations.

2

This sub-paragraph applies to persons who at the relevant time could not be liable to a penalty under Schedule 56 to the Finance Act 2009 by virtue of paragraph 10 of that Schedule (suspension of penalty for failure to make payments on time during currency of agreement for deferred payment).

3

In sub-paragraph (2), the relevant time is a time at which, but for sub-paragraph (1)(b), the officer would require security.

Persons from whom security can be required29P

1

The persons are—

a

the employer;

b

any of the following in relation to the employer—

i

a director;

ii

a company secretary;

iii

any other similar officer; or

iv

any person purporting to act in such a capacity; and

c

in a case where the employer is a limited liability partnership, a member of the limited liability partnership.

2

An officer of Revenue and Customs may require—

a

a person to give security or further security of a specified value in respect of the employer; or

b

more than one person to give security or further security of a specified value in respect of the employer, and where the officer does so those persons shall be jointly and severally liable to give that security or further security.

Notice of requirement29Q

1

An officer of Revenue and Customs must give notice of a requirement for security to each person from whom security is required and the notice must specify—

a

the value of security to be given;

b

the manner in which security is to be given;

c

the date on or before which security is to be given; and

d

the period of time for which security is required.

2

The notice must include, or be accompanied by, an explanation of—

a

the employer's right to make a request under paragraph 10(1) of Schedule 56 to the Finance Act 2009; and

b

the effect of paragraph 29R(2) and (3).

3

In a case which falls within paragraph 29P(2)(b), the notice must include, or be accompanied by, the names of each other person from whom security is required.

4

The notice may contain such other information as the officer considers necessary.

5

A person shall not be treated as having been required to provide security unless HMRC comply with this paragraph and paragraph 29R(1).

6

Notwithstanding anything in regulation 1(4)(b), where the notice, or a further notice, (“contributions notice”) is to be given with a notice or further notice mentioned in regulations 97Q(1) and 97U(3) of the PAYE Regulations (“PAYE notice”) the contributions notice shall be taken to be given at the same time that the PAYE notice is given.

Date on which security is due29R

1

The date specified under paragraph 29Q(1)(c) may not be earlier than the 30th day after the day on which the notice is given.

2

If, before the date specified under paragraph 29Q(1)(c), the employer makes a request under paragraph 10(1) of Schedule 56 to the Finance Act 2009, the requirement to give security on or before that date does not apply.

3

In a case which falls within sub-paragraph (2), if HMRC does not agree to the employer's request, security is to be given on or before the 30th day after the day on which HMRC notifies the employer of that decision.

Application for reduction in the value of security held29S

1

A person who has given security (“PGS”) may apply to an officer of Revenue and Customs for a reduction in the value of security held by HMRC if—

a

PGS' circumstances have changed since the day the security was given because—

i

of hardship; or

ii

PGS has ceased to be a person mentioned in paragraph 29P(1); or

b

since the day the security was given there has been a significant reduction in the number of employed earners of the employer to whom the security relates or that employer has ceased to be an employer.

2

Where paragraph 29P(2)(b) applies, a person who has not contributed to the value of the security given may not make an application under sub-paragraph (1).

Outcome of application under paragraph 29S29T

1

If an application under paragraph 29S(1) is successful, the officer must inform PGS of the reduced value of security that is still required or, where that value is nil, that the requirement for security has been cancelled.

2

HMRC may make such arrangements as they think fit to ensure the necessary reduction in the value of security held.

Outcome of application under paragraph 29S: further provision29U

1

This paragraph applies—

a

in cases which fall within paragraph 29P(2)(b); and

b

where PGS' application is made under paragraph 29S(1)(a).

2

As a consequence of arrangements made under paragraph 29T(2), an officer of Revenue and Customs may require any other person who was given notice under paragraph 29Q in relation to the security (“the original security”), or any other person mentioned in paragraph 29P(1), to provide security in substitution for the original security.

3

Where an officer of Revenue and Customs acts in reliance on sub-paragraph (2), the officer must give notice (“a further notice”).

4

Paragraph 29Q(1) to (5) and paragraph 29R apply in relation to a further notice.

5

Subject to sub-paragraph (6), paragraph 29V(1) applies in relation to a further notice.

6

A person who is given a further notice and who was also given notice under paragraph 29Q in relation to the original security may only appeal on the grounds that the person is not a person mentioned in paragraph 29P(1).

in paragraph (b) the reference to “any provision of the Taxes Acts” were a reference to “paragraph 29V of Schedule 4 to the Social Security (Contributions) Regulations 2001”.

Appeals: further provision for cases which fall within paragraph 29R(2)29W

In a case which falls within paragraph 29R(2), if the request mentioned in that provision is made before an appeal under paragraph 29V(1), paragraph 29V(3)(a)(i) applies as if the words “the day after the day on which the notice was given” were “the day after the day on which HMRC notifies the employer of its decision”.

Offence29X

1

Section 684(4A) of the Income Tax (Earnings and Pensions) Act 2003 (PAYE regulations – security for payment of PAYE: offence) applies in relation to a requirement imposed under these Regulations as it applies in relation to a requirement imposed under the PAYE Regulations.

2

For the purposes of section 684(4A) as it applies by virtue of sub-paragraph (1)—

a

in relation to a requirement for security under a notice under paragraph 29Q the period specified is the period which starts with the day the notice is given and ends with—

i

the first day after the date specified under paragraph 29Q(1)(c); or

ii

in a case which falls within paragraph 29R(2), the first day after the date determined under paragraph 29R(3);

b

in relation to a requirement for security under a further notice the period specified is the period which starts with the day the further notice is given and ends with—

i

the first day after the date specified under paragraph 29Q(1)(c) as it applies in relation to the further notice; or

ii

in a case which falls within paragraph 29R(2), the first day after the date determined under paragraph 29R(3) as it applies in relation to the further notice; and

c

in relation to a requirement for security to which paragraph 29V(7)(a) applies the period specified is the period which starts with the day the determination is made and ends with the first day after—

i

the day the tribunal or court determines to be the day that the security is to be given; or

ii

the day determined in accordance with that paragraph,

as the case may be.

F1166Part 3CCERTAIN DEBTS OF COMPANIES UNDER PARAGRAPH 3ZB OF PART 8 OF SCHEDULE 3 (TRAVEL EXPENSES OF WORKERS PROVIDING SERVICES THROUGH EMPLOYMENT INTERMEDIARIES)

Annotations:

Amendments (Textual)

F1166

Sch. 4 Pt. 3C inserted (E.W.S.) (28.11.2016) by The Social Security (Contributions) (Amendment No. 4) Regulations 2016 (S.I. 2016/1067), regs. 1, 7

Interpretation of Part 3C: “relevant contributions debt” and “relevant date”29Y

1

In this Part “relevant contributions debt”, in relation to a company means an amount within any of sub-paragraphs (2) to (5).

2

An amount within this sub-paragraph is an amount that the company is to account for in accordance with paragraph 3ZB(6A) to (6C) (persons providing fraudulent documents).

3

An amount within this sub-paragraph is an amount which a company is to deduct and pay by virtue of paragraph 3ZB in circumstances where—

a

a company is an employment intermediary,

b

on the basis that paragraph 3ZB does not apply by virtue of sub-paragraph (3) of that paragraph the company has not deducted and paid the amount, but

c

the company has not been provided by any other person with evidence from which it would be reasonable in all the circumstances to conclude that sub-paragraph (3) of that paragraph applied (and the mere assertion by a person that the manner in which the worker provided the services was not subject to (or to the right of) supervision, direction or control by any person is not such evidence).

4

An amount within this sub-paragraph is an amount that the company is to deduct and pay in accordance with paragraph 3ZB in circumstances where sub-paragraph (4) of that paragraph applies (services provided under arrangements made by intermediaries).

5

An amount within this sub-paragraph is any interest or penalty in respect of an amount within any of sub-paragraphs (2) to (4) for which the company is liable.

6

In this paragraph “paragraph 3ZB” means paragraph 3ZB of Part 8 of Schedule 3 to these Regulations.

7

In this Part “the relevant date” in relation to a relevant contributions debt means the date on which the first payment is due on which contributions are not accounted for.

Interpretation of Part 3C: general29Z

In this Part—

“company” includes a limited liability partnership;
“director” has the meaning given by section 67 of ITEPA 2003;
“personal liability notice” has the meaning given by paragraph 29Z1(2);
“the specified amount” has the meaning given by paragraph 29Z1(2)(a).

Liability of directors for relevant contributions debts29Z1

1

This paragraph applies in relation to an amount of relevant contributions debt of a company if the company does not deduct that amount by the time by which the company is required to do so.

2

HMRC may serve a notice (“personal liability notice”) on any person who was, on the relevant date, a director of the company—

a

specifying the amount of relevant contributions debt in relation to which this paragraph applies (“the specified amount”), and

b

requiring the director to pay HMRC—

i

the specified amount, and

ii

specified interest on that amount.

3

The interest specified in the personal liability notice—

a

is to be at the rate applicable under section 178 of the Finance Act 1989 for the purposes of section 86 of the Taxes Management Act 1970, and

b

is to run from the date the notice is served.

4

A director who is served with a personal liability notice is liable to pay to HMRC the specified amount and the interest specified in the notice within 30 days beginning with the day the notice is served.

5

If HMRC serve personal liability notices on more than one director of the company in respect of the same amount of relevant contributions debt, the directors are jointly and severally liable to pay to HMRC the specified amount and the interest specified in the notices.

Appeals in relation to personal liability notices29Z2

Withdrawal of personal liability notices29Z3

1

A personal liability notice is withdrawn if the tribunal quashes it.

2

An officer of Revenue and Customs may withdraw a personal liability notice if the officer considers it appropriate to do so.

3

If a personal liability notice is withdrawn, HMRC must give notice of that fact to the person upon whom the notice was served.

Recovery of sums due under personal liability notice: application of Part 6 of Taxes Management Act 197029Z4

1

For the purposes of this Part, Part 6 of the Taxes Management Act 1970 (collection and recovery) applies as if—

a

the personal liability notice were an assessment, and

b

the specified amount and any interest on that amount under paragraph 29Z1(2)(b)(ii) were income tax charged on the director upon whom the notice is served, and that Part of that Act applies with the modification in paragraph (2) and any other necessary modifications.

2

Summary proceedings for the recovery of the specified amount, and any interest on that amount under paragraph 29Z1(2)(b)(ii), may be brought in England and Wales or Northern Ireland at any time before the end of the period of 12 months beginning with the day after the day on which personal liability notice is served.

Repayment of surplus amounts29Z5

1

This paragraph applies if—

a

one or more personal liability notices are served in respect of an amount of relevant contributions debt of a company, and

b

the amounts paid to HMRC (whether by directors upon whom notices are served or the company) exceed the aggregate of the specified amount and any interest on it under paragraph 29Z1(2)(b)(ii).

2

HMRC is to repay the difference on a just and equitable basis and without unreasonable delay.

3

HMRC is to pay interest on any sum repaid.

4

The interest—

a

is to be at the rate applicable under section 178 of the Finance Act 1989 for the purposes of section 824 of the Taxes Act, and

b

is to run from the date the amounts paid to HMRC come to exceed the aggregate mentioned in sub-paragraph (1)(b).

PART IV ASSESSMENT AND DIRECT COLLECTION

Provisions for direct payment30

In cases of employed earner’s employment, where the employer does not fulfil the conditions prescribed in regulation 145(1)(b) as to residence or presence in Great Britain or Northern Ireland or is a person who, by reason of any international treaty to which the United Kingdom is a party or of any international convention binding on the United Kingdom, is exempt from the provisions of the Act or is a person against whom, for a similar reason, the provisions of the Act are not enforceable, the provisions of paragraph 31 shall apply to the employee, unless the employer, being a person entitled to pay the primary contributions due in respect of the earnings from the said employment, is willing to pay those contributions.

F842Application of paragraphs 31 and 31A30A

1

Paragraph 31(4) to (7) does not apply on or after 6th April 2014.

2

Paragraph 31(7A) and (7B) applies only in relation to closed tax years ending on or before 5th April 2014.

3

Paragraph 31A applies on and after 6th April 2014.

Direct collection involving deductions working sheets31

1

In any case falling within paragraph 30, F917... sub-paragraphs (2) to (8) shall apply.

2

The employee F918... shall record on F919a working sheet his name, national insurance number and category letter indicated by F626HMRC, and whenever, in respect of an employment such as is specified in paragraph 30, the employee receives any F1077F508... earnings during F920the relevant tax year, he shall also record on that working sheet the amount of the F508earnings, the date on which he received them, and the earnings-related contributions payable by him in respect of those F508earnings .

3

Not later than the time for the payment of income tax, if any, the employee shall pay to F626HMRC the amount of the earnings-related contributions payable by the employee in respect of the F1077F509 ... earnings which have been received by him and for which the income tax is or would have been payable.

F9213A

Before 20 May 2014 the employee must deliver to HMRC a return in the prescribed form for the tax year 2013-14 showing the following information:

a

the total amount of the F1077... earnings and earnings-related contributions payable during the tax year 2013-14,

b

the appropriate category letter,

c

the employee’s name and address, and

d

the employee’s national insurance number, and

the provisions of paragraph 22(5) regarding the certification and recovery of earnings-related contributions remaining unpaid by an employer for any year shall apply in the case of any earnings-related contributions remaining unpaid by the employee.

4

If, by the time specified in sub-paragraph (3), the employee has paid no amount of earnings-related contributions to F626HMRC in respect of the F1077F510 ... earnings mentioned in that sub-paragraph, and F626HMRC is unaware of the amount, if any, which the employee is liable so to pay, or if an amount has been paid but F626HMRC is not satisfied that it is the full amount which the employee is liable to pay to him in respect of those F510earnings, sub-paragraph (5) applies.

5

If this sub-paragraph applies, F626HMRC may give notice to the employee requiring him to render, within the time limited in the notice, a return in the prescribed form containing particulars of all F1077F511 ... earnings received by him during the period specified in the notice and such other particulars affecting the calculations of the earnings-related contributions payable in respect of the F511earnings in question as may be specified in the notice, and in such a case the provisions of—

a

paragraph 14 regarding the ascertaining and certifying by F626HMRC of earnings-related contributions payable by an employer, and

b

paragraph 16 regarding the recovery of those contributions.

shall apply with the necessary modifications for the purposes of ascertaining, certifying and recovering the earnings-related contributions payable by the employee.

6

If the employee ceases to receive F1077F512 ... earnings falling within sub-paragraph (2), he shall immediately render to F513F626HMRC, in such form as they may prescribe, a return showing such particulars as they may require for the identification of the employee, the year to which the return relates, the appropriate category letter, the last date on which he received any such F512earnings, the total of those F512earnings and the earnings-related contributions payable from the beginning of the year to that date.

7

F514Before 20th May following the end of the year, the employee shall (unless sub-paragraph (6) has applied) render to F515F626HMRC, in such form as they may prescribe, a return showing such particulars as they may require for the identification of the employee, the year to which the return relates, the total of the F1077F516 ... earnings and earnings-related contributions payable during the year, together with the appropriate category letter, and the provisions of paragraph 22(5) regarding the certification and recovery of earnings-related contributions remaining unpaid by an employer for any year shall apply in the case of any earnings-related contributions remaining unpaid by the employee.

F6277A

Where a liability arises to pay contributions in respect of retrospective earnings relating to a closed tax year, the F880employee shall render a replacement return for the closed tax year before 20th May following the end of the year in which the relevant retrospective contributions regulations came into force in accordance with sub-paragraph (7), setting out the revised earnings and earnings-related contributions.

7B

Where sub-paragraph (7A) applies, the F880employee shall amend the relevant deductions working sheet or where necessary prepare one in accordance with sub-paragraph (2)

8

The employee shall retain deductions working sheets F922... for not less than three years after the end of the year to which they relate.

9

F643Section 98A of the Taxes Management Act 1970 (special penalties in the case of certain returns) and Schedule 24 to the Finance Act 2007 (penalties for errors) as that Schedule applies to income tax returns as modified by the provisions of paragraph 7 to Schedule 1 to the Act, shall apply in relation to the requirement to make a return contained in sub-paragraphs F628F923(3A) and (7A).

F843Direct collection involving deductions working sheets on and after 6th April 201431A

1

On receiving any F1078... earnings which fall to be recorded on a deductions working sheet under paragraph 31(2), subject to sub-paragraph (2), an employee must proceed in accordance with paragraph 21A(1), (2) and (5).

2

If the employee falls within paragraph 21D(1)(a), the employee may instead proceed in accordance with paragraph 21D(3), (4) and (5).

3

For the purposes of sub-paragraph (1), paragraph 21A(8) and paragraphs 21AB, 21AC, 21AD, 21B and 21C apply as if the employee were a Real Time Information employer.

4

For the purposes of sub-paragraph (2), paragraph 21D(9) applies as if the employee were a Real Time Information employer.

5

For the purposes of sub-paragraphs (1) and (2), paragraphs 15, 16, 21E, 21EA and 21F(7A) and (8) and Schedule 4A apply as if the employee were a Real Time Information employer, but the information required by paragraph 10(a) and (b) of that Schedule need not be provided.

F799SCHEDULE 4AReal time returns

Regulation 67(3)

Annotations:

Amendments (Textual)

F799

Sch. 4A, Sch. 4B inserted (6.4.2012) by The Social Security (Contributions) (Amendment No. 3) Regulations 2012 (S.I. 2012/821), regs. 1(1), 14, Sch.

1

The information specified in this Schedule is as follows and terms used in this Schedule which are defined for the purposes of Schedule 4 bear the same meaning as in that Schedule.

Information about the employer and the employee2

The information specified in paragraphs 2 to F8816, 8 to 15 and 18 to 20 of Schedule A1 (real time returns) to the PAYE Regulations.

F8482A

For the purposes of paragraph 2, the references in paragraphs 5 and 6 of Schedule A1 to the PAYE Regulations to regulation 67F of those Regulations shall be taken as references to paragraph 21F of Schedule 4 to these Regulations.

Information about payments to the employee, etc

3

The amount of the payment made that is included in the amount of the employee’s earnings from the employment for the purposes of determining the amount of earnings-related contributions payable.

F8493A

The total of the amounts referred to in paragraph 3 in the year to date.

4

For the purposes of assessing earnings-related contributions based on the payment, the number of earnings periods the payment relates to.

5

Where—

a

the earner is concurrently employed in more than one employed earner’s employment under the same employer but regulation 14 (aggregation of earnings paid in respect of separate employed earner’s employments under the same employer) does not apply; or

b

the amount of the payment after statutory deductions, being the amount of the payment referred to in paragraph 3 minus the total amount of primary Class 1 contributions for the period (see paragraph 10(c)) minus the value of the deduction due under the Education (Student Loans) (Repayment) Regulations 2009 or the Education (Student Loans) (Repayment) Regulations (Northern Ireland) 2009.

12C

The value of any amount which is not subject to tax or national insurance contributions paid to the employee at the same time as the payment.

12D

The value of any deductions made from the payment which do not otherwise fall to be reported under Schedule 4.

F120312E

The amount of Class 1A contributions payable in respect of any sporting testimonial payments.

12F

The amount of Class 1A contributions payable in respect of any termination awards.

Information about statutory sick payF94213

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Information about statutory maternity pay14

If any, the total amount of statutory maternity pay paid during the year to date in this employment.

Information about ordinary statutory paternity pay15

If any, the total amount of F977... statutory paternity pay paid during the year to date in this employment.

Information about additional statutory paternity pay

F97816

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F97917

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F952Information about statutory shared parental pay

Annotations:

Amendments (Textual)

F952

Sch. 4A paras. 17A, 17B inserted (5.3.2015) by The Social Security and Tax Credits (Miscellaneous Amendments) Regulations 2015 (S.I. 2015/175), reg. 2(2)(3), 5(4)

17A

If any, the total amount of statutory shared parental pay paid during the year to date in this employment.

17B

Where statutory shared parental pay has been paid during the year to date, the following information from the employee’s application for the payment under, as the case may be, regulation 6, 7, 19, or 20 (notification and evidential requirements) of the Statutory Shared Parental Pay (General) Regulations 2014—

a

the name of the employee’s spouse or partner who has the main responsibility (apart from the employee) for the care of the child to which the application relates, and

b

where there is such a number, the national insurance number of the employee’s spouse or partner who has the main responsibility (apart from the employee) for the care of the child to whom the application relates.

For the purposes of this regulation “partner” has the meaning given in regulation 2(1) of the Statutory Shared Parental Pay (General) Regulations 2014.

Information about statutory adoption pay18

If any, the total amount of statutory adoption pay paid in the year to date in this employment.

F1219Information about statutory parental bereavement pay19

If any, the total amount of statutory parental bereavement pay paid during the year to date in this employment.

SCHEDULE 4BAdditional information about payments

Regulation 67(3)

1

The amounts specified in this Schedule are as follows and terms used in this Schedule which are defined for the purposes of Schedule 4 bear the same meaning as in that Schedule.

Deductions in respect of statutory payments

2

In respect of statutory maternity pay paid during the year to date to all employees the total of the amounts determined under regulation 3 (determination of the amount of additional payment to which a small employer shall be entitled) of the Statutory Maternity Pay (Compensation of Employers) and Miscellaneous Amendments Regulations 1994 and deducted by virtue of regulation 4 (right of employer to prescribed amount) of those Regulations.

3

In respect of F980... statutory paternity pay paid during the year to date to all employees, the total of the amounts determined under regulation 5 (deductions from payments to HMRC) of the Statutory Paternity Pay and Statutory Adoption Pay (Administration) Regulations 2002.

F9814

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F9534A

In respect of statutory shared parental pay paid during the year to all employees, the total amounts determined under regulation 5 (deductions from payments to the Commissioners) of the Statutory Shared Parental Pay (Administration) Regulations 2014.

5

In respect of statutory adoption pay paid during the year to date to all employees, the total of the amounts determined under regulation 5 of the Statutory Paternity Pay and Statutory Adoption Pay (Administration) Regulations 2002.

F12185A

In respect of statutory parental bereavement pay paid during the year to date to all employees, the total amounts determined under regulation 5 of the Statutory Parental Bereavement Pay (Administration) Regulations 2020.

F9436

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Regional secondary contributions holiday for new businesses7

The total of the appropriate amounts within the meaning given by section 7 of the National Insurance Contributions Act 2011 (regional secondary contributions holiday for new businesses) deducted by or refunded to the employer under section 4 of that Act in the year to date.

SCHEDULE 5 ELECTIONS ABOUT F523SECURITIES OPTIONS, RESTRICTED SECURITIES AND CONVERTIBLE SECURITIES

Regulation 69

Annotations:

Amendments (Textual)

F523

Words in Sch. 5 heading substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 4) Regulations 2004 (S.I. 2004/2096), regs. 1(1), 8(a)

1

An election for the purposes of paragraph 3B(1) of Schedule 1 to the Act shall contain—

F529a

details of the securities options, restricted securities and convertible securities to which it relates, or of the period to which it relates, within which these are intended to be awarded or acquired;

b

a statement that the election relates to relevant employment income arising from the securities or securities options referred to in sub-paragraph (1)(a) on which the employed earner is liable to pay secondary Class 1 contributions under—

i

in the case of securities options, section 476 of ITEPA 2003 and section 4(4)(a) of the Act;

ii

in the case of restricted securities, section 426 of ITEPA 2003 and regulation 22(7);

iii

in the case of convertible securities, section 438 of ITEPA 2003 and regulation 22(7), and

an explanation of the effect of the relevant provision;

c

the amount or proportion (as the case may be) of the liability for secondary Class 1 contributions to be transferred;

d

a statement that its purpose is to transfer the liability for the secondary Class 1 contributions referred to in paragraph (c) from the secondary contributor to the employed earner;

F581dd

a statement that it does not apply in relation to any liability, or any part of any liability, arising as a result of regulations being given retrospective effect by virtue of section 4B(2) of either the Social Security Contributions and Benefits Act 1992 or the Social Security Contributions and Benefits (Northern Ireland) Act 1992;

e

2

The secondary contributor shall notify the employed earner of the matters set out in sub-paragraph (1)(a) and (b) as soon as reasonably practicable.

3

The secondary contributor shall notify the employed earner of the matters set out in sub-paragraph (1)(c) within 14 days of receipt of the notice of withdrawal in question.

SCHEDULE 6

Regulation 140

PART 1 PRESCRIBED ESTABLISHMENTS AND ORGANISATIONS FOR THE PURPOSES OF SECTION 116(3) OF THE ACT

1

Any of the regular naval, military or air forces of the Crown.

2

Royal Fleet Reserve.

3

Royal Naval Reserve.

4

Royal Marines Reserve.

5

Army Reserve.

6

Territorial Army.

7

Royal Air Force Reserve.

8

Royal Auxiliary Air Force.

9

The Royal Irish Regiment, to the extent that its members are not members of any force falling within paragraph 1.

PART II ESTABLISHMENTS AND ORGANISATIONS OF WHICH HER MAJESTY’S FORCES SHALL NOT CONSIST

10

By virtue of regulation 140, Her Majesty’s forces shall not be taken to consist of any of the establishments or organisations specified in Part I of this Schedule by virtue only of the employment in such establishment or organisation of the following persons—

a

any person who is serving as a member of any naval force of Her Majesty’s forces and who (not having been an insured person under the National Insurance Act 1965 F148 and not being a contributor under the Social Security Act 1975 F149 or the Act) locally entered that force at an overseas base;

b

any person who is serving as a member of any military force of Her Majesty’s forces and who entered that force, or was recruited for that force outside the United Kingdom, and the depot of whose unit is situated outside the United Kingdom;

c

any person who is serving as a member of any air force of Her Majesty’s forces and who entered that force, or was recruited for that force, outside the United Kingdom, and is liable under the terms of his engagement to serve only in a specified part of the world outside the United Kingdom.

SCHEDULE 7Corresponding Northern Ireland Enactments

Regulation 156(4)

1

In this Schedule—

“the 1998 Order” means the Social Security (Northern Ireland) Order 1998 F150;
“the 2000 Act” means the Child Support, Pensions and Social Security Act 2000;
“the Transfer Order” means the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 F151;
“the Welfare Reform Act” means the Welfare Reform and Pensions Act 1999; and
“the Welfare Reform Order” means the Welfare Reform and Pensions (Northern Ireland) Order 1999 F152.

PART I ENACTMENTS CORRESPONDING TO PRIMARY LEGISLATION APPLICABLE TO GREAT BRITAIN

Enactment applying in Great Britain	Corresponding enactment applying in Northern Ireland	Relevant Northern Ireland amendment
National Insurance Act 1965	National Insurance Act (Northern Ireland) 1996 F153
Section 3	Section 3
Employment and Training Act 1973	Employment and Training Act (Northern Ireland) 1950 F154
Section 2(2)	Section 1	Article 3 of the Employment and Training (Amendment) (Northern Ireland) Order 1988 F155 and Article 5 of the Industrial Training (Northern Ireland) Order 1990 F156.
Social Security Act 1975 F157	Social Security (Northern Ireland) Act 1975 F158
Section 4	Section 4
Section 5(3)	Section 5(3) F159
Section 7	Section 7
Section 8	Section 8
Section 39(4)	Section 39(4)
Section 130(2)	Section 125(2) F160
Social Security Pensions Act 1975	Social Security Pensions (Northern Ireland) Order 1975
Section 3(1)	Article 5(1)
Section 6(1)(a)	Article 8(1)(a)
Companies Act 1985 F161	Companies (Northern Ireland) Order 1986 F162
Section 718	Article 667	Amended by paragraph 8 of Schedule 8 to S.R. 1997 No. 251.
Section 735 (definition of “company”)	Article 3(1)
Social Security Act 1986	Social Security (Northern Ireland) Order 1986 F163
Section 7	Article 9 F164
Children Act 1999	Children (Northern Ireland) Order 1995
Part X	Part XI
Section 71(13) (definition of “nanny”)	Article 119(6)
Section 105(1) (definition of “relative”)	Article 2(2)
Social Security Contributions and Benefits Act 1992	Social Security Contributions and Benefits (Northern Ireland) Act 1992 F165
Section 1(6)	Section 1(6)	Paragraph 38(3) of Schedule 6 to the 1998 Order and paragraph 2 of Schedule 3 to the Transfer Order.
Section 2(1) and (2)	Section 2(1) and (2)
Section 3	Section 3	Articles 45 and 46 of the 1998 Order and paragraph 4 of Schedule 3 to the Transfer Order.
Section 4(1) and (4)	Section 4(1) and (4)	Subsection (4) was substituted by Article 47(1) of the 1998 Order.
Section 5(1)	Section 5(1)	Substituted by paragraph 1 of Part I of Schedule 10 to the Welfare Reform Act.
Section 6	Section 6	Substituted by paragraph 2 of Part I of Schedule 10 to the Welfare Reform Act and amended by section 81(3) of the 2000 Act.
Section 6A	Section 6A F166
Section 8(1) and (2)	Section 8(1) and (2)	Section 8 was substituted by paragraph 4 of Part I of Schedule 10 to the Welfare Reform Act.
Section 9	Section 9	Substituted by paragraph 5 of Part I of Schedule 10 to the Welfare Reform Act.
Section 10	Section 10	Substituted by section 78(2) of the 2000 Act.
Section 10ZA	Section 10ZA F167
Section 10A	Section 10A F168	Paragraph 12 of Schedule 3 to the Transfer Order and section 78 of the Welfare Reform Act.
Section 11	Section 11	Paragraph 13 of Schedule 3 to Transfer Order and article 3 of S.I. 2001/477.
Section 12	Section 12	Paragraph 14 of Schedule 3, and paragraph 1 of Schedule 8 to the Transfer Order.
Section 13	Section 13	Paragraph 15 of Schedule 3 to the Transfer Order and article 4 of S.I. 2001/477.
Section 14(1)	Section 14(1)
Section 15	Section 15	Article 4 of S.I. 2000/755 and article 5 of S.I. 2001/477.
Section 16	Section 16	Paragraph 6 of Schedule 1 to the Transfer Order.
Section 17	Section 17	Paragraph 7 of Schedule 1, paragraph 17 of Schedule 3 and Schedule 9 to the Transfer Order.
Section 18	Section 18	Paragraph 8 of Schedule 1, paragraph 18 of Schedule 3 to the Transfer Order, article 4 of S.I. 2000/755 and article 5 of S.I. 2001/477.
Section 19(1), (2) and (4)	Section 19(1), (2) and (4) respectively
Section 19A	Section 19A F169	Paragraph 20 of Schedule 3 and paragraph 2 of Schedule 8 to the Transfer Order.
Section 20(1)	Section 20(1)	Paragraph 2(2) of Schedule 1 to the Social Security (Incapacity for Work) (Northern Ireland) Order 1994 F170, Schedule 3 to the Jobseekers (Northern Ireland) Order 1995 F171, paragraph 18(1) of Schedule 2 to the Pensions (Northern Ireland) Order 1995 F172 and paragraph 2(2) of Schedule 8, paragraph 5(2) of Schedule 9 and Part V of Schedule 10 to the Welfare Reform Order.
Section 112	Section 112	Schedule 1 to the Employment Rights (Northern Ireland) Order 1996 F173 and paragraph 21 of Schedule 3 to the Transfer Order.
Section 122(1) (definition of “pensionable age”)	Section 121(1) (definition of “pensionable age”)	Paragraph 9 of Schedule 2 to the Pensions (Northern Ireland) Order 1995.
Section 151(6)	Section147(6)	Paragraph 10 of Schedule 1 to the Transfer Order.
Section 164(9)(b)	Section 160(9)(b)	Paragraph 14(2) of Schedule 1 to the Transfer Order.
Schedule 1	Schedule 1
Paragraph 1(1)	Paragraph 1(1)
Paragraph 1(7)	Paragraph 1(7)
Paragraph 1(8)	Paragraph 1(8)
Paragraph 3(1)	Paragraph 3(1)	Paragraph 58(5) of Schedule 6 to the 1998 Order.
Paragraph 3B	Paragraph 3B F174
Paragraph 6(3) and (4A)	Paragraph 6(3) and (4A) F175	Amended by paragraph 3 of Schedule 8 to the Transfer Order.
Schedule 2	Schedule 2 F176
Social Security Administration Act 1992	Social Security Administration (Northern Ireland) Act 1992 F177
Section 17	Section 15
Section 18	Section 16
Section 73	Section 71	Paragraph 32 of Schedule 2 to the Jobseekers (Northern Ireland) Order 1995.
Section 162(5)	Section 142(5)	Article 4(1) of the Social Security (Contributions) (Northern Ireland) Order 1994 F178, Article 61(2) of the 1998 Order, paragraph 9(2) of Part III of Schedule 10 to the Welfare Reform Act and section 78(7) of the 2000 Act.
Section 179	Section 155	Paragraph 48 of Schedule 2 to the Jobseekers (Northern Ireland) Order 1995, paragraph 84 of Schedule 6 to the 1998 Order and paragraph 5 of Schedule 1 to the Tax Credits Act 1999 F179.
Trade Union and Labour Relations (Consolidation) Act 1992	Employment Rights (Northern Ireland) Order 1996. F180
Section 189	Article 217	Regulation 10 of S.R. 1999 No. 432.
Pension Schemes Act 1993	Pension Schemes (Northern Ireland) Act 1993. F181
Section 8(1)	Section 4(1)	Article 133(2) of, and paragraph 14 of Schedule 3 to the Pensions (Northern Ireland) Order 1995 and paragraph 37(a) of Schedule 1 to the Transfer Order.
Section 9(2)	Section 5(2)	Article 133(3) of the Pensions (Northern Ireland) Order 1995.
Section 9(3)	Section 5(3)	Article 133(4) of, and paragraph 17 of Schedule 3 to the Pensions (Northern Ireland) Order 1995, and paragraph 38(3) of Schedule 3 to the Transfer Order.
Section 41(1) to (1B)	Section 37(1) to (1B)	Subsection (1) was amended by paragraph 95 of Schedule 6 to the 1998 Order and further amended by paragraph 6(2), and subsections (1A) and (1B) were substituted by paragraph 6(3), of Part II of Schedule 10 to the Welfare Reform Act.
Section 42A(1) to (2A)	Section 38A(1) to (2A)	Section 38A was inserted by Article 134(4) of the Pensions (Northern Ireland) Order 1995, subsections (1) to (2A) were substituted by paragraph 96 of Schedule 6 to the 1998 Order and subsections (2) and (2A) were further substituted by paragraph 7(3) of Part I of Schedule 10 to the Welfare Reform Act.
Section 43	Section 39	Paragraph 34 of Schedule 3 to the Pensions (Northern Ireland) Order 1995 and paragraph 54 of Schedule 1 to the Transfer Order.
Section 44(1)	Section 40(1)	Article 160(a) of the Pensions (Northern Ireland) Order 1995 and paragraph 55(2) and (3) of Schedule 1 to the Transfer Order.
Section 55(2)	Section 51(2)	Substituted by Article 138 of the Pensions (Northern Ireland) Order 1995 and amended by paragraph 7(2) of Schedule 2 to the Welfare Reform Act.
Jobseekers Act 1995	Jobseekers (Northern Ireland) Order 1995
Section 2(1)(a)	Article 4(1)(a)
Social Security Contributions (Transfer of Functions, etc.) Act 1999	The Transfer Order
Section 8(1)(a) and (k)(ii)	Article 7(1)(a) and (k)(ii)

PART II ENACTMENTS CORRESPONDING TO SUBORDINATE LEGISLATION APPLICABLE TO GREAT BRITAIN

Annotations:

Amendments (Textual)

F182

S.R. & O. (N.I.) 1962 No. 65.

F183

S.I. 1973/693.

F184

S.R. & O. (N.I.) 1973 No. 146.

F185

S.R. 1975 No. 319.

F186

S.R. 1978 No. 401.

F187

S.R. 1988 No. 142.

F188

S.R. 1990 No. 90.

F189

S.R. 1994 No. 271.

F935

Sch. 7 Pt. II entry omitted (6.10.2014) by virtue of The Social Security (Contributions) (Amendment No. 4) Regulations 2014 (S.I. 2014/2397), regs. 1(1), 3(10)(a)

F936

Sch. 7 Pt. II entry omitted (6.10.2014) by virtue of The Social Security (Contributions) (Amendment No. 4) Regulations 2014 (S.I. 2014/2397), regs. 1(1), 3(10)(b)

F190

S.R. 1995 No. 293.

F191

Revoked by regulation 59 of, and Schedule 3 to S.R. 1999 No. 162 Article 4 of S.R. 1999 No. 371 contains relevant savings.

F192

S.R. 1996 No. 188.

F193

S.R. 1996 No. 30.

F797

Words in Sch. 7 Pt. II substituted (6.4.2012) by The Social Security (Contributions) (Amendment No. 3) Regulations 2012 (S.I. 2012/821), regs. 1(1), 26(c)

F798

Words in Sch. 7 Pt. II substituted (6.4.2012) by The Social Security (Contributions) (Amendment No. 3) Regulations 2012 (S.I. 2012/821), regs. 1(1), 31

F194

S.R. 2001 No. 102.

Subordinate legislation applying in Great Britain	Subordinate legislation applying in Northern Ireland	Relevant amendment to the Northern Ireland provision
National Insurance (Contributions) Regulations 1969	National Insurance (Contributions) Regulations (Northern Ireland) 1962 F182	S.R. & O. (N.I.) 1963 No. 59 and 1970 No. 295.
Regulation 9(3) and (4A)	Regulation 10(3) and (4A) respectively
National Insurance (Married Women) Regulations 1973 F183—	National Insurance (Married Women) Regulations (Northern Ireland) 1973 F184
Regulation 2(1)(a)	Regulation 2(1)(a)
Regulation 2(2)	Regulation 2(2)
Regulation 3(1)(a)	Regulation 3(1)(a)
Regulation 3(2)	Regulation 3(2)
Regulation 4(2)	Regulation 4(2)
Regulation 16	Regulation 16
Social Security (Contributions) Regulations 1975	Social Security (Contributions) Regulations (Northern Ireland) 1975 F185
Regulation 91	Regulation 89
Regulation 94	Regulation 92
Social Security (Categorisation of Earners) Regulations 1978	Social Security (Categorisation of Earners) Regulations (Northern Ireland) 1978 F186
Schedule 3	Schedule 3	Regulation 4 of S.R. 1984 No. 81, regulation 3 of S.R. 1990 No. 339, regulation 4 of S.R. 1994 No. 92 and regulation 4 of S.R. 1998 No. 250. See also S.R. 1999 No. 2.
Social Security (Payments on account, Overpayments and Recovery) Regulations 1988	Social Security (Payments on account, Overpayments and Recovery) Regulations (Northern Ireland) 1988. F187
Regulation 13	Regulation 13	Regulation 15(3) of S.R. 1996 No. 289 and regulation 11 of S.I. 1999/2573.
Social Security (Refunds) (Repayment of Contractual Maternity Pay) Regulations 1990	Social Security (Refunds) (Repayment of Contractual Maternity Pay) Regulations (Northern Ireland) 1990 F188.
Regulation 2	Regulation 2
Statutory Maternity Pay (Compensation of Employers) and Miscellaneous Amendments Regulations 1994	Statutory Maternity Pay (Compensation of Employers) and Miscellaneous Amendments Regulations (Northern Ireland) 1994 F189.
Regulation 3	Regulation 3
Regulation 4	Regulation 4
F935. . .	F936. . .
Article 2	Article 2
Social Security (Adjudication) Regulations 1995	Social Security (Adjudication) Regulations (Northern Ireland) 1995 F190
Regulation 13	Regulation 13 F191
Social Security (Additional Pension) (Contributions Paid in Error) Regulations 1996	Social Security (Additional Pension) (Contributions Paid in Error) Regulations (Northern Ireland) 1996 F192
Regulation 3	Regulation 3
Employer’s Contributions Re-imbursement Regulations 1996	Employer’s Contributions Re-imbursement Regulations (Northern Ireland) 1996 F193
Regulations 5, 6 and 8	Regulations 5, 6 and 8 respectively
F797Education (Student Loans) (Repayment) Regulations 2009	F798Education (Student Loans) (Repayment) Regulations (Northern Ireland) 2009
Regulation 39(1)	Regulation 39(1)
Social Security (Crediting and Treatment of Contributions, and National Insurance Numbers) Regulations 2001	Social Security (Crediting and Treatment of Contributions, and National Insurance Numbers) Regulations (Northern Ireland) 2001 F194
Regulation 4	Regulation 4
Regulation 9	Regulation 9

SCHEDULE 8 REVOCATIONS

Regulation 157

PART I REVOCATIONS APPLICABLE TO GREAT BRITAIN OR TO THE UNITED KINGDOM

Column (1)	Column (2)	Column (3)
Regulations revoked	References	Extent of revocation
The Social Security (Contributions) Regulation 1979	S.I. 1979/591	The whole of the Regulations
The Social Security (Contributions) Amendment Regulations 1980	S.I. 1980/1975	The whole of the Regulations
The Social Security (Contributions) Amendment Regulations 1981	S.I. 1981/82	The whole of the Regulations
The Social Security (Contributions) (Mariners) Amendment Regulations 1982	S.I. 1982/206	The whole of the Regulations
The Contracting-out (Recovery of Class 1 Contributions) Regulations 1982	S.I. 1982/1033	The whole of the Regulations
The Social Security (Contributions) Amendment Regulations 1982	S.I. 1982/1573	The whole of the Regulations
The Social Security and Statutory Sick Pay (Oil and Gas (Enterprise) Act 1982) (Consequential) Regulations 1982	S.I. 1982/1738	Regulation 4
The Social Security (Contributions) Amendment (No. 2) Regulations 1982	S.I. 1982/1739	The whole of the Regulations
The Social Security (Contributions) Amendment Regulations 1983	S.I. 1983/10	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 2) Regulations 1983	S.I. 1983/53	The whole of the Regulations
The Social Security (Contributions, Re-rating) Consequential Amendment Regulations 1983	S.I. 1983/73	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 4) Regulations 1983	S.I. 1983/395	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 3) Regulations 1983	S.I. 1983/496	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 5) Regulations 1983	S.I. 1983/1689	The whole of the Regulations
The Social Security (Contributions) Amendment Regulations 1984	S.I. 1984/77	The whole of the Regulations
The Social Security (Contributions, Re-rating) Consequential Amendment Regulations 1984	S.I. 1984/146	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 2) Regulations 1984	S.I. 1984/1756	The whole of the Regulations
The Social Security (Contributions, Re-rating) Consequential Amendment Regulations 1985	S.I. 1985/143	The whole of the Regulations
The Social Security (Contributions) Amendment Regulations 1985	S.I. 1985/396	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 2) Regulations 1985	S.I. 1985/397	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 3) Regulations 1985	S.I. 1985/398	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 4) Regulations 1985	S.I. 1985/399	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 5) Regulations 1985	S.I. 1985/400	The whole of the Regulations
The Social Security (Contributions and Credits) (Transitional and Consequential Provisions) Regulations 1985	S.I. 1985/1398	Regulations 2, 4, 5 and 6
The Social Security (Contributions) Amendment (No. 6) Regulations 1985	S.I. 1985/1726	The whole of the Regulations
The Social Security (Contributions, Re-rating) Consequential Amendment Regulations 1986	S.I. 1986/198	The whole of the Regulations
The Social Security (Contributions) Amendment Regulations 1986	S.I. 1986/485	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 2) Regulations 1987	S.I. 1987/413	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 3) Regulations 1987	S.I. 1987/1590	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 4) Regulations 1987	S.I. 1987/2111	The whole of the Regulations
The Social Security (Contributions) Amendment Regulations 1988	S.I. 1988/299	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 2) Regulations 1988	S.I. 1988/674	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 3) Regulations 1988	S.I. 1988/860	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 4) Regulations 1988	S.I. 1988/992	The whole of the Regulations
The Social Security (Contributions) Amendment Regulations 1989	S.I. 1989/345	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 2) Regulations 1989	S.I. 1989/571	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 3) Regulations 1989	S.I. 1989/572	The whole of the Regulations
The Social Security (Contributions) (Transitional and Consequential Provisions) Regulations 1989	S.I. 1989/1677	The whole of the Regulations
The Social Security (Refunds) (Repayment of Contractual Maternity Pay) Regulations 1990	S.I. 1990/536	Regulation 4
The Social Security (Contributions) Amendment Regulations 1990	S.I. 1990/604	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 2) Regulations 1990	S.I. 1990/605	The whole of the Regulations
The Social Security (Contributions) (Re-rating) Consequential Amendment Regulations 1990	S.I. 1990/906	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 3) Regulations 1990	S.I. 1990/1779	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 4) Regulations 1990	S.I. 1990/1935	The whole of the Regulations
The Social Security (Contributions) Amendment Regulations 1991	S.I. 1991/504	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 2) Regulations 1991	S.I. 1991/639	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 3) Regulations 1991	S.I. 1991/640	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 4) Regulations 1991	S.I. 1991/1632	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 5) Regulations 1991	S.I. 1991/1935	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 6) Regulations 1991	S.I. 1991/2505	The whole of the Regulations
The Social Security (Contributions) Amendment Regulations 1992	S.I. 1992/97	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 2) Regulations 1992	S.I. 1992/318	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 3) Regulations 1992	S.I. 1992/667	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 4) Regulations 1992	S.I. 1992/668	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 5) Regulations 1992	S.I. 1992/669	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 6) Regulations 1992	S.I. 1992/1440	The whole of the Regulations
The Social Security (Contributions) Amendment Regulations 1993	S.I. 1993/260	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 2) Regulations 1993	S.I. 1993/281	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 3) Regulations 1993	S.I. 1993/282	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 4) Regulations 1993	S.I. 1993/583	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 5) Regulations 1993	S.I. 1993/821	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 6) Regulations 1993	S.I. 1993/2094	The whole of the Regulations
The Social Security (Miscellaneous Amendments) Regulations 1993	S.I. 1993/2736	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 7) Regulations 1993	S.I. 1993/2925	The whole of the Regulations
The Social Security (Contributions) Amendment Regulations 1994	S.I. 1994/563	The whole of the Regulations
The Social Security (Contributions) (Miscellaneous Amendments) Regulations 1994	S.I. 1994/667	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 2) Regulations 1994	S.I. 1994/1553	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 3) Regulations 1994	S.I. 1994/2194	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 4) Regulations 1994	S.I. 1994/2299	The whole of the Regulations
The Statutory Sick Pay Percentage Threshold Order 1995	S.I. 1995/512	Article 6(3)
The Social Security (Contributions) Amendment Regulations 1995	S.I. 1995/514	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 2) Regulations 1995	S.I. 1995/714	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 3) Regulations 1995	S.I. 1995/730	The whole of the Regulations
The Social Security (Incapacity Benefit) (Consequential and Transitional Amendments and Savings) Regulations 1995	S.I. 1995/829	Regulation 13
The Social Security (Contributions) Amendment (No. 4) Regulations 1995	S.I. 1995/1003	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 5) Regulations 1995	S.I. 1995/1570	The whole of the Regulations
The Employer’s Contributions Reimbursement Regulations 1996	S.I. 1996/195	Regulation 13
The Social Security (Contributions) Amendment Regulations 1996	S.I. 1996/486	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 2) Regulations 1996	S.I. 1996/663	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 3) Regulations 1996	S.I. 1996/700	The whole of the Regulations
The Social Security Contributions, Statutory Maternity Pay and Statutory Sick Pay (Miscellaneous Amendments) Regulations 1996	S.I. 1996/777	Regulation 5
The Social Security (Contributions) Amendment (No. 4) Regulations 1996	S.I. 1996/1047	The whole of the Regulations
The Social Security (Additional Pension) (Contributions Paid in Error) Regulations 1996	S.I. 1996/1245	Regulation 4
The Social Security (Credits and Contributions) (Jobseeker’s Allowance Consequential and Miscellaneous Amendments) Regulations 1996	S.I. 1996/2367	Regulation 3
The Social Security (Contributions) Amendment (No. 5) Regulations 1996	S.I. 1996/2407	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 6) Regulations 1996	S.I. 1996/3031	The whole of the Regulations
The Social Security (Contributions) Amendments Regulations 1997	S.I. 1997/545	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 2) Regulations 1997	S.I. 1997/575	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 3) Regulations 1997	S.I. 1997/820	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 4) Regulations 1997	S.I. 1997/1045	The whole of the Regulations
The Social Security (Contributions) Amendment Regulations 1998	S.I. 1998/523	The whole of the Regulations
The Social Security (Contributions) (Re-rating) Consequential Amendment Regulations 1998	S.I. 1998/524	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 2) Regulations 1998	S.I. 1998/680	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 3) Regulations 1998	S.I. 1998/2211	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 4) Regulations 1998	S.I. 1998/2320	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 5) Regulations 1998	S.I. 1998/2894	The whole of the Regulations
The Social Security (Contributions) (Re-rating) Consequential Amendment Regulations 1999	S.I. 1999/361	The whole of the Regulations
The Social Security (Contributions) Amendment Regulations 1999	S.I. 1999/561	The whole of the Regulations
The Social Security Contributions, Statutory Maternity Pay and Statutory Sick Pay (Miscellaneous Amendments) Regulations 1999	S.I. 1999/567	Regulations 2 to 6 and 8 to 11
The Social Security (Contributions and Credits) (Miscellaneous Amendments) Regulations 1999	S.I. 1999/568	Regulations 2 to 12 and 14 to 19
The Social Security (Contributions) Amendment (No. 2) Regulations 1999	S.I. 1999/827	The whole of the Regulations
The Social Security (Contributions) Amendment (No. 3) Regulations 1999	S.I. 1999/975	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 4) Regulations 1999	S.I. 1999/1965	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 5) Regulations 1999	S.I. 1999/2736	The whole of the Regulations
The Social Security (Contributions) (Amendment) Regulations 2000	S.I. 2000/175	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 2) Regulations 2000	S.I. 2000/723	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 3) Regulations 2000	S.I. 2000/736	The whole of the Regulations
The Social Security Contributions (Notional Payment of Primary Class 1 Contribution) Regulations 2000	S.I. 2000/747	Regulations 7 to 9
The Social Security (Contributions) (Re-rating) Consequential Amendment Regulations 2000	S.I. 2000/760	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 4) Regulations 2000	S.I. 2000/761	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 5) Regulations 2000	S.I. 2000/1149	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 6) Regulations 2000	S.I. 2000/2084	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 7) Regulations 2000	S.I. 2000/2077	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 8) Regulations 2000	S.I. 2000/2207	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 9) Regulations 2000	S.I. 2000/2343	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 10) Regulations 2000	S.I. 2000/2744	The whole of the Regulations
The Social Security (Contributions) (Amendment) Regulations 2001	S.I. 2001/45	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 2) Regulations 2001	S.I. 2001/313	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 3) Regulations 2001	S.I. 2001/596	The whole of the Regulations
The Social Security (Crediting and Treatment of National Insurance Contributions) Regulations 2001	S.I. 2001/769	Regulation 11

PART II REVOCATIONS APPLICABLE TO NORTHERN IRELAND

Column (1)	Column (2)	Column (3)
Regulations revoked	References	Extent of revocation
The Social Security (Contributions) Regulations (Northern Ireland) 1979	S.R. 1979 No. 186	The whole of the Regulations
The Social Security (Contributions Re-rating) Consequential Amendment Regulations (Northern Ireland) 1980	S.R. 1980 No. 93	The whole of the Regulations
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1980	S.R. 1980 No. 463	The whole of the Regulations
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1981	S.R. 1981 No. 30	The whole of the Regulations
The Social Security (Contributions) (Mariners) (Amendment) Regulations (Northern Ireland) 1982	S.R. 1982 No. 69	The whole of the Regulations
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1982	S.R. 1982 No. 375	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 2) Regulations (Northern Ireland) 1982	S.R. 1982 No. 408	The whole of the Regulations
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1983	S.R. 1983 No. 8	The whole of the Regulations
The Social Security (Contributions, Re-rating) Consequential Amendment Regulations (Northern Ireland) 1983	S.R. 1983 No. 9	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 3) Regulations (Northern Ireland) 1983	S.R. 1983 No. 64	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 4) Regulations (Northern Ireland) 1983	S.R. 1983 No. 70	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 5) Regulations (Northern Ireland) 1983	S.R. 1983 No. 412	The whole of the Regulations
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1984	S.R. 1984 No. 43	The whole of the Regulations
The Social Security (Contributions, Re-rating) Consequential Amendment Regulations (Northern Ireland) 1984	S.R. 1984 No. 46	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 2) Regulations (Northern Ireland) 1984	S.R. 1984 No. 403	The whole of the Regulations
The Social Security (Contributions, Re-rating) Consequential Amendment Regulations (Northern Ireland) 1985	S.R. 1985 No. 25	The whole of the Regulations
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1985	S.R. 1985 No. 59	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 2) Regulations (Northern Ireland) 1985	S.R. 1985 No. 61	The whole of the Regulations
The Social Security (Contributions and Credits) (Transitional and Consequential Provisions) Regulations (Northern Ireland) 1985	S.R. 1985 No. 260	Regulations 2, 4, 5 and 6
The Social Security (Contributions) (Amendment No. 3) Regulations (Northern Ireland) 1985	S.R. 1985 No. 334	The whole of the Regulations
The Social Security (Contributions, Re-rating) Consequential Amendment Regulations (Northern Ireland) 1986	S.R. 1986 No. 45	The whole of the Regulations
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1986	S.R. 1986 No. 71	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 2) Regulations (Northern Ireland) 1987	S.R. 1987 No. 143	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 3) Regulations (Northern Ireland) 1987	S.R. 1987 No. 348	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 4) Regulations (Northern Ireland) 1987	S.R. 1987 No. 468	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 2) Regulations (Northern Ireland) 1988	S.R. 1988 No. 121	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 4) Regulations (Northern Ireland) 1988	S.R. 1988 No. 204	The whole of the Regulations
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1989	S.R. 1989 No. 70	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 2) Regulations (Northern Ireland) 1989	S.R. 1989 No. 104	The whole of the Regulations
The Social Security (Contributions) (Transitional and Consequential Provisions) Regulations (Northern Ireland) 1989	S.R. 1989 No. 384	The whole of the Regulations
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1990	S.R. 1990 No. 97	The whole of the Regulations
The Social Security (Contributions) (Re-rating) Consequential Amendment Regulations (Northern Ireland) 1990	S.R. 1990 No. 101	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 2) Regulations (Northern Ireland) 1990	S.R. 1990 No. 110	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 3) Regulations (Northern Ireland) 1990	S.R. 1990 No. 320	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 4) Regulations (Northern Ireland) 1990	S.R. 1990 No. 350	The whole of the Regulations
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1991	S.R. 1991 No. 68	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 3) Regulations (Northern Ireland) 1991	S.R. 1991 No. 106	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 4) Regulations (Northern Ireland) 1991	S.R. 1991 No. 310	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 5) Regulations (Northern Ireland) 1991	S.R. 1991 No. 404	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 6) Regulations (Northern Ireland) 1991	S.R. 1991 No. 490	The whole of the Regulations
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1992	S.R. 1992 No. 41	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 3) Regulations (Northern Ireland) 1992	S.R. 1992 No. 126	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 4) Regulations (Northern Ireland) 1992	S.R. 1992 No. 127	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 5) Regulations (Northern Ireland) 1992	S.R. 1992 No. 138	The whole of the Regulations
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1993	S.R. 1993 No. 59	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 3) Regulations (Northern Ireland) 1993	S.R. 1993 No. 71	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 4) Regulations (Northern Ireland) 1993	S.R. 1993 No. 114	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 5) Regulations (Northern Ireland) 1993	S.R. 1993 No. 130	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 6) Regulations (Northern Ireland) 1993	S.R. 1993 No. 368	The whole of the Regulations
The Social Security (Contributions) (Miscellaneous Amendments) Regulations (Northern Ireland) 1993	S.R. 1993 No. 437	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 7) Regulations (Northern Ireland) 1993	S.R. 1993 No. 463	The whole of the Regulations
The Social Security (Contributions) (Miscellaneous Amendments) Regulations (Northern Ireland) 1994	S.R. 1994 No. 94	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 2) Regulations (Northern Ireland) 1994	S.R. 1994 No. 219	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 3) Regulations (Northern Ireland) 1994	S.R. 1994 No. 328	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 4) Regulations (Northern Ireland) 1994	S.R. 1994 No. 343	The whole of the Regulations
The Statutory Sick Pay Percentage Threshold Order (Northern Ireland) 1995	S.R. 1995 No. 69	Article 6(3)
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1995	S.R. 1995 No. 61	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 2) Regulations (Northern Ireland) 1995	S.R. 1995 No. 88	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 3) Regulations (Northern Ireland) 1995	S.R. 1995 No. 91	The whole of the Regulations
The Social Security (Incapacity Benefit) (Consequential and Transitional Amendments and Savings) Regulations (Northern Ireland) 1995	S.R. 1995 No. 150	Regulation 13
The Social Security (Contributions) (Amendment No. 5) Regulations (Northern Ireland) 1995	S.R. 1995 No. 257	The whole of the Regulations
The Employer’s Contributions Reimbursement Regulations (Northern Ireland) 1996	S.R. 1996 No. 30	Regulation 13
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1996	S.R. 1996 No. 58	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 2) Regulations (Northern Ireland) 1996	S.R. 1996 No. 79	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 3) Regulations (Northern Ireland) 1996	S.R. 1996 No. 89	The whole of the Regulations
The Social Security (Contributions) Statutory Maternity Pay and Statutory Sick Pay (Miscellaneous Amendments) Regulations (Northern Ireland) 1996	S.R. 1996 No. 108	Regulation 2
The Social Security (Contributions) (Amendment No. 4) Regulations (Northern Ireland) 1996	S.R. 1996 No. 152	The whole of the Regulations
The Social Security (Additional Pension) (Contributions Paid in Error) Regulations (Northern Ireland) 1996	S.R. 1996 No. 188	Regulation 4
The Social Security (Credits and Contributions) (Jobseeker’s Allowance Consequential and Miscellaneous Amendments) Regulations (Northern Ireland) 1996	S.R. 1996 No. 430	Regulation 3
The Social Security (Contributions) (Amendment No. 5) Regulations (Northern Ireland) 1996	S.R. 1996 No. 433	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 6) Regulations (Northern Ireland) 1996	S.R. 1996 No. 566	The whole of the Regulations
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1997	S.R. 1997 No. 100	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 3) Regulations (Northern Ireland) 1997	S.R. 1997 No. 163	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 4) Regulations (Northern Ireland) 1997	S.R. 1997 No. 180	The whole of the Regulations
The Social Security (Contributions) (Re-rating) Consequential Amendment Regulations (Northern Ireland) 1998	S.R. 1998 No. 71	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 2) Regulations (Northern Ireland) 1998	S.R. 1998 No. 103	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 3) Regulations (Northern Ireland) 1998	S.R. 1998 No. 317	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 5) Regulations (Northern Ireland) 1998	S.R. 1998 No. 416	The whole of the Regulations
The Social Security (Contributions) (Re-rating) Consequential Amendment Regulations (Northern Ireland) 1999	S.R. 1999 No. 64	The whole of the Regulations
The Social Security (Contributions) Statutory Maternity Pay and Statutory Sick Pay (Miscellaneous Amendments) Regulations (Northern Ireland) 1999	S.R. 1999 No. 117	Regulations 2 to 10
The Social Security (Contributions and Credits) (Miscellaneous Amendments) Regulations (Northern Ireland) 1999	S.R. 1999 No. 118	Regulations 3 to 13 and 15 to 21
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1999	S.R. 1999 No. 119	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 2) Regulations (Northern Ireland) 1999	S.R. 1999 No. 151	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 3) Regulations (Northern Ireland) 1999	S.R. 1999 No. 171	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 4) (Northern Ireland) Regulations 1999	S.I. 1999/1966	The whole of the Regulations
The Social Security (Contributions) (Amendment) (Northern Ireland) Regulations 2000	S.I. 2000/176	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 2) (Northern Ireland) Regulations 2000	S.I. 2000/346	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 3) (Northern Ireland) Regulations 2000	S.I. 2000/737	The whole of the Regulations
The Social Security Contributions (Notional Payment of Primary Class 1 Contribution) (Northern Ireland) Regulations 2000	S.I. 2000/748	Regulations 7 to 9
The Social Security (Contributions) (Re-rating) Consequential Amendment (Northern Ireland) Regulations 2000	S.I. 2000/757	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 4) (Northern Ireland) Regulations 2000	S.I. 2000/758	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 5) (Northern Ireland) Regulations 2000	S.I. 2000/1150	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 6) (Northern Ireland) Regulations 2000	S.I. 2000/2086	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 7) (Northern Ireland) Regulations 2000	S.I. 2000/2078	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 8) (Northern Ireland) Regulations 2000	S.I. 2000/2208	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 9) (Northern Ireland) Regulations 2000	S.I. 2000/2344	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 10) (Northern Ireland) Regulations 2000	S.I. 2000/2743	The whole of the Regulations
The Social Security (Contributions) (Amendment) (Northern Ireland) Regulations 2001	S.I. 2001/46	The whole of the Regulations
The Social Security (Contributions) (Amendment No. 2) (Northern Ireland) Regulations 2001	S.I. 2001/314	The whole of the Regulations
The Social Security (Crediting and Treatment of National Insurance Contributions) Regulations (Northern Ireland) 2001	S.R. 2001 No. 102	Regulation 10

(This note is not part of the Regulations)

These Regulations consolidate the regulations relating to Social Security contributions. The principal instruments consolidated are the Social Security (Contributions) Regulations 1979 (S.I. 1979/591) and the Social Security (Contributions) Regulations (Northern Ireland) 1979 (S.R. 1979 No. 186).

These Regulations do not impose any new costs on business.