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

31.—(1) Part 2 (deduction of earnings related contributions) is amended as follows.

(2) In paragraph 6 (deduction of earnings-related contributions)—

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

(b) in sub-paragraph (1)(a) for “regulation 20 of the Income Tax Regulations (employee on fixed pay)” substitute “ regulation 35 of the PAYE Regulations (simplified deduction scheme) ”.

(3) In paragraph 7 (calculation of deduction) M1 —

(a) for “emoluments”, wherever it occurs, substitute “ general earnings ”;

(b) in sub-paragraph (3) after “paragraph (b)” in the second place it occurs insert “ or sub-paragraph 4(a) or (f) ”;

(c) in sub-paragraph (4)—

(i) at the end of paragraph (d) omit “or”;

(ii) after paragraph (e) insert—

“; or

(f) the payment in question is made to a person whose place of employment is outside the United Kingdom and on whose general earnings Class 1 contributions are, but income tax is not, payable.”;

(d) in sub-paragraph (5A)(a) after “(4)(e)” add “ or (f) ”;

(e) in sub-paragraph (9)(b)—

(i) for “shares”, in each place where it occurs, substitute “ securities ”;

(ii) in sub-paragraph (ii) for “regulation 22(3)” substitute “ regulation 22(5), (6) or (7) ”; and

(iii) in sub-paragraph (iii) for “section 135 of the Taxes Act 1988 (gains by directors and employees from share options)” substitute “ section 4(4)(a) of the Act ”;

(f) omit sub-paragraph (10);

(g) in sub-paragraphs (11) and (12) for “shares”, in each place where it occurs, substitute “ securities ”; and

(h) in sub-paragraph (15) for “superannuation”, in each place where it occurs, substitute “ pension ”.

(4) In paragraph 9 (certificate of contributions paid) M2 —

(a) in sub-paragraph (1)—

(i) for “regulation 39 of the Income Tax Regulations (certificate of tax deducted)” substitute “ regulation 67 of the PAYE Regulations (information to employees about payments and tax deducted (Form P 60)) ”; and

(ii) for “Board” substitute “ Inland Revenue ”; and

(b) in sub-paragraph (2)—

(i) for “regulation 39 of the Income Tax Regulations” substitute “ regulation 67 of the PAYE Regulations ”;

(ii) for “emoluments” substitute “ general earnings ”; and

(iii) after “concerned” insert “ or the employee was not in the employer’s employment on the last day of the tax year, ”.

Marginal Citations

M1 Paragraph 7 has been amended: relevant amendments are made by regulation 7 of S.I. 2002/2929, and regulation 2 of S.I. 2003/1337.

M2 Paragraph 9 has been amended by regulations 2 and 16 of S.I. 2003/193, and regulation 3 of S.I. 2003/1337.