The Social Security (Contributions) Regulations 2001

Provisions relating to Class 1A contribution due on cessation of business U.K.

73.—(1) Paragraphs (2) and (3) apply in relation to the payment of a Class 1A contribution if—

(a) an employer ceases to carry on business and upon that cessation no other person becomes liable to pay [F1 F2 ... earnings] to or for the benefit of any employee in respect of his employment in that business; and

(b) the employees are all those who were employed in that business at any time in the relevant final year or the year immediately preceding the relevant final year.

(2) Not later than 14 days [F3 or where payment is made by an approved method of electronic communications in respect of earnings paid after 5th April 2004, 17 days] after the end of the relevant final [F4 tax month], the employer shall pay to the Board—

(a) any Class 1A contribution referred to in paragraph (1) in respect of the relevant final year; and

(b) where the relevant final [F4 tax month] is the month beginning on 6th April, 6th May or 6th June any Class 1A contribution referred to in paragraph (1) in respect of the year immediately preceding the relevant final year.

(3) The employer shall include the amount of any Class 1A contribution which is payable in accordance with paragraph (2)(a) in the return required by regulation 80 for the relevant final year.

(4) 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);

• F5 ...

• “relevant final [F6 tax month]” means the [F6 tax 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 [F6 tax month], the [F7 final payment of F8 ... earnings] to be made by him in the year in which those payments were made; F9 ...

• “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 [F6 tax month] occurs.

Textual Amendments

F1 Words in reg. 73(1) substituted (6.4.2004) by The Social Security (Contributions, Categorisation of Earners and Intermediaries) (Amendment) Regulations 2004 (S.I. 2004/770), regs. 1(1), 18(a)

F2 Word in reg. 73(1)(a) omitted (6.4.2015) by virtue of The Social Security (Miscellaneous Amendments No. 2) Regulations 2015 (S.I. 2015/478), regs. 1(4), 9(a)

F3 Words in reg. 73(2) inserted (6.4.2004) by The Social Security (Contributions, Categorisation of Earners and Intermediaries) (Amendment) Regulations 2004 (S.I. 2004/770), regs. 1(1), 18(b)(i)

F4 Words in reg. 73(2) substituted (6.4.2004) by The Social Security (Contributions, Categorisation of Earners and Intermediaries) (Amendment) Regulations 2004 (S.I. 2004/770), regs. 1(1), 18(b)(ii)

F5 Words in reg. 73(4) omitted (6.4.2015) by virtue of The Social Security (Miscellaneous Amendments No. 2) Regulations 2015 (S.I. 2015/478), regs. 1(4), 9(b)(i)

F6 Words in reg. 73(4) substituted (6.4.2004) by The Social Security (Contributions, Categorisation of Earners and Intermediaries) (Amendment) Regulations 2004 (S.I. 2004/770), regs. 1(1), 18(c)(ii)

F7 Words in reg. 73(4) substituted (6.4.2004) by The Social Security (Contributions, Categorisation of Earners and Intermediaries) (Amendment) Regulations 2004 (S.I. 2004/770), regs. 1(1), 18(c)(aa)(iii)

F8 Word in reg. 73(4) omitted (6.4.2015) by virtue of The Social Security (Miscellaneous Amendments No. 2) Regulations 2015 (S.I. 2015/478), regs. 1(4), 9(b)(ii)

F9 Words in reg. 73(4) omitted (6.4.2004) by virtue of The Social Security (Contributions, Categorisation of Earners and Intermediaries) (Amendment) Regulations 2004 (S.I. 2004/770), regs. 1(1), 18(c)(bb)(iii)