The Social Security (Contributions) Regulations 2001

Payments of earnings-related contributions quarterly by employer

11.—(1) Subject to paragraph 15(8), the employer shall pay the amount specified in sub-paragraph (2) to the Collector within 14 days of the end of every income tax quarter where—

(a) the employer has reasonable grounds for believing that the condition specified in sub-paragraph (4) applies and chooses to pay the amount specified in sub-paragraph (2) quarterly; or

(b) in the case of an employee who receives a fixed salary or wage, the Inspector has authorised the employer to deduct income tax from each payment of emoluments which he makes to the employee by reference only to the amount of that payment, without regard to the cumulative emoluments and cumulative tax in respect of the employee.

(2) The amount specified in this sub-paragraph is the total amount of earnings-related contributions due in respect of emoluments paid by the employer in that income tax quarter, other than amounts deductible under paragraph 7(2) which he did not deduct and amounts which he deducted under the Compensation of Employers Regulations and Reimbursement Regulations.

(3) For the purposes of sub-paragraph (2), where two or more payments or emoluments fall to be aggregated, the employer shall be deemed to have deducted from the last of those payments the amount of any earnings-related contributions deductible from those payments which he did not deduct from the earlier payments.

(4) The condition specified in this sub-paragraph is that, for income tax months falling with the current year, the average monthly amount found by the formula—

N + P + L + S - T

• will be less than £1,500.

• Here—

• N is the amount which would be payable to the Collector under the Act and the provisions of these Regulations other than this Schedule disregarding—

  (a)

  any amount of secondary Class 1 contributions in respect of which liability has been transferred to the employed earner by virtue of an election made jointly by the employed earner and the secondary contributor for the purposes of paragraph 3B(1) of Schedule 1 to the Act (election to transfer liability for secondary contributions in respect of share option gains to earner)(1); and

  (b)

  any adjustment to the amount so payable to the Collector under regulation 7(3) of the Tax Credits (Payments by Employers) Regulations 1999 (funding of payment by relevant employer or relevant subsequent employer of tax credit)(2);

• P is the amount which would be payable to the Collector under regulation 40 of the Income Tax Regulations (payment of tax monthly by employer) if any adjustment to that amount under regulation 7(1) of the Tax Credits (Payments by Employers) Regulations 1999 were disregarded;

• L is the amount which would be payable to the Collector under regulation 39(1) of the Education (Student Loans) (Repayment) Regulations 2000 (payment of repayments deducted to the Board)(3) if the reduction of that amount which is referred to in paragraph (3) of that regulation and in regulation 7(2) of the Tax Credits (Payments by Employers) Regulations 1999 were disregarded;

• S is the amount payable to the Collector under section 559 of the Taxes Act and the Income Tax (Sub-contractors in the Construction Industry) Regulations 1993(4); and

• T is the amount which the employer is required to pay by way of tax credit in accordance with regulation 6(2) of the Tax Credits (Payment by Employers) Regulations 1999 (relevant employer’s or relevant subsequent employer’s obligation to pay tax credits).

(1)

Paragraph 3B was inserted into Schedule 1 to the Act by section 77(2) of the Child Support, Pensions and Social Security Act 2000 (c. 19).

(2)

S.I. 1999/3219.

(3)

S.I. 2000/944.

(4)

S.I. 1993/743.