Social Security Contributions and Benefits Act 1992

[F1 10ZA Liability of third party provider of benefits in kind. E+W+S

(1) This section applies, where—

(a) a Class 1A contribution is payable for any tax year in respect of the whole or any part of [F2 general earnings] received by an earner;

(b) [F3 the general earnings, in so far as they are ones in respect of which] such a contribution is payable, [F4 consist] in a benefit provided for the earner or a member of his family or household;

(c) the person providing the benefit is a person other than the person (“the relevant employer”) by whom, but for this section, the Class 1A contribution would be payable in accordance with section 10(2) above; and

(d) the provision of the benefit by that other person has not been arranged or facilitated by the relevant employer.

[F5 (1A) This section does not apply if the benefit is a sporting testimonial payment (see section 10ZBA).]

(2) For the purposes of this Act if—

(a) the person providing the benefit pays an amount for the purpose of discharging any liability of the earner to income tax for any tax year, and

(b) the income tax in question is tax chargeable in respect of the provision of the benefit or of the making of the payment itself,

the amount of the payment shall be treated as if it were [F6 general earnings] consisting in the provision of a benefit to the earner in that tax year and falling, for the purposes of Class 1 contributions, to be left out of account in the computation of the earnings paid to or for the benefit of the earner.

(3) Subject to subsection (4) below, the liability to pay any Class 1A contribution in respect of—

(a) the benefit provided to the earner, and

(b) any further benefit treated as so provided in accordance with subsection (2) above,

shall fall on the person providing the benefit, instead of on the relevant employer.

(4) Subsection (3) above applies in the case of a Class 1A contribution for the tax year beginning with 6th April 2000 only if the person providing the benefit in question gives notice in writing to the Inland Revenue on or before 6th July 2001 that he is a person who provides benefits in respect of which a liability to Class 1A contributions is capable of falling by virtue of this section on a person other than the relevant employer.

(5) The Treasury may by regulations make provision specifying the circumstances in which a person is or is not to be treated for the purposes of this Act as having arranged or facilitated the provision of any benefit.

(6) In this section references to a member of a person’s family or household shall be construed in accordance with [F7 section 721(5) of ITEPA 2003].]

Textual Amendments

F1 Ss. 10ZA, 10ZB inserted (with effect in relation to the tax year beginning with 6.4.2000 and subsequent tax years) by Child Support, Pensions and Social Security Act 2000 (c. 19), ss. 75(1), 86 (with s. 75(3))

F2 Words in s. 10ZA(1)(a) substituted (6.4.2003 with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 175(2) (with Sch. 7)

F3 Words in s. 10ZA(1)(b) substituted (6.4.2003 with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 175(3)(a) (with Sch. 7)

F4 Word in s. 10ZA(1)(b) substituted (6.4.2003 with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 175(3)(b) (with Sch. 7)

F5 S. 10ZA(1A) inserted (6.4.2020 subject to transitional provisions in reg. 3 of the commencing S.I.) by National Insurance Contributions (Termination Awards and Sporting Testimonials) Act 2019 (c. 23), ss. 3(3), 5(3); S.I. 2020/285, reg. 3

F6 Words in s. 10ZA(2) substituted (6.4.2003 with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 175(4) (with Sch. 7)

F7 Words in s. 10ZA(6) substituted (6.4.2003 with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 175(5) (with Sch. 7)