SCHEDULE 1 Supplementary provisions relating to contributions of Classes 1, 1A, 1B, 2 and 3
Method of paying Class 1 contributions
3
(1)
Where earnings are paid to an employed earner and in respect of that payment liability arises for primary and secondary Class 1 contributions, the secondary contributor shall (except in prescribed circumstances), as well as being liable for F1any secondary contribution of his own, be liable in the first instance to pay also the earner’s primary contribution F2or a prescribed part of the earner’s primary contribution, on behalf of and to the exclusion of the earner; and for the purposes of this Act and the Administration Act contributions paid by the secondary contributor on behalf of the earner shall be taken to be contributions paid by the earner.
F3(2)
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(3)
A secondary contributor shall be entitled, subject to and in accordance with regulations, to recover from an earner the amount of any primary Class 1 contribution paid or to be paid by him on behalf of the earner; F4and, subject to F5sub-paragraphs (3A) to (5) below but notwithstanding any other provision in any enactment, regulations under this sub-paragraph shall provide for recovery to be made by deduction from the earner’s earnings, and for it not to be made in any other way.
F6(3A)
Sub-paragraph (3B) applies where a person (“the employee”) who is employed by a particular employer (“the employer”) receives earnings in a form other than money (“non-monetary earnings”) from the employer in a tax year.
(3B)
If and to the extent that regulations so provide, the employer may recover from the employee, in the prescribed manner, any primary Class 1 contributions paid or to be paid by him on the employee’s behalf in respect of those earnings.
F7(4)
Sub-paragraph (5) below applies in a case where—
(a)
a person (“the employee”) ceases in a particular tax year (“the cessation year”) to be employed by a particular employer (“the employer”); and
(b)
the employee receives from the employer in the cessation year, after the cessation of the employment, F8or in the next tax year non-monetary earnings.
(5)
If and to the extent that regulations so provide, the employer may recover from the employee in such manner as may be prescribed any primary Class 1 contributions paid or to be paid by him on the employee’s behalf in respect of—
(a)
the non-monetary earnings mentioned in sub-paragraph (4) above; F9...
F9(b)
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F10(6)
Regulations under any provision of this paragraph shall be made by the Inland Revenue.