Part I Contributions

Preliminary

3“Earnings” and “earner”.

(1)

In this Part of this Act and Parts II to V—

(a)

“earnings” includes any remuneration or profit derived from an employment; and

(b)

“earner” shall be construed accordingly.

(2)

For the purposes of this Part of this Act and of Parts II to V F1... —

(a)

the amount of a person’s earnings for any period; or

(b)

the amount of his earnings to be treated as comprised in any payment made to him or for his benefit,

shall be calculated or estimated in such manner and on such basis as may be prescribed F2by regulations made by the Treasury with the concurrence of the Department.

F3(2A)

Regulations made for the purposes of subsection (2) above may provide that, where a payment is made or a benefit provided to or for the benefit of two or more earners, a proportion (determined in such manner as may be prescribed) of the amount or value of the payment or benefit shall be attributed to each earner.

(3)

Regulations made for the purposes of subsection (2) above may prescribe that payments of a particular class or description made or falling to be made to or by a person shall, to such extent as may be prescribed, be disregarded or, as the case may be, be deducted from the amount of that person’s earnings.

F4(4)

Subsection (5) below applies to regulations made for the purposes of subsection (2) above which make special provision with respect to the earnings periods of directors and former directors of companies.

(5)

Regulations to which this subsection applies may make provision—

(a)

for enabling companies, and directors and former directors of companies, to pay on account of any earnings-related contributions that may become payable by them such amounts as would be payable by way of such contributions if the special provision had not been made; and

(b)

for requiring any payments made in accordance with the regulations to be treated, for prescribed purposes, as if they were the contributions on account of which they were made.