The Social Security Contributions and Benefits Act 1992 (Modification of Section 4A) Order 2007

Modification of section 4A of the Social Security Contributions and Benefits Act 1992

2.—(1) Section 4A of the Social Security Contributions and Benefits Act 1992 is modified as follows.

(2) After subsection (2) insert—

“(2A) Regulations may also make provision for securing that, where the services of an individual (“the worker”) are provided (directly or indirectly) by a managed service company (“the MSC”) relevant payments or benefits are, to the specified extent, to be treated for the purposes of the applicable provisions of this Act as earnings paid to the worker in respect of an employed earner’s employment of his.

(2B) In subsection (2A) “managed service company” has the same meaning as it has for the purposes of Chapter 9 of Part 2 of ITEPA 2003.”.

(3) In subsection (3)(1)—

(a) in paragraph (a) after “by the intermediary” insert “or the MSC (as the case requires)”;

(b) in paragraph (b) for “intermediary (whether or not he fulfils” substitute “intermediary or the MSC (whether or not fulfilling”;

(c) in paragraph (g) after “the intermediary” insert “or the MSC”.

(4) In subsection (4)(b)—

(a) in sub-paragraph (i) after “intermediary” insert “or the MSC”; and

(b) in sub-paragraph (ii) for “him” substitute “that person”.

(5) In subsection (6) in the definition of “relevant payments or benefit” after “the intermediary” insert “or the MSC,”.

(1)

Paragraph (i) of this subsection was amended by paragraph 289 of Schedule 1 to the Income Tax Act 2007.