The Social Security (Contributions, Categorisation of Earners and Intermediaries) (Amendment) Regulations 2004

30.—(1) Part 1 (general) is amended as follows.

(2) In paragraph 1 for sub-paragraphs (1) and (2) substitute—

“(1) In this Schedule the “PAYE Regulations” means the Income Tax (Pay As You Earn) Regulations 2003 M1 .

(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 M2 (exempt approved schemes and exempt statutory schemes);

“Compensation of Employers Regulations” means the Statutory Maternity Pay (Compensation of Employers) and Miscellaneous Amendments Regulations 1994 M3 and the Statutory Sick Pay Percentage Threshold Order 1995 M4

“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 or the form issued by the Inland Revenue under paragraph 31 or under regulation 35 of the PAYE Regulations (simplified deduction scheme);

“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 general 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 M5 ; or

(c) under regulation 122;

“general earnings has the meaning given in section 7(3) of ITEPA 2003;”;

“Inland Revenue” means any officer of the Board of Inland Revenue;

“mariner” has the same meaning as in regulation 115;

“the Reimbursement Regulations” means the Employer’s Contributions Re-imbursement Regulations 1996 M6 ;

“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 paragraph 2 substitute—

“Multiple employers

2.— (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.”.

(4) In paragraph 3 (intermediate employers)—

(a) in sub-paragraph (1) for “emoluments” substitute “ general earnings ”;

(b) in sub-paragraph (3)—

(i) for “employee’s emoluments” substitute “ employee’s general earnings ”;

(ii) in paragraph (a) for “the emoluments” substitute “ those earnings ”; and

(iii) in paragraph (b) for “the said emoluments” substitute “ those earnings ”; and

(c) in sub-paragraph (4), for “section 203E of the Taxes Act”, substitute “ section 691 of ITEPA 2003 ”.

(5) In paragraph 4A M7 , for “emoluments”, wherever it occurs, substitute “ general earnings ”.

(6) For paragraph 5 substitute—

“Continuation of proceedings etc.

5.   Any legal proceedings or administrative act authorised by or done for the purposes of this Schedule and begun by one Inland Revenue officer may be continued by another officer, and any officer may act for any division or other area.”.

Marginal Citations

M1 S.I. 2003/2682.

M2 Sections 592(7) and 594(1) were amended by paragraphs 72 and 73 of Schedule 6 to ITEPA 2003.

M3 S.I. 1994/1882.

M4 S.I. 1995/512.

M5 S.I. 1978/1689: Schedule 3 has been amended by S.I. 1984/1894, 1994/726, 1998/1728, 1999/3 and 2003/736 and 2420.

M6 S.I 1996/195, amended by Part 2 of Schedule 10 to the Transfer Act and regulation 2 of S.I.1999/286.

M7 Paragraph 4A was inserted by regulation 6 of S.I. 2002/2929.