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The Social Security (Contributions) Regulations 2001

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Statutory Instruments

2001 No. 1004

SOCIAL SECURITY

The Social Security (Contributions) Regulations 2001

Made

15th March 2001

Laid before Parliament

15th 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—

Textual Amendments

F1See 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).

F2See section 176(2)(b) of the Act.

Modifications etc. (not altering text)

C2Regulations 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 1U.K. GENERAL

Citation, commencement and interpretationU.K.

1.—(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—

  • [F9“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 F10;

  • “the Administration Act” means the Social Security Administration Act 1992 F11;

  • [F12“advance payment” for the purposes of regulation 7 and paragraph 21AE of Schedule 4 means a payment of earnings that—

    (a)

    is not made at a regular interval,

    (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

    (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;

  • [F13“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 1890F14, includes any officer or servant of theirs;

  • [F15“business travel” has the meaning given in section 236(1) of ITEPA 2003 [F16and includes journeys which are treated as business travel by section 235A of ITEPA 2003 (journeys made by members of local authorities etc).];]

  • [F17“cash voucher” has the meaning given to it in section 75 of ITEPA 2003;]

  • F18...

  • “company” means a company within the meaning of section [F191] of the Companies Act [F192006] or a body corporate to which, by virtue of [F20regulations made under section 1043 of [F19that Act], any provision of [F19that Act]] applies;

  • [F21“completed service” means work undertaken or obligations performed by the earner in accordance with the earner’s contract with the employer;]

  • F22...

  • “conditional interest in shares” means an interest which is conditional for the purposes of [F23Chapter 2 of Part 7 of ITEPA 2003 as originally enacted;]

  • F24...

  • F25...

    F26

  • “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);

  • [F27“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;

  • [F28“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;]

  • F29...

  • F30...

  • “director” means—

    (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;

    (b)

    in relation to a company whose affairs are managed by a single director or similar person, that director or person; and

    (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;

  • [F31“due date” in Part 6 means, in relation to—

    (a)

    any Class 1 contribution, the date by which payment falls to be made;

    (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

    (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;

  • [F32“electronic communications” includes any communications conveyed by means of an electronic communications network.]

  • [F33employment and support allowance” has the same meaning as in the Welfare Reform Act 2007;]

  • [F34“full gender recognition certificate” means a certificate issued under section 4 of the Gender Recognition Act 2004;]

  • [F35“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;

  • [F36“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;]

  • F37...

  •    

  • “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;

  • [F38“non-cash voucher” has the meaning given to it in section 84 of ITEPA 2003;]

  • F39...

  • F40...

  • F41...

  • [F42“official computer system” means a computer system maintained by or on behalf of the Board;]

  • [F43“optional remuneration arrangements” has the meaning given in section 69A of ITEPA 2003;]

  • F44...

       

  • “the PAYE Regulations” means the Income Tax (Pay As You Earn) Regulations 2003;

  • F45...

  • F46...

  • “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 [F47section 702 of ITEPA 2003 as amended by the Finance Act 2003;]

  • [F48“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;]

  • [F49“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;

  • [F50“relevant employment income” has the meaning given in paragraph 3B(1A) of Schedule 1 to the Act;]

  • [F51“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 F52;

  • [F53“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);]

  • [F53“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;]

  • [F53“retrospective earnings” means an amount retrospectively treated as earnings by retrospective contributions regulations;]

  • F54...

  • “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) F55;

  • [F56“securities” and “securities option” have the meaning given by section 420 of ITEPA 2003 as substituted by the Finance Act 2003;]

  • F44...

  • “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;

  • [F57“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 1988F58;

  • [F59“tax month” has the meaning given in paragraph 1(2) of Schedule 4;]

  • [F60“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;

  • [F35“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 1999F61;

  • “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).

[F62(3A) 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.

Textual Amendments

F1453 & 53 Vict. c. 21. Section 4A was inserted by paragraph 11(1) and (2) of Schedule 20 to the Finance Act 1969 (c. 32).

F35Words in reg. 1(2) inserted (1.4.2009) (with effect in accordance with reg. 1(2)(a) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 3) Regulations 2009 (S.I. 2009/600), regs. 1(1), 3

F50Words in reg. 1(2) inserted (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), 3

F52Section 611 is to be amended from a date to be appointed under section 79 of the Finance Act 1999.

F55Section 6 was substituted by paragraph 2 of Part I of Schedule 9 to the Welfare Reform Act.

PART 2U.K. ASSESSMENT OF EARNINGS RELATED CONTRIBUTIONS

Earnings periodsU.K.

2.  Except where regulation 8 applies, the amount, if any, of earnings-related contributions payable or, where section 6A of the Act F63 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.

Textual Amendments

F63Section 6A was inserted by paragraph 3 of Part I of Schedule 9 to the Welfare Reform Act.

Earnings period for earnings normally paid or treated as paid at regular intervalsU.K.

3.—[F64(1) 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

CaseApplicable 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.]

[F64(2) 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 [F65paragraph (2B)] is a year, then notwithstanding [F65paragraph (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.

F66(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(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)after the end of the employment, a payment of earnings is made which satisfies either or both of the conditions specified in paragraph (6),

the earnings period in respect of such payment of earnings shall, notwithstanding regulation 7, be the week in which the payment is made.

(6) The conditions referred to in paragraph (5) are that the payment is—

(a)by way of addition to a payment made before the end of the employment; and

(b)not in respect of a regular interval.

Textual Amendments

Earnings period for earnings normally paid otherwise than at regular intervals and not treated as paid at regular intervalsU.K.

4.  Subject to regulation 3(5) or regulation 5, where earnings are paid to or for the benefit of an earner in respect of an employed earner’s employment, but no part of those earnings is normally paid or treated under regulation 7 as paid at regular intervals, the earnings period in respect of those earnings shall be a period of one of the following lengths—

(a)the length of the period of that part of the employment for which the earnings are paid or a week, whichever is the longer; or

(b)where it is not reasonably practicable to determine that period under paragraph (a)—

(i)the length of the period from the date on which the last payment of earnings, before the payment in question, was paid during the employment in respect of the employment (or, if there has been no such payment, from the date on which the employment began) to the date of the payment in question, unless the period so calculated would be of a length less than that of a week, in which case the earnings period shall be a week, or

(ii)where the payment is made before the employment begins or after it ends, a week.

Earnings period for sums deemed to be earnings by virtue of regulations made under section 112 of the ActU.K.

5.  Where any sum or amount is deemed to be earnings by virtue of any regulations made under section 112 of the Act (sums to be earnings for the purposes of Part I to V of the Act) F67—

(a)the earnings period in respect of any payment of those earnings shall be the length of the protected period (as referred to in section 189 of the Trade Union and Labour Relations (Consolidation) Act 1992 F68) or, as the case may be, that part of it in respect of which the sum is paid, or a week whichever is the longer;

(b)contributions paid in respect of such earnings shall, if the employed earner so requests—

(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.

Textual Amendments

F67Section 112 was amended by paragraph 51(4) of Schedule 1 to the Employment Rights Act 1996 (c. 18) and paragraph 21 of Schedule 3 to the Transfer Act.

F681992 c. 52. Section 189(4) was amended by regulation 4(3) of S.I. 1995/2587.

Earnings period for earnings to be aggregated where the earnings periods for those earnings otherwise would be of different lengthsU.K.

6.—(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.

[F69(3) 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.]

Textual Amendments

Treatment of earnings paid otherwise than at regular intervalsU.K.

7.—(1) Subject to regulation 3(5) and paragraphs (2) and (3), for the purposes of assessing earnings-related contributions—

(a)if on any occasion a payment of earnings which would normally fall to be made at regular interval is made otherwise than at the regular interval, it shall be treated as if it were a payment made at that regular interval;

(b)if payments of earnings are made at irregular intervals which secure that one and only one payment is made in each of a succession of periods consisting of the same number of days, weeks or calendar months, those payments shall be treated as if they were payments made at the regular interval of one of those periods of days, weeks or, as the case may be, calendar months;

(c)if payments of earnings, other than those specified in sub-paragraph (b), are made in respect of regular intervals, but otherwise than at regular intervals, each such payment shall be treated as made at the regular interval in respect of which it is due.

(2) Where under paragraph (1) a payment of earnings is treated as made at a regular interval, it shall for the purposes of assessment under these regulations of earnings-related contributions also be treated as paid—

(a)in a case falling within paragraph (1)(a), on the date on which it would normally have fallen to be made;

(b)in any other case, on the last day of the regular interval at which it is treated as paid.

(3) [F70Subject to paragraph (3A)] paragraphs (1) and (2) shall not apply to a payment of earnings made in one year where by virtue of those paragraphs that payment would be treated as made in another year.

[F71(3A) Paragraph (3) does not apply in a case falling within paragraph (1)(a) where—

(a)the regular interval at which payment of earnings would normally fall to be made is no shorter than a week and no longer than a month,

(b)an advance payment is made to the earner, and

(c)a reduced regular interval payment is made to the earner.]

(4) Notwithstanding regulation 15, a payment to which paragraph (3) applies (“the relevant payment”) shall not be aggregated with any other earnings unless—

(a)other earnings to which paragraphs (1) to (2) do not apply by virtue only of paragraph (3) are paid in the earnings period in which the relevant payment falls; and

(b)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).

Textual Amendments

Earnings periods for directorsU.K.

8.—(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)notwithstanding regulation 15, those earnings shall not be aggregated with any other earnings with which they would otherwise fall to be aggregated; and

(b)the earnings period in respect of those earnings shall be the year in which they are paid.

(6) Without prejudice to the paragraphs (1) to (5), a director and any company employing him may pay on account of any earnings-related contributions that may become payable by them such amounts as would be payable by way of such contributions if those paragraphs did not apply.

[F72(7) If a full gender recognition certificate is issued under the Gender Recognition Act 2004 to a person aged at least 60 but not more than 64—

(a)whose gender before its issue was female; and

(b)whose acquired gender is male;

the periods in the year of issue respectively falling before and after its issue shall be treated, for the purpose of computing liability for primary Class 1 contributions, as separate earnings periods.]

Textual Amendments

Earnings period for statutory maternity pay[F73, [F74[F75statutory paternity pay],] statutory adoption pay[F76, statutory shared parental pay]][F77, statutory sick pay and statutory parental bereavement pay] paid by the BoardU.K.

9.—(1) In this regulation the expression “week”—

(a)in paragraph (2)(a); and

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

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

[F78(2) If the Board make a payment of statutory maternity pay, [F79[F80statutory paternity pay][F81, statutory shared parental pay]] [F82, statutory adoption pay or statutory parental bereavement pay] under regulations made under the relevant provision—

(a)that payment of statutory maternity pay, [F83[F80statutory paternity pay][F81, statutory shared parental pay]] [F82or statutory adoption pay][F82, 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)[F84in relation to F85... statutory paternity pay, section 171ZD(3),

F86(ba). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

(c)in relation to statutory adoption pay, section 171ZM(3), F87[F88...]

[F88(d)in relation to statutory shared parental pay, section 171ZX(3), ][F89and

(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) F90 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.

Textual Amendments

F73Words in reg. 9 inserted (with effect in accordance with reg. 1(1) of the amending S.I.) by The Social Security (Contributions) (Amendment) Regulations 2003 (S.I. 2003/193), regs. 1(1), 4(2)

F77Words in reg. 9 heading substituted (6.4.2020) by The Social Security (Contributions) (Amendment) Regulations 2020 (S.I. 2020/239), regs. 1, 2(2)(a) (which amendment was extended to N.I. (6.4.2022) by S.I. 2022/384, reg. 3)

F78Reg. 9(2)-(2A) substituted for reg. 9(2) (with effect in accordance with reg. 1(1) of the amending S.I.) by The Social Security (Contributions) (Amendment) Regulations 2003 (S.I. 2003/193), regs. 1(1), 4(3)

F82Words in reg. 9(2) substituted (6.4.2020) by The Social Security (Contributions) (Amendment) Regulations 2020 (S.I. 2020/239), regs. 1, 2(2)(b) (which amendment was extended to N.I. (6.4.2022) by S.I. 2022/384, reg. 3)

F84Reg. 9(2A)(b)(ba) substituted for reg. 9(2A)(b) (14.11.2010) by The Social Security (Contributions) (Amendment No. 5) Regulations 2010 (S.I. 2010/2450), regs. 1, 3(4)

F87Word in reg. 9(2A)(c) omitted (6.4.2020) by virtue of The Social Security (Contributions) (Amendment) Regulations 2020 (S.I. 2020/239), regs. 1, 2(2)(c)(i) (which amendment was extended to N.I. (6.4.2022) by S.I. 2022/384, reg. 3)

F89Reg. 9(2A)(e) and word inserted (6.4.2020) by The Social Security (Contributions) (Amendment) Regulations 2020 (S.I. 2020/239), regs. 1, 2(2)(c)(ii) (which amendment was extended to N.I. (6.4.2022) by S.I. 2022/384, reg. 3)

F90Section 151 was amended by paragraph 34 of Schedule 1 to the Social Security (Incapacity for Work) Act 1994 (c. 14) and paragraph 9 of Schedule 1 to the Transfer Act.

Earnings limits and thresholdsU.K.

10.  For the purposes of [F91sections 5(1)[F92, 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 [F932024]—

(a)the lower earnings limit (for primary Class 1 contributions) shall be [F94£123];

(b)the upper earnings limit (for primary Class 1 contributions) shall be [F95£967];

(c)the primary threshold (for primary Class 1 contributions) shall be [F96£242]; F97...

(d)the secondary threshold (for secondary Class 1 contributions) shall be [F98£175][F99; F100...

(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 [F101£967]][F102; 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 [F103£967]]

Textual Amendments

Prescribed equivalentsU.K.

11.—(1) The prescribed equivalents of the lower and upper earnings limits[F104, the primary and secondary thresholds and the upper secondary thresholds], for the purposes of—

(a)sections 6(1), 6A(1), 8(1), [F1059(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 contributions[F106, 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)F107; [F108and]

[F109(aa)section 22 of the Act (earnings factors); F110...]

F110(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

[F111(1A) [F112The prescribed equivalents of the upper accrual point for the purposes of—

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

(b)sections 41(1) (reduced rates of Class 1 contributions), 42A(1) (reduced rates of Class 1 contributions and rebates) and 45(1) (amount of minimum contributions) of the Pensions Act,

shall be determined in accordance with paragraphs (2), (4) and (5).]]

(2) [F113Subject to paragraphs (4) and (5), the prescribed equivalents of the lower earnings limit F114... shall be—

(a)where the earnings period is a multiple of a week, the [F115amount] calculated by multiplying the lower earnings limit F116... by the corresponding multiple;]

(b)where the earnings period is a month, the [F115amount] calculated by multiplying [F117the lower earnings limit] by 4 1/3;

(c)where the earnings period is a multiple of a month, the [F115amount] calculated by multiplying [F117the lower earnings limit] by 4 1/3 and multiplying [F118the result] by the corresponding multiple;

(d)in any other case, the [F115amount] calculated by dividing [F117the lower earnings limit] by 7 and multiplying [F118the result] by the number of days in the earnings period concerned.

[F119(2A) Subject to paragraphs (4) and (5), the prescribed equivalents of the upper earnings limit shall be—

(a)where the earnings period is a month, [F120£4,189;]

(b)where the earnings period is a year, [F121£50,270;]

(c)where the earnings period is a multiple of a week, the amount calculated by dividing the figure in sub-paragraph (b) by 52 and multiplying the result by the corresponding multiple;

(d)where the earnings period is a multiple of a month, the amount calculated by dividing the figure in sub-paragraph (b) by 12 and multiplying the result by the corresponding multiple;

(e)in any other case, the amount calculated by dividing the figure in sub-paragraph (b) by 365 and multiplying the result by the number of days in the earnings period concerned.]

(3) Subject to paragraphs (4) and (5), [F122the prescribed equivalents of the primary threshold] shall be—

(a)where the earnings period is a month, [F123£1,048];

(b)where the earnings period is a year,[F124£12,570];

(c)where the earnings period is a multiple of a week, the amount calculated by dividing the figure in sub-paragraph (b) by 52 and multiplying the result by the corresponding multiple;

(d)where the earnings period is a multiple of a month, the amount calculated by dividing the figure in sub-paragraph (b) by 12 and multiplying the result by the corresponding multiple;

(e)in any other case, the amount calculated by dividing the figure in sub-paragraph (b) by 365 and multiplying the result by the number of days in the earnings period concerned.

[F125(3A) Subject to paragraphs (4) and (5), the prescribed equivalents of the secondary threshold shall be—

(a)where the earnings period is a month, [F126£758];

(b)where the earnings period is a year, [F127£9,100];

(c)where the earnings period is a multiple of a week, the amount calculated by dividing the figure in sub-paragraph (b) by 52 and multiplying the result by the corresponding multiple;

(d)where the earnings period is a multiple of a month, the amount calculated by dividing the figure in sub-paragraph (b) by 12 and multiplying the result by the corresponding multiple;

(e)in any other case, the amount calculated by dividing the figure in sub-paragraph (b) by 365 and multiplying the result by the number of days in the earnings period concerned.]

[F128(3B) Subject to paragraphs (4) and (5), the prescribed equivalents of the upper secondary threshold for secondary Class 1 contributions in relation to the Under 21 age group shall be—

(a)where the earnings period is a month, [F129£4,189;]

(b)where the earnings period is a year, [F130£50,270;]

(c)where the earnings period is a multiple of a week, the amount calculated by dividing the figure in sub-paragraph (b) by 52 and multiplying the result by the corresponding multiple;

(d)where the earnings period is a multiple of a month, the amount calculated by dividing the figure in sub-paragraph (b) by 12 and multiplying the result by the corresponding multiple;

(e)in any other case, the amount calculated by dividing the figure in sub-paragraph (b) by 365 and multiplying the result by the number of days in the earnings period concerned.]

[F131(3C) Subject to paragraphs (4) and (5), the prescribed equivalents of the upper secondary threshold for secondary Class 1 contributions in relation to relevant apprentices shall be—

(a)where the earnings period is a month, [F132£4,189;]

(b)where the earnings period is a year, [F133£50,270;]

(c)where the earnings period is a multiple of a week, the amount calculated by dividing the figure in sub-paragraph (b) by 52 and multiplying the result by the corresponding multiple;

(d)where the earnings period is a multiple of a month, the amount calculated by dividing the figure in sub-paragraph (b) by 12 and multiplying the result by the corresponding multiple;

(e)in any other case, the amount calculated by dividing the figure in sub-paragraph (b) by 365 and multiplying the result by the number of days in the earnings period concerned.]

[F134(4) The amounts determined in accordance with paragraphs (2)(b) and (c), paragraph (2A)(c) and (d)[F135, paragraph (3)(c) and (d)[F136, paragraph (3A)(c) and (d)[F137, 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 [F138paragraph (2)(d), paragraph (2A)(e)[F139, paragraph (3)(e)[F140, paragraph (3A)(e)[F141, 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) [F142The 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.]

Textual Amendments

F107Sections 6, 8 and 9 were substituted, and section 6A inserted, by paragraphs 2 to 5 of Part I of Schedule 9 to the Welfare Reform Act.

F113Words in reg. 11(2) & reg. 11(2)(a) substituted (6.4.2009) by The Social Security (Contributions) (Amendment) Regulations 2009 (S.I. 2009/111), regs. 1, 3(4)

Calculation of earnings-related contributionsU.K.

12.—[F143(1) 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).

Textual Amendments

General provisions as to aggregationU.K.

13.  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 employerU.K.

14.  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 liabilityU.K.

15.—(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 F144, 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.

Textual Amendments

F144S.I. 1978/1689. Schedule 3 was amended by regulation 4 of S.I. 1984/350, regulation 3 of S.I. 1990/1894, regulation 4 of S.I. 1994/726 and regulation 4 of S.I. 1998/1728.

Aggregation of earnings paid after pensionable ageU.K.

16.  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 contributorsU.K.

17.  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 periodU.K.

18.—(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 paymentsU.K.

19.  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.

[F145Joint employment of spouses or civil partners]U.K.

20.  For the purposes of earnings-related contributions, where [F146spouses 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.

Textual Amendments

[F147 Annual maxima for those with more than one employmentU.K.

21.—(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; F148...

F149(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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 [F1508% ].

  • 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 [F1512 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 [F1522 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) [F153For 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 [F154the 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.]

F155(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(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.]

Textual Amendments

F147Reg. 21 substituted (with effect in accordance with reg. 1(1) of the amending S.I.) by The Social Security (Contributions) (Amendment) Regulations 2003 (S.I. 2003/193), regs. 1(1), 6

F150Word in reg. 21(2) substituted (6.4.2024 immediately before 2024 c. 5 comes into force) by National Insurance Contributions (Reduction in Rates) Act 2024 (c. 5), ss. 2(1)(2), 3(1)

F151Words in reg. 21(2) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment) Regulations 2012 (S.I. 2012/573), regs. 1(1), 2(2)(a)(ii)

F152Words in reg. 21(2) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment) Regulations 2012 (S.I. 2012/573), regs. 1(1), 2(2)(a)(iii)

Modifications etc. (not altering text)

C4Reg. 21 modified (for the tax year 2022-23) by Health and Social Care Levy (Repeal) Act 2022 (c. 43), Sch. para. 6(1)

[F156Amounts] to be treated as earningsU.K.

22.—(1) For the purposes of section 3 of the Act (earnings)F157, the amounts specified in paragraphs [F158(2) to [F159(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)apart from this regulation the payment would, when made, not be earnings for the purposes of the Act; and

(b)the payment is made on account of or by way of an advance on a sum which would be earnings for those purposes.

[F160(3) The amount specified in this paragraph is the amount equal to the cash equivalent in respect of car fuel which is treated as earnings from the employment of the earner for income tax purposes by virtue of section 149 of ITEPA 2003.

(4) The amount specified in this paragraph is the amount which is treated as earnings from the employment of the employed earner by virtue of section 222(2) of ITEPA 2003.

(5) The amount specified in this paragraph is the amount which counts as employment income of the employed earner under Chapter 2 of Part 7 of ITEPA 2003 computed in accordance with section 428 of ITEPA 2003 in respect of conditional shares or interests in conditional shares acquired before 16th April 2003.

  • References in this paragraph and paragraph (6) to ITEPA 2003 are to that Act as originally enacted.

(6) The amount specified in this paragraph is the amount which counts as employment income of the employed earner by virtue of Chapter 4 of Part 7 of ITEPA 2003 (shares: post-acquisition charges) in respect of shares or interests in shares acquired before 16th April 2003.

(7) The amounts specified in this paragraph are those—

(a)which count as employment income of the employed earner in relation to employment-related securities (within the meaning given by section 421B(8) of ITEPA 2003); and

(b)to which section 698 of ITEPA 2003 (PAYE: special charges on employment-related securities) applies.

  • References in this paragraph [F161and paragraphs (9) and (10)] to ITEPA 2003 are to that Act as amended F162... .

(8) The amount specified in this paragraph is the amount—

(a)which counts as employment income of the employed earner by virtue of sections 500 to 508 of ITEPA 2003; and

(b)in respect of which income tax is recoverable in accordance with PAYE regulations.]

[F163(9) The amount specified in this paragraph is any amount—

(a)which, by reason of the operation of Schedule 2 to the Finance (No. 2) Act 2005, counts as employment income of the employed earner under any of Chapters 2 to 4 of Part 7 of ITEPA 2003; and

(b)where the relevant date for that income determined under section 698(6) of ITEPA 2003 (whether or not the PAYE Regulations apply to that income) is on or after 2nd December 2004 and before 20th July 2005.

(10) The amount specified in this paragraph is any amount—

(a)which by virtue of the operation of section 92 of the Finance Act 2006 counts as employment income of the employed earner under any of Chapters 2 to 4 of Part 7 of ITEPA 2003; and

(b)where the relevant date for that income determined under section 698(6) of ITEPA 2003 (whether or not the PAYE Regulations apply to that income) is on or after 2nd December 2004 and before 19th July 2006.]

[F164(11) 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).]

[F165(12) 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.]

[F166(14) 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.]

Textual Amendments

F157Section 3 was amended by sections 48 and 49 of the Social Security Act 1998 (c. 14) and paragraph 3 of Schedule 3 to the Transfer Act.

F161Words in reg. 22(7)(b) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 2) Regulations 2007 (S.I. 2007/1057), regs. 1(1), 2(3)(a)

F162Words in reg. 22(7)(b) omitted (with effect in accordance with reg. 1(3) of the amending S.I.) by virtue of The Social Security (Contributions) (Amendment No. 2) Regulations 2007 (S.I. 2007/1057), regs. 1(1), 2(3)(b)

F163Reg. 22(9)(10) added (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 2) Regulations 2007 (S.I. 2007/1057), regs. 1(1), 2(4)

[F167Amounts to be treated as earnings in connection with the use of qualifying vehicles other than cyclesU.K.

22A.—(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—

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).

[F168(2A) 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 [F169section 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.

[F170Here “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—

Here—

  • M is the sum of—

    (a)

    the number of miles of business travel undertaken, at or before the time when the payment is made—

    (i)

    in respect of which the payment is made, and

    (ii)

    in respect of which no other payment has been made; and

    (b)

    the number of miles of business travel undertaken—

    (i)

    since the last payment of relevant motoring expenditure was made, or, if there has been no such payment, since the employment began, and

    (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 [F171section 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.]

Textual Amendments

[F172Amounts to be treated as earnings: Part 7A of ITEPA 2003U.K.

22B.—(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.[F173This 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.

[F174(3A) 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 [F175or 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 [F176paragraphs (3) and (3A)] “relevant step” means a relevant step for the purposes of Part 7A of ITEPA 2003.]

Textual Amendments

[F177Amounts to be treated as earnings paid to or for the benefit of the earner: Schedule 11 to the Finance (No. 2) Act 2017U.K.

22C.—(1) Where an amount is within regulation 22B(2) by reason of a relevant step within paragraph 1 [F178or 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) [F179or 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.]

Textual Amendments

Manner of making sickness payments treated as remunerationU.K.

23.  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 contributionsU.K.

24.  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 contributionsU.K.

25.  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 disregardedU.K.

26.—(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.

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) F180... of the Taxes Act (interpretation of the Tax Acts) [F181and 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, [F182civil partner,] parent, child, son-in-law or daughter-in-law of the director.

Textual Amendments

Liability for Class 1 contributions in respect of earnings normally paid after pensionable ageU.K.

28.  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 ageU.K.

29.  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) F183 shall not operate to except him from liability for primary Class 1 contributions in respect of those earnings.

Textual Amendments

F183Section 6 was substituted by paragraph 2 of Part I of Schedule 9 to the Welfare Reform Act.

Abnormal pay practicesU.K.

[F18430.—(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.]

Textual Amendments

[F185Practices avoiding or reducing liability for contributionsU.K.

31.—(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.]

Textual Amendments

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

PART 3U.K. CLASS 1A CONTRIBUTIONS

Interpretation for the purposes of this PartU.K.

F18632.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

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 circumstancesU.K.

F18633.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Class 1A contributions payable where two or more cars are made available concurrentlyU.K.

F18634.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

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 earnersU.K.

F18635.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

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 earnersU.K.

36.—(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 [F187other 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 F188... by deducting from that amount an amount equal to the fraction—

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.

Textual Amendments

Reduction of certain Class 1A contributions in respect of cars made available to disabled employed earnersU.K.

F18937.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

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 travelU.K.

38.—(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 contributionsU.K.

39.  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 [F190general earnings] in respect of which Class 1A contributions not payableU.K.

40.—(1) Class 1A contributions shall not be payable in respect of the [F191general earnings] prescribed by paragraphs (2) to (7).

(2) The [F192general earnings] prescribed by this paragraph are [F193those] 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—

F194(za). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(a)in Part VI, [F195paragraphs 2(b), 3 to 5, 7, 10 and 11;]

[F196(ab)in Part 7, paragraph 12;]

(b)in Part VIII, paragraphs [F1974 to 5] and 13;

(c)in Part IX, paragraphs [F1983 to 7A]; and

(d)in Part X, paragraphs 5, [F1999, 11 to 13 and 15].

(3) The [F192general earnings] prescribed by this paragraph are [F193those] 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).

F200(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F201(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F202(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F202(6A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7) [F203The 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—

F204(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F205(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

F206(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(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);

F207(g). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F207(h). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F207(i). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F207(j). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F207(k). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F207(l). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F207(m). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F207(n). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F207(o). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(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.

F201(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

  •    

    (a)

       

    (b)

       

    (c)

       

    (d)

       

    (e)

       

    (f)

       

  • F208

  •    

F201(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F194Reg. 40(2)(za) omitted (with application in accordance with reg. 1(2) of the amending S.I.) by virtue of The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 33

F196Reg. 40(2)(ab) inserted (with effect in accordance with reg. 1 of the amending S.I.) by The Social Security (Contributions) (Amendment No. 2) Regulations 2005 (S.I. 2005/728), regs. 1, 3(2)

[F209Exception 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 2014U.K.

40A.  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.]

Textual Amendments

F209Reg. 40A and heading inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security Contributions (Limited Liability Partnership) Regulations 2014 (S.I. 2014/3159), regs. 1(2), 5(2)

[F210Exception from liability to pay Class 1A contributions F211... in respect of sporting testimonial paymentsU.K.

F21240B.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

Textual Amendments

[F213Special provisions for reporting, payment and collection of Class 1A contributions relating to termination awardsU.K.

40C.—(1) This regulation applies to a person (“LP”) who is liable to pay Class 1A contributions in respect of a termination award in accordance with section 10(1A) and (3A) of the Act.

(2) LP must—

(a)on or before making the termination award, deliver to HMRC the information specified in Schedule 4A (real time returns), and

(b)pay the Class 1A contributions to HMRC within the applicable time limit specified in either paragraph 10 (monthly payment of contributions by employer) of Schedule 4 (provisions derived from income tax acts and pay as you earn regulations) or paragraph 11 (quarterly payments of contributions by employer) of that Schedule.

(3) Paragraphs 11ZA (payments and recoveries for each tax period by Real Time Information employers: returns), 15 (specified amount of earnings-related contributions payable by the employer), 21E (returns under paragraphs 21A and 21D: amendments), 21EA (failure to make a return under paragraph 21A and 21D), 21G (penalty: failure to comply with paragraph 21A or 21D) and 26 (retention by employer of contribution and election records) of Schedule 4 apply to LP with the following modifications—

(a)references to “earnings” are to be read as references to termination awards,

(b)references to “the employer” are to be read as references to LP, and

(c)references to “earnings related contributions” are to be read as references to any Class 1A contributions that LP is liable to pay in respect of the termination award.

(4) Paragraphs (2) and (3) do not apply where paragraph (6) applies.

(5) Paragraph (6) applies where—

(a)a termination award consists of the provision of a benefit which is an asset provided to a person (“P”) by or on behalf of P’s former employer, and

(b)the asset is made available to P without any transfer of ownership of that asset.

(6) Where this paragraph applies—

(a)LP must report and pay to HMRC any Class 1A contributions due in respect of the benefit referred to in paragraph (5) for a tax year in accordance with regulations 70 (payment of Class 1A contributions) and 71 (due date for payment of a Class 1A contribution), and

(b)regulation 55 (repayment of Class 1A contributions) and regulations 74 (employer failing to pay a Class 1A contribution) to 83A (requirement to give security or further security for amounts of Class 1A contributions) apply with regard to the reporting, repayment and payment of interest on such payments.

(7) Where a termination award consists of a cash benefit and one or more other benefits, the Class 1A liability is calculated by applying the threshold provided for in section 403(1) and (4) of ITEPA 2003 against those benefits in the following order—

(a)the cash benefit,

(b)any benefit which consists of an asset where ownership has been transferred to P,

(c)any other benefit which consists of an asset that has been made available to P without any transfer of ownership.

(8) 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.]

Textual Amendments

F213Reg. 40C - Reg. 40D inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 2) Regulations 2020 (S.I. 2020/300), regs. 1(1), 7

[F213Special provisions for reporting, payment and collection of Class 1A contributions relating to sporting testimonialsU.K.

40D.—(1) This regulation applies to a controller of a sporting testimonial (“C”) who is liable to pay Class 1A contributions in respect of a sporting testimonial payment in accordance with section 10ZBA of the Act.

(2) C must—

(a)on or before making a sporting testimonial payment, deliver to HMRC the information specified in Schedule 4A (real time returns), and

(b)pay the Class 1A contributions to HMRC within the time limit specified in paragraph 10 (monthly payment of contributions by employer) of Schedule 4 (provisions derived from income tax acts and pay as you earn regulations).

(3) Paragraphs 11ZA (payments and recoveries for each tax period by Real Time Information employers: returns), 15 (specified amount of earnings-related contributions payable by the employer), 21E (returns under paragraphs 21A and 21D: amendments), 21EA (returns under paragraphs 21A and 21D), 21G (penalty: failure to comply with paragraph 21A or 21D) and 26 (retention by employer of contribution and election records) of Schedule 4 apply to C with the following modifications—

(a)references to “earnings” are to be read as references to sporting testimonial payments,

(b)references to “the employer” are to be read as references to C, and

(c)references to “earnings related contributions” are to be read as references to any Class 1A contributions that C is liable to pay in respect of sporting testimonial payments.

(4) Paragraphs (2) and (3) do not apply where paragraph (6) applies.

(5) Paragraph (6) applies where—

(a)a sporting testimonial payment is made in a tax year other than the tax year in which the sporting testimonial took place,

(b)in the tax year in which the sporting testimonial payment is made, C is no longer making payments and deductions under the PAYE Regulations, or

(c)a sporting testimonial payment consists of a benefit which is the provision of an asset by or on behalf of C, without transfer of ownership of that asset.

(6) Where this paragraph applies C must report and pay to HMRC any Class 1A contributions due in respect of the sporting testimonial payment referred to in paragraph (5) in accordance with regulations 70 (payment of Class 1A contributions), 71 (due date for payment of a Class 1A contribution) and 74 (employer failing to pay a Class 1A contribution) to 83A (requirement to give security or further security for amounts of Class 1A contributions).

(7) Regulations 55 (repayment of Class 1A contributions) and 77 (payment of interest on a repaid Class 1A contribution) apply to any repayments of Class 1A contributions under this regulation unless the overpayment has been recovered by C under paragraph 11ZA(3) of Schedule 4.

(8) Where a sporting testimonial payment consists of a cash benefit and one or more other benefits, the Class 1A liability is calculated by applying the threshold provided for in section 306B(5) and (6) of ITEPA 2003 against those benefits in the following order—

(a)the cash benefit,

(b)any benefit which consists of an asset where ownership has been transferred by or on behalf of C,

(c)any other benefit which consists of an asset that has been made available for use without any transfer of ownership by or on behalf of C.]

Textual Amendments

F213Reg. 40C - Reg. 40D inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 2) Regulations 2020 (S.I. 2020/300), regs. 1(1), 7

PART 4U.K. CLASS 1B CONTRIBUTIONS

Calculation of Class 1B contributionsU.K.

41.  Where a person is liable to pay a Class 1B contribution in accordance with section 10A of the Act (Class 1B contributions) F214, the amount of that contribution shall be calculated to the nearest penny, and any amount of a half penny or less shall be disregarded.

Textual Amendments

F214Section 10A was inserted by section 53 of the Social Security Act 1998 and amended by paragraph 11 of Schedule 3 to the Transfer Act and section 77 of the Welfare Reform Act.

Exception from liability to pay Class 1B contributionsU.K.

42.—(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 [F215general 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 [F216general 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 F217.

(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) F218 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.

Textual Amendments

F217OJ No. L1, 3.1.1994, p. 7.

F218Section 179 was amended by paragraph 70 of Schedule 2 to the Jobseekers Act 1995 (c. 18), paragraph 107 of Schedule 7 to the Social Security Act 1998, paragraph 15 of Schedule 7 to the Transfer Act, paragraph 2 of Schedule 6 to S.I. 1999/671 and paragraph 3(g) of Schedule 1 to the Tax Credits Act 1999 (c. 10).

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

Exception from F219... Class 2 contributionsU.K.

43.—(1) Subject to paragraphs (2) and (3), a self-employed earner [F220shall 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;

[F221(ab)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 [F222carer’s allowance] [F223, 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 [F224is 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.

Textual Amendments

F222Words in reg. 43(1)(e) substituted (with effect in accordance with art. 3(2) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 4) Regulations 2002 (S.I. 2002/2924), regs. 1, 3(1)

Application for, and duration and cancellation of, certificates of exceptionU.K.

F22544.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Earnings for the purposes of certificates of exceptionU.K.

F22545.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Certificates of exception—exception from liability for, and entitlement to pay, Class 2 contributionsU.K.

F22546.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Return of Class 2 contributions paid by low earnersU.K.

F22547.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Class 3 contributionsU.K.

48.—(1) Subject to sections 13(2) and 14(1) of the Act (Class 3 contributions only payable for purposes of satisfying certain F226... 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 [F227regulations 50, 50AF228[F229... [F230, 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.

Textual Amendments

F226Word in reg. 48(1) omitted (coming into force in accordance with art. 1(2)(b) of the amending S.I.) by virtue of The Pensions Act 2014 (Consequential, Supplementary and Incidental Amendments) Order 2015 (S.I. 2015/1985), arts. 1(2)(b), 21(2)

F229Words in reg. 48(3)(b) substituted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 34

Precluded Class 3 contributionsU.K.

49.—(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 [F231primary 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 F232 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 [F231primary 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 [F231primary 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;

F233(e). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(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.

[F234Sub-paragraphs (a), (b) and (c) are subject to the following qualification.]

(2) F235... 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 [F236widowed mother’s allowance, widowed parent’s allowanceF237... or widow’s pension] and he has not satisfied that condition at the beginning of that year; or

(b)the contribution condition forF238... widow’s payment and he has not satisfied that condition at the beginning of that year.

[F239(2A) 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, [F240a state pension under section 2 or 4 of the Pensions Act 2014], widowed mother’s allowance[F241, widowed parent’s allowanceF242...] and widow’s pension.

Textual Amendments

F231Words in reg. 49(1) substituted (with effect in accordance with reg. 1(1) of the amending S.I.) by The Social Security (Contributions) (Amendment) Regulations 2003 (S.I. 2003/193), regs. 1(1), 7

F237Words in reg. 49(2)(a) omitted (coming into force in accordance with art. 1-3 of the amending S.I.) by virtue of The Pensions Act 2014 (Consequential, Supplementary and Incidental Amendments) Order 2017 (S.I. 2017/422), arts. 1(2), 18(a)(i)

F238Words in reg. 49(2)(b) omitted (coming into force in accordance with art. 1-3 of the amending S.I.) by virtue of The Pensions Act 2014 (Consequential, Supplementary and Incidental Amendments) Order 2017 (S.I. 2017/422), arts. 1(2), 18(a)(ii)

F240Words in reg. 49(3) inserted (coming into force in accordance with art. 1(2)(b) of the amending S.I.) by The Pensions Act 2014 (Consequential, Supplementary and Incidental Amendments) Order 2015 (S.I. 2015/1985), arts. 1(2)(b), 21(3)

F242Words in reg. 49(3) omitted (coming into force in accordance with art. 1-3 of the amending S.I.) by virtue of The Pensions Act 2014 (Consequential, Supplementary and Incidental Amendments) Order 2017 (S.I. 2017/422), arts. 1(2), 18(b)

[F243Conditions relating to Class 3 contributions: transfers to the Communities’ pension schemeU.K.

49A.—(1) The entitlement of a person to pay a Class 3 contribution 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, paragraph (3) of regulation 148A applies to determine the meaning of a Communities transfer in the same way as it applies to determine the meaning of that expression for the purposes of that regulation.]

Textual Amendments

Class 3 contributions not paid within prescribed periodsU.K.

[F24450.—(1) If—

(a)a person (“the contributor”)—

(i)was entitled to pay a Class 3 contribution under regulation 48, 146(2)(b) or 147; and

(ii)failed to pay that contribution in the appropriate period specified for its payment; and

(b)the condition in paragraph (2) is satisfied,

the contributor may pay the contribution 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 to pay is 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.]

Textual Amendments

[F245Class 3 contributions: tax years 1996-97 to 2001-02U.K.

50A.—(1) This regulation applies to Class 3 contributions payable in respect of the tax years 1996-97 to 2001-02 (“the relevant years”).

(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 [F246regulation 50 or 50B].]

Textual Amendments

Class 3 contributions: tax years 1993-94 to 2007-08U.K.

F24750B.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

[F248Class 3 contributions: tax years 2006-07 to 2015-16: unavailability of pension statements 2013-14 to 2016-17U.K.

50C.—(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 [F2492016].

(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).

(4) The period within which the contribution may be paid is the period beginning on 6th April 2013 and ending on [F2505th 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.

[F251(6A) 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.]

Textual Amendments

Modifications etc. (not altering text)

Disposal of contributions not properly paidU.K.

51.—(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, [F252HMRC] 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 [F252HMRC] to any person under [F253regulation 52 or 52A] or any part of a Class 1A contribution falls to be repaid by [F252HMRC] [F254to any person under regulation 55(1), or regulation 55A,] [F252HMRC] 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.

Textual Amendments

F253Words in reg. 51(2) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions, Categorisation of Earners and Intermediaries) (Amendment) Regulations 2004 (S.I. 2004/770), regs. 1(1), 11

[F255Return of contributions paid in errorU.K.

52.—(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

(b)in the case of a Class 1A or Class 1B contribution, 50 pence.

(6) Paragraph (4) does not require the return of a primary Class 1 contribution which is treated as properly paid by regulation 3 of the Social Security (Additional Pension) (Contributions Paid in Error) Regulations 1996.

(7) Contributions paid by a secondary contributor on behalf of any person in error—

(a)if they are not recovered from that person by the secondary contributor, may be returned to the secondary contributor; and

(b)if they are recovered by the secondary contributor from that person may be returned—

(i)to that person; or

(ii)with that person’s consent given in writing or in such form and by such means of electronic communications as may be approved, to the secondary contributor.

(8) An application for the return of any contribution paid in error shall be made within the period of six years from the end of the year in which the contribution was 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 person making the application 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.

(9) In this regulation “error” means, and means only, an error which—

(a)is made at the time of the payment; and

(b)relates to some past or present matter.

Textual Amendments

F255Regs. 52 52A substituted for reg. 52 (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions, Categorisation of Earners and Intermediaries) (Amendment) Regulations 2004 (S.I. 2004/770), regs. 1(1), 12

Return of contributions paid in excess of maxima prescribed in regulation 21U.K.

52A.—(1) This regulation applies if there has been a payment of contributions in excess of the maximum determined in accordance with regulation 21 (annual maxima for those with more than one employment) in the particular case.

This regulation is subject to regulations 51, 52 and 57.

(2) If this regulation applies, an application may be made to the Board, in writing or in such form and by such means of electronic communications as may be approved for the return of so much of the payment of contributions as exceeds the maximum determined in accordance with regulation 21 in the particular case.

(3) On the making of an application under paragraph (2) the Board shall, subject to the following provisions of this regulation, return so much of the [F256contributions actually paid by the earner] as exceeds the maximum determined in accordance with regulation 21 in the particular case.

(4) Paragraph (3) does not require the return of—

(a)a payment of Class 1 or Class 2 contributions unless the amount to be returned exceeds 1/15 of a contribution at the primary percentage payable on earnings at the upper-earnings limit in respect of main primary Class 1 contributions prescribed in regulation 10 for the last or only year in respect of which the contributions were paid;

(b)a primary Class 1 contribution to which regulation 3 of the Social Security (Additional Pension) (Contributions Paid in Error) Regulations 1996 (purposes for which primary Class 1 contributions paid in error are to be treated as properly paid) applies.

(5) Contributions to which this regulation applies shall be returned in the following order—

(a)primary Class 1 contributions at the reduced rate;

(b)Class 2 contributions;

(c)primary Class 1 contributions at the main primary percentage[F257.]

F258(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F258(e). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F259(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F259(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F259(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9) Contributions paid by a secondary contributor on behalf of any person in excess of the amount specified in regulation 21—

(a)if they are not recovered from that person by the secondary contributor, may be returned to the secondary contributor; and

(b)if they are recovered by the secondary contributor from that person may be returned—

(i)to that person; or

(ii)with that person's consent given in writing or in such form and by such means of electronic communications as may be approved, to the secondary contributor.]

Textual Amendments

F255Regs. 52 52A substituted for reg. 52 (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions, Categorisation of Earners and Intermediaries) (Amendment) Regulations 2004 (S.I. 2004/770), regs. 1(1), 12

Return of contributions: further provisionsU.K.

F26053.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Return of Class 1 contributions paid at the non-contracted out rate instead of at the contracted-out rateU.K.

F26154.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Repayment of Class 1A contributionsU.K.

55.—(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 [F262general 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 [F263the 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 [F264was 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.]

Textual Amendments

[F265Repayment of Class 1A contributions: certain earnings no longer treated as earnings for income tax purposesU.K.

55A.—(1) Subject to regulations 51 and 57 and to paragraph (2), where an officer of Revenue and Customs is satisfied that an amount treated as earnings in respect of which a Class 1A contribution was paid is no longer treated as earnings in accordance with the provisions of sections 100A and 100B of the Income Tax (Earnings and Pensions) Act 2003 (homes outside UK owned through company etc), the amount paid shall be repaid to the person who paid that contribution.

(2) The repayment of all or part of a Class 1A contribution under paragraph (1) is subject to the condition that an application shall be made in writing to HMRC on or before 6th April 2015.]

Textual Amendments

Return of precluded Class 3 contributionsU.K.

56.—(1) Subject to regulations 51 and 57 and to paragraph (2), where a contributor has paid a Class 3 contribution which by virtue of section 14(1) of the Act (restriction on the right to pay Class 3 contributions) or regulation 49 he was not entitled to pay, the Board shall, on application of the contributor, return that contribution to the contributor.

(2) A contributor wishing to apply for the return of a contribution falling within paragraph (1) shall make an application to the Board either—

(a)in writing; or

(b)in such form, and by such means of electronic communications, as are approved.

[F266Repayment of Class 3A contributionsU.K.

56A.—(1) Where a Class 3A contribution has been paid, the contribution shall be repaid if one or more of the following conditions are satisfied—

(a)the person who paid the contribution (“the contributor”) dies within the period of 90 days beginning with the date of payment of the contribution, or

(b)the contributor makes an application to HMRC for repayment within the period of 90 days beginning with the date of payment of the contribution.

(2) Where a Class 3A contribution is repaid, any amounts received under section 45(1)(b) or (2)(e) of the Act in return for that contribution shall be deducted from the repayment.]

Textual Amendments

F266Reg. 56A inserted (12.10.2015 for E.W.S. and coming into force for N.I in accordance with reg. 1(3)) by The Social Security Class 3A Contributions (Amendment) Regulations 2014 (S.I. 2014/2746), reg. 1(2)(3), 4(2)

Calculation of return of contributionsU.K.

57.—(1) In calculating the amount of any return of contributions to be made under [F267regulation 52, 52A[F268, 55, 55A] or 56], there shall be deducted—

(a)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 [F269regulation 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 F270;

(d)the amount of any minimum contributions paid by the Board under section 43 of the Pensions Act F271 (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 F272 (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) F273.

(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”) F274 (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—

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) F275 of the Pensions Act.

Textual Amendments

F270References to “contributions equivalent premiums” are substituted for those to “limited revaluation premiums” by the Pensions Act 1995 (see, in particular, section 141(1) of that Act).

F271Section 43 was amended by paragraph 42 of Schedule 5 to the Pensions Act 1995 (c. 26) and paragraph 47 of Schedule 1 to the Transfer Act.

F2721986 c. 50. Section 7 was repealed by Schedule 5 to the Pensions Act but continues to have effect by virtue of paragraph 22 of Schedule 6 to that Act. See also paragraph 1 of Schedule 1 to the Transfer Act.

F273Section 42A was inserted by section 137(5) of the Pensions Act 1995 and subsection (3) was amended by paragraph 46(2) of Schedule 1 to the Transfer Act.

F274S.I. 1988/664: regulation 13 was amended by regulation 23(5) of S.I. 1996/1345 and regulation 11 of S.I. 1999/2571.

F275Section 55(2) was substituted by section 141(1) of the Pensions Act 1995 (c. 26) and amended by paragraph 7(1) of Schedule 2 to the Welfare Reform Act.

Reallocation of contributions for benefit purposesU.K.

58.—(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 applyU.K.

59.—(1) Section 19A(1) of the Act F276 (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 F277;

(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 F278;

  • “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.

Textual Amendments

F276Section 19A was inserted by section 54 of the Social Security Act 1998 and amended by paragraph 20 of Schedule 3 to the Transfer Act.

F277S.I. 1995/1801. Regulation 13 was revoked by regulation 59 of, and Schedule 4 to S.I. 1999/991. Article 5 of S.I. 1999/2422 contains relevant savings.

F278Sub-paragraph (4A) was inserted by paragraph 77(11) of Schedule 7 to the Social Security Act 1998 (c. 14) and amended by paragraph 5 of Schedule 9 to the Transfer Act.

PART 6U.K. 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 contributorU.K.

60.—(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 [F279of 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 1995F280.

[F281(3) 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).]

Textual Amendments

Voluntary Class 2 contributions not paid within permitted periodU.K.

[F28261.—(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.]

Textual Amendments

Voluntary Class 2 contributions: tax years 1993-94 to 2007-08U.K.

F28361A.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

[F284Voluntary Class 2 contributions: tax years 2006-07 to 2015-16: unavailability of pension statements 2013-14 to 2016-17U.K.

61B.—(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 F285... 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 [F2862016].

(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).

(4) The period within which the contribution may be paid is the period beginning on 6th April 2013 and ending on [F2875th 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.

[F288(6A) 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 [F289regulation 61].]

Textual Amendments

Modifications etc. (not altering text)

Payment of contributions after death of contributorU.K.

62.  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 undertakingU.K.

63.—(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.

[F290Collection of unpaid Class 2 contributions through PAYE codeU.K.

63A.—(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 F291... week to which the relevant debt relates and ending with the day the PAYE code mentioned in paragraph (2)(a) is determined.]

Textual Amendments

Class 2 and Class 3 contributions paid within a month from notification of amount of arrearsU.K.

64.—(1) This regulation applies to any Class 2 or Class 3 contribution—

(a)which would when paid fall to be computed in accordance with section 12(3) or 13(6) of the Act F292; and

(b)the amount of that contribution has been notified to the contributor by the Board in the last month of a year.

(2) Where a contribution to which this regulation applies is paid—

(a)within one calendar month from the date of such notification; and

(b)in the year following that in which the amount was so notified;

the amount of that contribution shall be computed by reference to the weekly rate or, as the case may be, amount of such a contribution calculated in accordance with section 12 or 13 of the Act as if the contribution had been paid on the last day of the year in which the notification was given.

Textual Amendments

F292Section 12 was amended by paragraph 13 of Schedule 3, and paragraph 3 of Schedule 9, to the Transfer Act. Section 13 was amended by paragraph 14 of Schedule 3 to the Transfer Act and article 4 of S.I. 2001/477.

Class 2 and Class 3 contributions paid late through ignorance or errorU.K.

65.—(1) This regulation applies to any Class 2 or Class 3 contribution which would when paid fall to be computed at a rate or, as the case may be, an amount other than that applicable in the contribution year in accordance with section 12(3) or 13(6) of the Act.

(2) Where—

(a)it is shown [F293to the satisfaction of an officer of the Board] that, by reason of ignorance or error on the part of the earner, not being ignorance or error due to any failure on his part to exercise due care and diligence, he has failed to pay a Class 2 contribution to which this regulation applies for any period on or by the due date; and

(b)payment of that contribution is made in a year later than that in which the period commenced;

the amount of that contribution shall be calculated by reference to the weekly rate at which a contribution paid under section 12 of the Act would have been payable if it had been paid at the time when the period began.

(3) Where a Class 3 contribution would otherwise fall to be calculated in accordance with section 13(6) of the Act, but it is shown [F294to the satisfaction of an officer of the Board] that the contributor has not paid that contribution before the end of the second year following the contribution year by reason of ignorance or error on the part of the earner, not being ignorance or error due to any failure on his part to exercise due care and diligence, the amount of that contribution shall be computed by reference to the amount of such a contribution applicable to the period for which the contribution is paid.

(4) Where—

(a)a Class 3 contribution would when paid fall to be computed in accordance with section 13(6) of the Act,

(b)such a contribution remains unpaid for a period commencing at any time after the end of the second year following the contribution year (“the relevant period”), and

(c)it is shown [F295to the satisfaction of an officer of the Board] that the contributor has not, during the relevant period only, paid such a contribution by reason of ignorance or error not being ignorance or error due to any failure on the contributor’s part to exercise due care and diligence,

paragraph (5) applies.

(5) If this paragraph applies to a contribution, the amount of that contribution shall be calculated in accordance with section 13(6) of the Act as if the contribution had been paid at the time when the relevant period commenced.

Textual Amendments

Amounts of Class 2 and Class 3 contributions in certain cases where earnings removedU.K.

F29665ZA.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

[F297Amount of Class 3 contributions payable by virtue of regulation 50AU.K.

65A.  The amount of a contribution payable by virtue of regulation 50A during the period mentioned in paragraph (3) of that regulation shall, notwithstanding section 13(6) of the Act, be calculated by reference to the weekly rate which would have been applicable if it had been paid during the contribution year to which it relates.]

Textual Amendments

[F298Amount of Class 3 contributions payable after issue of a full gender recognition certificateU.K.

65B.  The amount of a contribution payable by virtue of regulation 49(2B) (Class 3 contributions not precluded where gender recognition certificate issued) which is paid in the year in which the full gender recognition certificate is issued or the following year shall, notwithstanding section 13(6) of the Act, be calculated by reference to the weekly rate which would have been applicable if it had been paid during the contribution year to which it relates.]

Textual Amendments

[F299Voluntary Class 2 and Class 3 contributions: [F300tax years 2016-17 and 2017-18] extension of time for payment and tax years 2016-17 to [F3002022-23] computation of amountU.K.

65BA.—(1) A person who is entitled, but not liable, to pay a Class 2 or Class 3 contribution in respect of tax year 2016-17 [F301or 2017-18] may pay the contribution on or before [F3025th April 2025].

(2) Notwithstanding sections 12(3) and 13(6) of the Act, the amount of a contribution payable under paragraph (1), which is paid on or after 6th April 2023, shall be the amount payable in relation to tax year 2022-23.

(3) Paragraph (4) applies to a Class 2 or Class 3 contribution which—

(a)a person is entitled, but not liable, to pay,

(b)is paid during the period beginning on 6th April 2023 and ending on [F3035th 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,

[F304(aa)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.]

Textual Amendments

Late payment of voluntary Class 2 and 3 contributions for tax year 2005-06U.K.

F30565C.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Late payment of voluntary Class 2 and 3 contributions for tax year 2006-07U.K.

F30665D.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

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

Notification of national insurance numbers to secondary contributorsU.K.

66.  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 contributionsU.K.

67.—(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 [F307[F308PAYE income] by virtue of regulations under section 684 of ITEPA 2003 (PAYE Regulations)].

[F309(1A) PAYE income has the meaning given in section 683 of ITEPA 2003.]

(2) F310...The provisions contained in Schedule 4, (which contains provisions derived from [F311the PAYE Regulations] with extensions and modifications) shall apply to and for the purposes of earnings-related contributions and Class 1B contributions.

[F312(3) Schedules 4A (real time returns) and 4B (additional information about payments) apply to and for the purposes of earnings-related contributions.]

Textual Amendments

[F313Penalty for failure to make payments on time: Class 1 contributionsU.K.

67A—.—[F314(1)] Schedule 56 to the Finance Act 2009 (“Schedule 56 FA 2009”) (penalty for failure to make payments on time) shall apply in relation to the late payment of Class 1 contributions, as if—

(a)the Class 1 contributions were an amount of tax falling within item 2 of the Table in paragraph 1 of Schedule 56 FA 2009 (“the Table”),

(b)references to the PAYE Regulations were references to these Regulations, and

(c)references to “an assessment or determination” in item 24 of the Table were references to a decision made under section 8(1)(c) of the Social Security Contributions (Transfer of Functions, etc) Act 1999.

[F315(2) Regulation 69A of the PAYE Regulations (circumstances in which payment of a lesser amount is to be treated as payment in full for the purposes of paragraph 6(2) of Schedule 56 to the Finance Act 2009) applies in relation to the late payment of Class 1 contributions as if—

(a)the Class 1 contributions were an amount of tax falling within item 2 of the Table in paragraph 1 of that Schedule,

(b)references to regulations 67G and 67H(2) were references to paragraphs 10 and 11 of Schedule 4 to these Regulations, and

(c)references to earnings-related contributions were references to tax deducted under the PAYE Regulations.]

Textual Amendments

F313Reg. 67A - Reg. 67B inserted (with application in accordance with reg. 1(3) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 4) Regulations 2010 (S.I. 2010/721), regs. 1(2), 3

F314Reg. 67A(1) reg. 67A re-numbered as reg. 67A(1) (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment) Regulations 2014 (S.I. 2014/608), regs. 1(1), 3

F315Reg. 67A(2) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment) Regulations 2014 (S.I. 2014/608), regs. 1(1), 3

Penalty for failure to make payments on time: Class 1A and Class 1B contributionsU.K.

67B.  Schedule 56 to the Finance Act 2009 (“Schedule 56 FA 2009”) shall apply in relation to the late payment of Class 1A and Class 1B contributions, as if—

(a)the Class 1A and Class 1B contributions were an amount of tax falling within item 3 of the table in paragraph 1 of Schedule 56 FA 2009,

(b)in the case of Class 1B contributions, the reference to “amount shown in return under section 254(1) of FA 2004” was a reference to the amount payable under section 10A of the Act, and

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

Textual Amendments

F313Reg. 67A - Reg. 67B inserted (with application in accordance with reg. 1(3) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 4) Regulations 2010 (S.I. 2010/721), regs. 1(2), 3

Other methods of collection and recovery of earnings-related contributionsU.K.

68.—(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: [F316relevant employment income] U.K.

69.  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 [F316relevant employment income] shall be transferred to the employed earner.

Textual Amendments

F316Words in reg. 69 and 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), 4

Payment of Class 1A contributionsU.K.

70.—(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” [F317means the person liable, in accordance with section 10(2) or 10ZA(4) F318 of the Act, to pay a Class 1A contribution].

Textual Amendments

F317Words in reg. 70(4) substituted (28.11.2002) by The Social Security (Contributions)(Amendment No. 5) Regulations 2002 (S.I. 2002/2929), regs. 1, reg. 3

F318Section 10ZA was inserted by section 75 of the Child Support, Pensions and Social Security Act 2000 (c. 19).

Due date for payment of a Class 1A contributionU.K.

71.—(1) Subject to regulation [F31940C(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 [F320or, 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).

Textual Amendments

Provisions relating to a Class 1A contribution due on succession to businessU.K.

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

(a)there is a change in the employer who is liable to pay [F321F322... earnings] to or for the benefit of all the persons who are employed in a business in respect of their employment in that business; and

(b)the employees in question are those who ceased to be employed in that business before the change of employer occurred.

(2) Not later than 14 days [F323or, 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 [F324tax 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 [F324tax 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(1) for the relevant final year.

(4) In this regulation—

  • “business” includes any trade, concern or undertaking;

  • “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; and

  • “employer” means the employer before the change referred to in paragraph (1)(a);

  • F325...

  • “relevant final [F326tax month]” means the [F326tax month] in which the employer has made any payments of emoluments which were, by reason of the change of employer referred to in paragraph (1)(a) in respect of the employment of all those persons who were employed by him in that [F326tax month], the [F327final payment of F328... earnings] to be made by him in the year in which those payments were made; F329...

  • “relevant final year” means the year in which the relevant final income tax month occurs.

Textual Amendments

Provisions relating to Class 1A contribution due on cessation of businessU.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 [F330F331... 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 [F332or 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 [F333tax 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 [F333tax 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);

  • F334...

  • “relevant final [F335tax month]” means the [F335tax 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 [F335tax month], the [F336final payment of F337... earnings] to be made by him in the year in which those payments were made; F338...

  • “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 [F335tax month] occurs.

Textual Amendments

Employer failing to pay a Class 1A contributionU.K.

74.—(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 contributionU.K.

75.—(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 [F339Schedule 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 [F340paragraph 26A] of Schedule 4 shall apply in relation to that inspection and the notice given by the Board under paragraph (1) shall be disregarded.

Textual Amendments

F339Words in reg. 75(6) substituted (1.4.2009) (with effect in accordance with reg. 1(2)(a) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 3) Regulations 2009 (S.I. 2009/600), regs. 1(1), 4(a)

F340Words in reg. 75(7) substituted (1.4.2009) (with effect in accordance with reg. 1(2)(a) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 3) Regulations 2009 (S.I. 2009/600), regs. 1(1), 4(b)

Interest on an overdue Class 1A contributionU.K.

76.—(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 1882F341.

(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 [F342or 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.

Textual Amendments

F3411882 c. 61: section 92 was amended by sections 3(1) and 4(4) of the Banking and Financial Dealings Act 1971 (c. 80).

Payment of interest on a repaid Class 1A contributionU.K.

77.—(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 contributionU.K.

78.  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 contributionU.K.

79.—(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.

Return by employerU.K.

80.—(1) Where a Class 1A contribution is payable to the Board in accordance with regulation 71(1), 72(2) or 73(2), the employer shall render to them a return, not later than 6th July following the end of the year, showing—

(a)such particulars as they may require for the identification of the employer;

(b)the year to which the return relates;

(c)the amounts which are [F343general earnings] in respect of which a Class 1A contribution is payable; and

(d)the amount of any Class 1A contribution payable in respect of that year.

[F344(1A) The employer must render the return required by paragraph (1)—

F345(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)[F346by delivering it] to an official computer system by an approved method of electronic communications.]

[F347(1AA) Paragraph (1A) does not apply if the employer is one to whom paragraph 21D(1) of Schedule 4 (exceptions from making electronic real time information returns) applies but in those circumstances the employer must render the return by sending it to HMRC.]

F348(1B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F348(1C) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F348(1D) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F348(1E) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F348(1F) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) The return shall include a declaration by the person making the return to the effect that the return is, to the best of his knowledge, correct and complete.

[F349(3) The declaration must be—

(a)signed by the employer; or,

(b)where the employer is a body corporate, signed either by the secretary or by a director.]

[F350(3A) 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.

[F351(5) This regulation is subject to regulations 40C(2) and 40D(2).]

Textual Amendments

Returns rendered electronically on another’s behalfU.K.

F35280A.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Penalties for failure to make a return and incorrect returnsU.K.

81.—[F353(1) Schedule 24 to the Finance Act 2007 (penalties for errors) applies to the return of contributions referred to in regulation 80(1) (return by employer) as if—

(a)Class 1A contributions were a tax; and

(b)that tax and the return of contributions in relation to it were listed in the table in paragraph 1 of that Schedule.

(1A) That Schedule also applies to decisions made under section 8(1)(c) of the Social Security Contributions (Transfer of Functions, etc) Act 1999 regarding Class 1A contributions and for that purpose a reference in the Schedule to an assessment is to be treated as if it included a reference to a decision and “under-assessment” shall be construed accordingly.

(1B) Paragraphs (6) to (9) do not apply in relation to penalties under paragraphs (1) and (1A).]

(2) Any person who fails to make a return referred to in paragraph (1) by the date which applies to him under regulation 71(1), 72(2) or 73(2), may be liable—

(a)within 6 years after the date of that failure, to a penalty of the relevant monthly amount for each month (or part of a month) during which the failure continues but excluding any month after the twelfth, or for which a penalty under this paragraph has already been imposed; and

(b)if the failure continues beyond 12 months, to a penalty not exceeding so much of the amount payable by him in accordance with the regulations for the year to which the return relates as remains unpaid at the end of 19th July after the end of that year.

(3) The penalty referred to in paragraph (2)(b) is without prejudice to any penalty which may be imposed under paragraph (2)(a) and may be imposed within six years after the date of the failure referred to in paragraph (2) or at any later time within three years of the final determination of the amount of a Class 1A contribution by reference to which the amount of that penalty is to be ascertained.

(4) For the purposes of paragraph (2), “the relevant monthly amount” in the case of a failure to make a return is—

(a)where the number of earners in respect of whom particulars of the amount of any Class 1A contribution payable should be included in the return is 50 or less, £100; or

(b)where that number is greater than 50, £100 for each 50 such earners and an additional £100 where that number is not a multiple of 50.

(5) The total penalty payable under paragraph (2)(a) shall not exceed the total amount of Class 1A contributions payable in respect of the year to which the return in question relates.

(6) Any penalty imposed in accordance with this regulation shall be recoverable as if it were a Class 1A contribution which the employer is liable to pay to the Board under regulation 71.

(7) A penalty imposed in accordance with this regulation shall be due and payable at the end of 30 days beginning with the date on which notice of the decision to impose it was issued.

(8) The Board may, in their discretion, mitigate any penalty, or stay or compound any proceedings for any penalty, imposed in accordance with the provisions of this regulation, and may also, after judgment, further mitigate or entirely remit such a penalty.

(9) For the purposes of this regulation a person shall be deemed not to have failed to have done anything required to be done within a limited time if he—

(a)did it within such further time as the Board allowed; or

(b)had a reasonable excuse for the failure and if that excuse ceased, did it without unreasonable delay after that excuse ceased.

Textual Amendments

F353Reg. 81(1)(1A)(1B) substituted for reg. 81(1) (6.4.2010) (with application in accordance with reg. 1(3) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 4) Regulations 2010 (S.I. 2010/721), regs. 1(2), 4

Application of the Management Act to penalties for failure to make a return and incorrect returnsU.K.

82.—(1) Section 100 of the Management Act F354 (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 F355 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) F356 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 F357; and

  • “the Taxes Acts” has the same meaning as in section 118(1) of the Management Act (interpretation) F358.

Textual Amendments

F354Sections 100 to 100D were substituted for section 100 by section 167 of the Finance Act 1989. Section 100 was amended by paragraph 3(2) of Schedule 11 to the Finance Act 1990 (c. 29), paragraph 14 of Schedule 1 and Part I of Schedule 2 to S.I. 1994/1813, and paragraph 38 of Schedule 19 to the Finance Act 1998 (c. 36).

F355Section 100D was amended by Article 2 of, and the Schedule to S.I. 1999/679.

F356Section 105 was amended by sections 149(5) and 168(5) of the Finance Act 1989.

F358The definition was amended by paragraph 32(d) of Schedule 8 to the Development Land Tax Act 1976 (c. 24), Schedule 31 to the Taxes Act 1988 and paragraph 2(1) of Schedule 10 to the Taxation of Chargeable Gains Act 1992 (c. 12).

Set-off of Class 1A contributions falling to be repaid against earnings-related contributionsU.K.

83.—(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.

[F359Requirement to give security or further security for amounts of Class 1A contributionsU.K.

83A.  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—

(i)the reference to “Class 1 contributions” were a reference to “Class 1A contributions”; and

(ii)the reference to “paragraph 10, 11 or 11A” were a reference to “section 10 or 10ZA of the Social Security Contributions and Benefits Act 1992, or section 10 or 10ZA of the Social Security Contributions and Benefits (Northern Ireland) Act 1992, as the case may be”; and

(b)in paragraph 29O(1) for “within the meaning given in paragraph 1(2)” there were substituted “within the meaning given in regulation 70(4)”.]

Textual Amendments

Special provisions relating to primary Class 1 contributionsU.K.

[F36084.—(1) If in accordance with an arrangement authorised under regulation 68, notwithstanding paragraph 3(1) of Schedule 1 to the Act (method of paying Class 1 contributions), an earner is required to make direct payments in respect of primary Class 1 contributions in respect of earnings paid to him or for his benefit, the following provisions of this regulation apply.

(2) In a case to which this regulation applies—

(a)the earner shall be liable for such of the primary Class 1 contributions as are specified in the arrangements authorised under regulation 68, and

(b)the secondary contributor shall be liable for any other Class 1 contributions,

in respect of earnings paid to the earner or for the earner’s benefit from the employment in question.

(3) The Board shall notify the secondary contributor in writing of—

(a)the arrangement,

(b)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.]

Textual Amendments

F360Reg. 84 substituted (with effect in accordance with reg. 1(1) of the amending S.I.) by The Social Security (Contributions) (Amendment) Regulations 2003 (S.I. 2003/193), regs. 1(1), 8

Exception in relation to earnings to which regulation 84 appliesU.K.

F36185.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F361Reg. 85 omitted (with effect in accordance with reg. 1(1) of the amending S.I.) by virtue of The Social Security (Contributions) (Amendment) Regulations 2003 (S.I. 2003/193), regs. 1(1), 9

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 itU.K.

86.—(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

[F362(i)]not to any negligence on the part of the secondary contributor[F363, 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 ActF364..., 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.

Textual Amendments

Notification of commencement or cessation of payment of Class 2 or Class 3 contributions [F365on or before 5th April 2009] U.K.

87.—(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 [F366on 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.

F367(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F367(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F367(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F367(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F367(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F367(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F365Words in reg. 87 heading added (1.4.2009) (with effect in accordance with reg. 1(2)(b) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 3) Regulations 2009 (S.I. 2009/600), regs. 1(1), 5(a)

F366Words in reg. 87(2) inserted (1.4.2009) (with effect in accordance with reg. 1(2)(b) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 3) Regulations 2009 (S.I. 2009/600), regs. 1(1), 5(b)

[F368Notification of commencement or cessation of payment of Class 2 or Class 3 contributions on or after 6th April 2009 [F369but before 6th April 2015] U.K.

87A.—(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 [F370but 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.

Textual Amendments

F368Regs. 87A-87G inserted (with effect in accordance with reg. 1(2)(b) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 3) Regulations 2009 (S.I. 2009/600), regs. 1(1), 6

[F371Notification of commencement or cessation of self-employment or Class 3 contributions on or after 6th April 2015U.K.

87AA.—(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.]

Textual Amendments

F368Regs. 87A-87G inserted (with effect in accordance with reg. 1(2)(b) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 3) Regulations 2009 (S.I. 2009/600), regs. 1(1), 6

Penalty for failure to notifyU.K.

F37287B.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F368Regs. 87A-87G inserted (with effect in accordance with reg. 1(2)(b) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 3) Regulations 2009 (S.I. 2009/600), regs. 1(1), 6

DisclosureU.K.

F37287C.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F368Regs. 87A-87G inserted (with effect in accordance with reg. 1(2)(b) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 3) Regulations 2009 (S.I. 2009/600), regs. 1(1), 6

Reduction of penalty for disclosureU.K.

F37287D.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F368Regs. 87A-87G inserted (with effect in accordance with reg. 1(2)(b) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 3) Regulations 2009 (S.I. 2009/600), regs. 1(1), 6

Special reductionU.K.

F37287E.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F368Regs. 87A-87G inserted (with effect in accordance with reg. 1(2)(b) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 3) Regulations 2009 (S.I. 2009/600), regs. 1(1), 6

Notice of decision etc.U.K.

F37287F.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F368Regs. 87A-87G inserted (with effect in accordance with reg. 1(2)(b) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 3) Regulations 2009 (S.I. 2009/600), regs. 1(1), 6

Double jeopardyU.K.

F37287G.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

Textual Amendments

F368Regs. 87A-87G inserted (with effect in accordance with reg. 1(2)(b) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 3) Regulations 2009 (S.I. 2009/600), regs. 1(1), 6

Notification of change of addressU.K.

88.  [F373A person to whom section 11(5B) of the Act (class 2 contributions treated as paid) applies]; or paying Class 2 contributions F374... 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.

Textual Amendments

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

89.—(1) Where Class 2 or Class 3 contributions are payable by a person other than in accordance with [F375the Taxes Management Act 1970 (as modified by section 11A of the Act) or in accordance with,] arrangements approved under regulation 90 [F376or in accordance with regulation 90ZA or 148C], such contributions shall be paid in accordance with paragraphF377... [F378(2A),] (3) or (4), as the case may be.

F379(1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F380(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F381(2A) Where—

(a)a person who is entitled, although not liable, to pay a Class 2 contribution in any year has notified HMRC of his entitlement in accordance with the provisions of regulation 87[F382, ]87A [F383or 87AA]; and

(b)HMRC has, no later than the notification date, issued him with written notice of the amount he may pay in respect of his entitlement in that period;

that person may, if the person so wishes, pay to HMRC a sum not exceeding that amount.]

(3) Where—

(a)a person F384... who is entitled to pay a Class 3 contribution, in any year, has notified [F385HMRC] of his entitlement in accordance with the provisions of regulation 87[F386, 87A or 87AA]; and

(b)[F385HMRC], within 14 days after the end of a contribution quarter which commences in that year, have issued him with written notice of the amount he may pay in respect of his entitlement in that quarter;

that person may, if he so wishes, pay to the Board a sum not exceeding that amount.

(4) Where—

(a)paragraph (5) F387... applies to a person; and

(b)[F388HMRC] have then, in respect of that F389... entitlement to pay Class 2 or Class 3 contributions, issued or re-issued him, as the case may be, with written notice of F389... the amount of his entitlement;

that person F390... may pay a sum not exceeding the amount of his entitlement, to [F388HMRC].

[F391(5) This paragraph applies to a person who—

(a)has notified HMRC in accordance with the provisions of regulation 87[F392, 87A or 87AA] that—

F393(i). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ii)he is entitled although not liable to pay a Class 2 contribution in a [F394tax 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 87[F395, 87A or 87AA] that he has F396... ceased to be entitled to pay Class 2 or Class 3 contributionsF397....]

F398(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F391(7) In this regulation—

F399(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F399(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F400(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(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)[F401“notification date” means 31st October following the end of the tax year.]]

Textual Amendments

F378Word in reg. 89(1) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 3) Regulations 2011 (S.I. 2011/797), regs. 1(1), 6(a)

F381Reg. 89(2A) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 3) Regulations 2011 (S.I. 2011/797), regs. 1(1), 6(d)

F384Words in reg. 89(3)(a) omitted (with effect in accordance with reg. 1(2) of the amending S.I.) by virtue of The Social Security (Contributions) (Amendment No. 3) Regulations 2011 (S.I. 2011/797), regs. 1(1), 6(e)(i)

F385Word in reg. 89(3) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 3) Regulations 2011 (S.I. 2011/797), regs. 1(1), 6(e)(iii)

F388Word in reg. 89(4) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 3) Regulations 2011 (S.I. 2011/797), regs. 1(1), 6(f)(ii)

F391Reg. 89(5)-(7) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 3) Regulations 2011 (S.I. 2011/797), regs. 1(1), 6(g)

[F402Class 2 contributions for tax years up to 2014-15U.K.

89A.—(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.]

Textual Amendments

Arrangements approved by the Board for method of, and time for, payment of Class 2 and Class 3 contributionsU.K.

90.—(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 [F403total 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 [F404the 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.

Textual Amendments

F403Words in reg. 90(4) substituted (with effect in accordance with reg. 1(1) of the amending S.I.) by The Social Security (Contributions) (Amendment) Regulations 2003 (S.I. 2003/193), regs. 1(1), 10(a)

F404Words in reg. 90(4) substituted (with effect in accordance with reg. 1(1) of the amending S.I.) by The Social Security (Contributions) (Amendment) Regulations 2003 (S.I. 2003/193), regs. 1(1), 10(b)

[F405Class 2 contributions - maternity allowanceU.K.

90ZA.—(1) This regulation applies in connection with maternity allowance under section 35 or 35B of the Act.

(2) A person who is, or will be, either F406... entitled to pay a Class 2 contribution [F407, or is or will be treated for relevant purposes as having actually paid a Class 2 contribution as a result of section 11(5B) of the Act,] in respect of a week in a tax year may pay a Class 2 contribution in respect of that week at any time in the period—

(a)beginning with that week; and

(b)ending with 31st January next following the end of the relevant tax year.

(3) Where a person pays a Class 2 contribution in accordance with paragraph (2)—

(a)the contribution is to be treated, before the end of the tax year, as a Class 2 contribution under section 11(6) of the Act, and

(b)the contribution is to be treated after the end of the tax year—

F408(i). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ii)F409... as a Class 2 contribution under section 11(6) of the Act.]

[F410(4) Where a person—

(a)has paid a contribution in accordance with paragraph (2) in respect of a week in a tax year, and

(b)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.]

Textual Amendments

[F411PART 7AU.K.Electronic Communications

Textual Amendments

Whether information has been delivered electronicallyU.K.

90A.—(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 deliveryU.K.

90B.—(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)was delivered by an approved method of electronic communications on that occasion, and

(b)constitutes everything which was delivered on that occasion.

(2) A document which purports to be a certificate given in accordance with paragraph (1) is presumed to be such a certificate unless the contrary is proved.

Proof of identity of person sending or receiving electronic deliveryU.K.

90C.  The identity of—

(a)the person sending any information delivered by an approved method of electronic communications to the Board,

(b)the person receiving any information delivered by an approved method of electronic communications by the Board,

is presumed, unless the contrary is proved, to be the person recorded as such on an official computer system.

Information sent electronically on behalf of a personU.K.

90D.—(1) Any information delivered by an approved method of electronic communications—

(a)to the Board, or

(b)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 electronicallyU.K.

90E.—(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 electronicallyU.K.

90F.—(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 communicationsU.K.

90G.—(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 paymentU.K.

90H.—[F412(1) An employer who is a large employer within the meaning of regulation [F413198A (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 [F41467G 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.

[F415(4) 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 ]

[F416(5) 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.]

Textual Amendments

F412Reg. 90H(1) substituted (6.4.2010) (with application in accordance with reg. 1(3) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 4) Regulations 2010 (S.I. 2010/721), regs. 1(2), 5(a)

F413Words in reg. 90H(1) substituted (6.4.2010) (with application in accordance with reg. 1(4) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 4) Regulations 2010 (S.I. 2010/721), regs. 1(2), 5(b)

F416Reg. 90H(5) inserted (6.4.2010) (with application in accordance with reg. 1(3) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 4) Regulations 2010 (S.I. 2010/721), regs. 1(2), 5(c)

Employer in default if specified payment not received by applicable due dateU.K.

F41790I.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F417Reg. 90I omitted (6.4.2010) (with application in accordance with reg. 1(3) of the amending S.I.) by virtue of The Social Security (Contributions) (Amendment No. 4) Regulations 2010 (S.I. 2010/721), regs. 1(2), 6(a)

Default notice and appealU.K.

F41890J.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F418Reg. 90J omitted (6.4.2010) (with application in accordance with reg. 1(3) of the amending S.I.) by virtue of The Social Security (Contributions) (Amendment No. 4) Regulations 2010 (S.I. 2010/721), regs. 1(2), 6(b)

Default surchargeU.K.

F41990K.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F419Reg. 90K omitted (6.4.2010) (with application in accordance with reg. 1(3) of the amending S.I.) by virtue of The Social Security (Contributions) (Amendment No. 4) Regulations 2010 (S.I. 2010/721), regs. 1(2), 6(c)

Surcharge notice and appealU.K.

F42090L.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F420Reg. 90L omitted (6.4.2010) (with application in accordance with reg. 1(3) of the amending S.I.) by virtue of The Social Security (Contributions) (Amendment No. 4) Regulations 2010 (S.I. 2010/721), regs. 1(2), 6(d)

[F421Paragraph 22 return and specified payments]U.K.

90M.  In this Part—

[F422“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);]

[F423“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.]

Textual Amendments

F421Reg. 90M heading substituted (13.8.2009) (with effect in accordance with reg. 1(4) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 4) Regulations 2009 (S.I. 2009/2028), regs. 1(2), 4

F422Words in reg. 90M substituted (13.8.2009) (with effect in accordance with reg. 1(4) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 4) Regulations 2009 (S.I. 2009/2028), regs. 1(2), 5(a)

F423Words in reg. 90M substituted (6.4.2010) (with application in accordance with reg. 1(3) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 4) Regulations 2010 (S.I. 2010/721), regs. 1(2), 7

[F424Mandatory use of electronic communicationsU.K.

90N.—(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 [F425205(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.

Textual Amendments

F424 Regs. 90N 90NA substituted for reg. 90N (with application in accordance with reg. 1(3) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 4) Regulations 2010 (S.I. 2010/721), regs. 1(2), 8(1)

F425Word in reg. 90N(2) substituted (6.4.2010) (with application in accordance with reg. 1(4) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 4) Regulations 2010 (S.I. 2010/721), regs. 1(2), 8(2)

EmployersU.K.

90NA.—(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),

F426(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .; 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.]

Textual Amendments

F424 Regs. 90N 90NA substituted for reg. 90N (with application in accordance with reg. 1(3) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 4) Regulations 2010 (S.I. 2010/721), regs. 1(2), 8(1)

F426Reg. 90NA(1)(d) omitted (with effect in accordance with reg. 1(3) of the amending S.I.) by virtue of The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 3

Standards of accuracy and completenessU.K.

90O.—(1) [F427Any 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) [F427Any paragraph 22 return] which fails to meet those standards must be treated as not having been delivered.

Textual Amendments

F427Words in reg. 90O substituted (13.8.2009) (with effect in accordance with reg. 1(4) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 4) Regulations 2009 (S.I. 2009/2028), regs. 1(2), 7

Penalties and appealsU.K.

90P.—(1) An employer who fails to deliver [F428a paragraph 22 return] or any part of it in accordance with regulation 90N is liable to a penalty.

[F429(2) 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 2

Penalties: tax year ending 5th April 2010

1 Number of employees for whom particulars should have been included with the return2 Penalty

1-5

6-49

50-249

250-399

400-499

500-599

600-699

700-799

800-899

900-999

1000 or more

0

£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 3

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

1 Number of employees for whom particulars should have been included with the return2 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 [F430paragraph 22 return] was delivered, or

[F431(b)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,

[F432(aa)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.

Textual Amendments

F428Words in reg. 90P(1) substituted (13.8.2009) (with effect in accordance with reg. 1(4) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 4) Regulations 2009 (S.I. 2009/2028), regs. 1(2), 8(a)

F429Reg. 90P(2)(2A) substituted for reg. 90P(2) (13.8.2009) (with effect in accordance with reg. 1(4) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 4) Regulations 2009 (S.I. 2009/2028), regs. 1(2), 8(b)

F430Words in reg. 90P(3)(a) substituted (13.8.2009) (with effect in accordance with reg. 1(4) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 4) Regulations 2009 (S.I. 2009/2028), regs. 1(2), 8(c)(i)

F431Reg. 90P(3)(b) substituted (6.4.2010) (with application in accordance with reg. 1(4) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 4) Regulations 2010 (S.I. 2010/721), regs. 1(2), 9(a)

F432Reg. 90P(4)(aa) inserted (6.4.2010) (with application in accordance with reg. 1(3) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 4) Regulations 2010 (S.I. 2010/721), regs. 1(2), 9(b)

Appeals: supplementary provisionsU.K.

90Q.—[F433(1) 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.]

F434(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F434(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

InterpretationU.K.

90R.  In this Part “the Management Act” means the Taxes Management Act 1970.]

PART 8U.K. CLASS 4 CONTRIBUTIONS

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

91.  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 contributionsU.K.

92.  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 contributionsU.K.

93.—(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.

[F435Exception from Class 4 liability in respect of earnings from employed earner’s employment chargeable to income tax under Schedule D.]U.K.

94.—[F436(1) 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.

Textual Amendments

F435Reg. 94 substituted (with effect in accordance with reg. 1(1) of the amending S.I.) by The Social Security (Contributions) (Amendment) Regulations 2003 (S.I. 2003/193), regs. 1(1), 11(2)

F436Reg. 94(1) substituted (with effect in accordance with reg. 1(1) of the amending S.I.) by The Social Security (Contributions) (Amendment) Regulations 2003 (S.I. 2003/193), regs. 1(1), 11(3)

[F437Exception from Class 4 liability in respect of certain amounts chargeable to income tax under Schedule DU.K.

94A.  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.]

Textual Amendments

F437Reg. 94A and heading inserted (with effect in accordance with reg. 2 of the amending S.I.) by The Social Security (Contributions) (Amendment No. 7) Regulations 2003 (S.I. 2003/2958), regs. 1(1), 4

[F438Liability of a partner in an AIFM firm for Class 4 contributionsU.K.

94B.—(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.]

Textual Amendments

F438Reg. 94B inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 5) Regulations 2014 (S.I. 2014/3196), regs. 1(2), 2(2)

Deferment of Class 4 liability where such liability is in doubtU.K.

95.  Where, as respects any year of assessment [F439before 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 [F440and for such period] as the Board may direct.

Textual Amendments

F440Words in reg. 95 substituted (with effect in accordance with reg. 1(1) of the amending S.I.) by The Social Security (Contributions) (Amendment) Regulations 2003 (S.I. 2003/193), regs. 1(1), 12

Application for deferment of Class 4 liabilityU.K.

96.—(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 defermentU.K.

97.—(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 defermentU.K.

98.  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 defermentU.K.

99.—(1) Where a certificate of deferment has been issued in respect of any earner under regulations 91 to 98—

(a)the profits or gains of that earner, in respect of which contributions would be payable under section 15 of the Act (Class 4 contributions), but for the issue of the certificate of deferment, shall be assessed under the Income Tax Acts for each year to which the certificate relates, in all respects as if no such certificate had been issued, provided that (without prejudice to the validity of the assessment of the amount of the earner’s profits or gains and his right of appeal against that assessment) no figure representing [F441contributions, the payment of which has been deferred,] shall be shown in any such assessment or on any notice of such assessment nor shall any of the provisions of the Income Tax Acts (as applied or modified by section 16 of, and Schedule 2 to, the Act) as to collection, repayment or recovery apply to any such assessment; and

(b)the Board shall be responsible for the calculation, administration and recovery of Class 4 contributions ultimately payable in respect of the profits or gains so assessed for any year of assessment to which the certificate of deferment relates.

(2) Any such calculation shall be subject to the provisions of regulations 94 and 100 and for the purpose of the calculation where the total amount of the profits or gains for any year of assessment to which the certificate relates includes a fraction of £1, that fraction shall be disregarded.

(3) For the purpose of enabling the Board to make the calculation, they shall certify the amount of the earner’s profits or gains, computed under Schedule 2 to the Act for each year of assessment.

[F442This is subject to the following qualification.]

(4) Notwithstanding paragraph (3), the Board shall not be required to certify the amount referred to in that paragraph unless the assessment made under this regulation has become [F443final and conclusive.]—

(a)the Board and the earner have come to an agreement, whether in writing or otherwise; or

(b)it appears to the General Commissioners or the Special Commissioners;

that the amount of the earner’s profits or gains so computed is not less than the higher of the two money sums specified in section 15(3) of the Act.

(5) The Board, on making the calculation referred to in paragraph (3), shall give notice to the earner of the amount of the contributions due from him under section 15 of the Act for each year to which the certificate of deferment relates.

(6) The earner shall pay to the Board those contributions within the period of 28 days from the receipt of the notice from them, unless before the expiry of that period the earner—

(a)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.

Textual Amendments

F441Words in reg. 99(1)(a) substituted (with effect in accordance with reg. 1(1) of the amending S.I.) by The Social Security (Contributions) (Amendment) Regulations 2003 (S.I. 2003/193), regs. 1(1), 13(2)

F442Words in reg. 99(3) substituted (with effect in accordance with reg. 1(1) of the amending S.I.) by The Social Security (Contributions) (Amendment) Regulations 2003 (S.I. 2003/193), regs. 1(1), 13(3)

F443Words in reg. 99(4) substituted (with effect in accordance with reg. 1(1) of the amending S.I.) by The Social Security (Contributions) (Amendment) Regulations 2003 (S.I. 2003/193), regs. 1(1), 13(4)

Annual maximum of Class 4 contributions due under section 15 of the ActU.K.

[F444100.—(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 F445...

F446(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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 [F4476% ].

  • F448...

  • Step Four

    Subtract from the result of [F449Step Two] the aggregate amount of F450... 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—

      (a)

      primary Class 1 contributions payable at the main primary percentage,

      (b)

      F451...

      (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 [F452100/6 ]

  • 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 [F4532 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 [F4542 per cent].

    The maximum amount of Class 4 contributions payable is—

    (a)

    where Case 1 of Step Four applies, the result of that step, and

    (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) [F455For 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 [F456the 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.]

F457(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) Notwithstanding paragraphs (1) to [F458(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.]

Textual Amendments

F444Reg. 100 substituted (with effect in accordance with reg. 1(1) of the amending S.I.) by The Social Security (Contributions) (Amendment) Regulations 2003 (S.I. 2003/193), regs. 1(1), 14

F447Word in reg. 100(3) substituted (6.4.2024 immediately before 2024 c. 5 comes into force) by National Insurance Contributions (Reduction in Rates) Act 2024 (c. 5), ss. 2(1)(3)(a), 3(1)

F452Word in reg. 100(3) substituted (6.4.2024 immediately before 2024 c. 5 comes into force) by National Insurance Contributions (Reduction in Rates) Act 2024 (c. 5), ss. 2(1)(3)(b), 3(1)

F453Words in reg. 100(3) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment) Regulations 2012 (S.I. 2012/573), regs. 1(1), 2(3)(a)(iii)

F454Words in reg. 100(3) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment) Regulations 2012 (S.I. 2012/573), regs. 1(1), 2(3)(a)(vi)

Modifications etc. (not altering text)

C7Reg. 100 modified (for the tax year 2022-23) by Health and Social Care Levy (Repeal) Act 2022 (c. 43), Sch. para. 6(2)

Disposal of Class 4 contributions under section 15 of the Act which are not dueU.K.

101.  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 errorF459...;

(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.

Textual Amendments

Repayment of Class 4 contributions under section 15 of the Act which are not dueU.K.

102.—(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 [F460to the earner], unless the net amount of such repayment would not exceed in value 50 pence.

[F461(2) 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) The period referred to in paragraph (2) is one of—

(a)six years beginning with 6th April in the year of assessment next following that in respect of which the payment was made where the application is in respect of any year of assessment ending before 6th April 1996,

(b)five years beginning with 1st February in the year of assessment next following that in respect of which the payment was made where the application is in respect of any year of assessment beginning on or after 6th April 1996, or

(c)if later than sub-paragraph (a) or (b), two years beginning with 6th April in the year of assessment next following that in which the payment was made.

Textual Amendments

Class 4 liability of earners treated as self-employed earners who would otherwise be employed earnersU.K.

103.—(1) Subject to regulation 108, where—

(a)an earner, in respect of any one or more employments of his, is treated by regulations under section 2(2)(b) of the Act (treatment of a person in employment of any prescribed description as falling in one or other of the categories of earner) as being self-employed;

(b)in any year he has earnings from any such employment (one or more) which fall within section 11(3) of the Act (higher weekly rate of Class 2 contributions), but is not liable for a higher weekly rate of Class 2 contributions by virtue of regulations under that section;

(c)those earnings are chargeable to income tax [F462as general earnings]; and

(d)the total of those earnings exceeds the sum specified in section 18(1)(c) of the Act,

paragraph (2) applies.

(2) If this paragraph applies, the earner shall be liable, in respect of the earnings mentioned in paragraph (1), to pay a Class 4 contribution (referred to in this Part as a “special Class 4 contribution”) [F463of an amount equal to the aggregate of—

(a)the main Class 4 percentage of so much of the total of those earnings as exceeds the lower, but does not exceed the higher, of the money sums, and

(b)the additional Class 4 percentage of so much of the total of those earnings as exceeds the higher of the money sums,

for the time being specified in section 18(1A).]

Textual Amendments

F463Words in reg. 103(2) substituted (with effect in accordance with reg. 1(1) of the amending S.I.) by The Social Security (Contributions) (Amendment) Regulations 2003 (S.I. 2003/193), regs. 1(1), 15

Notification of national insurance number and recording of category letter on deductions working sheetU.K.

104.—(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 contributionsU.K.

105.  For the purpose of the calculation of an earner’s liability for a special Class 4 contribution for any year—

(a)the earnings of that earner for that year shall, subject to paragraph (b), be calculated by the Board on the basis that they are earnings to which regulations 24 and 25 and Schedules 2 and 3 apply;

(b)in the calculation of these earnings, if the total amount of the earnings for the year includes a fraction of a pound, that fraction shall be disregarded.

Notification and payment of special Class 4 contributions dueU.K.

106.  The Board shall, subject to any other arrangements notified by them to the earner specified in regulation 105, give notice to the earner of the special Class 4 contribution due from him for any year, and the earner shall pay that contribution to the Board within the period of 28 days from the receipt of the notice unless, before the expiry of that period, the earner has appealed against a decision made under section 8 of the Transfer Act relating to that contribution.

Recovery of deferred Class 4 and special Class 4 contributions after appeal, claim or further assessment under the Income Tax Acts or appeal under section 8 of the Transfer ActU.K.

107.—(1) Where—

(a)the Board have been notified that there has been such a claim or appeal as is specified in regulation 99(6) or regulation 106; or

(b)the Board have certified in accordance with regulation 99(7) an altered amount of earner’s profits or gains,

paragraph (2) applies.

(2) If this paragraph applies, the Board shall, as soon as may be after the prescribed time, give to the earner notice or, as the case may be, revised notice of such contributions as might, having regard to the final decision on the claim or appeal or, the altered amount of profits or gains, be due from the earner—

(a)under section 15 of the Act (Class 4 contributions) for the year or years to which the certificate referred to in regulation 99(7) relates; or

(b)by way of a special Class 4 contribution for the year to which the notice specified in regulation 106 relates,

and the earner shall within 28 days of receipt of that notice pay to the Board the contribution or contributions specified in that notice.

(3) In this regulation “prescribed time” means—

(a)except where sub-paragraph (c) applies—

(i)in the case of an appeal out of time, the date of the determination of the appeal, and

(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 contributionU.K.

108.—(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 errorU.K.

109.  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 errorU.K.

110.—(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 [F464the applicant] shall make the application within the period of six years from the end of the year in which the contribution [F465was 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.]

Textual Amendments

PART 9U.K. SPECIAL CLASSES OF EARNERS

Case A—U.K. Airmen

InterpretationU.K.

111.  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—

    (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

    (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 employmentU.K.

112.—(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 regulationsU.K.

113.  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—U.K. Continental Shelf F466

Textual Amendments

F466The 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 contributionsU.K.

114.—(1) For the purposes of section 120 of the Act (employment at sea (continental shelf operations)) F467, 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 F468, where the employment is in connection with any activity mentioned in section 11(2) of the Petroleum Act 1998 F469 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.

[F470(4) 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 [F471regulation 55(2)(c) of the Merchant Shipping (Standards of Training, Certification and Watchkeeping) Regulations 2022].

Table 1
[F472Column (A): capacity in which the continental shelf worker is employed[F472Column (B): description of the certificate
Master or chief mate on a ship of 3000 gross tonnage or more.A certificate which complies with [F473regulation 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 [F473regulation 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 [F473regulation 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 [F473regulation 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 [F473regulation 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 [F474regulation 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 [F475regulation 18] of the Merchant Shipping Regulations.]

(6) In Table 1 “Merchant Shipping Regulations” means [F476the 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.]

Textual Amendments

F467Section 120 was amended by paragraph 70 of Schedule 7 to the Social Security Act 1998 (c. 14) and paragraph 26 of Schedule 3, and paragraph 8 of Schedule 7 to the Transfer Act.

[F477Continental shelf workers: provisions relating to certificatesU.K.

Textual Amendments

Application for certificateU.K.

114A.—(1) An employer who meets the conditions in paragraph (2) may apply to HMRC for the issue of a UKCS continental shelf workers certificate.

(2) The conditions are that—

(a)the employer supplies or intends to supply a continental shelf worker for whom the secondary contributor, under regulation 114(4) (application of Part 1 and Part 6 of the Act to employment in connection with the continental shelf), is the oil field licensee;

(b)the employer has or intends to have a contractual relationship under which the employer acts, directly or indirectly, as an agent of the oil field licensee for the purposes of National Insurance; and

(c)the employer or an associated company has not had a certificate cancelled previously for a failure to comply with their obligations and responsibilities under regulation 114B.

(3) An application under this regulation must be made in writing and must include—

(a)the name and address of the employer and employer’s PAYE reference;

(b)the name and address of a person in Great Britain who is authorised to accept service on behalf of the employer;

(c)confirmation that the employer understands and intends to discharge the obligations contained in regulation 114B; and

(d)the name, address, and employer’s PAYE reference of any associated company which is a current or former holder of a UKCS continental shelf workers certificate.

(4) When the employer makes the first application under this regulation, the employer may also comply with the obligation under regulation 114B(e) by including those details (if known) in the application.

(5) An application made under this regulation may be combined with an application made under an equivalent PAYE provision.

(6) Upon receipt of an application under this regulation, an officer of Revenue and Customs may, if they are satisfied the conditions in paragraph (2) are met, issue a UKCS continental shelf workers certificate.

(7) A UKCS continental shelf workers certificate must include—

(a)the name of the UKCS continental shelf workers certificate holder;

(b)the employer's PAYE reference of the UKCS continental shelf workers certificate holder; and

(c)the date on which the certificate is issued.

(8) A UKCS continental shelf workers certificate may be issued to—

(a)the person authorised to accept service on behalf of the employer;

(b)the employer; or

(c)both the person authorised to accept service on behalf of the employer and the employer.

(9) A certificate may be combined with a certificate issued under an equivalent PAYE provision.

(10) Where an employer ceases to meet the conditions in paragraph (2) or to comply with its obligations under regulation 114B, or an equivalent PAYE provision, an officer of Revenue and Customs may, by notice in writing to the person authorised to accept service on behalf of the employer, cancel the UKCS continental shelf workers certificate from the date specified in the notice of cancellation.

(11) The date specified in paragraph (10) may not be earlier than 10 working days after the date of the notice.

(12) A notice under paragraph (10) may be combined with a notice under an equivalent PAYE provision.

UKCS continental shelf workers certificate holder: obligations and responsibilitiesU.K.

114B.  A UKCS continental shelf workers certificate holder must—

(a)make such deductions, returns and repayments as are required of a secondary contributor;

(b)keep written records of—

(i)the name, date of birth, and national insurance number of the continental shelf workers supplied;

(ii)the name, registered office and oil field licence number of the oil field licensee to whom each of the workers were supplied;

(iii)the offshore installation to which each of the workers were supplied; and

(iv)the dates between which the workers worked on the offshore installation;

(c)keep the records required by sub-paragraph (b) for a period of 6 years from the end of the tax year to which they relate;

(d)where an officer of Revenue and Customs requires them in writing to do so, provide copies of the records required by sub-paragraph (b) to HMRC within 30 days of the date of the request; and

(e)before supplying the oil field licensee with continental shelf workers for the first time, inform HMRC in writing of the details of the oil field licensee including name, business address, and oil field licence number of the oil field licensee.

UKCS oil field licensee certificateU.K.

114C.—(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 114CU.K.

114D.  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—

(a)

a structure which is, is to be, or has been, put to a relevant use while in water;

(b)

but a structure is not an offshore installation if—

(i)

it has permanently ceased to be put to a relevant use,

(ii)

it is not, and is not to be, put to any other relevant use, and

(iii)

since permanently ceasing to be put to a relevant use, it has been put to a use which is not a relevant use;

(c)

a use is a relevant use if it is—

(i)

for the purposes of exploiting mineral resources,

(ii)

for the purposes of exploration with a view to exploiting mineral resources,

(iii)

for the storage of gas in or under the shore or the bed of any waters,

(iv)

for the recovery of gas so stored,

(v)

for the conveyance of things by means of a pipe,

(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,

(vii)

for the purposes of decommissioning any structure which has been used for or in connection with any of the relevant uses above;

(d)

a structure is put to use while in water if it is put to use while—

(i)

standing in any waters,

(ii)

stationed (by whatever means) in any waters, or

(iii)

standing on the foreshore or other land intermittently covered with water;

(e)

a “structure” includes a ship or other vessel except where it is used wholly or mainly—

(i)

for the transport of supplies;

(ii)

as a safety vessel;

(iii)

for a combination of (i) and (ii); or

(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—U.K. Mariners

InterpretationU.K.

115.  In this Case—

  • “British ship” means—

    (a)

    any ship or vessel belonging to Her Majesty; or

    (b)

    any ship or vessel whose port of registry is a port in the United Kingdom; or

    (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—

    (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;

    (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—

    (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

    (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—

    (a)

    a person employed or engaged in any capacity on board the ship on the business of the ship; or

    (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—

    (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 F478, 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

    (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.

Textual Amendments

Modification of section 162(5) of the Administration ActU.K.

116.  In section 162 of the Administration Act (destination of contributions), subsection (5) F479 (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”.

Textual Amendments

F479Subsection (5) was amended by section 2(1) of the Social Security (Contributions) Act 1994 (c. 1), section 65(2) of, and paragraph 99(3) of Schedule 7 to, the Social Security Act 1998 (c. 14), paragraph 9(2) of Part III of Schedule 9 to the Welfare Reform Act and section 74(7) of the Child Support, Pensions and Social Security Act (c. 19).

Conditions of domicile or residenceU.K.

117.—(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 employmentU.K.

118.  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 ActU.K.

119.—(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 F480 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.

Textual Amendments

F480Section 9 was substituted by paragraph 5 of Part I of Schedule 9 to the Welfare Reform Act.

Earnings periods for mariners and apportionment of earningsU.K.

120.—(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)[F481the main primary percentage or the additional primary percentage] for a primary Class 1 contribution specified in section 8(2) of the Act F482 or the percentage rate for a secondary Class 1 contribution specified in section 9(2) of the Act,

F483(ii). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(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 F484.

(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)so much of the voyage period as remains in the year,

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; and

(b)in respect of other years, the earnings shall be apportioned to those years according to the amounts earned in each year and the earnings period in respect of each amount so apportioned shall be the length of the period to which it is apportioned.

(6) Where under paragraphs (3) to (5) an earnings period—

(a)is less than a week, that period shall for the purposes of those paragraphs be treated as a week;

(b)exceeds a week or a whole multiple of a week by a part of a week,

(i)if that part of a week is a period in excess of 3 days, that part of a week shall be treated as a week for the purposes of paragraphs (3) to (5), and

(ii)if that part of a week is a period of 3 days or less, it shall be disregarded for those purposes.

(7) For the purposes of paragraphs (3) to (5)—

(a)where a period of leave on pay immediately follows the day on which the termination of an entire voyage or series of voyages occurs—

(i)the earnings for that period of leave shall be treated as if they were earned during that period and shall be excluded from the earnings for any other period or periods, and

(ii)for the purpose of apportionment, the earnings for the period of leave shall be deemed to accrue from day to day by equal daily amounts; and

(b)“earned” includes treated as earned under this paragraph.

(8) Where under paragraphs (1) to (7) earnings are apportioned to a period—

(a)each amount so apportioned shall be treated as paid at the end of the period to which it is apportioned; and

(b)contributions paid in respect of the amount so apportioned shall be treated as paid in respect of the year in which the end of that period falls.

(9) Notwithstanding paragraphs (3) to (5) and (8), where a voyage period extends beyond the date on which the earnings are paid, any amount of earnings which, by virtue of paragraphs (1) to (8), would be apportioned to a period in the year following that in which the earnings are paid—

(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.

Textual Amendments

F482Section 8 was substituted by paragraph 4 of Part I of Schedule 9 to the Welfare Reform Act.

F484Section 5 was substituted by paragraph 1 of Part I of Schedule 9 to the Welfare Reform Act.

Calculation of earnings-related contributions for marinersU.K.

121.—(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 contributorsU.K.

122.  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 disregardedU.K.

F485123.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Application of the Act and regulationsU.K.

124.—(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 contributionsU.K.

125.  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)[F486as 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 [F487, 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 [F488[F489section 11(6)] of the Act (Class 2 contributions), be [F490£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 F491 (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)F492; and

(g)for the purposes of section 12 of the Act F493 and for the purposes of that section as modified by regulations 63 to 65, where an earner was a share fisherman when [F494the 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.

Textual Amendments

F488Words in reg. 125(c) substituted (with effect in accordance with Sch. 1 para. 35 of the amending Act) by National Insurance Contributions Act 2015 (c. 5), Sch. 1 para. 33(1) (with Sch. 1 para. 33(2))

F491Section 16 was amended by paragraph 16 of Schedule 3, and Schedule 10, to the Transfer Act.

F492Section 18 was amended by paragraph 7 of Schedule 1 to the Transfer Act, paragraph 18 of Schedule 3 to that Act and article 4 of S.I. 2000/755.

F493Section 12 was amended by paragraph 13 of Schedule 3 and paragraph 3 of Schedule 9 to the Transfer Act.

Case D—U.K. Married Women and Widows

InterpretationU.K.

126.—(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) F495, 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 F496 or under the Pensions (Navy, Army, Air Force and Mercantile Marine) Act 1939 F497;

  • “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 F498 before section 3(1) of the Social Security Pensions Act 1975 F499 (married women and widows) came into force and sections 5(3) and 130(2) of the Social Security Act 1975 F500 (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 F501 or under the Injuries in War Compensation Act 1914 (Session 2) F502 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.

Textual Amendments

F495Section 73 was amended by paragraph 49 of Schedule 2 to the Jobseekers Act 1995 (c. 18).

F5025 & 6 Geo. 5 c. 18.

Elections by married women and widowsU.K.

127.—(1) A woman who on 6th April 1977 (the date on which section 3(1) of the [F503Social 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.

[F504(3) 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 contribution[F505, 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.

Textual Amendments

F505Words in reg. 127(3)(b) inserted (with effect in accordance with Sch. 1 para. 35 of the amending Act) by National Insurance Contributions Act 2015 (c. 5), Sch. 1 para. 34(1) (with Sch. 1 para. 34(2))

Duration of effect of electionU.K.

128.—(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 [F506main 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 [F507main 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 [F508main 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.

Textual Amendments

Continuation of elections under regulation 91 of the 1975 RegulationsU.K.

129.  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 widowhoodU.K.

130.—(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.

[F509 Reduced rate of primary Class 1 contributions otherwise payable at the main primary percentageU.K.

131.  F510... 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 [F5111.85%].]

Textual Amendments

Modifications etc. (not altering text)

C8Reg. 131 modified (in relation to payments of earnings made before 6 November in the tax year 2022-23) by The Social Security (Contributions) (Amendment No. 2) Regulations 2022 (S.I. 2022/416), regs. 1, 2 (as amended by 2022 c. 43, Sch. para. 4)

C9Reg. 131 modified (in relation to specified assessment for the tax year 2022-23) by Health and Social Care Levy (Repeal) Act 2022 (c. 43), Sch. para. 5(1)(2)(5)

Class 3 contributionsU.K.

132.  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.

Certificates of electionU.K.

133.—(1) As represents any election made, or by virtue of regulation 129 as treated as made, under regulation 127—

(a)where a woman makes an election under regulation 127, the Board shall issue without charge, a certificate of election (“a certificate”) to her;

(b)where a woman is treated as making such an election, the Board shall, on application without charge, issue a certificate to her; and

(c)the certificate shall remain the property of the Board.

(2) A woman to whom a certificate has been issued shall be responsible for its custody unless and until it is delivered to a secondary contributor or returned to the Board.

(3) A woman in respect of whom an election has effect in accordance with regulations 126 to 132 shall, if any primary Class 1 contribution is payable by her or on her behalf, immediately deliver to the secondary contributor a certificate which is currently in force in respect of her and upon the delivery of the certificate, the secondary contributor shall become responsible for its custody unless and until it is delivered again to the woman or to the Board.

(4) Where a certificate has ceased to be in force, the woman in respect of whom the certificate was issued shall immediately return it to the Board and for that purpose, if at the time when the certificate ceases to be in force it is in the custody of a secondary contributor, that contributor shall immediately return it to the woman.

(5) The Board may at any time require the person for the time being responsible for the custody of a certificate to return it to the Board, and if at that time the election to which that certificate relates continues to have effect, the Board shall issue to that person a replacement certificate.

(6) Where a woman in respect of whom an election has effect has more than one employed earner’s employment the Board shall issue to her without charge, on her application, such number of certificates as will enable her to comply with the requirements of paragraph (3) in relation to each secondary contributor.

(7) Where a certificate has been lost or destroyed the person responsible for its custody shall inform the Board of that loss or destruction.

(8) When a woman gives notice in writing to the Board that she revokes an election she shall—

(a)if the certificate is with a secondary contributor, recover it from him; and

(b)deliver the certificate to the Board.

(9) Where a secondary contributor holds a certificate and—

(a)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 [F512to 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.

Textual Amendments

Special transitional provisions consequent upon passing of the Social Security Pensions Act 1975U.K.

134.—(1) Any woman to whom this regulation applies—

(a)shall, in respect of [F513so much of her liability for primary Class 1 contributions as is attributable to section 8(1)(a) of the Act], be liable to pay [F514those contributions] at the reduced rate; and

(b)shall not be liable to pay any Class 2 contribution which, apart from the provisions of this paragraph, she would be liable to pay.

(2) Subject to paragraphs (3) to (7), this regulation applies to any woman—

(a)to whom, before 6th April 1977 (the date on which section 3(1) of the Social Security Pensions Act 1975 came into force and sections 5(3) and 130(2) of the Social Security Act 1975 were repealed), the provisions of section 5(3) of the Social Security Act 1975 or of regulation 94 of the 1975 Regulations (newly widowed woman) applied and to whom those provisions would have continued to apply but for those provisions having been repealed or, as the case may be, having ceased to have effect on that date;

(b)who, not being a person to whom regulation 130 applies—

(i)on 6th April 1977 was a married woman and became a widow during the period from and including that date to 6th April 1978, or

(ii)on 6th April 1977 was a qualifying widow, remarried after that date and again became a widow during that period; or

(c)who on 6th April 1977 was married or a qualifying widow and had attained the age of 59.

(3) In the case of a woman specified in paragraph (2)(a) or (b), the provisions of paragraph (1) shall, subject to the provisions of paragraphs (4) and (5), apply only during the period which—

(a)in the case of a woman specified in paragraph (2)(a)—

(i)began at the beginning of the year in which section 3(1) came into force; and

(ii)ended at the end of that year;

(b)in the case of a woman specified in paragraph (2)(b)—

(i)began on the date on which that woman became or, as the case may be, again became a widow, and

(ii)ends at the end of whichever of the two periods specified in regulation 130(2)(b) is appropriate in her case in so far as that regulation relates to the date of the death of the husband.

(4) In the case of a woman to whom paragraph (3)(a) or (b) applies, those sub-paragraphs shall be subject to regulation 130(4) and paragraph (5) below with the modification that—

(a)in regulation 130(4), the reference to sub-paragraphs (d) and (e) of regulation 128(1) shall be omitted;

(b)in so far as the provisions of regulation 128(1)(c) are incorporated in regulation 130(4) as modified for the purposes of this regulation, references in regulation 128(1)(c) to any election made under regulation 127 and to a woman who made the election shall respectively be construed as references to the application of paragraph (1) and to the woman to whom that paragraph applies.

(5) Any woman—

(a)who by virtue of paragraph (1)—

(i)was, in respect of [F515so much of her liability for primary Class 1 contributions as is attributable to section 8(1)(a) of the Act], liable to pay that contribution at the reduced rate, or

(ii)was not liable to pay any Class 2 contribution which apart from the provisions of that paragraph she would have been liable to pay; but

(b)to whom by virtue of paragraphs (2) to (4), paragraph (1) ceases so to apply; and

(c)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.

Textual Amendments

Deemed election of married women and widows excepted from contribution liability under the National Insurance Act 1965U.K.

135.  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 F516 (exception for certain widows), or there was current an election under regulation 2(1)(a) of the National Insurance (Married Women) Regulations 1973 F517 (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 F518 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.

Textual Amendments

F516S.I. 1969/1696; the relevant amending instrument is S.I. 1970/1580.

Special transitional provisions regarding deemed electionsU.K.

136.—(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 [F519main 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 [F520main 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.

Textual Amendments

Application of regulations 126 to 134 to elections and revocation of elections deemed made under regulations 135 and 136U.K.

137.—(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.

SavingsU.K.

138.  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 F521 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.

Textual Amendments

Modification of the ActU.K.

139.  [F522Part 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.

Textual Amendments

Case E—U.K. Members of the Forces F523

Textual Amendments

F523This 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 consistU.K.

140.  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 BritainU.K.

141.  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 F524.

Textual Amendments

F524 See however regulation 6 of S.I. 1975/493 as to the treatment of contributions paid by members of the forces for the purposes of entitlement to benefit in Northern Ireland.

Treatment of contributions paid after that dateU.K.

142.  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 contributionsU.K.

143.—(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 [F525sections 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.

Textual Amendments

Application of the Act and regulationsU.K.

144.—(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—U.K. Residence and Persons Abroad

Condition as to residence or presence in Great Britain or Northern IrelandU.K.

145.—(1) Subject to [F526paragraph (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) F527 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)[F528as 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 F529... [F530treated 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 F531 or the National Insurance Act 1965 F532 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 F533... contributions [F534or 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.

F535(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F527Section 1(6) was amended by paragraph 56(3) of Schedule 7 to the Social Security Act 1998 (c. 47).

Payment of contributions for periods abroadU.K.

146.—(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 [F536regulations 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).

Textual Amendments

Class 2 and Class 3 contributions for periods abroadU.K.

147.—(1) Subject to [F537regulations 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).

Textual Amendments

Conditions of payment of Class 2 or Class 3 contributions for periods abroadU.K.

148.  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.

[F538Conditions of payment of Class 3 contributions: transfers to the Communities’ pension schemeU.K.

148A.—(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—

(a)

Parts 2 to 5 and 10 of the Act,

(b)

sections 36 and 37 of the National Insurance Act 1965 (graduated retirement benefit), and

(c)

sections 1(2) and 2 of the Jobseekers Act 1995 (contribution-based jobseeker’s allowance).]

Textual Amendments

[F539148B.—(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.”]

Textual Amendments

[F540148C.—(1) This regulation applies in relation to a person (P)—

(a)who is F541... entitled under section 11(6) of the Act, to pay one or more Class 2 contributions [F542or 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).

F543(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F544(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(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.

[F545(5A) 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 [F546section 11(5B)] of the Act; and

(b)F547... entitlement to pay a Class 2 contribution, [F548or entitlement to be treated as having actually paid such a contribution,]

for the relevant tax year and preserve such records until the sixth anniversary of the 31st January next following the end of the relevant tax year.]

Textual Amendments

CASE G—U.K. VOLUNTEER DEVELOPMENT WORKERS

InterpretationU.K.

149.—(1) In this Case “volunteer development worker” means a person in respect of whom the Board has certified that it is consistent with the proper administration of the Act that, subject to the satisfaction of the conditions in paragraph (2), that person should be entitled to pay Class 2 contributions under regulation 151.

(2) The conditions are—

(a)that that person is ordinarily resident in Great Britain or Northern Ireland (as the case may be); and

(b)that he is employed [F549outside the United Kingdom] .

Textual Amendments

Certain volunteer development workers to be self-employed earnersU.K.

150.  Any employment as a volunteer development worker, which is not employment in respect of earnings from which Class 1 contributions are payable, or, where section 6A of the Act applies F550, are treated as having been paid, shall be employment as a self-employed earner notwithstanding that it is not employment in Great Britain or Northern Ireland.

Textual Amendments

F550Section 6A was inserted by paragraph 3 of Part I of Schedule 9 to the Welfare Reform Act.

Option to pay Class 2 contributionsU.K.

151.  Notwithstanding section 11(1) of the Act and regulation 150, a volunteer development worker who by virtue of that regulation is a self-employer earner—

F551(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)shall be entitled to pay [F552a Class 2] contribution if he so wishes at the rate prescribed in regulation 152(b).

Textual Amendments

Special provision as to residence, rate, annual maximum and method of paymentU.K.

152.  In relation to the Class 2 contributions a volunteer development worker is entitled to pay by virtue of regulation 151—

(a)the provision of Case F of these Regulations shall not apply;

(b)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 [F55311(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.

Textual Amendments

Late paid contributionsU.K.

153.—(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 RegulationsU.K.

154.  Part 1 of the Act and these Regulations shall have effect as respects volunteer development workers subject to the modification contained in this Case.

[F554CASE HU.K.

Textual Amendments

Apprentices: zero-rate secondary Class 1 contributionsU.K.

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).U.K.

(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 10U.K. MISCELLANEOUS PROVISIONS

Treatment of contribution week falling in two yearsU.K.

155.  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.

[F555Decisions 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 ActU.K.

155A.—(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 [F556regulation 52(8)] for the refund of a contribution should be admitted;

F557(f). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(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 [F558regulation 52(1)]; and

(b)whether there has been a payment of contributions in excess of the amount specified in regulation 21, as mentioned in [F559regulation 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).]

Textual Amendments

F556Words in reg. 155A(2)(e) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions, Categorisation of Earners and Intermediaries) (Amendment) Regulations 2004 (S.I. 2004/770), regs. 1(1), 26(a)

F558Words in reg. 155A(3)(a) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions, Categorisation of Earners and Intermediaries) (Amendment) Regulations 2004 (S.I. 2004/770), regs. 1(1), 26(b)(i)

F559Words in reg. 155A(3)(b) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions, Categorisation of Earners and Intermediaries) (Amendment) Regulations 2004 (S.I. 2004/770), regs. 1(1), 26(b)(ii)

Northern IrelandU.K.

156.—(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 BF560... 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 F561; 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 F562 for the purpose of paragraph 6(3) of Schedule 1 to the Social Security Contributions and Benefits Act 1992.

Textual Amendments

RevocationsU.K.

157.—(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 F563 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.

Textual Amendments

F563S.I. 1979/591; regulation 53A was inserted by regulation 4 of S.I. 1993/260 and paragraphs (4) to (9) were added by regulation 2 of S.I. 2001/45.

Clive Betts

Greg Pope

Two of the Lords Commissioners of Her Majesty’s Treasury

The Secretary of State hereby concurs

Jeff Rooker

Minister 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.

L.S.

John O’Neill

Senior Officer of the

Department for Social Development

Nick Montagu

Dave Hartnett

Two of the Commissioners of Inland Revenue

Preamble

SCHEDULE 1U.K. PROVISIONS CONFERRING POWERS EXERCISED IN MAKING THESE REGULATIONS

In this Schedule—

  • “the 1998 Act” means the Social Security Act 1998 F564;

  • “the 1988 Order” means the Social Security (Northern Ireland Order 1998 F565;

  • “the 2000 Act” means the Child Support, Pensions and Social Security Act 2000 F566;

  • “the Transfer Act” means the Social Security Contributions (Transfer of Functions, etc.) Act 1999 F567

  • “the Transfer Order” means the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 F568; and

  • “the Welfare Reform Act” means the Welfare Reform and Pensions Act 1999 F569.

Textual Amendments

PART IU.K. POWERS EXERCISED BY THE TREASURY

Column (1)Column (2)
Enabling powerRelevant amendment
Social Security Contributions and Benefits Act 1992 F570
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) F571Paragraph 3 of Schedule 9 to the Welfare Reform Act.
Section 10(9) F572
Section 10A(7) F573Paragraph 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) F574Paragraph 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. F575
Section 117Paragraph 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 118Paragraph 24 of Schedule 3 to the Transfer Act.
Section 119Paragraph 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 120Paragraph 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) F576
Section 175(3), (4) and (5)Paragraph 29(4) of Schedule 3 to the Transfer Act.
Schedule 1

Paragraph 7A F577

Paragraph 37 of Schedule 3 to, and paragraph 6 of Schedule 9 to, the Transfer Act.

Paragraph 7B F578

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) F579, (e), (f), (g), (h), (ia) F580 , (j), (k), (l), (m) and (q) and (1A) F581Paragraph 14 of Schedule 5 to the Pensions Act 1995 F582, 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 11Paragraph 41 of Schedule 3 to the Transfer Act.
Social Security Contributions and Benefits (Northern Ireland) Act 1992 F583
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) F584
Section 10(9) F585
Section 10A(7) F586Paragraph 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. F587
Section 117Paragraph 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 118Paragraph 24 of Schedule 3 to the Transfer Order.
Section 119Paragraph 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) F588
Section 171(3), (4), (5) and (10) F589Paragraph 36 of Schedule 1 to the Social Security (Incapacity for Work) (Northern Ireland) Order 1994 F590
Schedule 1

Paragraph 7A F591

Paragraph 36 of Schedule 3, and paragraph 4 of Schedule 8, to the Transfer Order.

Paragraph 7B F592

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) F593, (e), (f), (g), (h), (ia) F594, (j), (k), (l), (m) and (q) and (1A) F595Paragraph 11 of Schedule 3 to the Pensions (Northern Ireland) Order 1995 F596, 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 10Paragraph 19 of Schedule 21 to the Friendly Societies Act 1992 and paragraph 40 of Schedule 3 to the Transfer Order. F597

Textual Amendments

F571Section 6A was inserted by paragraph 3 of Schedule 9 to the Welfare Reform Act.

F572Section 10 was substituted by section 74(2) of the 2000 Act.

F573Section 10A was inserted by section 53 of the 1998 Act.

F574Section 19A was inserted by section 54 of 1998 Act.

F576Section 122(1) is cited because of the meaning ascribed to “prescribe”.

F577Paragraph 7A was inserted by section 56(2) of the 1998 Act.

F578Paragraph 7B was inserted by section 57 of the 1998 Act.

F579Paragraph 8(1)(ca) was inserted by paragraph 77(4) of the 2000 Act.

F580Paragraph 8(1)(ia) was inserted by paragraph 77(15) of Schedule 7 to the 1998 Act.

F581Paragraph 8(1A) was inserted by paragraph 39(3) of Schedule 3 to the Transfer Act.

F584Section 6A was inserted by paragraph 3 of Schedule 10 to the Welfare Reform Act.

F585Section 10 was substituted by section 78(2) of the 2000 Act.

F586Section 10A was inserted by Article 50 of the 1998 Order.

F5871995/2705 (N.I. 15).

F588Section 121(1) is cited because of the meaning ascribed to “prescribe”.

F589Section 171(10) was substituted by paragraph 28(3) of Schedule 3 to the Transfer Order.

F591Paragraph 7A was inserted by Article 53(2) of the 1998 Order.

F592Paragraph 7B was inserted by Article 54 of the 1998 Order.

F593Paragraph 8(1)(ca) was inserted by section 81(4) of the 2000 Act.

F594Paragraph 8(1)(ia) was inserted by paragraph 58(15) of Schedule 6 to the 1998 Order.

F596Paragraph 8(1A) was inserted by paragraph 38(3) of Schedule 3 to the Transfer Order.

PART IIU.K. POWERS EXERCISED BY THE COMMISSIONERS OF THE INLAND REVENUE

Column (1)Column (2)
Enabling powerRelevant 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 18Paragraph 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) F598
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) F599

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 F600

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 F601

The Social Security Administration Act 1992 F602

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 F603

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) F604

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) F605
Paragraph 4Paragraph 16 of Schedule 1, and paragraph 33 of Schedule 3 to the Transfer Order.
Paragraph 5Paragraph 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 F606Paragraph 33 of Schedule 3 to the Transfer Order.
Paragraph 6Paragraph 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 F607
Social Security Administration (Northern Ireland) Act 1992 F608
Section 107Article 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. F609
Section 142(12)Paragraph 45(12) of Schedule 3 to the Transfer Order.
Section 167(1) F610
Finance Act 1999 F611
Section 133(1)

Textual Amendments

F598Section 122(1) is cited because of the meaning ascribed to “prescribe”.

F599Paragraph 3B was inserted by section 77(2) of the 2000 Act.

F600Paragraph 5A was inserted by paragraph 77(7) of Schedule 7 to the 1998 Act.

F601Paragraph 7BA was inserted by section 76(5) of the 2000 Act.

F603Section 191 is cited because of the meaning ascribed to “prescribe”.

F604Section 121(1) is cited because of the meaning ascribed to “prescribe”.

F605Paragraph 3B was inserted by section 81(2) of the 2000 Act.

F606Paragraph 5A was inserted by paragraph 58(7) of Schedule 6 to the 1998 Order.

F607Paragraph 7BA was inserted by section 80(5) of the 2000 Act.

F610Section 167(1) is cited because of the meaning ascribed to “prescribe”.

Regulation 24

SCHEDULE 2U.K. CALCULATION OF EARNINGS FOR THE PURPOSES OF EARNINGS-RELATED CONTRIBUTIONS IN PARTICULAR CASES

Calculation of earningsU.K.

1.  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 3U.K.

2.—(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 schemeU.K.

3.  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 [F612237 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.

Textual Amendments

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 3U.K.

4.  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.

The amount shall be reduced by the amount or value, or, if variable, the least amount or value, of the consideration for which the asset may be so acquired.

Readily convertible assetsU.K.

5.—(1) The amount of earnings which is comprised in—

(a)any payment by way of the conferment of a beneficial interest in any asset falling within Part III of Schedule 3;

(b)any payment by way of the conferment of a beneficial interest in any asset falling within Part IV of Schedule 3 which is a readily convertible asset;

(c)any payment by way of—

(i)a voucher, stamp or similar document falling within paragraph 12 of Part IV of that Schedule where the asset for which it is capable of being converted is a readily convertible asset;

(ii)a non-cash voucher not falling within Part V (whether or not also falling within paragraph 12 of Part IV of that Schedule) which is capable of being exchanged for a readily convertible asset;

and which is to be taken into account in computing a person’s earnings, shall be calculated in accordance with sub-paragraph (2) to (5).

(2) In the case of an asset falling within paragraph 1 of Part III of Schedule 3 the amount is the best estimate which can reasonably be made of [F613the amount of general earnings] in respect of the provision of the asset.

(3) In the case of an asset falling within paragraph 2 of Part III of Schedule 3, the amount is the best estimate that can reasonably be made of [F613the amount of general earnings] in respect of the enhancement of its value.

(4) In the case of a voucher, stamp or similar document falling within—

(a)sub-paragraph(1)(c); or

(b)paragraph 3 of Part III of Schedule 3,

the amount is the best estimate that can reasonably be made of [F613the amount of general earnings] in respect of the provision of any asset for which the voucher is capable of being exchanged.

(5) In the case of an asset falling within sub-paragraph(1)(b), the amount is the best estimate that can reasonably be made of [F613the amount of general earnings] in respect of the provision of the asset.

Textual Amendments

Assets not readily convertible: beneficial interests in alcoholic liquor on which duty has not been paid, gemstones and certain vouchers and non-cash vouchersU.K.

6.  The amount of earnings comprised in any payment by way of the conferment of a beneficial interest in—

(a)an asset which—

(i)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 securitiesU.K.

[F6147.—(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).]

Textual Amendments

F614Sch. 2 para. 7 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), 5

Convertible interest in sharesU.K.

F6158.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F615 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Assignment or release of right to acquire shares where neither right nor shares readily convertibleU.K.

F6159.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Assignment or release of a right, acquired as director or employee before 6th April 1999, to acquire shares where neither right nor shares readily convertibleU.K.

F61510.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Exercise of a replacement right to acquire shares, obtained as an earner before 6th April 1999U.K.

[F61611.—(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.]

Textual Amendments

[F617Exercise, assignment or release of share option — market value of option or resulting shares increased by things done otherwise than for genuine commercial purposesU.K.

11A.—(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 [F618or 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.]

Textual Amendments

Interpretation of paragraphs 9, 10 and 11U.K.

F61912.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

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 peopleU.K.

F62013.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Valuation of non-cash vouchersU.K.

14.—(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).

[F621(1A) 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 [F622qualifications].

[F623(3) 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.]

[F624(4) The valuation of qualifying childcare vouchers is determined in accordance with paragraph 7 of Part 5 of Schedule 3.]

Textual Amendments

F623Sch. 2 para. 14(3) substituted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 39

[F625Valuation of non-cash vouchers provided under optional remuneration arrangementsU.K.

14A.—(1) This paragraph applies for calculating the amount of earnings comprised in any payment by way of a non-cash voucher which falls to be taken into account in calculating an employed earner’s earnings, if this is made pursuant to optional remuneration arrangements.

(2) The amount of earnings is the relevant amount.

(3) To find the relevant amount, first determine which (if any) is the greater of—

(a)the chargeable expense (without taking account of the qualification in paragraph 14(3)); or

(b)the amount foregone.

(4) If the amount in sub-paragraph (3)(a) is greater than or equal to the amount foregone, the “relevant amount” is the chargeable expense (taking account of the qualification in paragraph 14(3)).

(5) Otherwise, “the relevant amount” is the difference between—

(a)the amount foregone; and

(b)any part of the chargeable expense that the employed earner makes good to the person incurring it.

(6) For the purposes of sub-paragraphs (3) to (5), assume that the amount in sub-paragraph (3)(a) is zero if the condition in sub-paragraph (7) is met.

(7) The condition is that the payment would be exempt from income tax but for section 228A(1) of ITEPA 2003.

(8) In this paragraph—

(a)“chargeable expense” has the meaning given in paragraph 14; and

(b)“amount foregone” means the amount foregone with respect to the benefit of the non-cash voucher for the purposes of the benefits code as mentioned in section 69B of ITEPA 2003.

(9) Where a payment by way of a non-cash voucher is made partly pursuant to optional remuneration arrangements and partly otherwise than pursuant to such arrangements, these Regulations are to apply with any modifications (including provision for just and reasonable apportionments) that may be required for ensuring that it is treated—

(a)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.]

Textual Amendments

Apportionment of earnings comprised in a cash or non-cash voucher provided for benefit of two or more employed earnersU.K.

15.—(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.

Regulation 26

SCHEDULE 3U.K. PAYMENTS TO BE DISREGARDED IN THE CALCULATION OF EARNINGS FOR THE PURPOSES OF EARNINGS-RELATED CONTRIBUTIONS

PART IU.K. INTRODUCTORY

IntroductionU.K.

1.—(1) This Schedule contains provisions about payments which are to be disregarded in the calculation of earnings for the purposes of earnings-related contributions.U.K.

(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 [F626incentives by way of securities] specified in Part IX; and

(e)the miscellaneous payments specified in Part X.

Textual Amendments

InterpretationU.K.

2.—(1) In this Schedule, unless the context otherwise requires—

(a)a reference to a numbered Part is a reference to the Part of this Schedule which bears that number;

(b)a reference in a Part, to a numbered paragraph is a reference to the paragraph of that Part which bears that number; and.

(c)a reference in a paragraph to a lettered or numbered sub-paragraph is a reference to the sub-paragraph of that paragraph which bears that letter or number.

PART IIU.K. PAYMENTS IN KIND

Certain payments in kind to be disregardedU.K.

1.  A payment in kind, or by way of the provision of services, board and lodging or other facilities is to be disregarded in the calculation of earnings.

This is subject to the paragraph 2 and also to any provision about a payment in kind of a particular description or in particular circumstances in any other Part of this Schedule.

Payments by way of assets not to be disregardedU.K.

2.  Payments falling within paragraph 1 do not include any payment by way of—

(a)the conferment of any beneficial interest in—

(i)any asset mentioned in Part III or Part IV,

[F627(ii)any contract of long-term insurance which falls within paragraph I, III or VI of Part II of Schedule 1 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001;]

(b)a non-cash voucher not of a description mentioned in Part V or to which paragraph 4 of Part X applies.

(2) Sub-paragraph (1)(a)(i) is subject to the qualification that an asset, which falls within either Part III or Part IV, shall nevertherless be disregarded under paragraph 1 [F628if no liability to income tax arises by virtue of section 323 of ITEPA 2003 (long service awards)].

(3) For the purposes of sub-paragraph (1)(a)(ii), if the [F629contract—

(a)falls within Part II of Schedule 1 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 and Part I of that Schedule; or

(b)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.]

Textual Amendments

PART IIIU.K. PAYMENTS BY WAY OF READILY CONVERTIBLE ASSETS NOT DISREGARDED AS PAYMENTS IN KIND

[F6301.  A readily convertible asset within the meaning of section 702 of ITEPA 2003.]U.K.

Textual Amendments

[F6302.  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.]U.K.

Textual Amendments

3.  Any voucher, stamp or similar document—U.K.

(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 IVU.K. PAYMENTS BY WAY OF SPECIFIC ASSETS NOT DISREGARDED AS PAYMENTS IN KIND

[F631 SecuritiesU.K.

1.  Securities.]

Textual Amendments

Here “company” includes—

(a)any body corporate constituted under the law of, or of any part of, the United Kingdom or of any other country or territory and also any unincorporated body constituted under the law of a country or territory outside the United Kingdom; and

(b)any body incorporated under the law of, or of any part of, the United Kingdom relating to a building society within the meaning of section119(1) of the Building Societies Act 1986 F632 or an industrial and provident society registered, or deemed to be registered, under the Industrial and Provident Societies Act 1965 F633 or the Industrial and Provident Societies Act (Northern Ireland) 1969 F634.

Textual Amendments

Certain debentures and other securities for loansU.K.

F6352.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Loans stocks of public and local authoritiesU.K.

F6353.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F635. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F635. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F635. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Warrants etc for loan stock and debenturesU.K.

F6354.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Units in collective investment schemesU.K.

F6355.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F635. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F635. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Options to acquire assets, currency, precious metals or other optionsU.K.

6.  Options to acquire, or dispose of—

(a)currency of the United Kingdom or any other country or territory;

(b)gold, silver, palladium or platinum;

(c)an asset falling within any other paragraph of this Part of this Schedule;

(d)an option to acquire, or dispose of, an asset falling within sub-paragraph (a), (b) or (c).

Contracts for futuresU.K.

F6367.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F636. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F636. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Contracts for differences or to secure profit by reference to movements of indicesU.K.

F6368.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Alcoholic liquor on which duty has not been paidU.K.

9.  Any alcoholic liquor, within the meaning of section 1 of the Alcoholic Liquor Duties Act 1979 F637 in respect of which no duty has been paid under that Act.

Textual Amendments

F6371979 c. 4. Section 1 was amended by article 5 of S.I. 1979/241, section 1(5) of the Finance Act 1984 (c. 43), paragraph 1 of Part II of Schedule 1 and Part I of Schedule 14 to the Finance Act 1988 (c. 39) and section 3(1) and (3) of the Finance Act 1993 (c. 34).

GemstonesU.K.

10.  Any gemstone, including stones such as diamond, emerald, ruby, sapphire, amethyst, jade, opal or topaz and organic gemstones such as amber or pearl, whether cut or uncut and whether or not having an industrial use.

Certificates etc. conferring rights in respect of assetsU.K.

11.  Certificates or other instruments which confer—

(a)property rights in respect of any asset falling within paragraphs [F6381], 9 or 10;

(b)any right to acquire, dispose of, underwrite or convert an asset, being a right to which the holder would be entitled if he held any such asset to which the certificate or instrument relates; or

(c)a contractual right, other than an option, to acquire any such asset otherwise than by subscription.

Textual Amendments

VouchersU.K.

12.  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 any other paragraph of this Part.

PART VU.K. CERTAIN NON-CASH VOUCHERS TO BE DISREGARDED AS PAYMENTS IN KIND

1.—(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 [F6399].U.K.

[F640(2) A non-cash voucher may also be disregarded—

(a)by virtue of paragraph 7D of Part VIII (car fuel); F641...

[F642(aa)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 [F643incidental overnight expenses]).]

Textual Amendments

2.  A non-cash voucher which is not treated as [F644general earnings] from employment for the purposes of [F645section 86 of ITEPA 2003 (transport vouchers under pre-26th March arrangements).]U.K.

Textual Amendments

[F646This paragraph only applies in the case of an employee who is in lower paid employment, within the meaning of section 217 of ITEPA 2003]

Textual Amendments

[F6473.  A non-cash voucher exempted from liability to income tax under Chapter 4 of Part 3 by virtue of sections 266(1)(a) or 269 of ITEPA 2003 (exemptions: non-cash vouchers and credit-tokens).]U.K.

Textual Amendments

F647. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F6474.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.K.

Textual Amendments

[F6485.  A non-cash voucher in respect of which no liability to income tax arises by virtue of section 266(1) of ITEPA 2003 to the extent that the voucher is used to obtain anything the direct provision of which would fall within any of the following provisions of that Act—U.K.

(a)section 246 (transport between work and home for disabled employees: general);

(b)section 247 (provision of cars for disabled employees);

(c)section 248 (transport home: late night working and failure of car-sharing arrangements)[F649;

[F650(d)section 320C (recommended medical treatment).]]

Textual Amendments

5A.  A non-cash voucher in respect of which no liability to income tax arises by virtue of section 266(2) of ITEPA 2003 if the voucher evidences entitlement to use anything the direct provision of which would fall within any of the following provisions of that Act—U.K.

(a)section 242 (works transport services);

(b)section 243 (support for public bus services);

(c)section 244 (cycles and cyclist’s safety equipment);

[F651(d)section 319 (mobile telephones).]

Textual Amendments

5B.  A non-cash voucher in respect of which no liability to income tax arises by virtue of section 266(3) of ITEPA 2003 if the voucher can be used only to obtain anything the direct provision of which would fall within any of the following provisions of that Act—U.K.

(a)section 245 (travelling and subsistence during public transport strikes);

(b)section 261 (recreational benefits);

(c)section 264 (annual parties and functions);

(d)section 296 (armed forces' leave travel facilities);

(e)section 317 (subsidised meals);

[F652(f)section 320A (eye tests and special corrective appliances).]

Textual Amendments

6.  A non-cash voucher to the extent that no liability to income tax arises by virtue of any of the following sections of ITEPA 2003—U.K.

(a)section 270 (exemption for small gifts of vouchers and tokens from third parties);

(b)section 305 (offshore oil and gas workers: mainland transfers);

(c)section 321 (suggestion awards);

(d)section 323 (long service awards);

[F653(da)section 323A (trivial benefits provided by employers)]

(e)section 324 (small gifts from third parties).]

Textual Amendments

Meal vouchersU.K.

F6546A.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F654Sch. 3 Pt. V para. 6A omitted (with application in accordance with reg. 1(2) of the amending S.I.) by virtue of The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 40(a)(i)

[F655Interpretation – qualifying childcare vouchersU.K.

6B.  In paragraphs 7 and 7A—

(a)“care”, “child” and “parental responsibility” have the same meaning as in section 318B of ITEPA 2003;

(b)“chargeable expense” has the meaning given in paragraph 14 of Schedule 2;

[F656(ba)“eligible employee” has the meaning given in section 270AA of ITEPA 2003;]

(c)“qualifying child care” has the same meaning as in section 318C of ITEPA 2003;

(d)“qualifying week” means a tax week in respect of which a qualifying childcare voucher is received;

(e)“relevant salary sacrifice arrangements” means arrangements (whenever made) under which the employees for whom the vouchers are provided give up the right to receive an amount of general earnings or specific employment income in return for the provision of the vouchers;

(f)“relevant flexible remuneration arrangements” means arrangements (whenever made) under which the employees for whom the vouchers are provided agree with the employer that they are to be provided with the vouchers rather than receive some other description of employment income;

(g)“relevant low-paid employees” means any of the employer’s employees who are remunerated by the employer at a rate such that, if the relevant salary sacrifice arrangements or relevant flexible remuneration arrangements applied to them, the rate at which they would then be so remunerated would be likely to be lower than the national minimum wage;

(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.]

Textual Amendments

[F657[F658Qualifying childcare vouchers for [F659eligible] employees who joined a scheme before 6th April 2011]U.K.

7.—(1) [F660A qualifying childcare voucher, where an [F661eligible] 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).]

F662[F663(1A)] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(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)

[F664£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) [F665In this paragraph “qualifying childcare voucher” means a non-cash voucher in relation to which Conditions A to C are met.]

[F666(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) 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 [F667eligible] 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.]]

Textual Amendments

F658Sch. 3 Pt. V para. 7(1) heading substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 4) Regulations 2011 (S.I. 2011/1000), regs. 1(1), 4(a)

F663Sch. 3 Pt. V para. 7(1A) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 4) Regulations 2011 (S.I. 2011/1000), regs. 1(1), 4(b)

F665Sch. 3 Pt. V para. 7(6) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 4) Regulations 2011 (S.I. 2011/1000), regs. 1(1), 4(c)

F666Sch. 3 Pt. V added (with effect in accordance with reg. 1(2) of the amending S.I.) (6.4.2011) by The Social Security (Contributions) (Amendment No. 4) Regulations 2011 (S.I. 2011/1000), regs. 1(1), 4(d)

[F668[F669Qualifying childcare vouchers for [F670eligible] 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 2011U.K.

7A.—(1) A qualifying childcare voucher, where an [F671eligible] 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—

    (a)

    [F672£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;

    (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

    (c)

    £55, in any other case; and

    (d)

    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.

(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) 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 [F673eligible] 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.

(11) Condition D is that the employer has, at the required time, made an estimate of the employee’s relevant earnings amount for the tax year in respect of which the voucher is provided.

(12) In sub-paragraph (11) “the required time”, in the case of an employee, means—

(a)if the employee joins the scheme under which the vouchers are provided at a time during the tax year, that time, and

(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, F674...

[F675(b)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 F676... 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 [F677in accordance with the PAYE Regulations];

[F678(za)contributions under a pension scheme if the employee has authorised the employer to make the deductions from relevant payments (as defined by regulation 4 of the PAYE Regulations) for which relief at source is given under section 192(1) of the Finance Act 2004 (relief at source);]

(b)donations for which a deduction is made under section 713 of ITEPA 2003 (payroll giving) in calculating the employee’s net taxable earnings from employment by the employer for the tax year [F679in accordance with the PAYE Regulations];

(c)expenses within Chapter 3 of Part 3 of ITEPA 2003 (expenses payments) which the employer is authorised to exclude from the employee’s taxable earnings for the tax year in accordance with [F680the] PAYE Regulations;

(d)payments in respect of removal expenses to which section 271 of ITEPA 2003 applies (as defined in section 272) and which are taxable earnings of the employee from employment by the employer for the tax year;

[F681(e)amounts equivalent to the amount of the personal allowance under section 35(1) of the Income Tax Act 2007, and in addition if applicable, the amount of the blind person’s allowance under section 38 of that Act.]]

Textual Amendments

F668Sch. 3 Pt. V para. 7A inserted (with effect in accordance with reg. 1(3) of the amending S.I.) (6.4.2011) by The Social Security (Contributions) (Amendment No. 4) Regulations 2011 (S.I. 2011/1000), regs. 1(1), 5

F672Sum in Sch. 3 Pt. V para. 7A(4)(a) substituted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 40(a)(ii)

F674Word in Sch. 3 Pt. V para. 7A(15)(a) omitted (6.12.2011) by virtue of The Social Security (Contributions) (Amendment No. 5) Regulations 2011 (S.I. 2011/2700), regs. 1(1), 5(b)(i)

F676Word in Sch. 3 Pt. V para. 7A(16)(a) omitted (6.12.2011) by virtue of The Social Security (Contributions) (Amendment No. 5) Regulations 2011 (S.I. 2011/2700), regs. 1(1), 5(c)(ii)

8.  A non-cash voucher provided to or for the benefit of an employed earner in respect of employed earner’s employment by a person who is not the secondary contributor in respect of the provision of that voucher.U.K.

[F6829  A non-cash voucher providing for health screening or medical check-ups to the extent that no liability to income tax arises in the provision of such health screening or medical check-ups [F683by virtue of any provision of or under the Income Tax (Earnings and Pensions) Act 2003 which exempts from liability to income tax the provision by employers to employees of health screening and medical check-ups.]]U.K.

Textual Amendments

F683Words in Sch. 3 Pt. V para. 9 substituted (1.4.2009) (with effect in accordance with reg. 1(2)(b) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 3) Regulations 2009 (S.I. 2009/600), regs. 1(1), 7(1) (with reg. 7(2))

PART VIU.K. PENSIONS AND PENSION CONTRIBUTIONS

[F684Pension payments and pension contributions disregardedU.K.

1.  The payments mentioned in [F685this Part] are disregarded in the calculation of earnings for the purposes of earnings-related contributions.]

Textual Amendments

[F686 Contributions to, and benefits from, registered pension schemesU.K.

2.  A payment—

(a)by way of employer’s contribution towards a registered pension scheme to which section 308F687... of ITEPA 2003 (exemption of contributions to registered pension scheme) applies;

(b)by way of any benefit pursuant to a registered pension scheme to which—

(i)section 204(1) (authorised pensions and lump sums) of, and Schedule 31 (taxation of benefits under registered pension schemes) to, the Finance Act 2004 applies; or

(ii)section 208 or 209 of that Act (unauthorised payments) applies.]

Textual Amendments

F687Word in Sch. 3 Pt. VI para. 2(a) omitted (6.4.2012) by virtue of The Social Security (Contributions) (Amendment No. 2) Regulations 2012 (S.I. 2012/817), regs. 1(1), 6(a) (with reg. 11)

[F686Migrant member relief and corresponding relief [F688etc.]] U.K.

[F6863.—[F689(1)] A payment by way of—

(a)an employer’s contribution to which paragraph 2 of Schedule 33 of the Finance Act 2004 (relief for employers' contributions) applies [F690and any benefit referable to that contribution];

(b)an employer’s contribution to which article 15(2) of the Taxation of Pension Schemes (Transitional Provisions) Order 2006 (employers with pre-commencement entitlement to corresponding relief) applies [F691and any benefit referable to that contribution]; F692...

[F693(ba)an employer’s contribution to a pension scheme established by a government outside the United Kingdom for the benefit of its employees or primarily for their benefit, and any benefit referable to such a contribution (whenever made);]

F694(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F695(d)benefits from a pension scheme which are referable to contributions made before 6th April 2006, provided that section 386 of ITEPA 2003 did not apply to those contributions by virtue of section 390 of that Act; or

(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.]

[F696(2) Expressions defined in Schedule 34 to the Finance Act 2004 have the same meaning in this paragraph as they have there.]]

Textual Amendments

F689Sch. 3 Pt. VI para. 3(1): sch. 3 Pt. 6 para. 3 renumbered as sch. 3 Pt. 6 para. 3(1) (16.11.2006) by The Social Security (Contributions) (Amendment No. 5) Regulations 2006 (S.I. 2006/2829), regs. 1, 3(3)

F692Word in Sch. 3 Pt. VI para. 3(1)(b) omitted (16.11.2006) by virtue of The Social Security (Contributions) (Amendment No. 5) Regulations 2006 (S.I. 2006/2829), regs. 1, 3(4)(c)

Funded unapproved retirement benefit schemes.U.K.

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 earningsU.K.

5.  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 [F697and 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.

Textual Amendments

Payments in good faith to scheme solely for providing approved benefits.U.K.

F6986.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

[F699Payments to [F700and benefits from] pension schemes] exempt from UK taxation under double taxation agreementsU.K.

7.—(1) A payment to a pension scheme which is afforded relief from taxation by virtue of [F701any 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 1968F702;

(b)Article 17A of the Convention set out in the Schedule to the Double Taxation Relief (Taxes on Income) (Republic of Ireland) Order 1976F703;

[F704(bb)Article 27(2) of the Convention set out in the Schedule to the Double Taxation Relief (Taxes on Income) (Canada) Order 1980;]

(c)Article 28(3) of the Convention set out in the Schedule to the Double Taxation Relief (Taxes on Income)(Denmark) Order 1980F705.

[F706(d)Article 18 of the Convention set out in the Schedule to the Double Taxation Relief (Taxes on Income) (The United States of America) Order 2002.]

[F707(e)Article 17(3) of the Convention set out in the Schedule to the Double Taxation Relief (Taxes on Income) (South Africa) Order 2002;

(f)Article 17(3) of the Convention set out in the Schedule to the Double Taxation Relief (Taxes on Income) (Chile) Order 2003.]

F708(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F700Words in Sch. 3 Pt. VI para. 7 heading inserted (E.W.S.) (6.12.2011) by The Social Security (Contributions) (Amendment No. 5) Regulations 2011 (S.I. 2011/2700), regs. 1(1), 6(a)

F701Words in Sch. 3 Pt. VI para. 7(1) inserted (E.W.S.) (6.12.2011) by The Social Security (Contributions) (Amendment No. 5) Regulations 2011 (S.I. 2011/2700), regs. 1(1), 6(b)

F702S.I. 1968/1869: paragraph (8) was added to Article 25 by Article 16 of the Protocol set out in the Schedule to S.I. 1987/2055.

F703S.I. 1976/2151: Article 17A was added by Article 1 of the Protocol set out in the Schedule to S.I. 1995/764.

F705S.I. 1980/1960: Paragraph (3) was substituted by Article X(2) of the Protocol set out in Part I of the Schedule in S.I. 1996/3165.

[F709Contributions to, and benefits from, employer-financed retirement benefits schemesU.K.

8.  A payment by way of—

(a)an employer’s contribution towards an employer-financed retirement benefits scheme; and

(b)benefits, pursuant to an employer-financed retirement benefits scheme, to which paragraph 10 applies.

Here and in paragraph 10 “employer-financed retirement benefits scheme” has the meaning given in section 393A of ITEPA 2003.

Textual Amendments

Contributions to, and pension payments from, employer-financed pension only schemesU.K.

9.—(1) A payment by way of—

(a)an employer’s contribution towards an employer-financed pension only scheme; and

(b)a pension, pursuant to an employer-financed pension only scheme, which is income charged to tax pursuant to Part 9 of ITEPA 2003 to which paragraph 10 applies.

(2) In this paragraph “employer-financed pension only scheme” means a scheme—

(a)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.

Textual Amendments

Payments from employer-financed retirement benefits schemes and employer-financed pension only schemesU.K.

10.—(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.

(2) In the following provisions of this paragraph—

(a)“the Act” means the Finance Act 2004;

(b)a reference to a numbered section or Schedule (without more) is a reference to the section or Schedule bearing that number in the Act; and

(b)any reference to a numbered pension rule is to the pension rule contained in section 165 bearing that number.

(3) In applying any provision of the Act for the purposes of this paragraph, a reference to the scheme administrator is to be read as a reference to—

(a)the responsible person, within the meaning of section 399A of ITEPA 2003, in relation to the employer-financed retirement benefits scheme, or

(b)the person who would be the responsible person if the scheme were an employer-financed retirement benefits scheme.

(4) The provisions referred to in sub-paragraph (1)(a)(i) are—

(a)[F710section 164(a)] [F710section 164(1)(a)] (pensions permitted by the pension rules (see section 165)),

(b)[F711section 164(b)] [F711section 164(1)(b)] (lump sums permitted by the lump sum rule (see section 166)),

(c)[F712section 164(e)] [F712section 164(1)(e)] (payments pursuant to a pension sharing order or provision), and

(d)[F713section 164(f)] [F713section 164(1)(f)] (payments of a description prescribed by regulations made by the Commissioners for Revenue and Customs).

(5) The conditions referred to in sub-paragraph (1)(a)(ii) are that, if the scheme had been a registered pension scheme—

[F714(a) any pension payable under its rules would have satisfied pension rules 1, 3 and 4;]

(b)in relation to any lump sum payable under its rules, section 166(1)(a) (pension commencement lump sum) and paragraphs 1 to 3 of Schedule 29, as modified by sub-paragraph (6) below, would have been satisfied;

(c)in relation to any lump sum payable under its rules, section 166(1)(b) (serious ill-health lump sum) and paragraph 4 of Schedule 29, as modified by sub-paragraph (6) below, would have been satisfied; and

(d)any pension is payable until the member’s death in instalments at least annually.

(6) The amount to be disregarded shall be computed in accordance with Part 1 of Schedule 29 (lump sum rule) as if that Part were modified as follows—

(a)in paragraph 1 (pension commencement lump sum)—

(i)paragraphs (b) and (f) of sub-paragraph (1) were omitted,

(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 [F715sub-paragraph (2)] [F715sub-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.

Textual Amendments

F710Words in Sch. 3 Pt. VI para. 10(4)(a) substituted (E.W.S.) (6.12.2011) by The Social Security (Contributions) (Amendment No. 5) Regulations 2011 (S.I. 2011/2700), regs. 1(1), 6(c)(i)

F711Words in Sch. 3 Pt. VI para. 10(4)(b) substituted (E.W.S.) (6.12.2011) by The Social Security (Contributions) (Amendment No. 5) Regulations 2011 (S.I. 2011/2700), regs. 1(1), 6(c)(ii)

F712Words in Sch. 3 Pt. VI para. 10(4)(c) substituted (E.W.S.) (6.12.2011) by The Social Security (Contributions) (Amendment No. 5) Regulations 2011 (S.I. 2011/2700), regs. 1(1), 6(c)(iii)

F713Words in Sch. 3 Pt. VI para. 10(4)(d) substituted (E.W.S.) (6.12.2011) by The Social Security (Contributions) (Amendment No. 5) Regulations 2011 (S.I. 2011/2700), regs. 1(1), 6(c)(iv)

F714Words in Sch. 3 Pt. VI para. 10(5)(a) substituted (6.4.2012) by The Social Security (Contributions) (Amendment No. 2) Regulations 2012 (S.I. 2012/817), regs. 1(1), 6(b) (with reg. 11)

F715Words in Sch. 3 Pt. VI para. 10(6)(d) substituted (E.W.S.) (6.12.2011) by The Social Security (Contributions) (Amendment No. 5) Regulations 2011 (S.I. 2011/2700), regs. 1(1), 6(c)(vi)

[F716Armed forces early departure scheme paymentsU.K.

10A.  A payment under a scheme established by the Armed Forces Early Departure Payments Scheme Order 2005 (S.I. 2005/437) [F717or by the Armed Forces Early Departure Payments Scheme Regulations 2014 (S.I. 2014/2328)].]

Textual Amendments

F716Sch. 3 Pt. VI para. 10A inserted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 40(b)

Modifications etc. (not altering text)

C11Sch. 3 Pt. VI para. 10A extended (13.3.2014) by National Insurance Contributions Act 2014 (c. 7), s. 16

Superannuation funds to which section 615(3) of the Taxes Act appliesU.K.

11.  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 [F718a pension or] an annuity paid by such a fund F719....]

Textual Amendments

F719Words in Sch. 3 Pt. VI para. 11 omitted (16.11.2006) by virtue of The Social Security (Contributions) (Amendment No. 5) Regulations 2006 (S.I. 2006/2829), regs. 1, 4(3)

[F720Independent advice in respect of conversions and transfers of pension scheme benefitsU.K.

12.  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).]

Textual Amendments

[F721Payments and reimbursements of the cost of pensions adviceU.K.

13.—(1) A payment or reimbursement of costs incurred, by or in respect of an employee or former or prospective employee, in obtaining relevant pensions advice, if Condition A or B is met.

(2) This paragraph does not apply in relation to a person in a tax year so far as the total amount of any payments and reimbursements under sub-paragraph (1) in the person’s case in that year exceeds £500.

(3) If in a tax year there is in relation to an individual more than one person who is an employer or former employer, sub-paragraphs (1) and (2) apply in relation to the individual as employee or former or prospective employee of any one of those persons separately from their application in relation to the individual as employee or former or prospective employee of any other of those persons.

(4) “Relevant pensions advice”, in relation to a person, means information or advice in connection with—

(a)the person’s pension arrangements; or

(b)the use of the person’s pension funds.

(5) Condition A is that the payment or reimbursement is provided under a scheme that is open—

(a)to the employer’s employees generally; or

(b)generally to the employer’s employees at a particular location.

(6) Condition B is that the payment or reimbursement is provided under a scheme that is open generally to the employer’s employees, or generally to those of the employer’s employees at a particular location, who—

(a)have reached the minimum qualifying age; or

(b)meet the ill-health condition.

(7) The “minimum qualifying age”, in relation to an employee, means the employee’s relevant pension age less 5 years.

(8) “Relevant pension age”, in relation to an employee, means—

(a)where paragraph 22 or 23 of Schedule 36 to the Finance Act 2004 applies in relation to the employee and a registered pension scheme of which the employee is a member, the employee’s protected pension age (see paragraphs 22(8) and 23(8) of Schedule 36 to the Finance Act 2004); or

(b)in any other case, the employee’s normal minimum pension age, as defined by section 279(1) of the Finance Act 2004.

(9) The “ill-health condition” is met by an employee if the employer is satisfied, on the basis of evidence provided by a registered medical practitioner, that the employee is (and will continue to be) incapable of carrying on his or her occupation because of physical or mental impairment.]

Textual Amendments

[F722Compensation payments under Part 1 of the Public Service Pensions and Judicial Offices Act 2022U.K.

14.  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.]

Textual Amendments

[F723War Widows Recognition payments U.K.

15.  A payment made by the Ministry of Defence to a person under the War Widows Recognition Payment Scheme.]

Textual Amendments

PART VIIU.K. PAYMENTS IN RESPECT OF TRAINING AND SIMILAR COURSES

Payments in respect of training and similar payment disregardedU.K.

1.  The training payments and vouchers mentioned in this Part are disregarded in the calculation of an employed earner’s earnings.

[F724Paragraphs 5 to 9] [F724paragraphs 5 to 8] do not apply to Northern Ireland.

Textual Amendments

F724Words in Sch. 3 Pt. VII para. 1 substituted (N.I.) (3.10.2005) by The Social Security (Contributions) (Amendment No. 5) Regulations 2005 (S.I. 2005/2422), regs. 1, 2(2)

Work-related trainingU.K.

2.  A payment of, or contribution towards, expenditure incurred on providing work-related training which, by virtue of [F725sections 250 to 254 of ITEPA 2003 (exemption for work-related training)], is not to be taken as [F726general earnings ] of the office or employment in connection with which it is provided.

Textual Amendments

Education and training funded by employersU.K.

3.  A payment in respect of expenditure which, by virtue of [F727section 255 of ITEPA 2003 (exemption for contributions to individual learning account training)], is not to be taken as [F728general earnings] of the office or employment in connection with which it is provided.

Textual Amendments

New Deal 50plus: employment grant and training creditU.K.

4.  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 allowanceU.K.

5.  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) F729.

Textual Amendments

Payments to Jobmatch participantsU.K.

6.  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 F730 in his capacity as such.

Textual Amendments

F7301973 c. 50. Section 2 was substituted by section 25(1) of the Employment Act 1988 (c. 19).

Vouchers provided to Jobmatch participantsU.K.

7.  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.

[F731Employment Retention and Advancement paymentsU.K.

8.  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.]

Textual Amendments

[F732Return to Work CreditU.K.

9.  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.]

Textual Amendments

[F733Working Neighbourhoods PilotU.K.

10.  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.

Textual Amendments

In-Work CreditU.K.

11.  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.]

Textual Amendments

[F734Payments made by employers to earners in full-time attendance at universities &c.U.K.

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 [F735£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.]

Textual Amendments

F734Sch. 3 Pt. VII para. 12 added (with effect in accordance with reg. 1 of the amending S.I.) by The Social Security (Contributions) (Amendment No. 2) Regulations 2005 (S.I. 2005/728), regs. 1, 4(2)

F735Word in Sch. 3 Pt. VII para. 12(6) substituted (with effect in accordance with reg. 1(b) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 7) Regulations 2007 (S.I. 2007/2401), regs. 1(a), 2

[F736Payments exempted from income tax under section 254A of ITEPA 2003U.K.

13.  A care leaver’s apprenticeship bursary payment which is exempted from income tax under section 254A of ITEPA 2003.]

Textual Amendments

PART VIIIU.K. TRAVELLING, RELOCATION AND OTHER EXPENSES AND ALLOWANCES OF THE EMPLOYMENT

Travelling, relocation and incidental expenses disregardedU.K.

1.  The travelling, relocation and other expenses and allowances mentioned in this Part are disregarded in the calculation of an employed earner’s earnings.

[F7371A.  For the purposes of this paragraph none of the following amounts are to be disregarded in the calculation of an employed earner’s earnings—U.K.

(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).]

Textual Amendments

Relocation expensesU.K.

2.—(1) A payment of, or contribution towards, expenses reasonably incurred by a person in relation to a change of residence in connection with the commencement of, or an alteration in the duties of the person’s employment or the place where those duties are normally to be performed is disregarded if the conditions in sub-paragraphs (2) to (6) are met.

(2) The first condition is that—

(a)the payment or contribution—

[F738(i)is not, by virtue of section 271 of ITEPA 2003 (limited exemption of removal benefits and expenses) liable to income tax as general earnings under that Act; or]

(ii)would not have been so regarded, but is in fact disregarded [F739by virtue of another provision of ITEPA 2003; F740...]

F740(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) The second condition is that the change of residence must result from—

(a)the employee becoming employed by an employer;

(b)an alteration of the duties of the employee’s employment (where his employer remains the same); or

(c)an alteration of the place where the employee is normally to perform the duties of his employment (where both the employer and the duties which the employee is to perform remains the same).

(4) The third condition is that the change of residence must be made wholly or mainly to allow the employee to have his residence within a reasonable daily travelling distance of—

(a)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.

F741(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F742(7) 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]

Textual Amendments

F739Words in sch. 3 Pt. 8 para. 2(a)(ii) 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)(a)(ii)

F740Sch. 3 Pt. VIII para. 2(2)(b) and word omitted (6.4.2012) by virtue of The Social Security (Contributions) (Amendment No. 2) Regulations 2012 (S.I. 2012/817), regs. 1(1), 7(4)(a)

Travelling expenses—generalU.K.

3.  A payment of, or a contribution towards, [F743travel expenses ] which the holder of an office or employment is obliged to incur and [F744pay as the holder of that office or employment [F745but this paragraph is subject to paragraph 1A]].

For the purposes of this paragraph—

[F746(za)“ordinary commuting” means travel between—

(i)the employee’s home and a permanent workplace; or

(ii)a place that is not a workplace and a permanent workplace;

(zb)“private travel” means travel between—

(i)the employee’s home and a place that is not a workplace; or

(ii)two places neither of which is a workplace;]

[F747(a)“travel expenses” means amounts necessarily expended on travelling in the performance of the duties of the office or employment or other expenses of travelling which are attributable to the necessary attendance at any place of the holder of the office or employment in the performance of the duties of the office or employment and are not expenses of—

(i)ordinary commuting;

(ii)travel between any two places that is for practical purposes substantially ordinary commuting;

(iii)travel between any two places that is for practical purposes substantially private travel; or

(iv)private travel.]

F748(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)expenses of travel by the holder of an office or employment between two places at which he performs the duties of different offices or employments under or with companies in the same group are treated as necessarily expended in the performance of the duties which he is to perform at his destination; and

(d)for purpose of sub-paragraph (c) companies are to be taken to be members of the same group if and only if—

(i)one is a 51 per cent subsidiary of the other; or

(ii)both are 51 per cent subsidiaries of a third company

within the meaning of section 838(1)(a) of the Taxes Act (subsidiaries).

Textual Amendments

[F749Meaning of “workplace” and “permanent workplace”U.K.

3ZA.—(1) For the purposes of paragraph 3—

(a)“workplace”, in relation to an employment, means a place at which the employee’s attendance is necessary in the performance of the duties of the employment,

(b)“permanent workplace”, in relation to an employment, means a place which—

(i)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)for some other temporary purpose.

This is subject to sub-paragraphs (3) and (4).

(3) A place which the employee regularly attends in the performance of the duties of the employment is treated as a permanent workplace and not a temporary workplace if—

(a)it forms the base from which those duties are performed, or

(b)the tasks to be carried out in the performance of those duties are allocated there.

(4) A place is not regarded as a temporary workplace if the employee’s attendance is—

(a)in the course of a period of continuous work at that place—

(i)lasting more than 24 months, or

(ii)comprising all or almost all of the period for which the employee is likely to hold the employment, or

(b)at a time when it is reasonable to assume that it will be in the course of such a period.

(5) For the purposes of sub-paragraph (4), a period is a period of continuous work at a place if over the period the duties of the employment are performed to a significant extent at the place.

(6) An actual or contemplated modification of the place at which duties are performed is to be disregarded for the purpose of sub-paragraphs (4) and (5) if it does not, or would not, have any substantial effect on the employee’s journey, or expenses of travelling, to and from the place where they are performed.

(7) An employee is treated as having a permanent workplace consisting of an area if—

(a)the duties of the employment are defined by reference to an area (whether or not they also require attendance at places outside it),

(b)in the performance of those duties the employee attends different places within the area,

(c)none of the places the employee attends in the performance of those duties is a permanent workplace, and

(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.]

Textual Amendments

[F749Travel for necessary attendance: employment intermediariesU.K.

3ZB.—(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)the services are provided not under a contract directly between the client or a person connected with the client and the worker but under arrangements involving an employment intermediary.

This is subject to the following provisions of this paragraph.

(2) Where this paragraph applies, each engagement is for the purposes of paragraphs 3 and 3ZA to be regarded as a separate employment.

(3) This paragraph does not apply if it is shown that the manner in which the worker provides the services is not subject to (or to the right of) supervision, direction or control by any person.

(4) Sub-paragraph (3) does not apply in relation to an engagement if—

(a)Chapter 8 of Part 2 of ITEPA 2003 applies in relation to the engagement,

(b)the conditions in section 51, 52 or 53 of that Act are met in relation to the employment intermediary, and

(c)the employment intermediary is not a managed service company.

(5) This paragraph does not apply in relation to an engagement if—

(a)Chapter 8 of Part 2 of ITEPA 2003 does not apply in relation to the engagement merely because the circumstances in section 49(1)(c) of ITEPA 2003 are not met,

(b)assuming those circumstances were met, the conditions in section 51, 52 or 53 of that Act would be met in relation to the employment intermediary, and

(c)the employment intermediary is not a managed service company.

(6) In determining for the purposes of sub-paragraphs (4) to (5) whether the conditions in section 51, 52 or 53 of ITEPA 2003 are or would be met in relation to the employment intermediary—

[F750(a)in section 51(1) of that Act—

(i)disregard “either” in the opening words, and

(ii)disregard paragraph (b) (and the preceding “or”), and]

(b)read references to the intermediary as references to the employment intermediary.

[F751(6A) Sub-paragraph (6B) applies if—

(a)the client or a relevant person provides the employment intermediary (whether before or after the worker begins to provide the services) with a fraudulent document which is intended to constitute evidence that, by virtue of sub-paragraph (3), this paragraph does not or will not apply in relation to the services,

(b)that paragraph is taken not to apply in relation to the services, and

(c)in consequence, the employment intermediary does not under these Regulations deduct and account for an amount that would have been deducted and accounted for if this paragraph had been taken to apply in relation to the services.

(6B) For the purpose of recovering the amount referred to in sub-paragraph (6A)(c) (“the unpaid contributions”)—

(a)the worker is to be treated as having an employment with the client or relevant person who provided the document, the duties of which consist of the services, and

(b)the client or relevant person is under these Regulations to account for the unpaid contributions as if they arose in respect of earnings from that employment.

(6C) In sub-paragraphs (6A) and (6B) “relevant person” means a person, other than the client, the worker or a person connected with the employment intermediary, who—

(a)is resident, or has a place of business, in the United Kingdom, and

(b)is party to a contract with the employment intermediary or a person connected with the employment intermediary under or in consequence of which—

(i)the services are provided, or

(ii)the employment intermediary, or a person connected with the employment intermediary makes payments in respect of the services.]

[F752(6D) Sub-paragraph (3) does not apply in relation to an engagement if—

(a)regulations 14 to 18 of the Social Security Contributions (Intermediaries) Regulations 2000 apply in relation to the engagement,

(b)one of conditions A to C in regulation 14 of those Regulations is met in relation to the employment intermediary, and

(c)the employment intermediary is not a managed service company.

(6E) This paragraph does not apply in relation to an engagement if—

(a)regulations 14 to 18 of the Social Security Contributions (Intermediaries) Regulations 2000 do not apply in relation to the engagement because the circumstances in regulation 13(1)(d) of those Regulations are not met,

(b)assuming those circumstances were met, one of conditions A to C in regulation 14 of those regulations would be met in relation to the employment intermediary, and

(c)the employment intermediary is not a managed service company.

(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—

(a)

is a managed service company within the meaning given by section 61B of ITEPA 2003, or

(b)

would be such a company disregarding subsection (1)(c) of that section.]

Textual Amendments

[F753Travel by unpaid directors of not-for-profit companiesU.K.

3A.—(1) A payment of, or contribution towards, the expenses of the earner’s employment if or to the extent that payment or contribution is paid wholly and exclusively for the purposes of paying or reimbursing travel expenses in respect of which conditions A to C are met.

(2) Condition A is that —

(a)the earner is obliged to incur the expenses as holder of the employment, and

(b)the expenses are attributable to the earner’s necessary attendance at any place in the performance of the duties of the employment.

(3) Condition B is that the employment is employment as a director of a not-for-profit company.

(4) Condition C is that the employment is one from which the earner receives no earnings other than sums—

(a)paid to the earner in respect of expenses, and

(b)which are so paid by reason of the employment.

(5) In this paragraph—

(a)“director” has the same meaning as in the benefits code (see section 67 of ITEPA 2003), and

(b)“not-for-profit company” means a company that does not carry on activities for the purpose of making profits for distribution to its members or others.

Textual Amendments

F753Sch. 3 Pt. VIII paras. 3A-3C, VIII inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Social Security (Contributions) (Amendment) Regulations 2014 (S.I. 2014/608), regs. 1(1), 4

Travel where directorship held as part of a trade or professionU.K.

3B.  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).

Textual Amendments

F753Sch. 3 Pt. VIII paras. 3A-3C, VIII inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Social Security (Contributions) (Amendment) Regulations 2014 (S.I. 2014/608), regs. 1(1), 4

Travel between linked employmentsU.K.

3C.  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).]

[F754This paragraph is subject to paragraph 1A.]

Textual Amendments

F753Sch. 3 Pt. VIII paras. 3A-3C, VIII inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Social Security (Contributions) (Amendment) Regulations 2014 (S.I. 2014/608), regs. 1(1), 4

[F755Travel at start or finish of overseas employmentU.K.

4.  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.

[F756This paragraph is subject to paragraph 1A.]

Textual Amendments

Travel between employments where duties performed abroadU.K.

4A.  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 342 of ITEPA 2003 (travel between employments where duties performed abroad), or

(b)would be so deductible if—

(i)Conditions E and F were omitted from that section; and

(ii)the earnings of the employment were subject to income tax as employment income under that Act.

[F757This paragraph is subject to paragraph 1A.]

Textual Amendments

Travel costs and expenses where duties performed abroad: earner’s travelU.K.

4B.—(1) So much of an employed earner’s earnings as equals the amount in sub-paragraph (2).

(2) The amount in this sub-paragraph is—

(a)the included amount within the meaning of section 370 of ITEPA 2003 (travel costs and expenses where duties performed abroad: employee’s travel); or

(b)the amount which would be the included amount within the meaning of that section if the earner were resident and ordinarily resident in the United Kingdom.

[F758This paragraph is subject to paragraph 1A.]

Textual Amendments

Travel costs and expenses where duties performed abroad: visiting spouse’s[F759, civil partner's] or child’s travelU.K.

4C.—(1) So much of an employed earner’s earnings as equals the amount in sub-paragraph (2).

(2) The amount in this sub-paragraph is—

(a)the included amount within the meaning of section 371 of ITEPA 2003 (travel costs and expenses where duties performed abroad: visiting spouse’s[F760, civil partner's] or child’s travel); or

(b)the amount which would be the included amount within the meaning of that section if the earner were resident and ordinarily resident in the United Kingdom.

[F761This paragraph is subject to paragraph 1A.]

Textual Amendments

F759Words in Sch. 3 Pt. VIII para. 4C heading inserted (5.12.2005) by The Social Security (Contributions) (Amendment No. 6) Regulations 2005 (S.I. 2005/3130), regs. 1, 5(2)

F760Words in Sch. 3 Pt. VIII para. 4C(2)(a) inserted (5.12.2005) by The Social Security (Contributions) (Amendment No. 6) Regulations 2005 (S.I. 2005/3130), regs. 1, 5(2)

Foreign accommodation and subsistence costs and expenses (overseas employments)U.K.

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.

[F762This paragraph is subject to paragraph 1A.]

Textual Amendments

[F763Travel costs and expenses of non-domiciled employee or the employee’s spouse, civil partner or child where duties performed in the United Kingdom]U.K.

5.  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 spouse[F764, 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.]

[F765This paragraph is subject to paragraph 1A.]

Textual Amendments

Travelling expenses of workers on offshore gas and oil rigsU.K.

6.  A payment of, or a contribution towards, expenses where that payment or contribution is disregarded for the purposes of calculating the emoluments [F766general earnings under section 305 of ITEPA 2003 (offshore oil and gas workers: mainland transfers).]

Textual Amendments

[F767Payments connected with cars and vans and exempt heavy goods vehicles provided for private use]U.K.

7.—[F768(1)] A payment—

(a)by way of the discharge of any liability which by virtue of [F769section 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 [F770section 239(2)] of that Act;

is not treated as [F771general earnings] of the employment chargeable to income taxF772....

[F773(2) Sub-paragraph (1) does not apply so far as the payment is made pursuant to optional remuneration arrangements.]

Textual Amendments

F768Sch. 3 Pt. VIII para. 7A(1): Sch. 3 Pt. 8 para. 7 and 7A renumbered as para. 7(1) and 7A(1) (6.4.2018) by The Social Security (Contributions) (Amendment) Regulations 2018 (S.I. 2018/120), regs. 1, 6(2)

[F774Qualifying amounts of relevant motoring expenditureU.K.

7A.—[F768(1)] To the extent that it would otherwise be earnings, the qualifying amount calculated in accordance with regulation 22A(4).

[F775(2) 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.]

Textual Amendments

F768Sch. 3 Pt. VIII para. 7A(1): Sch. 3 Pt. 8 para. 7 and 7A renumbered as para. 7(1) and 7A(1) (6.4.2018) by The Social Security (Contributions) (Amendment) Regulations 2018 (S.I. 2018/120), regs. 1, 6(2)

F774Sch. 3 Pt. 08 paras. 7A-7D and cross-headings inserted (6.4.2002) by Social Security (Contributions) (Amendment No.2) Regulations 2002 (S.I. 2002/307), regs. 1(1), 7(2)

Qualifying amounts of mileage allowance payment in respect of cyclesU.K.

7B.—(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 [F776section 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 [F777section 229(2) of ITEPA 2003].

Textual Amendments

F774Sch. 3 Pt. 08 paras. 7A-7D and cross-headings inserted (6.4.2002) by Social Security (Contributions) (Amendment No.2) Regulations 2002 (S.I. 2002/307), regs. 1(1), 7(2)

Qualifying amounts of passenger paymentU.K.

7C.—(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 [F778receives 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 [F779section 234 of ITEPA 2003].

(3) In this paragraph—

  • “passenger payment” has the meaning given in [F780section 233(3) of ITEPA 2003]; and

  • F781...

Textual Amendments

F774Sch. 3 Pt. 08 paras. 7A-7D and cross-headings inserted (6.4.2002) by Social Security (Contributions) (Amendment No.2) Regulations 2002 (S.I. 2002/307), regs. 1(1), 7(2)

F778Words in sch. 3 Pt. 8 para. 7C(2)(a) 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)(g)(i)(aa)

F779Words in sch. 3 Pt. 8 para. 7C(2)(b) 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)(g)(i)(bb)

[F782Car fuelU.K.

7D.—(1) A payment by way of the provision of car fuel which is chargeable to income tax under section 149 of ITEPA 2003.]]

Textual Amendments

F774Sch. 3 Pt. 08 paras. 7A-7D and cross-headings inserted (6.4.2002) by Social Security (Contributions) (Amendment No.2) Regulations 2002 (S.I. 2002/307), regs. 1(1), 7(2)

[F783Van fuelU.K.

7E.  A payment by way of the provision of van fuel which is chargeable to income tax under section 160 of ITEPA 2003.]

Textual Amendments

Car parking facilitiesU.K.

8.  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 [F784section 237 of ITEPA 2003], is not regarded as [F785general earnings] of the earner’s employment.

Textual Amendments

[F786Amounts exempted from income tax under section 289A of ITEPA 2003U.K.

8A.  Any amount which is exempted from income tax under section 289A of ITEPA 2003.]

Textual Amendments

[F787Payments exempted from income tax under section 299B of ITEPA 2003U.K.

8B.  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.]

Textual Amendments

Specific and distinct payments of, or towards, expenses actually incurredU.K.

9.— [F788(1)]  For the avoidance of doubt, [F789there] shall be disregarded any specific and distinct payment of, or contribution towards, expenses which an employed earner actually incurs in carrying out his employment.

[F790This is subject to the following [F791qualifications].]

[F792(2) 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.]

[F793(3) 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).]

Textual Amendments

F788Sch. 3 Pt. 08 para. 9: Sch. 3 Pt. 8 para. 9 renumbered as Sch. 3 Pt. 8 para. 9(1) (6.4.2002) by Social Security (Contributions) (Amendment No.2) Regulations 2002 (S.I. 2002/307), regs. 1(1), 7(3)(a)

[F794council tax or water or sewerage charges] on accommodation provided for employee’s useU.K.

10.  A payment of, or a contribution towards meeting a person’s liability for [F795council 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 [F796sections 99 or 100 of ITEPA 2003 (accommodation provided for performance of duties or as a result of a security threat)], [F797he is not liable to income tax] F798... in respect of the provision of that accommodation.

This paragraph does not extend to Northern Ireland.

Textual Amendments

[F799rates or water or sewerage charges ] on accommodation provided for employee’s useU.K.

11.  A payment of, or a contribution towards meeting, a person’s liability for [F800rates 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 [F801sections 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 taxF802... in respect of the provision of that accommodation.

This paragraph extends only to Northern Ireland.

Textual Amendments

Foreign service allowanceU.K.

12.  A payment by way of an allowance which is not regarded as income for any income tax purpose by virtue of [F803section 299 of ITEPA 2003 (Crown employees' foreign service allowance)].

Textual Amendments

[F804HM Forces’ Operational AllowanceU.K.

12A.—(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.]

Textual Amendments

[F805HM Forces’ Council Tax ReliefU.K.

12B.—(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.]

Textual Amendments

[F806HM Forces’ Continuity of Education AllowanceU.K.

12C.—(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.]

Textual Amendments

[F807HM Forces’ Accommodation AllowanceU.K.

12D.  A payment to which no liability to income tax arises by virtue of section 297D of ITEPA 2003 (armed forces: accommodation allowances).]

Textual Amendments

Commonwealth War Graves Commission and British Council: extra cost of living allowanceU.K.

13.  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 treatmentU.K.

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.

[F808Recommended medical treatmentU.K.

14A.  A payment or reimbursement to which no liability to income tax arises by virtue of section 320C of ITEPA 2003 (recommended medical treatment).]

Textual Amendments

[F809Experts Seconded to European CommissionU.K.

15.  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).]

Textual Amendments

[F810Experts seconded to a body of the European UnionU.K.

15A.  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]

Textual Amendments

[F811Expenses of MPs and other representativesU.K.

16.  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);

[F812(ca)section 293B (UK travel expenses of other elected representatives);]

(d)section 294 (European travel expenses of MPs and other representatives).]

Textual Amendments

[F813Travel expenses of members of local authorities etcU.K.

17.  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).]

Textual Amendments

PART IXU.K. [F814Incentives by way of securities.]

Textual Amendments

[F815Certain payments by way of securities, restricted securities and restricted interests in securities, and gains arising from them, disregarded]U.K.

1.—[F815(1) 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.

Textual Amendments

Shares in secondary contributor or associated bodyU.K.

F8162.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

[F817 Rights to acquire securitiesU.K.

3.  A payment by way of a right to acquire securities.]

Textual Amendments

“Short” share options granted on or after 6th April 1999U.K.

F8183A.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Enterprise management incentivesU.K.

F8194.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

[F820Priority share allocations]U.K.

[F8205.  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.]

Textual Amendments

Partnership share agreementsU.K.

6.  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 [F821paragraph 44 of Schedule 2 to ITEPA 2003.]

Textual Amendments

[F822Shares under share incentive plansU.K.

7.  A payment by way of an award of shares under a share incentive plan within the meaning of Schedule 2 to ITEPA 2003.

Textual Amendments

F822Sch. 3 paras. 7-7A heading substituted for Sch. 3 para. 7 (1.9.2003) by The Social Security (Contributions) (Amendment No. 5) Regulations 2003 (S.I. 2003/2085), regs. 1, 12(9)

Securities and interests in securities which are not readily convertible assetsU.K.

7A.  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.]

Textual Amendments

F822Sch. 3 paras. 7-7A heading substituted for Sch. 3 para. 7 (1.9.2003) by The Social Security (Contributions) (Amendment No. 5) Regulations 2003 (S.I. 2003/2085), regs. 1, 12(9)

Shares under approved profit sharing schemesU.K.

F8238.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

[F824 Restricted securities and restricted interests in securitiesU.K.

9.—(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.]

Textual Amendments

Conditional interest in shares: gains from exercise etc. of share optionsU.K.

F82510.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Convertible sharesU.K.

F82511.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Convertible shares: gains from the exercise etc. of share optionsU.K.

F82512.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Share option gains by directors and employeesU.K.

F82513.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Shares acquired under options granted before 9th April 1998U.K.

F82514.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Assignment or release of optionU.K.

F82515.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

[F826 Exercise of replacement share options where original option acquired before 6th April 1999U.K.

16.—(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—

(a)

the assignment or release of the original right; or

(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.]

Textual Amendments

F826Sch. 3 paras. 16-16A heading substituted for Sch. 3 para. 16 (1.9.2003) by The Social Security (Contributions) (Amendment No. 5) Regulations 2003 (S.I. 2003/2085), regs. 1, 12(13)

[F827Payments resulting from exercise, assignment or release of options which are not disregarded by virtue of paragraph 16U.K.

17.—(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 [F828or 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 [F829replacement right], includes the shares subject to [F830a 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.]

Textual Amendments

[F831Payments made to internationally mobile employeesU.K.

18.—(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.]

Textual Amendments

PART XU.K. MISCELLANEOUS AND SUPPLEMENTAL

Other miscellaneous payments to be disregardedU.K.

1.—(1) The payments listed in [F832this Part] are disregarded in the calculation of earnings.

(2) Paragraph 4 contains additional rules about the way in which the components of a payment by way of expenses incidental to a qualifying absence from home are to be treated for the purpose of earnings-related contributions if the permitted maximum is exceeded.

Textual Amendments

F832Words in Sch. 3 Pt. X para. 1(1) substituted (28.2.2011) by The Social Security (Contributions) (Amendment) Regulations 2011 (S.I. 2011/225), regs. 1, 4(a)

Payments on account of sums already included in the computation of earningsU.K.

2.  A payment on account of a person’s earnings in respect of his employment as an employed earner which comprises, or represents and does not exceed sums which have previously been included in his earnings for the purpose of his assessment of earnings-related contributions.

[F833Payments connected to amounts within regulation 22BU.K.

2A.—(1) A payment (“A”) the subject of which represents, or arises or derives (whether wholly or partly or directly or indirectly) from, an amount (“B”) treated as remuneration under regulation 22B which has previously been included in an employed earner’s earnings for the purposes of assessing earnings-related contributions.

(2) Paragraph (1) does not apply to the extent that A exceeds B.

(3) For the purposes of determining whether paragraph (1) applies, A is to be treated as including the value of any payment made before A which represents, or arises or derives (whether wholly or partly or directly or indirectly) from, B.]

Textual Amendments

Payments discharging liability for secondary Class 1 contributions following election under paragraph 3B of Schedule 1 to the Contributions and Benefits ActU.K.

3.  A payment by way of the discharge of any liability for secondary Class 1 contributions which has been transferred from the secondary contributor to the employed earner by election made jointly by them for the purposes of paragraph 3B(1) of Schedule 1 to the Contributions and Benefits Act (elections about contribution liability in respect of [F834relevant employment income]) F835.

Textual Amendments

F834Words in Sch. 3 para. 3 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), 6

F835Paragraph 3B was inserted by section 77(2) of the Child Support, Pensions and Social Security Act 2000 (c. 19).

Payments by way of incidental [F836overnight ] expensesU.K.

4.—[F837(1) A payment by way of incidental overnight expenses, in whatever form, which by virtue of section 240 of ITEPA 2003 are not general earnings liable to income tax under that Act.

(2) If a payment is made by way of incidental overnight expenses in connection with a qualifying period, but the amount of that payment (calculated in accordance with section 241 of ITEPA 2003) exceeds the permitted amount, sub-paragraphs (3) to (6) apply.]

(3) So much of the payment as is made by way of cash shall be included in the calculation of earnings.

(4) The amount of cash for which a cash voucher can be exchanged shall be included in the calculation of earnings.

(5) 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.

[F838(7) 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.]

Textual Amendments

F836Words in Sch. 3 Pt. 10 para. 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), 28(7)(a)(i)

Gratuities and offeringsU.K.

5.—(1) A payment of, or in respect of, a gratuity or offering [F839which—

(a)satisfies the condition in either sub-paragraph (2) or (3); and

(b)is not within sub-paragraph (4) or (5).]

(2) [F840The condition in this sub-paragraph] is that the payment—

(a)is not made, directly or indirectly, by the secondary contributor; and

(b)does not comprise or represent sums previously paid to the secondary contributor.

(3) [F841The condition in this sub-paragraph] is that the secondary contributor does not allocate the payment, directly or indirectly, to the earner.

[F842(4) A payment made to the earner by a person who is connected with the secondary contributor is within this sub-paragraph unless—

(a)it is—

(i)made in recognition for personal services rendered to the connected person by the earner or by another earner employed by the same secondary contributor; and

(ii)similar in amount to that which might reasonably be expected to be paid by a person who is not so connected; or

(b)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).]

Textual Amendments

F839Words in Sch. 3 Pt. 10 para. 5(1) substituted (23.2.2004) by The Social Security (Contributions) (Amendment) Regulations 2004 (S.I. 2004/173), regs. 1, 2(2)

F840Words in Sch. 3 Pt. 10 para. 5(2) substituted (23.2.2004) by The Social Security (Contributions) (Amendment) Regulations 2004 (S.I. 2004/173), regs. 1, 2(3)

F841Words in Sch. 3 Pt. 10 para. 5(3) substituted (23.2.2004) by The Social Security (Contributions) (Amendment) Regulations 2004 (S.I. 2004/173), regs. 1, 2(4)

Redundancy paymentsU.K.

6.  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 earnerU.K.

7.  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.

[F843Expenses and other payments not charged to income tax under miscellaneous exemptionsU.K.

8.   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).]

Textual Amendments

VAT on the supply of goods and services by employed earnerU.K.

9.  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.

[F844Employee’s liabilities and indemnity insurance]U.K.

10.  [F844 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.]

[F845This paragraph is subject to paragraph 1A of Part 8 of this Schedule.]

Textual Amendments

Fees and subscriptions to professional bodies, learned societies etcU.K.

11.  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. [F846This paragraph is subject to paragraph 1A of Part 8 of this Schedule.]

Textual Amendments

Holiday payU.K.

12.  [F847A 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.]

Textual Amendments

Payments to ministers of religionU.K.

13.  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.

[F848 Payments to miners and former miners, etc. in lieu of coalU.K.

14.—(1) A payment in lieu of the provision of coal or smokeless fuel, if the employee is—

(a)a colliery worker;

(b)a former colliery worker;

and the condition in sub-paragraph (2) is met.

(2) The condition is that the amount of coal or fuel in respect of which the payment is made does not substantially exceed the amount reasonably required for personal use.

(3) That condition is assumed to be met unless the contrary is shown.

(4) In this pans a coragraph, “colliery worker” meaal miner or any other person employed at or about a colliery otherwise than in clerical, administrative or technical work; and “former colliery worker” shall be construed accordingly.

(5) This paragraph does not apply to Northern Ireland.]

Here “miner” means any person employed in or about a colliery, whether on the surface or below ground, except a person employed—

(a)in a clerical, technical or administrative capacity; or

(b)at a coke oven, brick works or other activity not ancillary to coal mining.

(2) This paragraph does not apply to Northern Ireland.

Textual Amendments

[F849Rewards for assistance with lost or stolen cardsU.K.

15.—(1) A payment made by an issuer of charge cards, cheque guarantee cards, credit cards or debit cards, as a reward to an individual who assists in identifying or recovering lost or stolen cards in the course of his or her employment as an employed earner (other than employment by the issuer), together with any income tax paid by the issuer for the purpose of discharging any liability of the individual to income tax on the payment.

(2) In this paragraph—

“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—

(a)

may be used on its own to pay for goods or services or to withdraw cash, and

(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.]

Textual Amendments

[F850Student loansU.K.

16.—(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.]

Textual Amendments

[F851Payment of PAYE tax in respect of notional paymentU.K.

17.  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).]

Textual Amendments

[F852Payments made from the In-Work Emergency Discretion FundU.K.

18.  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.

Textual Amendments

Payments made from the In-Work Emergency FundU.K.

19.  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.]

Textual Amendments

[F853Up-Front Childcare Fund paymentsU.K.

20.  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.]

Textual Amendments

[F854Better off in Work Credit paymentsU.K.

21.  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.]

Textual Amendments

[F855Fees relating to the Protection of Vulnerable Groups (Scotland) SchemeU.K.

22.  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).]

Textual Amendments

[F856Fees relating to the Disclosure and Barring ServiceU.K.

23.—(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.]

Textual Amendments

[F857Advice relating to proposed employee shareholder agreementsU.K.

24.—(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).]

Textual Amendments

[F858Payments on which Class 1 or Class 1A contributions have been paid pursuant to the Social Security Contributions (Limited Liability Partnership) Regulations 2014U.K.

25.  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.]

Textual Amendments

[F859Post Office Horizon compensation paymentsU.K.

26.—(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.]

Textual Amendments

[F860Post Office Horizon Shortfall Scheme compensation paymentsU.K.

27.—(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).]

Textual Amendments

[F861Group 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 U.K.

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.]

Textual Amendments

[F862Parental Transitions Support scheme paymentsU.K.

29.  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.

Textual Amendments

Jobs Plus Pilot paymentsU.K.

30.  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.]

Textual Amendments

[F863Horizon Convictions Redress Scheme compensation payments and Horizon Shortfall Scheme Fixed Sum AwardsU.K.

31.—(1) A payment of compensation made by the Department for Business and Trade to a person under the scheme announced by His Majesty’s Government on 13th March 2024 to compensate people who have a conviction involving the Horizon system quashed by legislation.

(2) A payment of compensation made by Post Office Limited to a person eligible for compensation under the Horizon Shortfall Scheme or a nominated individual for the purpose of ensuring that person receives a total of £75,000 in compensation.

(3) A payment that is a relevant onward payment of the payment defined in paragraph (2).

(4) In this paragraph—

“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 that would have been eligible for compensation under the Horizon Shortfall Scheme;

“Post Office Limited” has the same meaning as in paragraph 26(3);

“relevant onward payment” has the same meaning as in paragraph 28(5).]

Textual Amendments

Regulation 67(2)

SCHEDULE 4U.K. [F864Provisions derived from the Income Tax Acts and the Income Tax (Pay As You Earn) Regulations 2003]

Textual Amendments

PART IU.K. GENERAL

InterpretationU.K.

1.—[F865(1) 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);

[F866“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 F867...

“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 F868... F869...

“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 F870... 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;

F871...

F872...

“Inland Revenue” means any officer of the Board of Inland Revenue;

“mariner” has the same meaning as in regulation 115;

[F873“non-Real Time Information employer” means an employer other than one within sub-paragraph (4);]

[F873“Real Time Information employer” has the meaning given in sub-paragraph (4);]

F874...

“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).

[F875(4) 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);

F876(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ; 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 F877... earnings).]

Textual Amendments

F869Words in Sch. 4 para. 1(2) omitted (with effect in accordance with reg. 1(3) of the amending S.I.) by virtue of The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 4(2)

F872Words in Sch. 4 para. 1(2) omitted (1.4.2009) (with effect in accordance with reg. 1(2)(a) of the amending S.I.) by virtue of The Social Security (Contributions) (Amendment No. 3) Regulations 2009 (S.I. 2009/600), regs. 1(1), 8(2)

F876Sch. 4 para. 1(4)(c) omitted (with application in accordance with reg. 1(2) of the amending S.I.) by virtue of The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 6

Multiple employersU.K.

[F8782.—(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.]

Textual Amendments

Intermediate employersU.K.

3.—(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 F879[F880... 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 [F881employee’s F879... 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 [F882those 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 [F883those earnings] will be paid.

(4) This paragraph only applies if a direction has been given by the Board under [F884section 691 of ITEPA 2003] (PAYE: mobile UK workforce)F885.

(5) Where an employee is paid a sickness payment which by virtue of regulation 23 is not made through the secondary contributor in relation to the employment—

(a)the person making that payment shall furnish the secondary contributor with such particulars of that payment as may be necessary to enable the secondary contributor to comply with this Schedule; and

(b)for the purposes only of this Schedule the secondary contributor shall be deemed to have made the sickness payment.

Textual Amendments

F885Section 203E was inserted by section 126 of the Finance Act 1994 (c. 9).

Employer’s earnings-related contributionsU.K.

4.  If, under this Schedule, a person [F886pays] any earnings-related contributions which, under section 6(4) of the Act F887, another person is liable to pay, his payment of those contributions shall be made as agent for that other person.

Textual Amendments

F886Word in sch. 4 para. 4 substituted (28.11.2002) by The Social Security (Contributions)(Amendment No. 5) Regulations 2002 (S.I. 2002/2929), regs. 1, 5

F887This section was substituted by paragraph 2 of Part I of Schedule 9 to the Welfare Reform Act.

[F888IntermediariesU.K.

4A.—(1) Where any payment of F889[F890... earnings] of an employee is made by an intermediary of the employer, the employer shall be treated, for the purposes of this Schedule other than–

(a)paragraph 7(1),

(b)paragraph 7(3)(a),

(c)the references to a subsequent payment of F889[F890... earnings] or of monetary earnings in paragraph 7(3) and (8), and

(d)paragraph 7(11),

as making the payment of those F889[F890... earnings] to the employee.

(2) For the purposes of this paragraph, a payment of F889[F890... earnings] of an employee is made by an intermediary of the employer if it is made–

(a)either–

(i)by a person acting on behalf of the employer and at the expense of the employer, or

(ii)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.]

Textual Amendments

F888Sch. 4 para. 4A inserted (28.11.2002) by The Social Security (Contributions)(Amendment No. 5) Regulations 2002 (S.I. 2002/2929), regs. 1, reg. 6

[F891Continuation of proceedings etc.U.K.

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.]

Textual Amendments

PART IIU.K. DEDUCTION OF EARNINGS-RELATED CONTRIBUTIONS

Deduction of earnings-related contributionsU.K.

6.—(1) Every employer, on making during any year to any employee any payment of F892[F893... earnings] in respect of which earnings-related contributions are payable, or are treated as payableF894...—

(a)shall, if he has not already done so, prepare F895... a deductions working sheet for that employee, and

(b)may deduct earnings-related contributions in accordance with this Schedule.

[F896(1A) 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 [F897relevant employment income]) F898 if the election provides for the collection of the amount in respect of which liability is transferred.

Textual Amendments

F895Words in Sch. 4 para. 6(1)(a) omitted (with effect in accordance with reg. 1(3) of the amending S.I.) by virtue of The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 4(3)

F897Words in Sch. 4 para. 6(3) 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), 7(a)

F898Paragraph 3B was inserted by section 77(2) of the Child Support, Pensions and Social Security Act 2000 (c. 19).

Calculation of deductionU.K.

7.—(1) Subject to sub-paragraph (2), on making any payment of F899[F900... earnings] to the employee, the employer may deduct from those F899[F900... earnings] the amount of the earnings-related contributions based on those F899[F900... earnings] F901... which the employee is liable to pay under section 6(4) of the Act [F902(the “section 6(4)(a) amount”)].

[F903(1A) On making any chain payment the [F904deemed employer] may deduct the amount of earnings related contributions calculated by reference to the deemed direct earnings which the [F904deemed employer] is liable to pay.]

[F905(1B) 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 F899[F900... earnings] fall to be aggregated, the employer may deduct the amount of the earnings-related contributions based on those F899[F900... 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.

[F906(3) If the employer–

(a)on making any payment of F899[F900... earnings] to an employee does not deduct from those F899[F900... earnings] the full section 6(4)(a) amount, or

(b)is treated as making a payment of F899[F900... 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 F899[F900... earnings] made by the employer to that employee during [F907the same year and, where the case falls within paragraph (b) [F908or sub-paragraph 4(a) or (f)]].

  • This sub-paragraph is subject to sub-paragraphs (4) and (5).]

[F909(3A) 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 F899... 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 F899[F900... 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)F910;

F911(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d)the F899[F900... 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; F912...

[F913(e) the employer is treated as making a payment of F899[F900... earnings] by paragraph 4A][F914; or]

[F915(f)the payment in question is made to a person whose place of employment is outside the United Kingdom and on whose F899... earnings Class 1 contributions are, but income tax is not, payable.]

(5) For the purposes of sub-paragraphs (3), [F916(3A),] (4), (8) and (11)—

(a)the amount which by virtue of those sub-paragraphs may be deducted from any payment, or from any payments which fall to be aggregated, shall be an amount in addition to, but not in excess of, the amount deductible from those payments under the other provisions of this Schedule; and

(b)for the purposes of Part III of this Schedule an additional amount which may be deducted by virtue of those sub-paragraphs [F917in a case falling within paragraph (a) of any of those sub-paragraphs [F918except sub-paragraph (3A)]] shall be treated as an amount deductible under this Schedule only in so far as the amount of the corresponding under-deduction has not been so treated.

[F919This is subject to the following qualification.]

[F920(5A) Where a payment—

(a)falls within sub-paragraph (4)(e) [F921or (f)],

(b)comprises a beneficial interest in [F922securities], or

(c)is treated as earnings within the meaning of Part 7 of the Income Tax (Earnings and Pensions) Act 2003,

sub-paragraph (5B) applies.

(5B) If this sub-paragraph applies—

(a)sub-paragraph (5)(a) shall have effect as if “, but not in excess of,” were omitted; and

(b)sub-paragraph (8) shall have effect as if at the end there were added “or the following year”]

(6) 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 [F923section 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.

[F924(8) 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 F899[F900... 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 [F925securities],

(ii)a conditional interest in [F925securities] or a beneficial interest in convertible [F925securities] treated as earnings under [F926regulation 22(5), (6) or (7)],

(iii)any gain on which the ex-employee is chargeable to tax by virtue of [F927section 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 [F928section 6(4)(a) amount].

F929(10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(11) Where, in the circumstances specified in sub-paragraph (9), the employer has not deducted, from the earnings referred to in sub-paragraph (9)(b), the full amount of earnings-related contributions which by virtue of this Schedule he is entitled to deduct, he may, without prejudice to sub-paragraph (8) but subject to sub-paragraph (12)(b), recover the amount so under-deducted by deduction from the proceeds of sale of some, or all, of—

(a)the [F931securities] referred to in of sub-paragraph 9(b)(i) and (ii); or

(b)the [F931securities] which form the subject matter of the option referred to in sub-paragraph (9)(b)(iii).

(12) For the purposes of sub-paragraph (11)—

(a)the whole of the amount under-deducted may be recovered from the proceeds of sale of some, or all, of the [F931securities] referred to in that sub-paragraph; and

(b)the employee’s prior written consent to that sale and the recovery of all or part of the under-deduction from the proceeds thereof, shall be required.

(13) Subject to sub-paragraph (14), the employer shall record on the deductions working sheet for that employee the name and national insurance number of the employee, the year to which the working sheet relates, the appropriate category letter in relation to the employee (being the appropriate category letter indicated by the Board) and, in so far as relevant to that category letter, the following particulars regarding every payment of F899[F900... earnings] which he makes to the employee namely—

(a)the date of payment;

(b)the amount of—

(i)earnings up to and including the current lower earnings limit where earnings equal or exceed that figure,

[F932(ii)earnings which exceed the current lower earnings limit but do not exceed the current primary threshold,]

[F933(iii)earnings which exceed the current primary threshold but do not exceed the [F934current upper earnings limit],]

F935(iiia). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F936(iv)the sum of the primary Class 1 contributions and secondary Class 1 contributions payable on all the employee’s earnings, other than contributions recovered under sub-paragraph (3); and

(v)the primary Class 1 contributions payable on the employee’s earnings;]

(vi)any statutory maternity pay;

[F937(vii)any F938... statutory paternity pay;

F939(viia). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

[F940(viii)any statutory adoption pay[F941; F942...

(ix)any statutory shared parental pay]][F943; and

(x)any statutory parental bereavement pay.]

F944...

F945(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(14) Where 2 or more payments of F899[F900... earnings] fall to be aggregated, the employer, instead of recording under heads (iv) and (v) of sub-paragraph (13)(b) separate amounts in respect of each such payment, shall under each head record a single amount, being the total of the contributions appropriate to the description specified in that head, in respect of the aggregated payments.

(15) When an employer pays F899[F900... earnings] he shall record under the name of the employee to whom he pays the F899[F900... earnings]—

(a)the date of payment;

(b)the amount of the F899[F900... earnings], excluding any allowable [F946pension] contributions; and

(c)any allowable [F946pension] contributions;

and retain the record for a period of three years after the end of the tax year in which the F899[F900... earnings] were paid.

Textual Amendments

F901Word in Sch. 4 para. 7(1) omitted (28.11.2002) by The Social Security (Contributions)(Amendment No. 5) Regulations 2002 (S.I. 2002/2929), regs. 1, 7(2)

F902Words in Sch. 4 para. 7(1) inserted (28.11.2002) by The Social Security (Contributions)(Amendment No. 5) Regulations 2002 (S.I. 2002/2929), regs. 1, 7(2)

F906Sch. 4 para. 7(3) substituted (28.11.2002) by The Social Security (Contributions)(Amendment No. 5) Regulations 2002 (S.I. 2002/2929), regs. 1, 7(3)

F910Section 112 was amended by paragraph 51(4) of Schedule 1 to the Employment Rights Act 1996 (c. 18) and paragraph 21 of Schedule 3 to the Transfer Act.

F913Sch. 4 para. 7(4)(e) and word inserted (28.11.2002) by The Social Security (Contributions)(Amendment No. 5) Regulations 2002 (S.I. 2002/2929), regs. 1, 7(4)

F917Words in Sch. 4 para. 7(5)(b) inserted (28.11.2002) by The Social Security (Contributions)(Amendment No. 5) Regulations 2002 (S.I. 2002/2929), regs. 1, 7(5)

F923Words in Sch. 4 para. 7(6) substituted (28.11.2002) by The Social Security (Contributions)(Amendment No. 5) Regulations 2002 (S.I. 2002/2929), regs. 1, 7(6)

F924Sch. 4 para. 7(8) substituted (28.11.2002) by The Social Security (Contributions)(Amendment No. 5) Regulations 2002 (S.I. 2002/2929), regs. 1, 7(7)

F928Words in Sch. 4 para. 7(9)(c) substituted (28.11.2002) by The Social Security (Contributions)(Amendment No. 5) Regulations 2002 (S.I. 2002/2929), regs. 1, 7(8)

F936Sch. 4 para. 7(13)(b)(iv)-(v) substituted (with effect in accordance with reg. 1(1) of the amending S.I.) by The Social Security (Contributions) (Amendment) Regulations 2003 (S.I. 2003/193), regs. 1(1), 16(2)(a)(i)

F937Sch. 4 para. 7(13)(b)(vii)(viia) substituted for Sch. 4 para. 7(13)(b)(vii) (14.11.2010) by The Social Security (Contributions) (Amendment No. 5) Regulations 2010 (S.I. 2010/2450), regs. 1, 4(2)

F940Sch. 4 para. 7(13)(b)(vii)-(viii) and words inserted (with effect in accordance with reg. 1(1) of the amending S.I.) by The Social Security (Contributions) (Amendment) Regulations 2003 (S.I. 2003/193), regs. 1(1), 16(2)(a)(ii)

F942Word in Sch. 4 para. 7(13)(b)(viii) omitted (6.4.2020) by The Social Security (Contributions) (Amendment) Regulations 2020 (S.I. 2020/239), regs. 1, 2(3)(a)(i) (which amendment was extended to N.I. (6.4.2022) by S.I. 2022/384, reg. 3)

F943Sch. 4 para. 7(13)(b)(x) and word inserted (6.4.2020) by The Social Security (Contributions) (Amendment) Regulations 2020 (S.I. 2020/239), regs. 1, 2(3)(a)(ii) (which amendment was extended to N.I. (6.4.2022) by S.I. 2022/384, reg. 3)

F945Sch. 4 para. 7(13)(c) omitted (with effect in accordance with reg. 1(1) of the amending S.I.) by virtue of The Social Security (Contributions) (Amendment) Regulations 2003 (S.I. 2003/193), regs. 1(1), 16(2)(b)

[F947Records where liability transferred from secondary contributor to employed earner: relevant employment incomeU.K.

8.  Where an election has been made for the purposes of paragraph 3B(1) of Schedule 1 to the Act (elections about transfer of liability for secondary contributions in respect of relevant employment income), the secondary contributor shall maintain records containing—

(a)a copy of any such election;

(b)a copy of the notice of approval issued by the Inland Revenue under paragraph 3B(1)(b) of that Schedule;

(c)the name and address of the secondary contributor who has entered into the election;

(d)the name of the employed earner; and

(e)the national insurance number allocated to the employed earner.]

Textual Amendments

F947Sch. 4 para. 8 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), 7(b)

Certificate of contributions paidU.K.

9.—(1) Where the employer is required to give the employee a certificate in accordance with [F948regulation 67 of the PAYE Regulations (information to employees about payments and tax deducted (Form P 60))], the employer shall enter on the certificate, in respect of the year to which the certificate relates—

(a)the amount of any earnings up to and including the current lower earnings limit where earnings equal or exceed that figure;

(b)the amount of any earnings in respect of which primary Class 1 contributions were, by virtue of section 6A of the ActF949, treated as having been paid, which exceed the current lower earnings limit but do not exceed the current primary thresholdF950...;

(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 [F951current upper earnings limit]F952...;

F953(ca). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(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;

[F954(f)the amount of statutory maternity pay paid to the employee;

[F955(g)the amount of F956... statutory paternity pay paid to the employee;

F957(ga). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F958...]

(h)the amount of statutory adoption pay paid to the employee[F959; F960...]

(i)the amount of statutory shared parental pay paid to the employee;][F961; and

(j)the amount of statutory parental bereavement pay paid to the employee;]

and shall enter the amounts under [F962paragraph (e)] under the appropriate category letter indicated by the [F963Inland Revenue].

(2) Where the employer is not required to give the employee a certificate in accordance with [F964regulation 67 of the PAYE Regulations], because no tax has been deducted from the employee’s [F965relevant payments] during the year concernedF966..., [F967but 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).]

[F968(3) In sub-paragraph (2), “relevant payments” has the meaning given in the PAYE Regulations.]

Textual Amendments

F949Section 6A was inserted by paragraph 3 of Part I of Schedule 9 to the Welfare Reform Act.

F954Sch. 4 para. 9(1)(f)-(h) inserted (with effect in accordance with reg. 1(1) of the amending S.I.) by The Social Security (Contributions) (Amendment) Regulations 2003 (S.I. 2003/193), regs. 1(1), 16(3)(a)

F955Sch. 4 para. 9(1)(g)(ga) substituted for Sch. 4 para. 9(1)(g) (14.11.2010) by The Social Security (Contributions) (Amendment No. 5) Regulations 2010 (S.I. 2010/2450), regs. 1, 4(3)

F960Word in Sch. 4 para. 9(1)(h) omitted (6.4.2020) by The Social Security (Contributions) (Amendment) Regulations 2020 (S.I. 2020/239), regs. 1, 2(3)(b)(i) (which amendment was extended to N.I. (6.4.2022) by S.I. 2022/384, reg. 3)

F961Sch. 4 para. 9(1)(j) and word inserted (6.4.2020) by The Social Security (Contributions) (Amendment) Regulations 2020 (S.I. 2020/239), regs. 1, 2(3)(b)(ii) (which amendment was extended to N.I. (6.4.2022) by S.I. 2022/384, reg. 3)

F962Words in Sch. 4 para. 9(1) substituted (with effect in accordance with reg. 1(1) of the amending S.I.) by The Social Security (Contributions) (Amendment) Regulations 2003 (S.I. 2003/193), regs. 1(1), 16(3)(b)

PART IIIU.K. PAYMENT AND RECOVERY OR EARNINGS-RELATED CONTRIBUTIONS, CLASS 1A CONTRIBUTIONS AND CLASS 1B CONTRIBUTIONS, ETC.

Payment of earnings-related contributions monthly by employerU.K.

10.—(1) Subject to [F969sub-paragraph (1A) and] paragraph 11 and 15(8), the employer shall pay the amount specified in sub-paragraph (2) to the [F970Inland Revenue] within 14 days [F971or, 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 F972... tax month.

[F973(1A) 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 F974[F975... earnings] paid by the employer in that F976... tax month, [F977(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 RegulationsF978....

(3) For the purposes of sub-paragraph (2), if two or more payments of F974[F979... 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.

[F980(3A) 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) applies[F981, or failures rectified under paragraph 21EA(2)].]

[F982(4) 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.]

Textual Amendments

F981Words in Sch. 4 para. 10(3A) inserted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 7

F982Sch. 4 para. 10(4) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 3) Regulations 2014 (S.I. 2014/1016), regs. 1(1), 2(a)

Payments of earnings-related contributions quarterly by employerU.K.

11.—(1) Subject to [F983sub-paragraph (1A) and] paragraph 15(8), the employer shall pay the amount specified in sub-paragraph (2) to the [F984Inland Revenue] within 14 days of the end of every F985... tax quarter [F986or, 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

F987(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F988(1A) 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 F989[F990... earnings] paid by the employer in that F991... tax quarter, [F992(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 RegulationsF993....

(3) For the purposes of sub-paragraph (2), where two or more payments [F994of F989... 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.

[F995(3A) 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) applies[F996, or failures rectified under paragraph 21EA(2)].]

[F997(3B) 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 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.]

[F998(4) The condition specified in this sub-paragraph is that for [F999tax months] falling within the current year, the average monthly amount found by the formula below will be less than £1500.

The formula is—

[F1000(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 [F1001Inland Revenue] under the Social Security Contributions and Benefits Act 1992 and these Regulations but disregarding—

      (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

      (aa)

      [F1002any amount payable in respect of retrospective earnings;]

      (c)

      F1003...

    • [F1004“P” is the amount which would be payable to HMRC under regulation [F1005 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 [F1001Inland Revenue] under [F1006regulation 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 F1007...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.

    • F1008...

    • SP is the amount—

      (a)

      recoverable by the employer from [F1009the Inland Revenue], or

      (b)

      deductible from amounts for which the employer would otherwise be accountable to [F1009the Inland Revenue],

      in respect of payments to his employees by way of F1010... statutory maternity pay, [F1011[F1012statutory paternity pay][F1013, statutory shared parental pay]][F1014, 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.]

Textual Amendments

F996Words in Sch. 4 para. 11(3A) inserted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 8

F997Sch. 4 para. 11(3B) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 3) Regulations 2014 (S.I. 2014/1016), regs. 1(1), 2(b)

F998Sch. 4 para. 11(4) substituted (with effect in accordance with reg. 1(1) of the amending S.I.) by The Social Security (Contributions) (Amendment) Regulations 2003 (S.I. 2003/193), regs. 1(1), 16(4)

F1014Words in Sch. 4 para. 11(4) substituted (6.4.2020) by The Social Security (Contributions) (Amendment) Regulations 2020 (S.I. 2020/239), regs. 1, 2(3)(c) (which amendment was extended to N.I. (6.4.2022) by S.I. 2022/384, reg. 3)

[F1015Payments to and recoveries from HMRC for each tax period by Real Time Information employers: returns under paragraph 21E(6) [F1016or 21EA(3)] U.K.

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)[F1017, 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.

[F1018(3A) 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.]

Textual Amendments

F1016Words in Sch. 4 para. 11ZA heading inserted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 9(2)

F1017Words in Sch. 4 para. 11ZA(1) inserted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 9(1)

F1018Sch. 4 para. 11ZA(3A) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 3) Regulations 2014 (S.I. 2014/1016), regs. 1(1), 2(c)

[F1019Payments of earnings-related contributions in respect of retrospective earningsU.K.

11A.—(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.]

Textual Amendments

Payment of earnings-related contributions by employer (further provisions)U.K.

12.—[F1020(1) The Inland Revenue shall give a receipt to the employer for the total amount paid under paragraph [F102110, 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 [F1022Inland Revenue] on account of earnings-related contributions under paragraph [F102110, 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)F1023, the amounts which he is liable to pay subsequently in respect of other payments of F1024[F1025... 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 F1024[F1025... 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;

F1026(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)a refund has been made under regulation 2 of the Social Security (Refunds) (Repayment of Contractual Maternity Pay) Regulations 1990.

Textual Amendments

Payment of Class 1B contributionsU.K.

13.—(1) A person who is liable to pay a Class 1B contribution (“the employer”), shall pay that Class 1B contribution to the [F1027Inland Revenue] not later than 19th October [F1028or, 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 [F1027Inland 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 [F1027Inland Revenue] under paragraph 10 or 11 for any F1029... tax period in the same year.

Textual Amendments

Employer failing to pay earnings-related contributionsU.K.

14.—(1) If within [F103017 days] of the end of any F1031... tax period [F1032a non-Real Time Information employer] has paid no amount of earnings-related contributions to the [F1033Inland Revenue] under paragraph 10 or 11 for that F1031... tax period and the [F1033Inland Revenue] is unaware of the amount, if any, which the employer is liable so to pay, the [F1033Inland 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 [F1033Inland Revenue] under that paragraph in respect of the F1031... tax period in question.

(2) Where a notice given by the [F1033Inland 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 F1031... tax periods were one F1031... tax period.

(3) If the [F1033Inland Revenue] is not satisfied that an amount of earnings-related contributions paid F1034... under paragraph 10 or 11 for any F1031... tax period is the full amount which the employer is liable to payF1034..., the [F1033Inland Revenue] may give a notice under sub-paragraph (1) despite the payment of that amount.

Textual Amendments

Specified amount of earnings-related contributions payable by the employerU.K.

15.—(1) If after [F103517 days] following the end of any F1036... tax period the employer has paid no amount of earnings-related contributions to [F1037HMRC] under paragraph 10 or 11 for that F1036... tax period and there is reason to believe that the employer is liable to pay such contributions, [F1037HMRC], upon consideration of the employer’s record of past payments [F1038whether of earnings-related contributions or of combined amounts,] may to the best of [F1039their judgment] specify the amount of earnings-related contributions [F1040or of a combined amount] which [F1041they consider] the employer is liable to pay and give notice to him of that amount.

[F1042(1A) 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 [F1043Education (Student Loans) (Repayment) Regulations 2009].]

[F1044(1B) 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 F1045... 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 [F1046or as including an amount of earnings-related contributions] which the employer was liable to pay for that F1036... tax period in accordance with paragraph 10 or 11; and

(b)may be certified by [F1047HMRC].

(3) The provisions of sub-paragraph (2) shall not apply if, during the period allowed in the notice, the employer pays to [F1048HMRC] the full amount of earnings-related contributions which the employer is liable to pay under paragraph 10 or 11 for that F1036... tax period, or the employer satisfies [F1048HMRC] 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 [F1049HMRC] 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 F1036... tax periods, a notice may be given by [F1050HMRC] under sub-paragraph (1) which extends to two or more consecutive F1036... tax periods, and this Schedule shall have effect as if those F1036... tax periods were the latest F1036... tax period specified in the notice.

(6) A notice may be given by [F1051HMRC] under sub-paragraph (1) notwithstanding that an amount of earnings-related contributions has been paid F1052... by the employer under paragraph 10 or 11 for any F1036... tax period, if, after seeking the employer’s explanation as to the amount of earnings-related contributions paid, [F1051HMRC] is not satisfied that the amount so paid is the full amount which the employer is liable to pay F1052... 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 [F1051HMRC] that no further amount of earnings-related contributions is due for the relevant F1036... tax period.

(7) Where, during the period allowed in a notice given by [F1053HMRC] under sub-paragraph (1), the employer claims, but does not satisfy [F1053HMRC], that the payment F1054... made in respect of any F1036... tax period specified in the notice is [F1055or includes] the full amount of earnings-related contributions he is liable to pay to [F1053HMRC] for that period, the employer may require [F1053HMRC] to inspect the employer’s documents and records as if [F1053HMRC] had called upon the employer to produce those documents and records in accordance with [F1056Schedule 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 [F1053HMRC] 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 [F1057HMRC] under it [F1058whether 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 F1036... 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 [F1057HMRC] under paragraph 10 or 11 for any subsequent F1036... 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.

Textual Amendments

F1056Words in Sch. 4 para. 15(7) substituted (1.4.2009) (with effect in accordance with reg. 1(2)(a) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 3) Regulations 2009 (S.I. 2009/600), regs. 1(1), 8(3)

Recovery of earnings-related contributions or Class 1B contributionsU.K.

16.—(1) The F1059... Tax Acts and any regulations underF1060 [F1061section 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 [F1062HMRC] for any F1059... tax period in accordance with paragraph 10 or 11 or which he is treated as liable to [F1062HMRC] [F1063whether separately or as part of a combined amount] for any F1059... tax period under paragraph 15; or

(b)any amount of Class 1B contributions which an employer is liable to pay to the [F1062HMRC] 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 [F1064as 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 [F1065other 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 [F1066HMRC] for any F1059... tax period;

(b)Class 1B contributions which the employer is liable to pay to [F1066HMRC] in respect of any year;

(c)a combination of those classes of contributions as specified in heads (a) and (b); or

(d)any of the contributions as specified in heads (a), (b), or (c) in addition to any [F1067other component of a combined amount] which the employer is liable to pay to [F1066HMRC] for any F1059... tax period,

without specifying the respective amount of those contributions and of [F1068other component of a combined amount], or distinguishing the amounts which the employer is liable to pay in respect of each employee and without specifying the employees in question.

(4) For the purposes of—

(a)proceedings under section 66 of the Taxes Management Act 1970 F1069 (including proceedings under that section as applied by the provisions of this paragraph);

(b)summary proceedings (including in Scotland proceedings in the sheriff court or in the sheriff’s small debt court),

the total amount of contributions, in addition to any [F1070other component of the combined amount] which the employer is liable to pay to [F1071HMRC] for any F1059... tax period, referred to in sub-paragraph (3) shall, subject to sub-paragraph (2), be one cause of action or one matter of complaint.

(5) Nothing in sub-paragraph (3) or (4) shall prevent the bringing of separate proceedings for the recovery of each of the several amounts of—

(a)earnings-related contributions which the employer is liable to pay for any F1059... tax period in respect of each of his several employees;

(b)Class 1B contributions which the employer is liable to pay in respect of any year in respect of each of his several employees; F1072...

(c)tax which the employer is liable to pay for any F1059... tax period in respect of each of his several employees.

[F1073(d)amounts due under the Income Tax (Construction Industry Scheme) Regulations 2005; or

(e)payments of repayments of student loans due under the [F1074Education (Student Loans) (Repayment) Regulations 2009].]

[F1075(6) For the purposes of this paragraph “combined amount” has the meaning given in paragraph 15(1A).]

Textual Amendments

F1060Section 203 was amended by section 128 of, and paragraph 4 of Schedule 3 to, the Finance Act 1988 (c. 39), section 45(3) of the Finance Act 1989 (c. 26), paragraph 38 of Part II of Schedule 19 and item (23) of Part V of Schedule 26 to, the Finance Act 1994 (c. 9) and section 119 of the Finance Act 1998 (c. 36).

Interest on overdue earnings-related contributions or Class 1B contributionsU.K.

17.—(1) [F1076Subject to [F1077sub-paragraph (4A) and] paragraph 21], where, in relation to the year ended 5th April 1993 or any subsequent year, an employer has not—

F1078(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)paid a Class 1B contribution by 19th October [F1079or, 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 [F1080HMRC].

(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 ActF1081;

(b)“the reckonable date” means, in relation to—

F1082(i). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ii)a Class 1B contribution, the 19th October [F1083or, 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.

[F1084(iii)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 1882F1085.

[F1086(4A) 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.]

[F1087(5) A certificate of [F1088HMRC] 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.]

[F1089(6) 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).]

Textual Amendments

F1081Section 10A was inserted by section 53 of the Social Security Act 1998 (c. 14).

F10851882 c. 61. Section 92 was amended by sections 3(1) and (3) and 4(4) of the Banking and Financial Dealings Act 1971 (c. 80).

[F1090Application of paragraphs 16 and 17 in cases of wilful failure to payU.K.

17A.—(1) If regulation 86(1)(a) applies paragraphs 16 and 17[F1091, 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.]

Textual Amendments

Payment of interest on repaid earnings-related contributions or Class 1B contributionsU.K.

18.—(1) Where an earnings-related contribution paid by an employer in respect of the year ended 5th April 1993 or any subsequent year not later than the year ended 5th April 1999 is repaid to him and 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 sub-paragraph (1) “the relevant date” is—

(a)in the case of an earnings-related contribution overpaid more than 12 months after the end of the year in respect of which the payment was made, the last day of the year in which it was paid; and

(b)in any other case, the last day of the year after the year in respect of which the contribution in question was paid.

(3) Where F1092... a Class 1B contribution paid by an employer in respect of the year ended 5th April 2000 or any subsequent year is repaid to him and 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.

(4) For the purpose of sub-paragraph (3) “the relevant date” is—

(a)in the case of—

F1093(i). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ii)a Class 1B contribution, the 19th October next following the year in respect of which that contribution was paid; or

(b)the date on which the F1094... Class 1B contribution was paid if that date is later than the date referred to in paragraph (a).

Textual Amendments

F1093Sch. 4 para. 18(4)(a)(i) and word omitted (with effect in accordance with art. 1(2) of the amending S.I.) by virtue of The Finance Act 2009, Sections 101 and 102 (Interest on Late Payments and Repayments), Appointed Days and Consequential Provisions Order 2014 (S.I. 2014/992), arts. 1(1), 10(4)(b)(i)

Repayment of interestU.K.

19.  Where a secondary contributor or a person liable to pay a Class 1B contribution has paid interest on an earnings-related contribution or a Class 1B contribution, that interest shall be repaid to him [F1095if]—

(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 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 [F109652, 52A or 55].

Textual Amendments

F1096Words in Sch. 4 para. 19(b) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions, Categorisation of Earners and Intermediaries) (Amendment) Regulations 2004 (S.I. 2004/770), regs. 1(1), 32(11)

Remission of interest for official errorU.K.

20.—(1) Where interest is payable in accordance with paragraph 17[F1097, 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.

Textual Amendments

Application of paragraphs 10, 12, 16, 17, 18, 19 and 20U.K.

21.—(1) This paragraph applies where—

(a)secondary Class 1 contributions are payable in respect of [F1098relevant employment income; and]

(b)an amount or proportion (as the case may be) of the liability of the secondary contributor to those contributions is transferred to the employed earner by an election made jointly by them for the purposes of paragraph 3B(1) of Schedule 1 to the ActF1099.

(2) Paragraphs 10, 12, 16, 17, 18, 19 and 20 shall apply to the employed earner to the extent of the liability transferred by the election and, to that extent, those paragraphs shall not apply to the employer.

(3) For the purposes of sub-paragraph (2)—

(a)any reference in paragraphs 10, 12, 16, 17, 18 and 20 to an employer; and

(b)the reference in paragraph 19 to a secondary contributor,

shall be construed as a reference to the employed earner to whom the liability is transferred by the election.

Textual Amendments

F1098Words in Sch. 4 para. 21(1)(a) 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), 7(c)

F1099Paragraph 3B was inserted into Schedule 1 by section 77(2) of the Child Support, Pensions and Social Security Act 2000.

[F1100Real time returns of information about payments of F1101... earningsU.K.

21A.—(1) [F1102Subject to [F1103sub-paragraph (1A)],] on or before making any payment of F1104... earnings to an employee a Real Time Information employer must deliver to HMRC the information specified in Schedule 4A (real time returns) in accordance with this paragraph [F1105unless—

(a)the employer is not required to maintain a deductions working sheet for any employees, or

(b)an employee’s earnings are below the lower earnings limit and the employer is required to make a return under regulation 67B(1), regulation 67D(3), regulation 67E(6) or regulation 67EA(3) of the PAYE Regulations.]

[F1106(1A) But a Real Time Information employer—

(a)which for the tax year 2014-15 meets Conditions A and B, or

(b)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 F1104... earnings made to an employee in a tax month on or before making the last payment of F1104... 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.]

[F1106(1C) 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 F1104... 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 F1104... earnings is made at that time.

(4) If payments of F1104... 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).

F1107(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1107(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(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).]

Textual Amendments

F1102Words in Sch. 4 para. 21A(1) inserted (with effect in accordance with reg 1(2)(3) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 4) Regulations 2013 (S.I. 2013/2301), regs. 1(1), 3(a)

F1105Words in Sch. 4 para. 21A(1) substituted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 10(2)

F1106Sch. 4 paras. 21A(1A)-(1E) substituted for Sch. 4 paras. 21A(1A)-(1B) (6.4.2014) by The Social Security (Contributions) (Amendment) Regulations 2014 (S.I. 2014/608), regs. 1(1), 7(b)

F1107Sch. 4 para. 21A(6)(7) omitted (with application in accordance with reg. 1(2) of the amending S.I.) by virtue of The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 10(3)

[F1108Employees in respect of whom employer is not required to maintain a deductions worksheetU.K.

21AA.—(1) This paragraph applies if an employer makes a payment of F1109... 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.

Textual Amendments

F1108Sch. 4 paras. 21AA-21AD inserted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 11

Employees paid in specified circumstancesU.K.

21AB.—(1) This paragraph applies if—

(a)an employer makes a payment of F1110... 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 F1110... 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.

Textual Amendments

F1108Sch. 4 paras. 21AA-21AD inserted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 11

Paragraphs 21AA and 21AB: supplementaryU.K.

21AC  Where paragraph 21AA or 21AB applies, the information required by paragraph 21A in respect of the payment of F1111... earnings may be included in a return with the information for any other payment of F1111 ... earnings.

Textual Amendments

F1108Sch. 4 paras. 21AA-21AD inserted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 11

Benefits and expenses – returns under regulations 85 to 87 of the PAYE RegulationsU.K.

21AD.—(1) This paragraph applies if an employer makes a payment of F1112... 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.]

Textual Amendments

F1108Sch. 4 paras. 21AA-21AD inserted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 11

[F1113Employees paid advance payments of earningsU.K.

21AE.—(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

(b)the reduced regular interval payment and advance payments made in respect of it must be treated for the purposes of paragraphs 6(1)(a), 7(13), 21A and Schedule 4A as if they were a single payment of earnings made at the time the reduced regular interval payment is made.

(3) In this paragraph “regular interval” has the meaning given in regulation 1(2) of these Regulations.]

Textual Amendments

[F1100Modification of the requirements of paragraph 21A: notional paymentsU.K.

21B.—(1) This [F1114paragraph] applies if an employer makes a payment of F1115... earnings to an employee which, for the purposes of tax, is a notional payment within the meaning given by section 710(2) of ITEPA 2003 (including a notional payment arising by virtue of a retrospective tax provision).

(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—

(a)the time at which the employer delivers the information required by regulation 67B of the PAYE Regulations (real time returns of information about relevant payments) in respect of the payment;

F1116(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ; or

(c)14 days after the end of the tax month the payment is made in,

whichever is earliest.]

Textual Amendments

F1114Word in Sch. 4 para. 21B(1) substituted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 12(2)

F1116Sch. 4 para. 21B(2)(b) omitted (with application in accordance with reg. 1(2) of the amending S.I.) by virtue of The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 12(3)

[F1100Relationship between paragraph 21A and aggregation of earningsU.K.

21C.—(1) Where an employee's earnings are aggregated, a Real Time Information employer or, as the case may be, Real Time Information employers must make such arrangements as are necessary to ensure that the information specified in paragraph (2) in respect of all the aggregated earnings is included in the information given in respect of one of the employee's employments only.

(2) The information specified in this paragraph is the information specified in paragraphs 7 and 10(b) and (d) of Schedule 4A (real time returns).]

Textual Amendments

[F1117Notifications of payments of F1118... earnings to and by providers of certain electronic payment methodsU.K.

21CA.—(1) A Real Time Information employer who makes a payment of F1118... earnings using an approved method of electronic communications which falls to be included in a return under paragraph 21A must—

(a)generate a reference and include it in that return,

(b)notify the service provider that the payment is a payment of F1118... earnings, and

(c)generate a sub-reference in respect of the payment of F1118... 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 F1118... 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 F1118 ... earnings.]

Textual Amendments

F1117Sch. 4 para. 21CA inserted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 13

[F1100Exceptions to paragraph 21AU.K.

21D.—(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.

[F1119(e)an employer to whom a direction has been given under sub-paragraph (12). ]

[F1120But 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.

[F1121(2A) 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.]

[F1122(2B) 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) [F1123On 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 F1124... earnings is made in a tax [F1125quarter] 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 F1124 ... earnings shall be read as if they were references to all the payments made to the employee in the tax [F1125quarter].

(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 [F1126quarter] the return relates to.

(6) If payments of F1124... earnings have been made to more than one employee in the tax [F1127quarter], the return under sub-paragraph (4) must include the information required by Schedule 4A in respect of each employee to whom a payment of F1124 ... earnings has been made.

F1128(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1128(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(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).]

[F1129(12) 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.]

Textual Amendments

F1119Sch. 4 para. 21D(1)(e) inserted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 14(2)

F1121Sch. 4 para. 21D(2A) inserted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 14(3)

F1123Words in Sch. 4 para. 21D(3) substituted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 14(4)

F1128Sch. 4 para. 21D(7)(8) omitted (with application in accordance with reg. 1(2) of the amending S.I.) by virtue of The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 14(5)

F1129Sch. 4 para. 21D(12) inserted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 14(6)

[F1100Returns under paragraphs 21A and 21D: amendmentsU.K.

21E.—(1) This paragraph applies where [F1130there is an inaccuracy in a return, whether careless or deliberate,] made under paragraph 21A (real time returns of information about payments of F1131... earnings) or 21D (exceptions to paragraph 21A) and sub-paragraph (2), (3) or (4) applies.

(2) This sub-paragraph applies where the [F1132inaccuracy] relates to the information given in the return in respect of an employee under [F1133one or more of paragraphs 3A, 7], 10(b), 10(d), F1134... 14, 15, 16[F1135, 17A] or 18 of Schedule 4A (real time returns).

(3) This sub-paragraph applies where the [F1136inaccuracy] was the omission of details of a payment of F1131 ... earnings to an employee.

(4) This sub-paragraph applies where retrospective earnings increase the total amount of the F1131 ... earnings paid to the employee for any tax year in which the employer was a Real Time Information employer.

[F1137(5) 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 [F11382 to 7 and 10 to 12] of Schedule 4A,

F1139(ii). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(iii)[F1140if 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,

[F1141(iiia)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,]

[F1142(iv)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 [F1143employer becomes aware of the inaccuracy]; and

(c)must be made using an approved method of electronic communications [F1144and 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 [F1145by 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.]

Textual Amendments

F1133Words in Sch. 4 para. 21E(2) substituted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 15(2)

F1138Words in Sch. 4 para. 21E(7)(a)(i) substituted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 15(3)(a)

F1139Sch. 4 para. 21E(7)(a)(ii) omitted (with application in accordance with reg. 1(2) of the amending S.I.) by virtue of The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 15(3)(b)

F1144Words in Sch. 4 para. 21E(7)(c) inserted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 15(3)(c)

[F1146Failure to make a return under paragraph 21A or 21DU.K.

21EA.—(1) This paragraph applies where an employer does not make a return required by paragraph 21A (real time returns of information about payments of F1147... 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-paragraphF1148....

(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) [F1149If 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 [F1150that return[F1151, but this sub-paragraph does not apply to a return in respect of the tax year 2014-15 or a subsequent tax year]].]

Textual Amendments

F1146Sch. 4 para. 21EA inserted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 16

F1151Words in Sch. 4 para. 21EA(6) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 4) Regulations 2014 (S.I. 2014/2397), regs. 1(1), 3(4)

[F1100Additional information about paymentsU.K.

21F.—(1) A Real Time Information employer must inform HMRC of each of the amounts specified in Schedule 4B (additional information about payments) for each tax period unless sub-paragraph (4) or (5) applies.

(2) The information must be given in a return.

(3) The return must be delivered within 14 days after the end of the tax period.

(4) This sub-paragraph applies if—

(a)all of the amounts are zero; and

(b)the employer has not made a return under sub-paragraph (2) in the tax year.

(5) This paragraph applies if none of the amounts has changed in the tax period.

(6) If an employer makes an error in a return under this paragraph, the employer must provide the correct information in the first return made under sub-paragraph (2) after the discovery of the error.

(7) But if the information given has not been corrected before 20th April following the end of the year in question, the employer must provide the correct information for the year in question in a return under this sub-paragraph.

[F1152(7A) A Real Time Information employer may send to HMRC a notification (included within a return under this paragraph or otherwise) if—

(a)for a tax period, the employer was not required to make any returns in accordance with paragraph 21A or 21D because no payments of F1153... earnings were made during the tax periods, or

(b)the employer has sent the final return under paragraph 21A or 21D that the employer expects to make—

(i)in the circumstances described in paragraph 5 of Schedule A1 to the PAYE Regulations (real time returns); or

(ii)for the year.]

(8) A return under sub-paragraph (2) or (7) [F1154and a notification under paragraph (7A)]—

(a)must state—

(i)the year to which the return relates,

(ii)the employer's HMRC office number,

(iii)the employer's PAYE reference, F1155...

(iv)the employer's accounts office reference[F1156, and;

(v)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.

F1157(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(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).]

Textual Amendments

F1152Sch. 4 para. 21F(7A) inserted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 17(2)

F1154Words in Sch. 4 para. 21F(8) inserted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 17(3)(a)

F1155Word in Sch. 4 para. 21F(8)(a)(iii) omitted (with application in accordance with reg. 1(2) of the amending S.I.) by virtue of The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 17(3)(b)

F1156Sch. 4 para. 21F(8)(a)(v) and word inserted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 17(3)(c)

F1157Sch. 4 para. 21F(9) omitted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 17(3)(c)

[F1158Penalty: failure to comply with paragraph 21A or 21DU.K.

21G.—(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 F1159... 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 F1159... 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 [F1160sub-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 F1159... earnings) or 21D (exceptions to paragraph 21A).

[F1161(2A) 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.]

Textual Amendments

F1158Sch. 4 para. 21G inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 4) Regulations 2014 (S.I. 2014/2397), regs. 1(1), 3(5)

Return by employer at end of yearU.K.

22.—[F1162(A1) This [F1163paragraph] applies to—

(a)non-Real Time Information employers;

(b)Real Time Information employers in relation to years in which they were, for the whole of the year, non-Real Time information employers; and

(c)Real Time Information employers to whom HMRC has given a notice requiring a return under regulation 73 of the PAYE Regulations (annual return of relevant payments liable to deduction of tax (Forms P35 and P14) in respect of a tax year.]

(1) [F1164Before 20th May following the end of the year the employer shall render to [F1165HMRC] in such form as they may approve or prescribe], a return showing in respect of each employee, in respect of whom he was required at any time during the year to prepare or maintain a deductions working sheet in accordance with this Schedule—

(a)such particulars as [F1165HMRC] may require for the identification of the employee,

(b)the year to which the return relates,

(c)in respect of each and under each of the category letters, the total amounts for the year shown under—

(i)each of [F1166sub-paragraphs (i) to (v)] severally of paragraph 7(13)(b) (such amounts being rounded down to the next whole pound if not already whole pounds) in the case of paragraphs (i) [F1167to (iii)]),

F1168(ii). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1169(iii). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d)the total amount of any statutory maternity pay paid during the year; F1170...

[F1171(da)the total amount of F1172[F1173... statutory paternity pay] paid during the year;

F1174(daa). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(db)the total amount of statutory adoption pay paid during the year[F1175; F1176...]

(dc)the total amount of statutory shared parental pay paid during the year][F1177; and

(dd)the total amount of statutory parental bereavement pay paid during the year.]

F1178(e). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) The return required by sub-paragraph (1) shall include a statement and declaration in the form approved or prescribed by [F1165HMRC] containing a list of all deductions working sheets on which the employer was obliged to keep records in accordance with this Schedule in respect of that year, and shall also include a certificate showing—

(a)the total amount of earnings-related contributions payable by him in respect of each employee during that year;

(b)the total amount of earnings-related contributions payable in respect of all his employees during that year;

F1179(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d)in respect of statutory maternity pay paid during that year to all his employees, the total of amounts determined under regulation 3 of the Compensation of Employers Regulations and deducted by virtue of regulation 4 of those Regulations; F1180...

[F1181(da)in respect of statutory paternity pay paid during that year to all his employees the total of the amounts determined under regulation 5 of the F1182[F1183... statutory paternity pay] and Statutory Adoption Pay (Administration) Regulations 2002;

F1184(daa). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(db)in respect of statutory adoption pay paid during that year to all his employees the total of the amounts determined under regulation 5 of the Statutory Paternity Pay and Statutory Adoption Pay (Administration) Regulations 2002][F1185; F1186...

(dc)in respect of statutory shared parental pay paid during the year to all his employees the total of the amounts determined under regulation 5 (deductions from payments to the Commissioners) of the Statutory Shared Parental Pay (Administration) Regulations 2014][F1187; and

(dd)in respect of statutory parental bereavement pay paid during the year to all his employees the total of the amounts determined under regulation 5 of the Statutory Parental Bereavement Pay (Administration) Regulations 2020.]

F1178(e). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F1188(2A) Where a liability arises to pay contributions in respect of retrospective earnings relating to a closed tax year, the employer shall render a replacement return, or where necessary prepare one, in respect of the employee for that 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 paragraphs (a) to (c) of sub-paragraph (1), setting out the revised earnings and earnings-related contributions.

(2B) The return required by sub-paragraph (2A) shall include a statement and declaration in a form prescribed by HMRC containing a list of all deductions working sheets in accordance with paragraph 6(1A) of this Schedule in respect of that year, and shall also include a certificate showing—

(a)the total amount of earnings-related contributions originally payable (in accordance with sub-paragraph (2)(a)) in respect of each employee to whom sub-paragraph (2A) applies;

(b)the total amount of earnings-related contributions originally payable (in accordance with sub-paragraph (2)(b)) in respect of all employees to whom sub-paragraph (2A) applies;

(c)the total amount of revised earnings-related contributions payable in respect of each of those employees;

(d)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 employees[F1189.]]

F1190(f). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1191(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) If the employer is a body corporate, [F1192the declarations] and [F1193the certificates] referred to in [F1194sub-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 [F1165HMRC] the total amount of earnings-related contributions which he is liable so to pay, the [F1165HMRC] 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), [F1195the returns referred to in sub-paragraphs (1) and (2A)] may be made in such other form as [F1165HMRC] and the employer approve, and in that case—

(a)sub-paragraphs (2) to (5) shall not apply; and

(b)the making of [F1196the returns] shall be subject to such conditions as [F1165HMRC] may direct as to the method of making it.

(7) [F1197Section 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) [F1198and (2A)].

Textual Amendments

F1163Word in Sch. 4 para. 22(A1) substituted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 18

F1166Words in Sch. 4 para. 22(1)(c)(i) substituted (with effect in accordance with reg. 1(1) of the amending S.I.) by The Social Security (Contributions) (Amendment) Regulations 2003 (S.I. 2003/193), regs. 1(1), 16(5)(a)(i)

F1168Sch. 4 para. 22(1)(c)(ii) omitted (with effect in accordance with reg. 1(1) of the amending S.I.) by virtue of The Social Security (Contributions) (Amendment) Regulations 2003 (S.I. 2003/193), regs. 1(1), 16(5)(a)(ii)

F1169Sch. 4 para. 22(1)(c)(iii) omitted (with effect in accordance with reg. 1(1) of the amending S.I.) by virtue of The Social Security (Contributions) (Amendment) Regulations 2003 (S.I. 2003/193), regs. 1(1), 16(5)(a)(ii)

F1170Word in Sch. 4 para. 22(1)(d) omitted (with effect in accordance with reg. 1(1) of the amending S.I.) by virtue of The Social Security (Contributions) (Amendment) Regulations 2003 (S.I. 2003/193), regs. 1(1), 16(5)(b)

F1171Sch. 4 para. 22(1)(da)-(db) inserted (with effect in accordance with reg. 1(1) of the amending S.I.) by The Social Security (Contributions) (Amendment) Regulations 2003 (S.I. 2003/193), regs. 1(1), 16(5)(b)

F1176Word in Sch. 4 para. 22(1)(db) omitted (6.4.2020) by The Social Security (Contributions) (Amendment) Regulations 2020 (S.I. 2020/239), regs. 1, 2(3)(d)(i)(aa) (which amendment was extended to N.I. (6.4.2022) by S.I. 2022/384, reg. 3)

F1177Sch. 4 para. 22(1)(dd) and word inserted (6.4.2020) by The Social Security (Contributions) (Amendment) Regulations 2020 (S.I. 2020/239), regs. 1, 2(3)(d)(i)(bb) (which amendment was extended to N.I. (6.4.2022) by S.I. 2022/384, reg. 3)

F1180Word in Sch. 4 para. 22(2)(d) omitted (with effect in accordance with reg. 1(1) of the amending S.I.) by virtue of The Social Security (Contributions) (Amendment) Regulations 2003 (S.I. 2003/193), regs. 1(1), 16(5)(c)

F1181Sch. 4 para. 22(2)(da)-(db) inserted (with effect in accordance with reg. 1(1) of the amending S.I.) by The Social Security (Contributions) (Amendment) Regulations 2003 (S.I. 2003/193), regs. 1(1), 16(5)(c)

F1186Word in Sch. 4 para. 22(2)(db) omitted (6.4.2020) by The Social Security (Contributions) (Amendment) Regulations 2020 (S.I. 2020/239), regs. 1, 2(3)(d)(ii)(aa) (which amendment was extended to N.I. (6.4.2022) by S.I. 2022/384, reg. 3)

F1187Sch. 4 para. 22(2)(dd) and word inserted (6.4.2020) by The Social Security (Contributions) (Amendment) Regulations 2020 (S.I. 2020/239), regs. 1, 2(3)(d)(ii)(bb) (which amendment was extended to N.I. (6.4.2022) by S.I. 2022/384, reg. 3)

[F1199Notification 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 contributionU.K.

23.—(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.]

Textual Amendments

F1199Sch. 4 para. 23 substituted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Social Security (Miscellaneous Amendments No. 2) Regulations 2015 (S.I. 2015/478), regs. 1(4), 22(5)

Special return by employer at end of voyage periodU.K.

24.—(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 [F1200Inland Revenue] in such form as the [F1200Inland 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 [F1201[F1202 earnings] apportioned to each such period in the voyage period;

(c)the appropriate category letter for each apportionment of F1202[F1201... earnings];

(d)the amounts of all the earnings-related contributions payable on each apportionment of F1202[F1201... 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 F1202[F1201... earnings] [F1203and];

(f)[F1204the total amount of any earnings in respect of which primary Class 1 contributions were payable.]

F1205(g). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1206(h). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

Textual Amendments

Return by employer of recovery under the Statutory Sick Pay Percentage Threshold OrderU.K.

F120725.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

[F1208Retention by employer of contribution and election recordsU.K.

26.—(1) An employer must keep and preserve all contribution records which are not required to be sent to HMRC by other provisions in these Regulations for not less than—

(a)three years after the end of the tax year to which they relate; or

(b)for documents or records relating to information about the amounts of Class 1A and Class 1B contributions, three years after the end of the year in which a contribution became payable.

(2) The duty under paragraph (1) may be discharged by preserving the contribution records in any form or by any means.

(3) Where 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, the records which the secondary contributor is obliged by paragraph 8 to maintain shall be retained by the secondary contributor throughout the period for which the election is in force and for six years after the end of that period.

(4) In this paragraph “contribution records” means wages sheets, deductions working sheets F1209... and other documents or records relating to—

(a)the calculation of payment of earnings to the employer's employees or the amount of the earnings-related contributions payable for those earnings;

(b)the amount of any Class 1A contributions or Class 1B contributions payable by the employer; and

(c)any information about the amounts of Class 1A and Class 1B contributions.

[F1210(4A) Sub-paragraph (4B) applies in relation to an employer who makes deductions, or applies for a repayment, under section 4 of the National Insurance Contributions Act 2014 on account of an employment allowance for which the employer qualifies for a tax year (or who intends to do so).

(4B) So far as they are not otherwise covered by sub-paragraph (4), “contribution records” includes any documents or records relating to—

(a)the employer's qualification for the employment allowance, or

(b)the calculation of any amount that has been, or could be, deducted or repaid under section 4 of the National Insurance Contributions Act 2014 on account of the employment allowance.]

(5) For the purposes of this paragraph “employer”—

(a)includes, in relation to a Class 1A contribution, the person liable to pay such a contribution in accordance with section 10ZA of the Act (liability of third party provider of benefits in kind); and

(b)means, in relation to a Class 1B contribution, the person liable to pay such a contribution in accordance with section 10A of the Act.

Textual Amendments

F1208Sch. 4 para. 26-26A substituted for Sch. 4 para. 26 (1.4.2009) (with effect in accordance with reg. 1(2)(a) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 3) Regulations 2009 (S.I. 2009/600), regs. 1(1), 8(4)

F1209Words in Sch. 4 para. 26(4) omitted (with effect in accordance with reg. 1(3) of the amending S.I.) by virtue of The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 4(4)

F1210Sch. 4 para. 26(4A)(4B) inserted (6.4.2014) by National Insurance Contributions Act 2014 (c. 7), ss. 7(3), 8 (with s. 7(4))

Certificate of employer's liability to pay contributions after inspection of documentsU.K.

26A.—(1) An officer of Revenue and Customs may, by reference to the information obtained from an inspection of the documents and records produced under Schedule 36 to the Finance Act 2008 (information and inspection powers), and on the occasion of each inspection, prepare a certificate showing—

(a)the amount of earnings-related contributions which it appears that the employer is liable to pay to HMRC, excluding any amount deducted by the employer by virtue of the Compensation of Employers Regulations for the years or tax periods covered by the inspection; or

(b)the amount of any Class 1B contributions which it appears that the employer is liable to pay to HMRC for the years covered by the inspection, or such an amount in addition to an amount referred to in paragraph (a);

together with any amount of earnings-related contributions or Class 1B contributions or a combination of those classes of contributions, which has not been paid to HMRC or, to the best of the officer's knowledge and belief, to any other person to whom it might lawfully be paid.

(2) The production of a certificate mentioned in sub-paragraph (1) shall, unless the contrary is proved, be sufficient evidence that the employer is liable to pay to HMRC in respect of the years or, as the case may be, tax periods mentioned in the certificate, the amount shown in the certificate as unpaid; and any document purporting to be such a certificate shall be treated as such a certificate until the contrary is proved.

(3) The provisions of paragraph 16 shall apply with any necessary modifications to the amount shown in such a certificate.

(4) For the purposes of this paragraph “employer” has the meaning given by paragraph 26(5).]

Textual Amendments

F1208Sch. 4 para. 26-26A substituted for Sch. 4 para. 26 (1.4.2009) (with effect in accordance with reg. 1(2)(a) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 3) Regulations 2009 (S.I. 2009/600), regs. 1(1), 8(4)

Death of an employerU.K.

27.  If an employer dies, anything which he would have been liable to do under this Schedule shall be done by his personal representatives, or, in the case of an employer who paid F1211[F1212... earnings] on behalf of another person, by the person succeeding him or, if no person succeeds him, the person on whose behalf he paid F1211[F1212 ... earnings].

Textual Amendments

Succession to a business, etcU.K.

28.—(1) This paragraph applies where there has been a change in the employer from whom an employee receives F1213[F1212... earnings] in respect of his employment in any trade, business, concern or undertaking, or in connection with any property, or from whom an employee receives any annuity other than a pension.

(2) Where this paragraph applies, in relation to any matter arising after the change, the employer after the change shall be liable to do anything which the employer before the change would have been liable to do under this Schedule if the change had not taken place.

(3) Sub-paragraph (2) is subject to the qualification that the employer after the change shall not be liable for the payment of any earnings-related contributions which were deductible from emoluments paid to the employee before, unless they are also deductible from emoluments paid to [F1214the employee after], the change took place, or of any corresponding employer’s earnings-related contributions.

Textual Amendments

Payments by chequeU.K.

29.—(1) Sub-paragraph (2) applies for the purposes of paragraphs 10, 11, 13, 15, 17 and 18.

(2) If any payment to the [F1215Inland Revenue] is made by cheque, and 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 [F1215Inland Revenue], and “pay”, “paid”, “unpaid” and “overpaid” shall be construed accordingly.

Textual Amendments

[F1216PART 3AU.K.DEBTS OF MANAGED SERVICE COMPANIES

Textual Amendments

Interpretation of this PartU.K.

29A.—(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—

(a)

is within section 688A(2)(d), and

(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—

(a)

is within section 688A(2)(d), and

(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.

Relevant contributions debts of managed service companiesU.K.

29B.—(1) A managed service company has a relevant contributions debt if—

(a)a managed service company must pay an amount of contributions for a qualifying period, and

(b)one of conditions A to E is met.

(2) Condition A is met if—

(a)a decision has been made in accordance with section 8 of the Social Security Contributions (Transfer of Functions, etc.) Act 1999 that an amount of Class 1 National Insurance contributions is due in respect of a qualifying period, and

(b)any part of the amount has not been paid within 14 days from the date on which the decision became final and conclusive.

(3) Condition B is met if—

(a)an employer delivers a return under paragraph 22(1) (return by employer at end of year) for the tax year 2007-08, or any later tax year, showing an amount of total contributions deducted by the employer for that tax year,

(b)HM Revenue and Customs prepare a certificate under paragraph 22(5) (certificate that contributions specified in return under paragraph 22(1) remain unpaid) showing how much of that amount remains unpaid, and

(c)any part of that amount remains unpaid at the end of a period of 14 days beginning with the date on which the certificate is prepared.

(4) Condition C is met if—

(a)HM Revenue and Customs prepare a certificate under paragraph 14(1) (employer failing to pay earnings-related contributions) showing an amount of contributions which the employer is liable to pay for a qualifying period, and

(b)any part of that amount remains unpaid at the end of a period of 14 days beginning with the date on which the certificate is prepared.

(5) Condition D is met if—

(a)HM Revenue and Customs serve notice on an employer under paragraph 15(1) (specified amount of earnings-related contributions payable by the employer) requiring payment of the amount of Class 1 contributions which they consider the employer is liable to pay, and

(b)any part of that amount remains unpaid at the end of a period of 14 days beginning with the date on which the notice is prepared.

(6) Condition E is met if—

(a)HM Revenue and Customs prepare a certificate under [F1217paragraph 26A (certificate of employer's liability to pay contributions after inspection of documents)] showing an amount of contributions which it appears that the employer is liable to pay for a qualifying period,

(b)HM Revenue and Customs make a written demand for payment of that amount of contributions, and

(c)any part of that amount remains unpaid at the end of a period of 14 days beginning with the date on which the written demand for payment is made.

Textual Amendments

F1217Words in Sch. 4 para. 29B(6)(a) substituted (1.4.2009) (with effect in accordance with reg. 1(2)(a) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 3) Regulations 2009 (S.I. 2009/600), regs. 1(1), 8(5)

Transfer of debt of managed service companyU.K.

29C.—(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 6th 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 noticesU.K.

29D.—(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 [F1218Schedule 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).

Textual Amendments

F1218Words in Sch. 4 para. 29D(7) substituted (1.4.2009) (with effect in accordance with reg. 1(2)(a) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 3) Regulations 2009 (S.I. 2009/600), regs. 1(1), 8(6)

Contents of transfer noticeU.K.

29E.—(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)the tax periods to which the specified amount relates;

(n)if the tax periods to which the specified amount relates are comprised in more than one tax year, the apportionment of the specified amount among those tax years;

(o)the address to which payment must be sent;

(p)the address to which an appeal must be sent.

(2) The transfer notice may specify the lower amount if HM Revenue and Customs are prepared to accept the lower amount from the transferee.

(3) The transfer notice must also contain a statement, made by the officer of Revenue and Customs serving the notice, that in his opinion the specified amount is irrecoverable from the managed service company within a reasonable period.

Payment of the specified amountU.K.

29F.—(1) If a transfer notice is served, the transferee must pay the specified amount to HM Revenue and Customs at the address specified in the transfer notice.

(2) The transferee must pay the specified amount within 30 days beginning with the date on which the transfer notice is served (the “specified period”).

(3) If a transfer notice is served on a person mentioned in paragraph (a) or (b) of section 688A(2), or on a paragraph (b) associate, the specified amount carries interest from the reckonable date until the date on which payment is made.

(4) If a transfer notice is served on a person mentioned in paragraph (c) of section 688A(2), or on a paragraph (c) associate, the specified amount carries interest from the day following the expiry of the specified period until the date on which payment is made.

[F1219(5) For the purposes of sub-paragraph (3) “the reckonable date” has the meaning given by paragraph 17(3)(b)(i).]

Textual Amendments

F1219Sch. 4 para. 29F(5) inserted (1.4.2009) (with effect in accordance with reg. 1(2)(a) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 3) Regulations 2009 (S.I. 2009/600), regs. 1(1), 8(7)

AppealsU.K.

29G.—(1) A transferee may appeal against the transfer notice.

(2) A notice of appeal must—

(a)be given to HM Revenue and Customs at the address specified in the transfer notice within 30 days beginning with the date on which the transfer notice was served, and

(b)specify the grounds of the appeal.

(3) The grounds of appeal are any of the following—

(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).

F1220(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Procedure on appealsU.K.

29H.—(1) On an appeal [F1221that 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 [F1222tribunal] 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 [F1223the tribunal’s] opinion is just and reasonable.

(4) If the [F1224tribunal 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 [F1225tribunal] may reduce the amount specified in the transfer notice to an amount determined in accordance with the equation—

(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 [F1226tribunal] may reduce the amount specified in the transfer notice to such amount as in [F1227the tribunal’s] opinion is just and reasonable.

Textual Amendments

Withdrawal of transfer noticesU.K.

29J.—(1) A transfer notice shall be withdrawn if the [F1228tribunal 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.

Textual Amendments

Application of Part 6 of the Taxes Management Act 1970U.K.

29K.—(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 amountsU.K.

29L.—(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).]

[F1229PART 3AAU.K.

Textual Amendments

F1229Sch. 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 personsU.K.

29LA.—(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—

(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 [F1230(other than by virtue of regulation 24 of the Social Security Contributions (Intermediaries) Regulations 2000)], and

(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—

(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

(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.

Textual Amendments

Recovery of deemed employer NICs debtU.K.

29LB.—(1) HMRC may not recover a deemed employer NICs debt in accordance with paragraph 29LA(1) unless it has given a recovery notice to the relevant person during the relevant period.

(2) No recovery of a deemed employer NICs debt may be made—

(a)if the deemed employer NICs debt relates to a year commencing before 6th April 2021, or

(b)if the deemed employer is also “the client” described in regulation 13(1)(a) of the Intermediaries Regulations.

(2) For the purposes of this Part, a “recovery notice” means a notice which complies with paragraph 29LD.

The relevant periodU.K.

29LC.—(1) In this Part, the “relevant period” in relation to a deemed employer NICs debt means the period beginning in accordance with sub-paragraph (2) and ending in accordance with sub-paragraph (3).

(2) The relevant period begins—

(a)upon the expiry of the period of 30 days beginning with the day on which the decision under section 8(1)(c) of the Social Security Contributions (Transfer of Functions, etc.) Act 1999 determining the amount referred to in paragraph (a) of the definition of deemed employer NICs debt in paragraph 29LA(3) becomes final and conclusive, or

(b)when an officer of Revenue and Customs becomes aware of sufficient information to make a decision under section 8(1)(c) of the Social Security Contributions (Transfer of Functions, etc.) Act 1999 in relation to the amount referred to in paragraph (a) of the definition of deemed employer NICs debt in paragraph 29LA(3), but considers that it would be impractical to make such a decision on account of the liquidation, dissolution or other incapacity of the deemed employer.

(3) The relevant period ends upon the expiry of the period of 12 months beginning with the day on which the period begins.

Contents of recovery noticeU.K.

29LD.—(1) A recovery notice must contain the following information—

(a)the name and address of the deemed employer to whom the deemed employer NICs debt relates;

(b)the name of “the worker” for the purposes of regulation 13(1)(a) of the Intermediaries Regulations to whom the deemed employer NICs debt relates;

(c)the amount of the deemed employer NICs debt;

(d)the tax periods to which the deemed employer NICs debt relates;

(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 interestU.K.

29LE.—(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.

AppealsU.K.

29LF.—(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 noticesU.K.

29LG.—(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 TMAU.K.

29LH.  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.]

[F1231PART 3BU.K.Security for the payment of Class 1 contributions

Textual Amendments

InterpretationU.K.

29M.  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 securityU.K.

29N.  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, 11[F1232, 11ZA] or 11A.

Textual Amendments

F1232Word in Sch. 4 para. 29N inserted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 19

EmployersU.K.

29O.—(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;

F1233(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .; 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.

Textual Amendments

F1233Sch. 4 para. 29O(1)(c) omitted (with effect in accordance with reg. 1(3) of the amending S.I.) by virtue of The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 4(5)

Persons from whom security can be requiredU.K.

29P.—(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 requirementU.K.

29Q.—(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 dueU.K.

29R.—(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 heldU.K.

29S.—(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 29SU.K.

29T.—(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 provisionU.K.

29U.—(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).

AppealsU.K.

29V.—(1) A person who is given notice under paragraph 29Q may appeal against the notice or any requirement in it.

(2) PGS may appeal against—

(a)the rejection by an officer of Revenue and Customs of an application under paragraph 29S(1); and

(b)a smaller reduction in the value of security held than PGS applied for.

(3) Notice of an appeal under this paragraph must be given—

(a)before the end of the period of 30 days beginning with—

(i)in the case of an appeal under sub-paragraph (1), the day after the day on which the notice was given; and

(ii)in the case of an appeal under sub-paragraph (2), the day after the day on which PGS was notified of the outcome of the application; and

(b)to the officer of Revenue and Customs by whom the notice was given or the decision on the application was made, as the case may be.

(4) Notice of an appeal under this paragraph must state the grounds of appeal.

(5) On an appeal under sub-paragraph (1) that is notified to the tribunal, the tribunal may—

(a)confirm the requirements in the notice;

(b)vary the requirements in the notice; or

(c)set aside the notice.

(6) On an appeal under sub-paragraph (2) that is notified to the tribunal, the tribunal may—

(a)confirm the decision on the application; or

(b)vary the decision on the application.

(7) On the final determination of an appeal under this paragraph—

(a)subject to any alternative determination by a tribunal or court, any security to be given is due on the 30th day after the day on which the determination is made; or

(b)HMRC may make such arrangements as they think fit to ensure the necessary reduction in the value of the security held.

(8) Part 5 of the Taxes Management Act 1970 (appeals and other proceedings) applies in relation to an appeal under this paragraph as it applies in relation to an appeal under the Taxes Acts but as if—

(a)sections 46D, 47B, 50(6) to (9) and (11)(c) and 54A to 57 were omitted; and

(b)in section 48(1)—

(i)in paragraph (a) the reference to “the Taxes Acts” were a reference to “paragraph 29V of Schedule 4 to the Social Security (Contributions) Regulations 2001”; and

(ii)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)U.K.

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”.

OffenceU.K.

29X.—(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.]

[F1234Part 3CU.K.CERTAIN DEBTS OF COMPANIES UNDER PARAGRAPH 3ZB OF PART 8 OF SCHEDULE 3 (TRAVEL EXPENSES OF WORKERS PROVIDING SERVICES THROUGH EMPLOYMENT INTERMEDIARIES)

Textual Amendments

Interpretation of Part 3C: “relevant contributions debt” and “relevant date”U.K.

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: generalU.K.

29Z.  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 debtsU.K.

29Z1.—(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 noticesU.K.

29Z2.—(1) A person who is served with a personal liability notice in relation to an amount of relevant contributions debt of a company may appeal against the notice.

(2) A notice of appeal must—

(a)be given to HMRC within 30 days beginning with the day the personal liability notice is served, and

(b)specify the grounds of the appeal.

(3) The grounds of appeal are—

(a)that all or part of the specified amount does not represent an amount of relevant contributions debt, of the company, to which paragraph 29Z1 applies, or

(b)that the person was not a director of the company on the relevant date.

(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 by the company, that—

(a)the specified amount is a relevant contributions debt of the company, and

(b)the company did not deduct, account for, or (as the case may be) pay the debt by the time by which the company was required to do so.

(5) Subject to sub-paragraph (6), on an appeal that is notified to the tribunal, the tribunal is to uphold or quash the personal liability 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 specified amount so that it does represent an amount of relevant contributions debt, of the company, to which paragraph 29Z1 applies.

Withdrawal of personal liability noticesU.K.

29Z3.—(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 1970U.K.

29Z4.—(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 amountsU.K.

29Z5.—(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 IVU.K. ASSESSMENT AND DIRECT COLLECTION

Provisions for direct paymentU.K.

30.  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.

[F1235Application of paragraphs 31 and 31AU.K.

30A.—(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.]

Textual Amendments

F1235Sch. 4 para. 30A inserted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 20

Direct collection involving deductions working sheetsU.K.

31.—(1) In any case falling within paragraph 30, F1236... sub-paragraphs (2) to (8) shall apply.

(2) The employee F1237... shall record on [F1238a working sheet] his name, national insurance number and category letter indicated by [F1239HMRC], and whenever, in respect of an employment such as is specified in paragraph 30, the employee receives any F1240[F1241... earnings] during [F1242the relevant tax year], he shall also record on that working sheet the amount of the [F1241earnings], the date on which he received them, and the earnings-related contributions payable by him in respect of those [F1241earnings ].

(3) Not later than the time for the payment of income tax, if any, the employee shall pay to [F1239HMRC] the amount of the earnings-related contributions payable by the employee in respect of the F1240[F1243 ... earnings] which have been received by him and for which the income tax is or would have been payable.

[F1244(3A) 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 F1240... 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 [F1239HMRC] in respect of the F1240[F1245 ... earnings] mentioned in that sub-paragraph, and [F1239HMRC] is unaware of the amount, if any, which the employee is liable so to pay, or if an amount has been paid but [F1239HMRC] is not satisfied that it is the full amount which the employee is liable to pay to him in respect of those [F1245earnings], sub-paragraph (5) applies.

(5) If this sub-paragraph applies, [F1239HMRC] 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 F1240[F1246 ... 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 [F1246earnings] 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 [F1239HMRC] 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 F1240[F1247 ... earnings] falling within sub-paragraph (2), he shall immediately render to [F1248[F1239HMRC], 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 [F1247earnings], the total of those [F1247earnings] and the earnings-related contributions payable from the beginning of the year to that date.

(7) [F1249Before 20th May following] the end of the year, the employee shall (unless sub-paragraph (6) has applied) render to [F1250[F1239HMRC], 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 F1240[F1251 ... 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.

[F1252(7A) Where a liability arises to pay contributions in respect of retrospective earnings relating to a closed tax year, the [F1253employee] 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 [F1253employee] 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 F1254... for not less than three years after the end of the year to which they relate.

(9) [F1255Section 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 [F1256[F1257(3A)] and (7A)].

Textual Amendments

F1253Word in Sch. 4 para. 31(7A)(7B) substituted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 21(3)

[F1258Direct collection involving deductions working sheets on and after 6th April 2014U.K.

31A.—(1) On receiving any F1259... 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.]

Textual Amendments

F1258Sch. 4 para. 31A inserted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 22

Regulation 67(3)

[F1260SCHEDULE 4AU.K.Real time returns

Textual Amendments

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.U.K.

Information about the employer and the employeeU.K.

2.  The information specified in paragraphs 2 to [F12616, 8 to 15 and 18 to 20] of Schedule A1 (real time returns) to the PAYE Regulations.

Textual Amendments

F1261Words in Sch. 4A para. 2 substituted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 24

[F12622A.  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.]U.K.

Textual Amendments

F1262Sch. 4A para. 2A inserted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 25

Information about payments to the employee, etcU.K.

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.

[F12633A.  The total of the amounts referred to in paragraph 3 in the year to date.]

Textual Amendments

F1263Sch. 4A para. 3A inserted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 26

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)regulation 15 (aggregation of earnings paid in respect of different employed earner’s employments by different persons and apportionment of contribution liability) applies in relation to the earner,

an indication of whether the return relates to earnings which have been or will be aggregated.

6.  The appropriate category letter or, as the case may be, letters in relation to the employee (being the appropriate letter or letters indicated by HMRC).

7.  For the category letter or, as the case may be, each category letter in relation to the employee (being the appropriate letter or letters indicated by HMRC), the total of the amounts required to be recorded by paragraph 7(13)(b)(i) [F1264to (iii)] of Schedule 4 (calculation of deduction) for the year to date.

Textual Amendments

8.  If the employee is a director, in so far as relevant to the relevant category letter (being the appropriate category letter indicated by HMRC) in relation to the employee—

(a)an indication of whether, for the purposes of assessing earnings-related contributions based on the payment, the employer has relied on regulation 8(2) or (3) (earnings periods for directors), or

(b)an indication of whether, for the purposes of assessing earnings-related contributions based on the payment, the employer has relied or, if the earnings fall to be aggregated, will rely on regulation 8(6).

9.  Where regulation 8(2) applies and the appointment was in the current tax year, the week in which the appointment was made.

10.  In so far as relevant to the relevant category letter or, as the case may be, letters (being the appropriate category letter or letters indicated by HMRC) in relation to the employee—

(a)the total amount of secondary Class 1 contributions payable on the employee’s earnings in the earnings period in which the return is made,

(b)the total amount of secondary Class 1 contributions payable on the employee’s earnings in the year to date,

(c)the total amount of primary Class 1 contributions payable on the employee’s earnings in the earnings period in which the return is made, and

(d)the total amount of primary Class 1 contributions payable on the employee’s earnings in the year to date.

11.  In a case where the earnings the return relates to will fall to be aggregated with other earnings in the same earnings period, the information required by paragraphs 6, 7 and 10 need only be provided when the final payment of F1265... earnings in the earnings period is made.

Textual Amendments

F126612.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

[F126712A.  Whether, during the period since the employer last made a return under paragraph 21A or 21D of Schedule 4 containing information about the employee—

(a)the employee has been absent from the employment because of a trade dispute at the employer’s place of work, or

(b)the employee has been absent from the employment without pay for any other reason.

Textual Amendments

F1267Sch. 4A paras. 12A-12D inserted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 28

12B.  In cases—

(a)falling within paragraph 30 of Schedule 4, or

(b)where the employer has no obligation to deduct or repay tax in accordance with regulation 21 of the PAYE Regulations

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.

Textual Amendments

F1267Sch. 4A paras. 12A-12D inserted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 28

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.

Textual Amendments

F1267Sch. 4A paras. 12A-12D inserted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 28

12D.  The value of any deductions made from the payment which do not otherwise fall to be reported under Schedule 4.]

Textual Amendments

F1267Sch. 4A paras. 12A-12D inserted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 28

[F126812E.  The amount of Class 1A contributions payable in respect of any sporting testimonial payments.

Textual Amendments

12F.  The amount of Class 1A contributions payable in respect of any termination awards.]

Textual Amendments

Information about statutory sick payU.K.

F126913.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Information about statutory maternity payU.K.

14.  If any, the total amount of statutory maternity pay paid during the year to date in this employment.

Information about ordinary statutory paternity payU.K.

15.  If any, the total amount of F1270... statutory paternity pay paid during the year to date in this employment.

Textual Amendments

Information about additional statutory paternity payU.K.

F127116.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F127217.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

[F1273Information about statutory shared parental payU.K.

17A.  If any, the total amount of statutory shared parental pay paid during the year to date in this employment.

Textual Amendments

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.]

Textual Amendments

Information about statutory adoption payU.K.

18.  If any, the total amount of statutory adoption pay paid in the year to date in this employment.

[F1274Information about statutory parental bereavement payU.K.

19.  If any, the total amount of statutory parental bereavement pay paid during the year to date in this employment.]

Textual Amendments

F1274Sch. 4A para. 19 inserted (6.4.2020) by The Social Security (Contributions) (Amendment) Regulations 2020 (S.I. 2020/239), regs. 1, 2(4) (which amendment was extended to N.I. (6.4.2022) by S.I. 2022/384, reg. 3)

Regulation 67(3)

SCHEDULE 4BU.K.Additional information about payments

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.U.K.

Deductions in respect of statutory paymentsU.K.

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 F1275... 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.

Textual Amendments

F12764.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

[F12774A.  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.]

Textual Amendments

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.

[F12785A.  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.]

Textual Amendments

F1278Sch. 4B para. 5A inserted (6.4.2020) by The Social Security (Contributions) (Amendment) Regulations 2020 (S.I. 2020/239), regs. 1, 2(5) (which amendment was extended to N.I. (6.4.2022) by S.I. 2022/384, reg. 3)

F12796.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Regional secondary contributions holiday for new businessesU.K.

7.  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.]

Regulation 69

SCHEDULE 5U.K. ELECTIONS ABOUT [F1280SECURITIES OPTIONS, RESTRICTED SECURITIES AND CONVERTIBLE SECURITIES]

Textual Amendments

F1280Words 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.—(1) An election for the purposes of paragraph 3B(1) of Schedule 1 to the Act shall contain—U.K.

[F1281(a)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;

[F1282(dd)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)a statement as to the method by which the secondary contributor will secure that the liability for amounts of contributions, transferred under the election, is met;

(f)a statement as to the circumstances in which it shall cease to have effect;

(g)a declaration by the employed earner that he agrees to be bound by its terms; and

(h)evidence sufficient to show that the secondary contributor agrees to be bound by its terms.

(2) The declaration referred to in sub-paragraph (1)(g) must either be signed by the employed earner or, if it is made by electronic communications, made by him in such electronic form and by such means of electronic communications as may be authorised by the Board.

Textual Amendments

F1281Sch. 5 para. 1(1)(a)(b) 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(b)

2.—(1) An election to which this Schedule applies shall be made either in writing or in such electronic form and by such means of electronic communications as may be authorised by the Board.U.K.

(2) An election to which this Schedule applies may be contained in two documents, one made by the employed earner and the other by the secondary contributor, in which case—

(a)the document made by the employed earner shall contain the matters listed in paragraph 1(1)(a) to (g); and

(b)the document made by the secondary contributor shall contain the matters listed in paragraph 1(1)(a) to (f) and (h).

3.—(1) Where an election to which this Schedule applies has been made, the secondary contributor shall notify the employed earner to whom any of his liabilities are transferred by the election of—U.K.

(a)any transferred liability that arises;

(b)the amount of any transferred liability that arises; and

(c)the contents of any notice of withdrawal by the Board of any approval that relates to the election.

(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.

Regulation 140

SCHEDULE 6U.K.

PART 1U.K. 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.U.K.

2.  Royal Fleet Reserve.U.K.

3.  Royal Naval Reserve.U.K.

4.  Royal Marines Reserve.U.K.

5.  Army Reserve.U.K.

6.  Territorial Army.U.K.

7.  Royal Air Force Reserve.U.K.

8.  Royal Auxiliary Air Force.U.K.

9.  The Royal Irish Regiment, to the extent that its members are not members of any force falling within paragraph 1.U.K.

PART IIU.K. 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—U.K.

(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 F1283 and not being a contributor under the Social Security Act 1975 F1284 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.

Textual Amendments

Regulation 156(4)

SCHEDULE 7U.K.Corresponding Northern Ireland Enactments

1.  In this Schedule—U.K.

  • “the 1998 Order” means the Social Security (Northern Ireland) Order 1998 F1285;

  • “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 F1286;

  • “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 F1287.

Textual Amendments

PART IU.K. ENACTMENTS CORRESPONDING TO PRIMARY LEGISLATION APPLICABLE TO GREAT BRITAIN

 

Enactment applying in Great BritainCorresponding enactment applying in Northern IrelandRelevant Northern Ireland amendment
National Insurance Act 1965National Insurance Act (Northern Ireland) 1996 F1288
Section 3Section 3
Employment and Training Act 1973Employment and Training Act (Northern Ireland) 1950 F1289
Section 2(2)Section 1Article 3 of the Employment and Training (Amendment) (Northern Ireland) Order 1988 F1290 and Article 5 of the Industrial Training (Northern Ireland) Order 1990 F1291.
Social Security Act 1975 F1292Social Security (Northern Ireland) Act 1975 F1293
Section 4Section 4
Section 5(3)Section 5(3) F1294
Section 7Section 7
Section 8Section 8
Section 39(4)Section 39(4)
Section 130(2)Section 125(2) F1295
Social Security Pensions Act 1975Social Security Pensions (Northern Ireland) Order 1975
Section 3(1)Article 5(1)
Section 6(1)(a)Article 8(1)(a)
Companies Act 1985 F1296Companies (Northern Ireland) Order 1986 F1297
Section 718Article 667Amended by paragraph 8 of Schedule 8 to S.R. 1997 No. 251.
Section 735 (definition of “company”)Article 3(1)
Social Security Act 1986Social Security (Northern Ireland) Order 1986 F1298
Section 7Article 9 F1299
Children Act 1999Children (Northern Ireland) Order 1995
Part XPart 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 1992Social Security Contributions and Benefits (Northern Ireland) Act 1992 F1300
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 3Section 3Articles 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 6Section 6Substituted 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 6ASection 6A F1301
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 9Section 9Substituted by paragraph 5 of Part I of Schedule 10 to the Welfare Reform Act.
Section 10Section 10Substituted by section 78(2) of the 2000 Act.
Section 10ZASection 10ZA F1302
Section 10ASection 10A F1303Paragraph 12 of Schedule 3 to the Transfer Order and section 78 of the Welfare Reform Act.
Section 11Section 11Paragraph 13 of Schedule 3 to Transfer Order and article 3 of S.I. 2001/477.
Section 12Section 12Paragraph 14 of Schedule 3, and paragraph 1 of Schedule 8 to the Transfer Order.
Section 13Section 13Paragraph 15 of Schedule 3 to the Transfer Order and article 4 of S.I. 2001/477.
Section 14(1)Section 14(1)
Section 15Section 15Article 4 of S.I. 2000/755 and article 5 of S.I. 2001/477.
Section 16Section 16Paragraph 6 of Schedule 1 to the Transfer Order.
Section 17Section 17Paragraph 7 of Schedule 1, paragraph 17 of Schedule 3 and Schedule 9 to the Transfer Order.
Section 18Section 18Paragraph 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 19ASection 19A F1304Paragraph 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 F1305, Schedule 3 to the Jobseekers (Northern Ireland) Order 1995 F1306, paragraph 18(1) of Schedule 2 to the Pensions (Northern Ireland) Order 1995 F1307 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 112Section 112Schedule 1 to the Employment Rights (Northern Ireland) Order 1996 F1308 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 1Schedule 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 3BParagraph 3B F1309
Paragraph 6(3) and (4A)Paragraph 6(3) and (4A) F1310Amended by paragraph 3 of Schedule 8 to the Transfer Order.
Schedule 2Schedule 2 F1311
Social Security Administration Act 1992Social Security Administration (Northern Ireland) Act 1992 F1312
Section 17Section 15
Section 18Section 16
Section 73Section 71Paragraph 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 F1313, 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 179Section 155Paragraph 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 F1314.
Trade Union and Labour Relations (Consolidation) Act 1992Employment Rights (Northern Ireland) Order 1996. F1315
Section 189Article 217Regulation 10 of S.R. 1999 No. 432.
Pension Schemes Act 1993Pension Schemes (Northern Ireland) Act 1993. F1316
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 43Section 39Paragraph 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 1995Jobseekers (Northern Ireland) Order 1995
Section 2(1)(a)Article 4(1)(a)
Social Security Contributions (Transfer of Functions, etc.) Act 1999The Transfer Order
Section 8(1)(a) and (k)(ii)Article 7(1)(a) and (k)(ii)

Textual Amendments

F1295Repealed by Article 5(1) of the Social Security Pensions (Northern Ireland) Order 1975.

F1299Repealed by Schedule 4 to the Pensions Schemes (Northern Ireland) act 1993 (c. 49), but continues to have effect by virtue of paragraph 21 of Schedule 5 to that Act. See also paragraph 1 of Schedule 1 to the Transfer Order.

F1301Inserted by paragraph 3 of Part I of Schedule 10 to the Welfare Reform Act.

F1302Inserted by section 79(1) of the 2000 Act.

F1303Inserted by Article 50 of the 1998 Order.

F1304Inserted by Article 51 of the 1998 Order.

F1309Inserted by section 81(2) of the Child Support, Pensions and Social Security Act 2000.

F1310Paragraph 4(A) was inserted by paragraph 58(11) of Schedule 6 to the 1998 Order.

F1311Schedule 2 to 1992 c. 7 sets out Schedule 2 to 1992 c. 4 and section 15(3) of 1992 c. 7 expressly cross-refers to Schedule 2 in 1992 c. 4.

 

PART IIU.K. ENACTMENTS CORRESPONDING TO SUBORDINATE LEGISLATION APPLICABLE TO GREAT BRITAIN

Subordinate legislation applying in Great BritainSubordinate legislation applying in Northern IrelandRelevant amendment to the Northern Ireland provision
National Insurance (Contributions) Regulations 1969National Insurance (Contributions) Regulations (Northern Ireland) 1962 F1317S.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 F1318—National Insurance (Married Women) Regulations (Northern Ireland) 1973 F1319
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 16Regulation 16
Social Security (Contributions) Regulations 1975Social Security (Contributions) Regulations (Northern Ireland) 1975 F1320
Regulation 91Regulation 89
Regulation 94Regulation 92
Social Security (Categorisation of Earners) Regulations 1978Social Security (Categorisation of Earners) Regulations (Northern Ireland) 1978 F1321
Schedule 3Schedule 3Regulation 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 1988Social Security (Payments on account, Overpayments and Recovery) Regulations (Northern Ireland) 1988. F1322
Regulation 13Regulation 13Regulation 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 1990Social Security (Refunds) (Repayment of Contractual Maternity Pay) Regulations (Northern Ireland) 1990 F1323.
Regulation 2Regulation 2
Statutory Maternity Pay (Compensation of Employers) and Miscellaneous Amendments Regulations 1994Statutory Maternity Pay (Compensation of Employers) and Miscellaneous Amendments Regulations (Northern Ireland) 1994 F1324.
Regulation 3Regulation 3
Regulation 4Regulation 4
F1325. . .F1326. . .
Article 2Article 2
Social Security (Adjudication) Regulations 1995Social Security (Adjudication) Regulations (Northern Ireland) 1995 F1327
Regulation 13Regulation 13 F1328
Social Security (Additional Pension) (Contributions Paid in Error) Regulations 1996Social Security (Additional Pension) (Contributions Paid in Error) Regulations (Northern Ireland) 1996 F1329
Regulation 3Regulation 3
Employer’s Contributions Re-imbursement Regulations 1996Employer’s Contributions Re-imbursement Regulations (Northern Ireland) 1996 F1330
Regulations 5, 6 and 8Regulations 5, 6 and 8 respectively
[F1331Education (Student Loans) (Repayment) Regulations 2009] [F1332Education (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 2001Social Security (Crediting and Treatment of Contributions, and National Insurance Numbers) Regulations (Northern Ireland) 2001 F1333
Regulation 4Regulation 4
Regulation 9Regulation 9

Textual Amendments

F1317S.R. & O. (N.I.) 1962 No. 65.

F1319S.R. & O. (N.I.) 1973 No. 146.

F1328Revoked by regulation 59 of, and Schedule 3 to S.R. 1999 No. 162 Article 4 of S.R. 1999 No. 371 contains relevant savings.

Regulation 157

SCHEDULE 8U.K. REVOCATIONS

PART IU.K. REVOCATIONS APPLICABLE TO GREAT BRITAIN OR TO THE UNITED KINGDOM

Column (1)Column (2)Column (3)
Regulations revokedReferencesExtent of revocation
The Social Security (Contributions) Regulation 1979S.I. 1979/591The whole of the Regulations
The Social Security (Contributions) Amendment Regulations 1980S.I. 1980/1975The whole of the Regulations
The Social Security (Contributions) Amendment Regulations 1981S.I. 1981/82The whole of the Regulations
The Social Security (Contributions) (Mariners) Amendment Regulations 1982S.I. 1982/206The whole of the Regulations
The Contracting-out (Recovery of Class 1 Contributions) Regulations 1982S.I. 1982/1033The whole of the Regulations
The Social Security (Contributions) Amendment Regulations 1982S.I. 1982/1573The whole of the Regulations
The Social Security and Statutory Sick Pay (Oil and Gas (Enterprise) Act 1982) (Consequential) Regulations 1982S.I. 1982/1738Regulation 4
The Social Security (Contributions) Amendment (No. 2) Regulations 1982S.I. 1982/1739The whole of the Regulations
The Social Security (Contributions) Amendment Regulations 1983S.I. 1983/10The whole of the Regulations
The Social Security (Contributions) Amendment (No. 2) Regulations 1983S.I. 1983/53The whole of the Regulations
The Social Security (Contributions, Re-rating) Consequential Amendment Regulations 1983S.I. 1983/73The whole of the Regulations
The Social Security (Contributions) Amendment (No. 4) Regulations 1983S.I. 1983/395The whole of the Regulations
The Social Security (Contributions) Amendment (No. 3) Regulations 1983S.I. 1983/496The whole of the Regulations
The Social Security (Contributions) Amendment (No. 5) Regulations 1983S.I. 1983/1689The whole of the Regulations
The Social Security (Contributions) Amendment Regulations 1984S.I. 1984/77The whole of the Regulations
The Social Security (Contributions, Re-rating) Consequential Amendment Regulations 1984S.I. 1984/146The whole of the Regulations
The Social Security (Contributions) Amendment (No. 2) Regulations 1984S.I. 1984/1756The whole of the Regulations
The Social Security (Contributions, Re-rating) Consequential Amendment Regulations 1985S.I. 1985/143The whole of the Regulations
The Social Security (Contributions) Amendment Regulations 1985S.I. 1985/396The whole of the Regulations
The Social Security (Contributions) Amendment (No. 2) Regulations 1985S.I. 1985/397The whole of the Regulations
The Social Security (Contributions) Amendment (No. 3) Regulations 1985S.I. 1985/398The whole of the Regulations
The Social Security (Contributions) Amendment (No. 4) Regulations 1985S.I. 1985/399The whole of the Regulations
The Social Security (Contributions) Amendment (No. 5) Regulations 1985S.I. 1985/400The whole of the Regulations
The Social Security (Contributions and Credits) (Transitional and Consequential Provisions) Regulations 1985S.I. 1985/1398Regulations 2, 4, 5 and 6
The Social Security (Contributions) Amendment (No. 6) Regulations 1985S.I. 1985/1726The whole of the Regulations
The Social Security (Contributions, Re-rating) Consequential Amendment Regulations 1986S.I. 1986/198The whole of the Regulations
The Social Security (Contributions) Amendment Regulations 1986S.I. 1986/485The whole of the Regulations
The Social Security (Contributions) Amendment (No. 2) Regulations 1987S.I. 1987/413The whole of the Regulations
The Social Security (Contributions) Amendment (No. 3) Regulations 1987S.I. 1987/1590The whole of the Regulations
The Social Security (Contributions) Amendment (No. 4) Regulations 1987S.I. 1987/2111The whole of the Regulations
The Social Security (Contributions) Amendment Regulations 1988S.I. 1988/299The whole of the Regulations
The Social Security (Contributions) Amendment (No. 2) Regulations 1988S.I. 1988/674The whole of the Regulations
The Social Security (Contributions) Amendment (No. 3) Regulations 1988S.I. 1988/860The whole of the Regulations
The Social Security (Contributions) Amendment (No. 4) Regulations 1988S.I. 1988/992The whole of the Regulations
The Social Security (Contributions) Amendment Regulations 1989S.I. 1989/345The whole of the Regulations
The Social Security (Contributions) Amendment (No. 2) Regulations 1989S.I. 1989/571The whole of the Regulations
The Social Security (Contributions) Amendment (No. 3) Regulations 1989S.I. 1989/572The whole of the Regulations
The Social Security (Contributions) (Transitional and Consequential Provisions) Regulations 1989S.I. 1989/1677The whole of the Regulations
The Social Security (Refunds) (Repayment of Contractual Maternity Pay) Regulations 1990S.I. 1990/536Regulation 4
The Social Security (Contributions) Amendment Regulations 1990S.I. 1990/604The whole of the Regulations
The Social Security (Contributions) Amendment (No. 2) Regulations 1990S.I. 1990/605The whole of the Regulations
The Social Security (Contributions) (Re-rating) Consequential Amendment Regulations 1990S.I. 1990/906The whole of the Regulations
The Social Security (Contributions) Amendment (No. 3) Regulations 1990S.I. 1990/1779The whole of the Regulations
The Social Security (Contributions) Amendment (No. 4) Regulations 1990S.I. 1990/1935The whole of the Regulations
The Social Security (Contributions) Amendment Regulations 1991S.I. 1991/504The whole of the Regulations
The Social Security (Contributions) Amendment (No. 2) Regulations 1991S.I. 1991/639The whole of the Regulations
The Social Security (Contributions) Amendment (No. 3) Regulations 1991S.I. 1991/640The whole of the Regulations
The Social Security (Contributions) Amendment (No. 4) Regulations 1991S.I. 1991/1632The whole of the Regulations
The Social Security (Contributions) Amendment (No. 5) Regulations 1991S.I. 1991/1935The whole of the Regulations
The Social Security (Contributions) Amendment (No. 6) Regulations 1991S.I. 1991/2505The whole of the Regulations
The Social Security (Contributions) Amendment Regulations 1992S.I. 1992/97The whole of the Regulations
The Social Security (Contributions) Amendment (No. 2) Regulations 1992S.I. 1992/318The whole of the Regulations
The Social Security (Contributions) Amendment (No. 3) Regulations 1992S.I. 1992/667The whole of the Regulations
The Social Security (Contributions) Amendment (No. 4) Regulations 1992S.I. 1992/668The whole of the Regulations
The Social Security (Contributions) Amendment (No. 5) Regulations 1992S.I. 1992/669The whole of the Regulations
The Social Security (Contributions) Amendment (No. 6) Regulations 1992S.I. 1992/1440The whole of the Regulations
The Social Security (Contributions) Amendment Regulations 1993S.I. 1993/260The whole of the Regulations
The Social Security (Contributions) Amendment (No. 2) Regulations 1993S.I. 1993/281The whole of the Regulations
The Social Security (Contributions) Amendment (No. 3) Regulations 1993S.I. 1993/282The whole of the Regulations
The Social Security (Contributions) Amendment (No. 4) Regulations 1993S.I. 1993/583The whole of the Regulations
The Social Security (Contributions) Amendment (No. 5) Regulations 1993S.I. 1993/821The whole of the Regulations
The Social Security (Contributions) Amendment (No. 6) Regulations 1993S.I. 1993/2094The whole of the Regulations
The Social Security (Miscellaneous Amendments) Regulations 1993S.I. 1993/2736The whole of the Regulations
The Social Security (Contributions) Amendment (No. 7) Regulations 1993S.I. 1993/2925The whole of the Regulations
The Social Security (Contributions) Amendment Regulations 1994S.I. 1994/563The whole of the Regulations
The Social Security (Contributions) (Miscellaneous Amendments) Regulations 1994S.I. 1994/667The whole of the Regulations
The Social Security (Contributions) Amendment (No. 2) Regulations 1994S.I. 1994/1553The whole of the Regulations
The Social Security (Contributions) Amendment (No. 3) Regulations 1994S.I. 1994/2194The whole of the Regulations
The Social Security (Contributions) Amendment (No. 4) Regulations 1994S.I. 1994/2299The whole of the Regulations
The Statutory Sick Pay Percentage Threshold Order 1995S.I. 1995/512Article 6(3)
The Social Security (Contributions) Amendment Regulations 1995S.I. 1995/514The whole of the Regulations
The Social Security (Contributions) Amendment (No. 2) Regulations 1995S.I. 1995/714The whole of the Regulations
The Social Security (Contributions) Amendment (No. 3) Regulations 1995S.I. 1995/730The whole of the Regulations
The Social Security (Incapacity Benefit) (Consequential and Transitional Amendments and Savings) Regulations 1995S.I. 1995/829Regulation 13
The Social Security (Contributions) Amendment (No. 4) Regulations 1995S.I. 1995/1003The whole of the Regulations
The Social Security (Contributions) Amendment (No. 5) Regulations 1995S.I. 1995/1570The whole of the Regulations
The Employer’s Contributions Reimbursement Regulations 1996S.I. 1996/195Regulation 13
The Social Security (Contributions) Amendment Regulations 1996S.I. 1996/486The whole of the Regulations
The Social Security (Contributions) Amendment (No. 2) Regulations 1996S.I. 1996/663The whole of the Regulations
The Social Security (Contributions) Amendment (No. 3) Regulations 1996S.I. 1996/700The whole of the Regulations
The Social Security Contributions, Statutory Maternity Pay and Statutory Sick Pay (Miscellaneous Amendments) Regulations 1996S.I. 1996/777Regulation 5
The Social Security (Contributions) Amendment (No. 4) Regulations 1996S.I. 1996/1047The whole of the Regulations
The Social Security (Additional Pension) (Contributions Paid in Error) Regulations 1996S.I. 1996/1245Regulation 4
The Social Security (Credits and Contributions) (Jobseeker’s Allowance Consequential and Miscellaneous Amendments) Regulations 1996S.I. 1996/2367Regulation 3
The Social Security (Contributions) Amendment (No. 5) Regulations 1996S.I. 1996/2407The whole of the Regulations
The Social Security (Contributions) Amendment (No. 6) Regulations 1996S.I. 1996/3031The whole of the Regulations
The Social Security (Contributions) Amendments Regulations 1997S.I. 1997/545The whole of the Regulations
The Social Security (Contributions) Amendment (No. 2) Regulations 1997S.I. 1997/575The whole of the Regulations
The Social Security (Contributions) Amendment (No. 3) Regulations 1997S.I. 1997/820The whole of the Regulations
The Social Security (Contributions) Amendment (No. 4) Regulations 1997S.I. 1997/1045The whole of the Regulations
The Social Security (Contributions) Amendment Regulations 1998S.I. 1998/523The whole of the Regulations
The Social Security (Contributions) (Re-rating) Consequential Amendment Regulations 1998S.I. 1998/524The whole of the Regulations
The Social Security (Contributions) Amendment (No. 2) Regulations 1998S.I. 1998/680The whole of the Regulations
The Social Security (Contributions) Amendment (No. 3) Regulations 1998S.I. 1998/2211The whole of the Regulations
The Social Security (Contributions) Amendment (No. 4) Regulations 1998S.I. 1998/2320The whole of the Regulations
The Social Security (Contributions) Amendment (No. 5) Regulations 1998S.I. 1998/2894The whole of the Regulations
The Social Security (Contributions) (Re-rating) Consequential Amendment Regulations 1999S.I. 1999/361The whole of the Regulations
The Social Security (Contributions) Amendment Regulations 1999S.I. 1999/561The whole of the Regulations
The Social Security Contributions, Statutory Maternity Pay and Statutory Sick Pay (Miscellaneous Amendments) Regulations 1999S.I. 1999/567Regulations 2 to 6 and 8 to 11
The Social Security (Contributions and Credits) (Miscellaneous Amendments) Regulations 1999S.I. 1999/568Regulations 2 to 12 and 14 to 19
The Social Security (Contributions) Amendment (No. 2) Regulations 1999S.I. 1999/827The whole of the Regulations
The Social Security (Contributions) Amendment (No. 3) Regulations 1999S.I. 1999/975The whole of the Regulations
The Social Security (Contributions) (Amendment No. 4) Regulations 1999S.I. 1999/1965The whole of the Regulations
The Social Security (Contributions) (Amendment No. 5) Regulations 1999S.I. 1999/2736The whole of the Regulations
The Social Security (Contributions) (Amendment) Regulations 2000S.I. 2000/175The whole of the Regulations
The Social Security (Contributions) (Amendment No. 2) Regulations 2000S.I. 2000/723The whole of the Regulations
The Social Security (Contributions) (Amendment No. 3) Regulations 2000S.I. 2000/736The whole of the Regulations
The Social Security Contributions (Notional Payment of Primary Class 1 Contribution) Regulations 2000S.I. 2000/747Regulations 7 to 9
The Social Security (Contributions) (Re-rating) Consequential Amendment Regulations 2000S.I. 2000/760The whole of the Regulations
The Social Security (Contributions) (Amendment No. 4) Regulations 2000S.I. 2000/761The whole of the Regulations
The Social Security (Contributions) (Amendment No. 5) Regulations 2000S.I. 2000/1149The whole of the Regulations
The Social Security (Contributions) (Amendment No. 6) Regulations 2000S.I. 2000/2084The whole of the Regulations
The Social Security (Contributions) (Amendment No. 7) Regulations 2000S.I. 2000/2077The whole of the Regulations
The Social Security (Contributions) (Amendment No. 8) Regulations 2000S.I. 2000/2207The whole of the Regulations
The Social Security (Contributions) (Amendment No. 9) Regulations 2000S.I. 2000/2343The whole of the Regulations
The Social Security (Contributions) (Amendment No. 10) Regulations 2000S.I. 2000/2744The whole of the Regulations
The Social Security (Contributions) (Amendment) Regulations 2001S.I. 2001/45The whole of the Regulations
The Social Security (Contributions) (Amendment No. 2) Regulations 2001S.I. 2001/313The whole of the Regulations
The Social Security (Contributions) (Amendment No. 3) Regulations 2001S.I. 2001/596The whole of the Regulations
The Social Security (Crediting and Treatment of National Insurance Contributions) Regulations 2001S.I. 2001/769Regulation 11

PART IIU.K. REVOCATIONS APPLICABLE TO NORTHERN IRELAND

Column (1)Column (2)Column (3)
Regulations revokedReferencesExtent of revocation
The Social Security (Contributions) Regulations (Northern Ireland) 1979S.R. 1979 No. 186The whole of the Regulations
The Social Security (Contributions Re-rating) Consequential Amendment Regulations (Northern Ireland) 1980S.R. 1980 No. 93The whole of the Regulations
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1980S.R. 1980 No. 463The whole of the Regulations
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1981S.R. 1981 No. 30The whole of the Regulations
The Social Security (Contributions) (Mariners) (Amendment) Regulations (Northern Ireland) 1982S.R. 1982 No. 69The whole of the Regulations
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1982S.R. 1982 No. 375The whole of the Regulations
The Social Security (Contributions) (Amendment No. 2) Regulations (Northern Ireland) 1982S.R. 1982 No. 408The whole of the Regulations
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1983S.R. 1983 No. 8The whole of the Regulations
The Social Security (Contributions, Re-rating) Consequential Amendment Regulations (Northern Ireland) 1983S.R. 1983 No. 9The whole of the Regulations
The Social Security (Contributions) (Amendment No. 3) Regulations (Northern Ireland) 1983S.R. 1983 No. 64The whole of the Regulations
The Social Security (Contributions) (Amendment No. 4) Regulations (Northern Ireland) 1983S.R. 1983 No. 70The whole of the Regulations
The Social Security (Contributions) (Amendment No. 5) Regulations (Northern Ireland) 1983S.R. 1983 No. 412The whole of the Regulations
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1984S.R. 1984 No. 43The whole of the Regulations
The Social Security (Contributions, Re-rating) Consequential Amendment Regulations (Northern Ireland) 1984S.R. 1984 No. 46The whole of the Regulations
The Social Security (Contributions) (Amendment No. 2) Regulations (Northern Ireland) 1984S.R. 1984 No. 403The whole of the Regulations
The Social Security (Contributions, Re-rating) Consequential Amendment Regulations (Northern Ireland) 1985S.R. 1985 No. 25The whole of the Regulations
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1985S.R. 1985 No. 59The whole of the Regulations
The Social Security (Contributions) (Amendment No. 2) Regulations (Northern Ireland) 1985S.R. 1985 No. 61The whole of the Regulations
The Social Security (Contributions and Credits) (Transitional and Consequential Provisions) Regulations (Northern Ireland) 1985S.R. 1985 No. 260Regulations 2, 4, 5 and 6
The Social Security (Contributions) (Amendment No. 3) Regulations (Northern Ireland) 1985S.R. 1985 No. 334The whole of the Regulations
The Social Security (Contributions, Re-rating) Consequential Amendment Regulations (Northern Ireland) 1986S.R. 1986 No. 45The whole of the Regulations
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1986S.R. 1986 No. 71The whole of the Regulations
The Social Security (Contributions) (Amendment No. 2) Regulations (Northern Ireland) 1987S.R. 1987 No. 143The whole of the Regulations
The Social Security (Contributions) (Amendment No. 3) Regulations (Northern Ireland) 1987S.R. 1987 No. 348The whole of the Regulations
The Social Security (Contributions) (Amendment No. 4) Regulations (Northern Ireland) 1987S.R. 1987 No. 468The whole of the Regulations
The Social Security (Contributions) (Amendment No. 2) Regulations (Northern Ireland) 1988S.R. 1988 No. 121The whole of the Regulations
The Social Security (Contributions) (Amendment No. 4) Regulations (Northern Ireland) 1988S.R. 1988 No. 204The whole of the Regulations
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1989S.R. 1989 No. 70The whole of the Regulations
The Social Security (Contributions) (Amendment No. 2) Regulations (Northern Ireland) 1989S.R. 1989 No. 104The whole of the Regulations
The Social Security (Contributions) (Transitional and Consequential Provisions) Regulations (Northern Ireland) 1989S.R. 1989 No. 384The whole of the Regulations
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1990S.R. 1990 No. 97The whole of the Regulations
The Social Security (Contributions) (Re-rating) Consequential Amendment Regulations (Northern Ireland) 1990S.R. 1990 No. 101The whole of the Regulations
The Social Security (Contributions) (Amendment No. 2) Regulations (Northern Ireland) 1990S.R. 1990 No. 110The whole of the Regulations
The Social Security (Contributions) (Amendment No. 3) Regulations (Northern Ireland) 1990S.R. 1990 No. 320The whole of the Regulations
The Social Security (Contributions) (Amendment No. 4) Regulations (Northern Ireland) 1990S.R. 1990 No. 350The whole of the Regulations
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1991S.R. 1991 No. 68The whole of the Regulations
The Social Security (Contributions) (Amendment No. 3) Regulations (Northern Ireland) 1991S.R. 1991 No. 106The whole of the Regulations
The Social Security (Contributions) (Amendment No. 4) Regulations (Northern Ireland) 1991S.R. 1991 No. 310The whole of the Regulations
The Social Security (Contributions) (Amendment No. 5) Regulations (Northern Ireland) 1991S.R. 1991 No. 404The whole of the Regulations
The Social Security (Contributions) (Amendment No. 6) Regulations (Northern Ireland) 1991S.R. 1991 No. 490The whole of the Regulations
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1992S.R. 1992 No. 41The whole of the Regulations
The Social Security (Contributions) (Amendment No. 3) Regulations (Northern Ireland) 1992S.R. 1992 No. 126The whole of the Regulations
The Social Security (Contributions) (Amendment No. 4) Regulations (Northern Ireland) 1992S.R. 1992 No. 127The whole of the Regulations
The Social Security (Contributions) (Amendment No. 5) Regulations (Northern Ireland) 1992S.R. 1992 No. 138The whole of the Regulations
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1993S.R. 1993 No. 59The whole of the Regulations
The Social Security (Contributions) (Amendment No. 3) Regulations (Northern Ireland) 1993S.R. 1993 No. 71The whole of the Regulations
The Social Security (Contributions) (Amendment No. 4) Regulations (Northern Ireland) 1993S.R. 1993 No. 114The whole of the Regulations
The Social Security (Contributions) (Amendment No. 5) Regulations (Northern Ireland) 1993S.R. 1993 No. 130The whole of the Regulations
The Social Security (Contributions) (Amendment No. 6) Regulations (Northern Ireland) 1993S.R. 1993 No. 368The whole of the Regulations
The Social Security (Contributions) (Miscellaneous Amendments) Regulations (Northern Ireland) 1993S.R. 1993 No. 437The whole of the Regulations
The Social Security (Contributions) (Amendment No. 7) Regulations (Northern Ireland) 1993S.R. 1993 No. 463The whole of the Regulations
The Social Security (Contributions) (Miscellaneous Amendments) Regulations (Northern Ireland) 1994S.R. 1994 No. 94The whole of the Regulations
The Social Security (Contributions) (Amendment No. 2) Regulations (Northern Ireland) 1994S.R. 1994 No. 219The whole of the Regulations
The Social Security (Contributions) (Amendment No. 3) Regulations (Northern Ireland) 1994S.R. 1994 No. 328The whole of the Regulations
The Social Security (Contributions) (Amendment No. 4) Regulations (Northern Ireland) 1994S.R. 1994 No. 343The whole of the Regulations
The Statutory Sick Pay Percentage Threshold Order (Northern Ireland) 1995S.R. 1995 No. 69Article 6(3)
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1995S.R. 1995 No. 61The whole of the Regulations
The Social Security (Contributions) (Amendment No. 2) Regulations (Northern Ireland) 1995S.R. 1995 No. 88The whole of the Regulations
The Social Security (Contributions) (Amendment No. 3) Regulations (Northern Ireland) 1995S.R. 1995 No. 91The whole of the Regulations
The Social Security (Incapacity Benefit) (Consequential and Transitional Amendments and Savings) Regulations (Northern Ireland) 1995S.R. 1995 No. 150Regulation 13
The Social Security (Contributions) (Amendment No. 5) Regulations (Northern Ireland) 1995S.R. 1995 No. 257The whole of the Regulations
The Employer’s Contributions Reimbursement Regulations (Northern Ireland) 1996S.R. 1996 No. 30Regulation 13
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1996S.R. 1996 No. 58The whole of the Regulations
The Social Security (Contributions) (Amendment No. 2) Regulations (Northern Ireland) 1996S.R. 1996 No. 79The whole of the Regulations
The Social Security (Contributions) (Amendment No. 3) Regulations (Northern Ireland) 1996S.R. 1996 No. 89The whole of the Regulations
The Social Security (Contributions) Statutory Maternity Pay and Statutory Sick Pay (Miscellaneous Amendments) Regulations (Northern Ireland) 1996S.R. 1996 No. 108Regulation 2
The Social Security (Contributions) (Amendment No. 4) Regulations (Northern Ireland) 1996S.R. 1996 No. 152The whole of the Regulations
The Social Security (Additional Pension) (Contributions Paid in Error) Regulations (Northern Ireland) 1996S.R. 1996 No. 188Regulation 4
The Social Security (Credits and Contributions) (Jobseeker’s Allowance Consequential and Miscellaneous Amendments) Regulations (Northern Ireland) 1996S.R. 1996 No. 430Regulation 3
The Social Security (Contributions) (Amendment No. 5) Regulations (Northern Ireland) 1996S.R. 1996 No. 433The whole of the Regulations
The Social Security (Contributions) (Amendment No. 6) Regulations (Northern Ireland) 1996S.R. 1996 No. 566The whole of the Regulations
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1997S.R. 1997 No. 100The whole of the Regulations
The Social Security (Contributions) (Amendment No. 3) Regulations (Northern Ireland) 1997S.R. 1997 No. 163The whole of the Regulations
The Social Security (Contributions) (Amendment No. 4) Regulations (Northern Ireland) 1997S.R. 1997 No. 180The whole of the Regulations
The Social Security (Contributions) (Re-rating) Consequential Amendment Regulations (Northern Ireland) 1998S.R. 1998 No. 71The whole of the Regulations
The Social Security (Contributions) (Amendment No. 2) Regulations (Northern Ireland) 1998S.R. 1998 No. 103The whole of the Regulations
The Social Security (Contributions) (Amendment No. 3) Regulations (Northern Ireland) 1998S.R. 1998 No. 317The whole of the Regulations
The Social Security (Contributions) (Amendment No. 5) Regulations (Northern Ireland) 1998S.R. 1998 No. 416The whole of the Regulations
The Social Security (Contributions) (Re-rating) Consequential Amendment Regulations (Northern Ireland) 1999S.R. 1999 No. 64The whole of the Regulations
The Social Security (Contributions) Statutory Maternity Pay and Statutory Sick Pay (Miscellaneous Amendments) Regulations (Northern Ireland) 1999S.R. 1999 No. 117Regulations 2 to 10
The Social Security (Contributions and Credits) (Miscellaneous Amendments) Regulations (Northern Ireland) 1999S.R. 1999 No. 118Regulations 3 to 13 and 15 to 21
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1999S.R. 1999 No. 119The whole of the Regulations
The Social Security (Contributions) (Amendment No. 2) Regulations (Northern Ireland) 1999S.R. 1999 No. 151The whole of the Regulations
The Social Security (Contributions) (Amendment No. 3) Regulations (Northern Ireland) 1999S.R. 1999 No. 171The whole of the Regulations
The Social Security (Contributions) (Amendment No. 4) (Northern Ireland) Regulations 1999S.I. 1999/1966The whole of the Regulations
The Social Security (Contributions) (Amendment) (Northern Ireland) Regulations 2000S.I. 2000/176The whole of the Regulations
The Social Security (Contributions) (Amendment No. 2) (Northern Ireland) Regulations 2000S.I. 2000/346The whole of the Regulations
The Social Security (Contributions) (Amendment No. 3) (Northern Ireland) Regulations 2000S.I. 2000/737The whole of the Regulations
The Social Security Contributions (Notional Payment of Primary Class 1 Contribution) (Northern Ireland) Regulations 2000S.I. 2000/748Regulations 7 to 9
The Social Security (Contributions) (Re-rating) Consequential Amendment (Northern Ireland) Regulations 2000S.I. 2000/757The whole of the Regulations
The Social Security (Contributions) (Amendment No. 4) (Northern Ireland) Regulations 2000S.I. 2000/758The whole of the Regulations
The Social Security (Contributions) (Amendment No. 5) (Northern Ireland) Regulations 2000S.I. 2000/1150The whole of the Regulations
The Social Security (Contributions) (Amendment No. 6) (Northern Ireland) Regulations 2000S.I. 2000/2086The whole of the Regulations
The Social Security (Contributions) (Amendment No. 7) (Northern Ireland) Regulations 2000S.I. 2000/2078The whole of the Regulations
The Social Security (Contributions) (Amendment No. 8) (Northern Ireland) Regulations 2000S.I. 2000/2208The whole of the Regulations
The Social Security (Contributions) (Amendment No. 9) (Northern Ireland) Regulations 2000S.I. 2000/2344The whole of the Regulations
The Social Security (Contributions) (Amendment No. 10) (Northern Ireland) Regulations 2000S.I. 2000/2743The whole of the Regulations
The Social Security (Contributions) (Amendment) (Northern Ireland) Regulations 2001S.I. 2001/46The whole of the Regulations
The Social Security (Contributions) (Amendment No. 2) (Northern Ireland) Regulations 2001S.I. 2001/314The whole of the Regulations
The Social Security (Crediting and Treatment of National Insurance Contributions) Regulations (Northern Ireland) 2001S.R. 2001 No. 102Regulation 10

Explanatory Note

(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.

Yn ôl i’r brig

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