Chwilio Deddfwriaeth

The Social Security (Contributions) Regulations 2001

 Help about what version

Pa Fersiwn

 Help about advanced features

Nodweddion Uwch

 Help about opening options

Dewisiadau AgorExpand opening options

Changes over time for: Section 27

 Help about opening options

Alternative versions:

Status:

Point in time view as at 05/12/2005.

Changes to legislation:

The Social Security (Contributions) Regulations 2001, Section 27 is up to date with all changes known to be in force on or before 24 February 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

Payments to directors which are to be disregardedU.K.

27.—(1) For the purposes of earnings-related contributions, there shall be excluded from the calculation of a person’s earnings any payment in so far as it is a payment—

(a)by a company;

(b)to or for the benefit of a director of that company;

(c)in respect of any employed earner’s employment of that director with that company; and

(d)in respect of which paragraph (2), (3) or (4) is satisfied.

(2) This paragraph is satisfied if—

(a)the director is a partner in a firm carrying on a profession;

(b)being a director of a company is a normal incident of membership of that profession and of membership of the firm of the director;

(c)the director is required by the terms of his partnership to account to his firm for the payment; and

(d)the payment forms an insubstantial part of that firm’s gross returns.

(3) This paragraph is satisfied if—

(a)the director was appointed to that office by a company having the right to do so by virtue of its shareholding in, or an agreement with, the company making the payment;

(b)by virtue of an agreement with the company that appointed him, the director is required to account for the payment to that company; and

(c)the payment forms part of the profits brought into charge to corporation tax or income tax of the company that appointed the director.

(4) This paragraph is satisfied if—

(a)the director was appointed to that office by a company other than the company making the payment;

(b)by virtue of an agreement with the company that appointed him, the director is required to account for the payment to that company;

(c)the payment forms part of the profits brought into charge to corporation tax of the company that appointed the director; and

(d)the company that appointed the director is not one over which—

(i)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) F1... of the Taxes Act (interpretation of the Tax Acts) [F2and 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, [F3civil partner,] parent, child, son-in-law or daughter-in-law of the director.

Yn ôl i’r brig

Options/Cymorth

You have chosen to open The Whole Instrument

The Whole Instrument you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Instrument as a PDF

The Whole Instrument you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open yr Offeryn Cyfan

Yr Offeryn Cyfan you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?