C1C2 Part I Contributions
Pt. 1 modified (5.10.2009) by The Steps to Work (Miscellaneous Provisions) Order (Northern Ireland) 2009 (S.R. 2009/297), arts. 1(1), 2(1)(a)
Class 1A contributions
10F1 Class 1A contributions: benefits in kind etc.
1
Where—
F20a
for any tax year an earner is chargeable to income tax under ITEPA 2003 on an amount of general earnings received by him from any employment (“the relevant employment”),
F12b
the relevant employment is both—
i
employed earner’s employment, and
ii
an employment, other than F3lower-paid employment as a minister of religion, for the purposes of the benefits code (see Chapter 2 of Part 3 of ITEPA 2003),
c
the whole or a part of the F6general earnings falls, 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,
a Class 1A contribution shall be payable for that tax year, in accordance with this section, in respect of that earner and so much of the F5general earnings as falls to be so left out of account.
2
Subject to section 10ZA below, a Class 1A contribution for any tax year shall be payable by—
a
the person who is liable to pay the secondary Class 1 contribution relating to the last (or only) relevant payment of earnings in that tax year in relation to which there is a liability to pay such a Class 1 contribution; or
b
if paragraph (a) above does not apply, the person who, if the F7general earnings in respect of which the Class 1A contribution is payable were earnings in respect of which Class 1 contributions would be payable, would be liable to pay the secondary Class 1 contribution.
3
In subsection (2) above “relevant payment of earnings” means a payment which for the purposes of Class 1 contributions is a payment of earnings made to or for the benefit of the earner in respect of the relevant employment.
4
5
In subsection (4) above “the Class 1A percentage” means a F2secondary percentage for the tax year in question.
6
No Class 1A contribution shall be payable for any tax year in respect of so much of any F14general earnings as is taken for the purposes of the making of Class 1B contributions for that year to be included in a PAYE settlement agreement.
F97
In calculating for the purposes of this section the amount of general earnings received by an earner from an employment, a deduction under any of the excluded provisions is to be disregarded.
This subsection does not apply in relation to a deduction if subsection (7A) applies in relation to it.
7A
Where—
a
a deduction in respect of a matter is allowed under an excluded provision, and
b
the amount deductible is at least equal to the whole of any corresponding amount which would (but for this section) fall by reference to that matter to be included in the general earnings mentioned in subsection (7),
the whole of the corresponding amount shall be treated as not included.
7B
For the purposes of subsections (7) and (7A) “excluded provision” means—
a
any provision of Chapter 2 of Part 5 of ITEPA 2003 (deductions for employee’s expenses) other than section 352 (limited deduction for agency fees paid by entertainers), F18...
F13aa
any of sections 363 to 365 of ITEPA 2003 (certain deductions from benefits code earnings), or
b
any provision of Chapter 5 of Part 5 of ITEPA 2003 (deductions for earnings representing benefits or reimbursed expenses).
8
The Treasury may by regulations—
F17a
modify the effect of subsections (7) and (7A) above by amending subsection (7B) so as to include any enactment contained in the Income Tax Acts within the meaning of “excluded provision”; or
9
The Treasury may by regulations provide—
a
for Class 1A contributions not to be payable, in prescribed circumstances, by prescribed persons or in respect of prescribed persons or F4general earnings ;
b
for reducing Class 1A contributions in prescribed circumstances.
F1610
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1911
The Treasury may by regulations modify the law relating to Class 1A contributions in the case of an employed earner's employment which is treated as existing by virtue of regulations under section 4AA.
Pt. I (ss. 1-19): power to modify conferred (7.2.1994) by 1993 c. 49, s. 35, Sch. 1 Pt. I para. 5(3)(d); S.R. 1994/17, art. 2
Pt. I (ss. 1-19) amended (1.4.1999) by 1999 c. 2, s. 3(1)(7); S.I. 1999/527, art. 2(b), Sch. 2