Part I N.I. Contributions

Modifications etc. (not altering text)

C1 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

Preliminary N.I.

4 Payments treated as remuneration and earnings. N.I.

(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; 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 F1 . . ..

[F2 (4) For the purposes of section 3 above there shall be treated as remuneration derived from an employed earner’s employment—

(a) any gain on which the earner is chargeable to tax by virtue of section 135 (gains by directors and employees from share options) of the Income and Corporation Taxes Act 1988 (“the 1988 Act”);

(b) any sum paid (or treated as paid) to or for the benefit of the earner which is chargeable to tax by virtue of section 313 of the 1988 Act (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.

[F3 (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 Schedule E 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.]

[F4 (7) Regulations under this section shall be made by the Treasury with the concurrence of the Department.]

Textual Amendments

F1 Words in s. 4(3) repealed (13.4.1995) by S.I. 1994/1898 (N.I. 12), art. 13(1)(2), Sch. 1 Pt. I para. 1, Sch. 2 (with art. 15(1)); S.R. 1994/450, art. 2, Sch. Pt. IV

F2 S. 4(4) substituted (1.7.1998 for specified purposes and 9.9.1998 otherwise with effect as mentioned in art. 47(3) of the amending S.I.) by S.I. 1998/1506 (N.I. 10), arts. 1(3), 47(1)(3); S.R. 1998/312, art. 2(a), Sch. Pt. I,

F3 S. 4(6) substituted (with effect in relation to tax year 2000-2001 and subsequent tax years) by 2000 c. 19, s. 78(3)(8) (with s. 78(9))

F4 S. 4(7) added (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 5 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)

Modifications etc. (not altering text)

C2 S. 4 applied (7.2.1994) by 1993 c. 49, s. 176(1); S.R. 1994/17, art. 2

C3 S. 4(1) modified (with effect in relation to tax year 2001-2002 and subsequent tax years) by S.R. 1979/186, Sch. 1ZC Pt. X para. 7 (as inserted by S.I. 2001/597, regs. 1(2), 11, Sch. 2