Social Security Contributions and Benefits Act 1992

4 Payments treated as remuneration and earnings. E+W+S

(1) For the purposes of section 3 above there shall be treated as remuneration derived from employed earner’s employment—

(a) any sum paid to or for the benefit of a person in satisfaction (whether in whole or in part) of any entitlement of that person to—

(i) statutory sick pay; or

(ii) statutory maternity pay;

[F1 (iii) F2 ... statutory paternity pay;

F3 (iv) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(v) statutory adoption pay;] F4 ...

[F5 (vi) statutory shared parental pay; [F6 or

(vii) statutory parental bereavement pay;] and]

(b) any sickness payment made—

(i) to or for the benefit of the employed earner; and

(ii) in accordance with arrangements under which the person who is the secondary contributor in relation to the employment concerned has made, or remains liable to make, payments towards the provision of that sickness payment.

(2) Where the funds for making sickness payments under arrangements of the kind mentioned in paragraph (b) of subsection (1) above are attributable in part to contributions to those funds made by the employed earner, regulations may make provision for disregarding, for the purposes of that subsection, the prescribed part of any sum paid as a result of the arrangements.

(3) For the purposes of subsections (1) and (2) above “sickness payment” means any payment made in respect of absence from work due to incapacity for work, F7 ....

[F8 (4) For the purposes of section 3 above there shall be treated as remuneration derived from an employed earner’s employment—

[F9 (a) the amount of any gain calculated under section 479 [F10 of ITEPA 2003 in respect of which an amount counts as employment income of the earner under section 476 of that Act (charge on acquisition of securities pursuant to option etc), reduced by any amounts deducted under section 480(1) to (6) of that Act in arriving at the amount counting as such employment income;]]

(b) any sum paid (or treated as paid) to or for the benefit of the earner which is chargeable to tax by virtue of [F11 section 225 or 226 of ITEPA 2003] (taxation of consideration for certain restrictive undertakings).]

(5) For the purposes of section 3 above regulations may make provision for treating as remuneration derived from an employed earner’s employment any payment made by a body corporate to or for the benefit of any of its directors where that payment would, when made, not be earnings for the purposes of this Act.

[F12 (6) Regulations may make provision for the purposes of this Part—

(a) for treating any amount on which an employed earner is chargeable to income tax under [F13 the employment income Parts of ITEPA 2003] as remuneration derived from the earner’s employment; and

(b) for treating any amount which in accordance with regulations under paragraph (a) above constitutes remuneration as an amount of remuneration paid, at such time as may be determined in accordance with the regulations, to or for the benefit of the earner in respect of his employment.]

[F14 (7) Regulations under this section shall be made by the Treasury with the concurrence of the Secretary of State.]

Textual Amendments

F1 S. 4(1)(a)(iii)-(v) substituted for s. 4(1)(a)(iii)(iv) (6.4.2010) by Work and Families Act 2006 (c. 18), s. 19(2), Sch. 1 para. 4; S.I. 2010/495, art. 4(d)

F2 Word in s. 4(1)(a)(iii) repealed (5.4.2015) by Children and Families Act 2014 (c. 6), s. 139(6), Sch. 7 para. 8(a); S.I. 2014/1640, art. 7(e) (with art. 16)

F3 S. 4(1)(a)(iv) repealed (1.12.2014) by Children and Families Act 2014 (c. 6), s. 139(6), Sch. 7 para. 8(b); S.I. 2014/1640, art. 5(2)(g)

F4 Word in s. 4(1)(a) omitted (18.1.2020) by virtue of Parental Bereavement (Leave and Pay) Act 2018 (c. 24), s. 2(2), Sch. para. 11(a); S.I. 2020/45, reg. 2

F5 S. 4(1)(a)(vi) and word substituted (1.12.2014) by Children and Families Act 2014 (c. 6), s. 139(6), Sch. 7 para. 8(c); S.I. 2014/1640, art. 5(2)(g)

F6 S. 4(1)(a)(vii) and word inserted (18.1.2020) by Parental Bereavement (Leave and Pay) Act 2018 (c. 24), s. 2(2), Sch. para. 11(b); S.I. 2020/45, reg. 2

F7 Words in s. 4(3) omitted (13.4.1995) by virtue of Social Security (Incapacity for Work) Act 1994 (c. 18), s. 16(3), Sch. 1 para. 1, Sch. 2; S.I. 1994/2926, art. 2(4), Sch. Pt. 4

F8 S. 4(4) substituted (21.5.1998 for specified purposes, 8.9.1998 in so far as not already in force) by Social Security Act 1998 (c. 14), ss. 50(1), 87(2)(b) (with s. 50(3)); S.I. 1998/2209, art. 2(a), Sch. Pt. 1

F9 S. 4(4)(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. 172(2) (with Sch. 7)

F10 Words in s. 4(4)(a) substituted (with effect in accordance with Sch. 22 para. 48(2) of the amending Act) by Finance Act 2003 (c. 14), Sch. 22 para. 48(1)(a)

F11 Words in s. 4(4)(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. 172(3) (with Sch. 7)

F12 S. 4(6) substituted (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. 74(3), 86 (with s. 74(8))

F13 Words in s. 4(6)(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. 172(4) (with Sch. 7)

F14 S. 4(7) inserted (1.4.1999) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(3), Sch. 3 para. 4; S.I. 1999/527, art. 2(b), Sch. 2 (with arts. 3-6)