Explanatory Note
(This note is not part of the Regulations)
These Regulations further amend section 10(6) of the Social Security Contributions and Benefits Act 1992 (“the Act”) and the Social Security (Contributions) Regulations 1979 (“the principal Regulations”).
Regulation 4 amends section 10(6) of the Act to give effect to the changes made to Schedule 6 to the Income and Corporation Taxes Act 1988 (c. 1) by section 72 of the Finance Act 1993 (c. 34). The amendments to section 10(6) of the Act reflect those amendments and relate to the calculation of the cash equivalent of a car or fuel for the purposes of Class 1A contributions where cars or fuel are provided for private motoring to directors and certain employees. The amendments concern availability of the car in question and the use of the car for business travel.
Regulation 2 makes amendments to regulations 22C, 22D and 22F of the principal Regulations consequential upon the amendments made to section 10(6) of the Act.
Regulation 3 amends Regulation 30 of Schedule 1 to the principal Regulations so that on succession to, or cessation of, a business an employer need not record Class 1A contributions separately from the previous year’s Class 1A contributions when completing annual returns.
An assessment of the costs to business has been undertaken. It shows that these Regulations do not impose a cost on business. The assessment has been placed in the Libraries of both Houses of Parliament. Copies can be obtained by post from the Department of Social Security, Room 09/03, Adelphi, 1-11 John Adam Street, London WC2N 6HT.