The Social Security (Contributions) Regulations 2001

Status:

Point in time view as at 06/04/2004.

Changes to legislation:

There are currently no known outstanding effects for the The Social Security (Contributions) Regulations 2001, PART 3.

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PART 3U.K. CLASS 1A CONTRIBUTIONS

Interpretation for the purposes of this PartU.K.

F132. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1Regs. 32-35 revoked (6.4.2004) by The Social Security (Contributions, Categorisation of Earners and Intermediaries) (Amendment) Regulations 2004 (S.I. 2004/770), regs. 1(1), 36, Sch. 1

Exception from liability to pay Class 1A contributions in respect of cars made available to members of an employed earner’s family or household in certain circumstancesU.K.

F133. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1Regs. 32-35 revoked (6.4.2004) by The Social Security (Contributions, Categorisation of Earners and Intermediaries) (Amendment) Regulations 2004 (S.I. 2004/770), regs. 1(1), 36, Sch. 1

Class 1A contributions payable where two or more cars are made available concurrentlyU.K.

F134. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1Regs. 32-35 revoked (6.4.2004) by The Social Security (Contributions, Categorisation of Earners and Intermediaries) (Amendment) Regulations 2004 (S.I. 2004/770), regs. 1(1), 36, Sch. 1

Reduction of certain Class 1A contributions in the case of a car provided or made available by reason of two or more employments or to two or more employed earnersU.K.

F135. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1Regs. 32-35 revoked (6.4.2004) by The Social Security (Contributions, Categorisation of Earners and Intermediaries) (Amendment) Regulations 2004 (S.I. 2004/770), regs. 1(1), 36, Sch. 1

Reduction of certain Class 1A contributions on account of the number of employments in the cases of something provided or made available by reason of two or more employments and of something provided or made available to two or more employed earnersU.K.

36.—(1) This regulation applies if something is provided or made available—

(a)an employed earner by reason of two or more employed earner’s employments, whether under the same employer or different employers; or

(b)two or more employed earners concurrently by reason of their respective employed earner’s employments under the same employer,

and all of those employed earner’s employments are employments [F2other than excluded employments within the meaning of the benefits code (see Chapter 2 of Part 3 of ITEPA 2003)].

(2) If this regulation applies the amount of any Class 1A contribution payable for the year by the person liable to pay such contribution shall be reduced F3... by deducting from that amount an amount equal to the fraction—

of the amount which would be payable but for this regulation.

Here X is the total number of employments in respect of which the thing is provided or made available.

Textual Amendments

F2Words in reg. 36(1) substituted (6.4.2004) by The Social Security (Contributions, Categorisation of Earners and Intermediaries) (Amendment) Regulations 2004 (S.I. 2004/770), regs. 1(1), 7(a)

F3Words in reg. 36(2) omitted (6.4.2004) by virtue of The Social Security (Contributions, Categorisation of Earners and Intermediaries) (Amendment) Regulations 2004 (S.I. 2004/770), regs. 1(1), 7(b)

Reduction of certain Class 1A contributions in respect of cars made available to disabled employed earnersU.K.

F437. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F4Reg. 37 omitted (6.4.2004) by virtue of The Social Security (Contributions, Categorisation of Earners and Intermediaries) (Amendment) Regulations 2004 (S.I. 2004/770), regs. 1(1), 8

Exception from liability to pay Class 1 contributions in respect of cars made available to disabled employed earners only for business and home to work travelU.K.

38.—(1) If the conditions mentioned in paragraphs (2) to (5) are satisfied, the person who would otherwise be liable to pay the Class 1A contribution for that year in respect of the employer earner and the car mentioned in those paragraphs shall be excepted from that liability.

(2) The first condition is that the car is made available to an earner who is disabled.

(3) The second condition is that the car is made available to the earner by reason of his employment.

(4) The third condition is that the car is made available account of the earner’s disability for the purposes of, or for purposes which include assisting, the earner’s travelling between the earner’s home and place of employment.

(5) The fourth condition is that the terms on which the car is made available to the earner prohibit private use other than—

(a)by the earner to whom it is made available; and

(b)in travelling between the earner’s home and place of employment.

(6) The fifth condition is that no prohibited private use of the car has been made in the year.

Calculation of Class 1A contributionsU.K.

39. Where a person is liable to pay a Class 1A contribution in accordance with section 10 of the Act (Class 1A contributions: benefits in kind, etc) the amount of that contribution shall be calculated to the nearest penny, and any amount of a halfpenny or less shall be disregarded.

Prescribed [F5general earnings] in respect of which Class 1A contributions not payableU.K.

40.—(1) Class 1A contributions shall not be payable in respect of the [F6general earnings] prescribed by paragraphs (2) to (7).

(2) The [F7general earnings] prescribed by this paragraph are [F8those] which are excluded from the calculation of a person’s earnings in respect of any employed earner’s employment by virtue of the following provisions of Schedule 3—

[F9(za)in Part V, paragraph 6A;]

(a)in Part VI, paragraphs 4 to 7;

(b)in Part VIII, paragraphs 4, 5 and 13;

(c)in Part IX, paragraphs [F103 to 7A]; and

(d)in Part X, paragraphs 5, [F119, 11 to 13 and 15].

(3) The [F7general earnings] prescribed by this paragraph are [F8those] which are payments which are not excluded from the calculation of a person’s earnings in respect of any employed earner’s employment by virtue of paragraph 1 of Part II of Schedule 3 (payments in kind), but which are so excluded by virtue of paragraph 3 of Part VIII of Schedule 3 (qualifying travelling expenses) or paragraph 9 of that Part (specific and distinct expenses).

(4) The [F7general earnings] prescribed by this paragraph are [F8those] which—

(a)are excluded from the calculation of a person’s earnings in respect of any employed earner’s employment by virtue of paragraph 2(2)(b) of Part VIII of Schedule 3 (relocation expenses where the relevant change occurred before 6th April 1998); and

[F12(b)are not removal expenses to which section 271 of ITEPA 2003 applies.]

(5) The [F7general earnings] prescribed by this paragraph are [F8those] which consist in the provision, or are provided in connection with all or part of the costs and expenses, of child care (but not school fees) incurred by an employed earner in respect of a child not exceeding the age of 16 years for whom he has parental responsibility.

(6) The [F7general earnings] prescribed by this paragraph are [F8those] by way of any benefit pursuant to—

F13(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)a pilots’ benefit fund under section 607 of the Taxes Act F14;

(c)a fund to which section 608 of the Taxes Act (superannuation funds approved before 6th April 1980) [F15or sections 590 (annuities) and 591 (taxable pension income)] applies.

[F16(6A) The general earnings prescribed by this paragraph are those by way of any benefit—

(a)pursuant to a retirement benefits scheme which is not “non-approved” for the purpose of section 387(2) of ITEPA 2003; or

(b)to which section 386 of ITEPA 2003 (charge on payments to non-approved retirement benefits schemes) does not apply by virtue of section 390 of that Act.]

(7) [F17The general earnings prescribed by this paragraph are so much of any general earnings as are not charged to income tax as employment income by virtue of;] any of the following extra-statutory concessions published by the Board as at 1st September 2000—

F18(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F19(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)A11 (residence in the United Kingdom: year of commencement or cessation of residence);

F20(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(e)A37 (tax treatment of directors’ fees received by partnerships and other companies);

(f)A56 (benefits in kind: tax treatment of accommodation in Scotland provided for employees);

F21(g). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F21(h). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F21(i). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F21(j). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F21(k). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F21(l). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F21(m). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F21(n). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F21(o). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(p)A91 (living accommodation provided by reason of employment);

(q)A97 (Jobmatch programme).

Sub-paragraphs (b) and (q) do not apply to Northern Ireland and sub-paragraph (f) applies only to Scotland.

(8) In this regulation—

“child care” includes—
(a)
F22care provided in accordance with the provisions of [F23Part 10 or 10A] of the Children Act 1989 (child-minding and day care for young children);
(b)
in the case of a child aged 8 or over, care provided by a child minder;
(c)
in the case of a child under the age of 8, care provided by a child minder where that care does not exceed, in total, two hours in any day;
(d)
care provided by a relative or a nanny;
(e)
care provided during out-of-school hours and during school holidays;
(f)
full-time and part-time care;
F24...
“nanny” and “relative” have the meanings respectively given to them in sections 71(13) and 105(1) of the Children Act 1989.