Search Legislation

Advanced Search

The Social Security (Contributions) Regulations 2001

Status:

Point in time view as at 01/04/2009.

Changes to legislation:

There are currently no known outstanding effects for the The Social Security (Contributions) Regulations 2001, PART III. Help about Changes to Legislation

Close

Changes to Legislation

Revised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.

PART IIIU.K. PAYMENT AND RECOVERY OR EARNINGS-RELATED CONTRIBUTIONS, CLASS 1A CONTRIBUTIONS AND CLASS 1B CONTRIBUTIONS, ETC.

Payment of earnings-related contributions monthly by employerU.K.

10.—(1) Subject to [F1sub-paragraph (1A) and] paragraph 11 and 15(8), the employer shall pay the amount specified in sub-paragraph (2) to the [F2Inland Revenue] within 14 days [F3or, if payment is made by an approved method of electronic communications in respect of earnings paid after 5th April 2004, within 17 days] of the end of every F4... tax month.

[F5(1A) This paragraph does not apply in respect of amounts of retrospective earnings.]

(2) The amount specified in this sub-paragraph is the total amount of earnings-related contributions due in respect of [F6general earnings] paid by the employer in that F7... tax month, 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 the Reimbursement Regulations.

(3) For the purposes of sub-paragraph (2), if two or more payments of [F8general earnings] fall to be aggregated, the employer shall be treated as having 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.

Textual Amendments

Payments of earnings-related contributions quarterly by employerU.K.

11.—(1) Subject to [F9sub-paragraph (1A) and] paragraph 15(8), the employer shall pay the amount specified in sub-paragraph (2) to the [F10Inland Revenue] within 14 days of the end of every F11... tax quarter [F12or, if payment is made by an approved method of electronic communications in respect of earnings paid after 5th April 2004, within 17 days of the end of every 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

F13(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F14(1A) This paragraph does not apply in respect of amounts of retrospective earnings.]

(2) The amount specified in this sub-paragraph is the total amount of earnings-related contributions due in respect of [F15general earnings] paid by the employer in that F16... 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 [F17of general earnings] 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.

[F18(4) The condition specified in this sub-paragraph is that for [F19tax months] falling within the current year, the average monthly amount found by the formula below will be less than £1500.

The formula is—

[F20(N + P + L + S) − (SP + CD)]

  • The expressions used in the formula have the following values.

    • N is the amount which would be payable to the [F21Inland Revenue] under the Social Security Contributions and Benefits Act 1992 and these Regulations but disregarding—

      (a)

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

      (aa)

      [F22any amount payable in respect of retrospective earnings;]

      (c)

      F23...

    • [F24“P” is the amount which would be payable to HMRC under regulation 68 of the PAYE Regulations but disregarding any amount payable in respect of retrospective employment income (within the meaning of regulation 2 of those Regulations);]

    • L is the amount which would be payable to the [F21Inland Revenue] under regulation 39(1) of the Education (Student Loans) (Repayment) Regulations 2000 (payment of repayments deducted to the Inland Revenue) if the reduction referred to in paragraph (3) of that regulation F25...were disregarded.

    • S is the sum of the amounts which the employer would be liable to deduct, under section 559 of the Taxes Act and the Income Tax (Sub-contractors in the Construction Industry) Regulations 1993, from payments made by him.

    • F26...

    • SP is the amount—

      (a)

      recoverable by the employer from [F27the Inland Revenue], or

      (b)

      deductible from amounts for which the employer would otherwise be accountable to [F27the Inland Revenue],

      in respect of payments to his employees by way of statutory sick pay, statutory maternity pay, statutory paternity pay and statutory adoption pay.

    • CD is the amount which would be deducted by others from sums due to the employer, in his position as a sub-contractor, under section 559 of the Taxes Act.]

Textual Amendments

F18Sch. 4 para. 11(4) substituted (with effect in accordance with reg. 1(1) of the amending S.I.) by The Social Security (Contributions) (Amendment) Regulations 2003 (S.I. 2003/193), regs. 1(1), 16(4)

[F28Payments of earnings-related contributions in respect of retrospective earningsU.K.

11A.—(1) This paragraph applies where there are retrospective earnings in respect of which contributions (whether primary or secondary contributions) are payable.

(2) The employer shall pay the contributions referred to in sub-paragraph (1) to HMRC within 14 days or, if payment is made in respect of the current year by an approved method of electronic communications, 17 days of the end of the tax month immediately following the tax month in which the relevant retrospective contributions regulations came into  force.]

Textual Amendments

Payment of earnings-related contributions by employer (further provisions)U.K.

12.—[F29(1) The Inland Revenue shall give a receipt to the employer for the total amount paid under paragraph [F3010, 11 or 11A] if so requested, but if a receipt is given for the total amount of earnings-related contributions and any tax paid at the same time, a separate receipt need not be given for earnings-related contributions.]

(2) Subject to sub-paragraph (3), if the employer has paid to the [F31Inland Revenue] on account of earnings-related contributions under paragraph [F3010, 11 or 11A] an amount which he was not liable to pay, or which has been refunded in accordance with regulation 2 of the Social Security (Refunds) (Repayment of Contractual Maternity Pay) Regulations 1990 (refunds of contributions)F32, the amounts which he is liable to pay subsequently in respect of other payments of [F33general earnings] made by him during the same year shall be reduced by the amount overpaid, so however that if there was a corresponding over-deduction from any payment of [F33general earnings] to an employee, this paragraph shall apply only in so far as the employer has reimbursed the employee for that over-deduction.

(3) Sub-paragraph (2) applies only if—

(a)the over-deduction occurred by reason of an error by the employer in good faith;

(b)the over-deduction occurred as a result of the employment in respect of which the payment on account of earnings-related contributions is made being or, as the case may be, becoming contracted-out employment; or

(c)a refund has been made under regulation 2 of the Social Security (Refunds) (Repayment of Contractual Maternity Pay) Regulations 1990.

Textual Amendments

Payment of Class 1B contributionsU.K.

13.—(1) A person who is liable to pay a Class 1B contribution (“the employer”), shall pay that Class 1B contribution to the [F34Inland Revenue] not later than 19th October [F35or, if payment is made by an approved method of electronic communications in respect of earnings paid after 5th April 2004, not later than 22nd October] in the year immediately following the end of the year in respect of which that contribution is payable.

(2) If the employer has paid to the [F34Inland Revenue] under this paragraph an amount in respect of Class 1B contributions which he was not liable to pay, he shall be entitled to deduct the amount overpaid from any payment in respect of secondary earnings-related contributions which he is liable to pay subsequently to the [F34Inland Revenue] under paragraph 10 or 11 for any F36... tax period in the same year.

Textual Amendments

Employer failing to pay earnings-related contributionsU.K.

14.—(1) If within [F3717 days] of the end of any F38... tax period the employer has paid no amount of earnings-related contributions to the [F39Inland Revenue] under paragraph 10 or 11 for that F38... tax period and the [F39Inland Revenue] is unaware of the amount, if any, which the employer is liable so to pay, the [F39Inland Revenue] may give notice to the employer requiring him to render, within 14 days, a return in the prescribed form showing the amount of earnings-related contributions which the employer is liable to pay to the [F39Inland Revenue] under that paragraph in respect of the F38... tax period in question.

(2) Where a notice given by the [F39Inland Revenue] under sub-paragraph (1) extends to two or more consequent income tax periods, the provisions of this Schedule shall have effect as if those F38... tax periods were one F38... tax period.

(3) If the [F39Inland Revenue] is not satisfied that an amount of earnings-related contributions paid F40... under paragraph 10 or 11 for any F38... tax period is the full amount which the employer is liable to payF40..., the [F39Inland Revenue] may give a notice under sub-paragraph (1) despite the payment of that amount.

Textual Amendments

Specified amount of earnings-related contributions payable by the employerU.K.

15.—(1) If after [F4117 days] following the end of any F42... tax period the employer has paid no amount of earnings-related contributions to [F43HMRC] under paragraph 10 or 11 for that F42... tax period and there is reason to believe that the employer is liable to pay such contributions, [F43HMRC], upon consideration of the employer’s record of past payments [F44whether of earnings-related contributions or of combined amounts,] may to the best of [F45their judgment] specify the amount of earnings-related contributions [F46or of a combined amount] which [F47they consider] the employer is liable to pay and give notice to him of that amount.

[F48(1A) For the purposes of this paragraph “combined amount” is an amount which includes earnings-related contributions due under these regulations and one or more of the following—

(a)tax due under the PAYE Regulations;

(b)amounts due under the Income Tax (Construction Industry Scheme) Regulations 2005;

(c)payments of repayments of student loans due under the Education (Student Loans) (Repayment) Regulations 2000.]

(2) If, on the expiration of the period of 7 days allowed in the notice, the specified amount F49... or any part thereof is unpaid, the amount so unpaid—

(a)shall be treated for the purposes of this Schedule as an amount of earnings-related contributions [F50or as including an amount of earnings-related contributions] which the employer was liable to pay for that F42... tax period in accordance with paragraph 10 or 11; and

(b)may be certified by [F51HMRC].

(3) The provisions of sub-paragraph (2) shall not apply if, during the period allowed in the notice, the employer pays to [F52HMRC] the full amount of earnings-related contributions which the employer is liable to pay under paragraph 10 or 11 for that F42... tax period, or the employer satisfies [F52HMRC] that no amount of such contributions is due.

(4) The production of a certificate such as is mentioned in sub-paragraph (2) shall, until the contrary is established, be sufficient evidence that the employer is liable to pay to [F53HMRC] the amount shown in it; and any document purporting to be such a certificate as aforesaid shall be deemed to be such a certificate until the contrary is proved.

Paragraph 16 shall apply, with any necessary modifications, to the amount shown in the certificate.

(5) Where the employer has paid no amount of earnings-related contributions under paragraph 10 or 11 for any F42... tax periods, a notice may be given by [F54HMRC] under sub-paragraph (1) which extends to two or more consecutive F42... tax periods, and this Schedule shall have effect as if those F42... tax periods were the latest F42... tax period specified in the notice.

(6) A notice may be given by [F55HMRC] under sub-paragraph (1) notwithstanding that an amount of earnings-related contributions has been paid F56... by the employer under paragraph 10 or 11 for any F42... tax period, if, after seeking the employer’s explanation as to the amount of earnings-related contributions paid, [F55HMRC] is not satisfied that the amount so paid is the full amount which the employer is liable to pay F56... for that period, and this paragraph shall have effect accordingly, save that sub-paragraph (2) shall not apply if, during the period allowed in the notice, the employer satisfies [F55HMRC] that no further amount of earnings-related contributions is due for the relevant F42... tax period.

(7) Where, during the period allowed in a notice given by [F57HMRC] under sub-paragraph (1), the employer claims, but does not satisfy [F57HMRC], that the payment F58... made in respect of any F42... tax period specified in the notice is [F59or includes] the full amount of earnings-related contributions he is liable to pay to [F57HMRC] for that period, the employer may require [F57HMRC] to inspect the employer’s documents and records as if [F57HMRC] had called upon the employer to produce those documents and records in accordance with [F60Schedule 36 to the Finance Act 2008 (information and inspection powers) and the provisions of paragraph 26A] shall apply in relation to that inspection, and the notice given by [F57HMRC] under sub-paragraph (1) shall be disregarded in relation to any subsequent time.

(8) Notwithstanding anything in this paragraph, if the employer pays any amount of earnings-related contributions certified by [F61HMRC] under it [F62whether separately or as part of a combined amount] and that amount exceeds the amount which he would have been liable to pay in respect of that F42... tax period apart from this paragraph, he shall be entitled to set off such excess against any amount which he is liable to pay to [F61HMRC] under paragraph 10 or 11 for any subsequent F42... tax period.

(9) If, after the end of the year, the employer renders the return required by paragraph 22(1) and the total earnings-related contributions he has paid in respect of that year in accordance with this Schedule exceeds the total amount of such contributions due for that year, any excess not otherwise recovered by set-off shall be repaid.

Textual Amendments

F60Words in Sch. 4 para. 15(7) substituted (1.4.2009) (with effect in accordance with reg. 1(2)(a) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 3) Regulations 2009 (S.I. 2009/600), regs. 1(1), 8(3)

Recovery of earnings-related contributions or Class 1B contributionsU.K.

16.—(1) The F63... Tax Acts and any regulations underF64 [F65section 684 of ITEPA 2003 (PAYE regulations)] relating to the recovery of tax shall apply to the recovery of—

(a)any amount of earnings-related contributions which an employer is liable to pay [F66HMRC] for any F63... tax period in accordance with paragraph 10 or 11 or which he is treated as liable to [F66HMRC] [F67whether separately or as part of a combined amount] for any F63... tax period under paragraph 15; or

(b)any amount of Class 1B contributions which an employer is liable to pay to the [F66HMRC] in respect of any year in accordance with paragraph 13(1),

as if each of those amounts had been charged to tax by way of an assessment on the employer [F68as employment income under ITEPA 2003].

(2) Sub-paragraph (1) is subject to the qualification that, in the application to any proceedings taken, by virtue of this paragraph, of any of the relevant provisions limiting the amount which is recoverable in those proceedings, there shall be disregarded any [F69other component of a combined amount] which may, by virtue of sub-paragraphs (3) to (5), be included as part of the cause of action or matter of complaint in those proceedings.

(3) Proceedings may be brought for the recovery of the total amount of—

(a)earnings-related contributions which the employer is liable to pay to [F70HMRC] for any F63... tax period;

(b)Class 1B contributions which the employer is liable to pay to [F70HMRC] in respect of any year;

(c)a combination of those classes of contributions as specified in heads (a) and (b); or

(d)any of the contributions as specified in heads (a), (b), or (c) in addition to any [F71other component of a combined amount] which the employer is liable to pay to [F70HMRC] for any F63... tax period,

without specifying the respective amount of those contributions and of [F72other component of a combined amount], or distinguishing the amounts which the employer is liable to pay in respect of each employee and without specifying the employees in question.

(4) For the purposes of—

(a)proceedings under section 66 of the Taxes Management Act 1970 F73 (including proceedings under that section as applied by the provisions of this paragraph);

(b)summary proceedings (including in Scotland proceedings in the sheriff court or in the sheriff’s small debt court),

the total amount of contributions, in addition to any [F74other component of the combined amount] which the employer is liable to pay to [F75HMRC] for any F63... tax period, referred to in sub-paragraph (3) shall, subject to sub-paragraph (2), be one cause of action or one matter of complaint.

(5) Nothing in sub-paragraph (3) or (4) shall prevent the bringing of separate proceedings for the recovery of each of the several amounts of—

(a)earnings-related contributions which the employer is liable to pay for any F63... tax period in respect of each of his several employees;

(b)Class 1B contributions which the employer is liable to pay in respect of any year in respect of each of his several employees; F76...

(c)tax which the employer is liable to pay for any F63... tax period in respect of each of his several employees.

[F77(d)amounts due under the Income Tax (Construction Industry Scheme) Regulations 2005; or

(e)payments of repayments of student loans due under the Education (Student Loans) (Repayment) Regulations 2000.]

[F78(6) For the purposes of this paragraph “combined amount” has the meaning given in paragraph 15(1A).]

Textual Amendments

F64Section 203 was amended by section 128 of, and paragraph 4 of Schedule 3 to, the Finance Act 1988 (c. 39), section 45(3) of the Finance Act 1989 (c. 26), paragraph 38 of Part II of Schedule 19 and item (23) of Part V of Schedule 26 to, the Finance Act 1994 (c. 9) and section 119 of the Finance Act 1998 (c. 36).

Interest on overdue earnings-related contributions or Class 1B contributionsU.K.

17.—(1) [F79Subject to [F80sub-paragraph (4A) and] paragraph 21], where, in relation to the year ended 5th April 1993 or any subsequent year, an employer has not—

(a)within 14 days [F81or, if payment is made by an approved method of electronic communications in respect of earnings paid after 5th April 2004, 17 days] of the end of the year paid an earnings-related contribution which he is liable to pay in respect of that year; or

(b)paid a Class 1B contribution by 19th October [F82or, if payment is made by an approved method of electronic communications in respect of earnings paid after 5th April 2004, not later than 22nd October] next following the year in respect of which it was due,

any contribution not so paid shall carry interest at the rate applicable under paragraph 6(3) of Schedule 1 to the Act from the reckonable date until payment.

(2) Interest payable under this paragraph shall be recoverable as if it were an earnings-related contribution or a Class 1B contribution, as the case may be, in respect of which an employer is liable under paragraph 10, 11, or 13 to pay to [F83HMRC].

(3) For the purposes of this paragraph—

(a)“employer” means, in relation to a Class 1B contribution, the person liable to pay such a contribution in accordance with section 10A of the ActF84;

(b)“the reckonable date” means, in relation to—

(i)an earnings-related contribution, the 14th day [F85or, if payment was made by an approved method of electronic communications in respect of earnings paid after 5th April 2004, the 17th day] after the end of the year in respect of which it was due;

(ii)a Class 1B contribution, the 19th October [F86or, if payment was made by an approved method of electronic communications in respect of earnings paid after 5th April 2004, the 22nd October] next following the year in respect of which it was due.

[F87(iii)a contribution payable in respect of retrospective earnings relating to a tax year which is closed at the time that the relevant retrospective contributions regulations come into force, the 14th day after the end of the tax month immediately following the tax month in which those regulations came into force.]

(4) A contribution to which sub-paragraph (1) applies shall carry interest from the reckonable date even if the date is a non-business day within the meaning of section 92 of the Bills of Exchange Act 1882F88.

[F89(4A) Where an employer has not paid contributions in respect of retrospective earnings relating to a closed tax year by the date set out in paragraph 11A, any contribution not so paid shall carry interest at the rate applicable under paragraph 6(3) of Schedule 1 to the Act from the reckonable date until payment.]

[F90(5) A certificate of [F91HMRC] that, to the best of their knowledge and belief, any amount of interest payable under this paragraph has not been paid by an employer or employee is sufficient evidence that the amount mentioned in the certificate is unpaid and due to be paid, and any document purporting to be such a certificate shall be presumed to be a certificate until the contrary is proved.]

[F92(6) HMRC may prepare a certificate certifying the total amount of interest payable in respect of the whole or any component of a combined amount without specifying what component of the combined amount the interest relates to.

Sub-paragraph (5) shall apply, with any necessary modifications, to the certificate.

(7) For the purposes of this paragraph “combined amount” has the meaning given in paragraph 15(1A).]

Textual Amendments

F84Section 10A was inserted by section 53 of the Social Security Act 1998 (c. 14).

F881882 c. 61. Section 92 was amended by sections 3(1) and (3) and 4(4) of the Banking and Financial Dealings Act 1971 (c. 80).

[F93Application of paragraphs 16 and 17 in cases of wilful failure to payU.K.

17A.—(1) If regulation 86(1)(a) applies paragraphs 16 and 17 shall apply to the employed earner to the extent of the primary contribution which the secondary contributor wilfully failed to pay.

(2) For the purpose of sub-paragraph (1) any reference in paragraph 16 and 17 to an employer shall be construed as a reference to the employed earner.]

Textual Amendments

Payment of interest on repaid earnings-related contributions or Class 1B contributionsU.K.

18.—(1) Where an earnings-related contribution paid by an employer in respect of the year ended 5th April 1993 or any subsequent year not later than the year ended 5th April 1999 is repaid to him and that repayment is made after the relevant date, any such repaid contribution shall carry interest at the rate applicable under paragraph 6(3) of Schedule 1 to the Act from the relevant date until the order for the repayment is issued.

(2) For the purposes of sub-paragraph (1) “the relevant date” is—

(a)in the case of an earnings-related contribution overpaid more than 12 months after the end of the year in respect of which the payment was made, the last day of the year in which it was paid; and

(b)in any other case, the last day of the year after the year in respect of which the contribution in question was paid.

(3) Where an earnings-related contribution or a Class 1B contribution paid by an employer in respect of the year ended 5th April 2000 or any subsequent year is repaid to him and that repayment is made after the relevant date, any such repaid contribution shall carry interest at the rate applicable under paragraph 6(3) of Schedule 1 to the Act from the relevant date until the order for the repayment is issued.

(4) For the purpose of sub-paragraph (3) “the relevant date” is—

(a)in the case of—

(i)an earnings-related contribution, the 14th day after the end of the year in respect of which that contribution was paid; or

(ii)a Class 1B contribution, the 19th October next following the year in respect of which that contribution was paid; or

(b)the date on which the earnings-related contribution or Class 1B contribution was paid if that date is later than the date referred to in paragraph (a).

Repayment of interestU.K.

19.  Where a secondary contributor or a person liable to pay a Class 1B contribution has paid interest on an earnings-related contribution or a Class 1B contribution, that interest shall be repaid to him [F94if]—

(a)the interest paid is found not to have been due to be paid, although the contribution in respect of which it was paid was due to be paid;

(b)the earnings-related contribution or Class 1B contribution in respect of which interest was paid is returned or repaid to him in accordance with the provisions of regulation [F9552, 52A or 55].

Textual Amendments

F95Words in Sch. 4 para. 19(b) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions, Categorisation of Earners and Intermediaries) (Amendment) Regulations 2004 (S.I. 2004/770), regs. 1(1), 32(11)

Remission of interest for official errorU.K.

20.—(1) Where interest is payable in accordance with paragraph 17 it shall be remitted for the period commencing on the first relevant date and ending on the second relevant date in the circumstances specified in sub-paragraph (2).

(2) For the purposes of sub-paragraph (1), the circumstances are that the liability, or a greater liability, to pay interest in respect of an earnings-related contribution or a Class 1B contribution arises as the result of an official error being made.

(3) In this paragraph—

(a)“an official error” means a mistake made, or something omitted to be done, by an officer of the Board, where the employer or any person acting on his behalf has not caused, or materially contributed to, that mistake or omission;

(b)“the first relevant date” means the reckonable date as defined in paragraph 17(3) or, if later, the date on which the official error occurs;

(c)“the second relevant date” means the date 14 days after the date on which the official error has been rectified and the employer is advised of its rectification.

Application of paragraphs 10, 12, 16, 17, 18, 19 and 20U.K.

21.—(1) This paragraph applies where—

(a)secondary Class 1 contributions are payable in respect of [F96relevant employment income; and]

(b)an amount or proportion (as the case may be) of the liability of the secondary contributor to those contributions is transferred to the employed earner by an election made jointly by them for the purposes of paragraph 3B(1) of Schedule 1 to the Act F97.

(2) Paragraphs 10, 12, 16, 17, 18, 19 and 20 shall apply to the employed earner to the extent of the liability transferred by the election and, to that extent, those paragraphs shall not apply to the employer.

(3) For the purposes of sub-paragraph (2)—

(a)any reference in paragraphs 10, 12, 16, 17, 18 and 20 to an employer; and

(b)the reference in paragraph 19 to a secondary contributor,

shall be construed as a reference to the employed earner to whom the liability is transferred by the election.

Textual Amendments

F96Words in Sch. 4 para. 21(1)(a) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 4) Regulations 2004 (S.I. 2004/2096), regs. 1(1), 7(c)

F97Paragraph 3B was inserted into Schedule 1 by section 77(2) of the Child Support, Pensions and Social Security Act 2000.

Return by employer at end of yearU.K.

22.—(1) [F98Before 20th May following the end of the year the employer shall render to [F99HMRC] in such form as they may approve or prescribe], a return showing in respect of each employee, in respect of whom he was required at any time during the year to prepare or maintain a deductions working sheet in accordance with this Schedule—

(a)such particulars as [F99HMRC] may require for the identification of the employee,

(b)the year to which the return relates,

(c)in respect of each and under each of the category letters, the total amounts for the year shown under—

(i)each of [F100sub-paragraphs (i) to (v)] severally of paragraph 7(13)(b) (such amounts being rounded down to the next whole pound if not already whole pounds) in the case of paragraphs (i) to (iii)),

F101(ii). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F102(iii). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d)the total amount of any statutory maternity pay paid during the year; F103...

[F104(da)the total amount of statutory paternity pay paid during the year;

(db)the total amount of statutory adoption pay paid during the year; and]

(e)the total amounts he is entitled to deduct under regulation 5 of the Reimbursement Regulations.

(2) The return required by sub-paragraph (1) shall include a statement and declaration in the form approved or prescribed by [F99HMRC] containing a list of all deductions working sheets on which the employer was obliged to keep records in accordance with this Schedule in respect of that year, and shall also include a certificate showing—

(a)the total amount of earnings-related contributions payable by him in respect of each employee during that year;

(b)the total amount of earnings-related contributions payable in respect of all his employees during that year;

(c)in relation to any contracted-out employment the number notified by [F99HMRC] on the relevant contracting-out certificate as the employer’s number;

(d)in respect of statutory maternity pay paid during that year to all his employees, the total of amounts determined under regulation 3 of the Compensation of Employers Regulations and deducted by virtue of regulation 4 of those Regulations; F105...

[F106(da)in respect of statutory paternity pay paid during that year to all his employees the total of the amounts determined under regulation 5 of the Statutory Paternity Pay and Statutory Adoption Pay (Administration) Regulations 2002;

(db)in respect of statutory adoption pay paid during that year to all his employees the total of the amounts determined under regulation 5 of the Statutory Paternity Pay and Statutory Adoption Pay (Administration) Regulations 2002; and]

(e)the total amount deducted under regulation 8 of the Reimbursement Regulations in respect of all his qualifying employees in that year.

[F107(2A) Where a liability arises to pay contributions in respect of retrospective earnings relating to a closed tax year, the employer shall render a replacement return, or where necessary prepare one, in respect of the employee for that closed tax year before 20th May following the end of the year in which the relevant retrospective contributions regulations came into force, in accordance with paragraphs (a) to (c) of sub-paragraph (1), setting out the revised earnings and earnings-related contributions.

(2B) The return required by sub-paragraph (2A) shall include a statement and declaration in a form prescribed by HMRC containing a list of all deductions working sheets in accordance with paragraph 6(1A) of this Schedule in respect of that year, and shall also include a certificate showing—

(a)the total amount of earnings-related contributions originally payable (in accordance with sub-paragraph (2)(a)) in respect of each employee to whom sub-paragraph (2A) applies;

(b)the total amount of earnings-related contributions originally payable (in accordance with sub-paragraph (2)(b)) in respect of all employees to whom sub-paragraph (2A) applies;

(c)the total amount of revised earnings-related contributions payable in respect of each of those employees;

(d)the total amount of revised earnings-related contributions payable in respect of all those employees,

(e)the difference between the amount certified in paragraph (b) and paragraph (d) of this sub-paragraph in respect of all of those employees;

(f)in relation to any contracted-out employment the number notified by HMRC on the relevant contracting-out certificate as the employer’s number.]

(3) If paragraph 25 applies, the return required by sub-paragraph (1) and the certificate required by sub-paragraph (2) shall include the information specified in that paragraph.

(4) If the employer is a body corporate, [F108the declarations] and [F109the certificates] referred to in [F110sub-paragraphs (2) and (2B)] shall be signed by the secretary or by a director of the body corporate.

(5) If, within 14 days of the end of any year, an employer has failed to pay to the [F99HMRC] the total amount of earnings-related contributions which he is liable so to pay, the [F99HMRC] may prepare a certificate showing the amount of such contributions remaining unpaid for the year in question, excluding any amount deducted by the employer by virtue of the Compensation of Employers Regulations.

The provisions of paragraph 17 shall apply with any necessary modifications to the amount shown in that certificate.

(6) Notwithstanding sub-paragraphs (2) to (5), [F111the returns referred to in sub-paragraphs (1) and (2A)] may be made in such other form as [F99HMRC] and the employer approve, and in that case—

(a)sub-paragraphs (2) to (5) shall not apply; and

(b)the making of [F112the returns] shall be subject to such conditions as [F99HMRC] may direct as to the method of making it.

(7) [F113Section 98A of the Taxes Management Act 1970 (special penalties in the case of certain returns) and Schedule 24 to the Finance Act 2007 (penalties for errors) as that Schedule applies to income tax returns] as modified by the provisions of paragraph 7 of Schedule 1 to the Act shall apply in relation to the requirement to make a return contained in sub-paragraph (1) [F114and (2A)].

Textual Amendments

F100Words in Sch. 4 para. 22(1)(c)(i) substituted (with effect in accordance with reg. 1(1) of the amending S.I.) by The Social Security (Contributions) (Amendment) Regulations 2003 (S.I. 2003/193), regs. 1(1), 16(5)(a)(i)

F101Sch. 4 para. 22(1)(c)(ii) omitted (with effect in accordance with reg. 1(1) of the amending S.I.) by virtue of The Social Security (Contributions) (Amendment) Regulations 2003 (S.I. 2003/193), regs. 1(1), 16(5)(a)(ii)

F102Sch. 4 para. 22(1)(c)(iii) omitted (with effect in accordance with reg. 1(1) of the amending S.I.) by virtue of The Social Security (Contributions) (Amendment) Regulations 2003 (S.I. 2003/193), regs. 1(1), 16(5)(a)(ii)

F103Word in Sch. 4 para. 22(1)(d) omitted (with effect in accordance with reg. 1(1) of the amending S.I.) by virtue of The Social Security (Contributions) (Amendment) Regulations 2003 (S.I. 2003/193), regs. 1(1), 16(5)(b)

F104Sch. 4 para. 22(1)(da)-(db) inserted (with effect in accordance with reg. 1(1) of the amending S.I.) by The Social Security (Contributions) (Amendment) Regulations 2003 (S.I. 2003/193), regs. 1(1), 16(5)(b)

F105Word in Sch. 4 para. 22(2)(d) omitted (with effect in accordance with reg. 1(1) of the amending S.I.) by virtue of The Social Security (Contributions) (Amendment) Regulations 2003 (S.I. 2003/193), regs. 1(1), 16(5)(c)

F106Sch. 4 para. 22(2)(da)-(db) inserted (with effect in accordance with reg. 1(1) of the amending S.I.) by The Social Security (Contributions) (Amendment) Regulations 2003 (S.I. 2003/193), regs. 1(1), 16(5)(c)

[F115Additional return by employer at end of year where liability transferred to employed earner: elections under paragraph 3B(1) of Schedule 1 to the Act.]U.K.

23.—(1) This paragraph applies where—

(a)secondary Class 1 contributions are payable in respect of [F116relevant employment income; and]

(b)an amount or proportion (as the case may be) of the liability of the secondary contributor for those contributions is transferred to the employed earner by an election made jointly by them for the purposes of paragraph 3B(1) of Schedule 1 to the Act.

(2) [F117Before 7th July after the end of the year the employer shall deliver to the Inland Revenue], in respect of each employed earner to whom any liability is transferred by the election, written particulars of the matters set out in sub-paragraph (3).

(3) The matters set out in this paragraph are—

(a)the amount of the contributions referred to in sub-paragraph (1)(a);

(b)the amount of the transferred liability; and

(c)the date on which payment of the amount of the transferred liability was made to the [F118Inland Revenue].

Textual Amendments

F115Sch. 4 para. 23 heading substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 4) Regulations 2004 (S.I. 2004/2096), regs. 1(1), 7(d)

F116Words in Sch. 4 para. 23(1)(a) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 4) Regulations 2004 (S.I. 2004/2096), regs. 1(1), 7(e)

Special return by employer at end of voyage periodU.K.

24.—(1) This paragraph applies where earnings-related contributions are assessed in accordance with regulation 120(4) or (5) (earnings periods for mariners and apportionment of earnings).

(2) Not later than 14 days after the end of the voyage period the employer shall render to the [F119Inland Revenue] in such form as the [F119Inland Revenue] may authorise a return in respect of each mariner showing—

(a)his name, discharge book number and national insurance number;

(b)the earnings periods and the amounts of [F120general earnings] apportioned to each such period in the voyage period;

(c)the appropriate category letter for each apportionment of [F120general earnings];

(d)the amounts of all the earnings-related contributions payable on each apportionment of [F120general earnings] otherwise than under paragraph 7(3);

(e)the amounts of primary Class 1 contributions included in the amounts shown under paragraph (d) for each apportionment of [F120general earnings];

(f)where the employment is contracted-out employment for any part of the voyage period—

(i)the amounts of that part of the contributions shown under paragraph (e) which were payable on earnings above the primary threshold, if primary Class 1 contributions were payable at the reduced rate, and

(ii)the number notified by the [F119Inland Revenue] on the relevant contracting-out certificate as the employer’s number;

(g)the total amount of any earnings in respect of which primary Class 1 contributions were payable, other than earnings from non-contracted-out employment in respect of which primary Class 1 contributions were payable at the reduced rate; and

(h)the total amounts he is entitled to deduct under regulation 5 or 6 of the Reimbursement Regulations in relation to each apportionment of [F120general earnings].

Textual Amendments

Return by employer of recovery under the Statutory Sick Pay Percentage Threshold OrderU.K.

25.—(1) This paragraph applies where an employer recovers any amount in respect of statutory sick pay payments made by him in any F121... tax month in accordance with article 2 of the Statutory Sick Pay Percentage Threshold Order 1995 F122 (right of employer to recover statutory sick pay).

(2) The information required pursuant to paragraph 23(3) to be included—

(a)in the return, is, in respect of each employee, the total amount of statutory sick pay the employer paid in each F121... tax month in respect of which he made that recovery; and

(b)in the certificate, is the total amount of statutory sick pay the employer recovered in the F121... tax year.

Textual Amendments

[F123Retention by employer of contribution and election recordsU.K.

26.—(1) An employer must keep and preserve all contribution records which are not required to be sent to HMRC by other provisions in these Regulations for not less than—

(a)three years after the end of the tax year to which they relate; or

(b)for documents or records relating to information about the amounts of Class 1A and Class 1B contributions, three years after the end of the year in which a contribution became payable.

(2) The duty under paragraph (1) may be discharged by preserving the contribution records in any form or by any means.

(3) Where an election has been made jointly by the secondary contributor and the employed earner for the purposes of paragraph 3B(1) of Schedule 1 to the Act, the records which the secondary contributor is obliged by paragraph 8 to maintain shall be retained by the secondary contributor throughout the period for which the election is in force and for six years after the end of that period.

(4) In this paragraph “contribution records” means wages sheets, deductions working sheets (other than deductions working sheets issued under regulation 35 of the PAYE Regulations (simplified deduction schemes: records)) and other documents or records relating to—

(a)the calculation of payment of earnings to the employer's employees or the amount of the earnings-related contributions payable for those earnings;

(b)the amount of any Class 1A contributions or Class 1B contributions payable by the employer; and

(c)any information about the amounts of Class 1A and Class 1B contributions.

(5) For the purposes of this paragraph “employer”—

(a)includes, in relation to a Class 1A contribution, the person liable to pay such a contribution in accordance with section 10ZA of the Act (liability of third party provider of benefits in kind); and

(b)means, in relation to a Class 1B contribution, the person liable to pay such a contribution in accordance with section 10A of the Act.

Textual Amendments

F123Sch. 4 para. 26-26A substituted for Sch. 4 para. 26 (1.4.2009) (with effect in accordance with reg. 1(2)(a) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 3) Regulations 2009 (S.I. 2009/600), regs. 1(1), 8(4)

Certificate of employer's liability to pay contributions after inspection of documentsU.K.

26A.—(1) An officer of Revenue and Customs may, by reference to the information obtained from an inspection of the documents and records produced under Schedule 36 to the Finance Act 2008 (information and inspection powers), and on the occasion of each inspection, prepare a certificate showing—

(a)the amount of earnings-related contributions which it appears that the employer is liable to pay to HMRC, excluding any amount deducted by the employer by virtue of the Compensation of Employers Regulations for the years or tax periods covered by the inspection; or

(b)the amount of any Class 1B contributions which it appears that the employer is liable to pay to HMRC for the years covered by the inspection, or such an amount in addition to an amount referred to in paragraph (a);

together with any amount of earnings-related contributions or Class 1B contributions or a combination of those classes of contributions, which has not been paid to HMRC or, to the best of the officer's knowledge and belief, to any other person to whom it might lawfully be paid.

(2) The production of a certificate mentioned in sub-paragraph (1) shall, unless the contrary is proved, be sufficient evidence that the employer is liable to pay to HMRC in respect of the years or, as the case may be, tax periods mentioned in the certificate, the amount shown in the certificate as unpaid; and any document purporting to be such a certificate shall be treated as such a certificate until the contrary is proved.

(3) The provisions of paragraph 16 shall apply with any necessary modifications to the amount shown in such a certificate.

(4) For the purposes of this paragraph “employer” has the meaning given by paragraph 26(5).]

Textual Amendments

F123Sch. 4 para. 26-26A substituted for Sch. 4 para. 26 (1.4.2009) (with effect in accordance with reg. 1(2)(a) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 3) Regulations 2009 (S.I. 2009/600), regs. 1(1), 8(4)

Death of an employerU.K.

27.  If an employer dies, anything which he would have been liable to do under this Schedule shall be done by his personal representatives, or, in the case of an employer who paid [F124general earnings] on behalf of another person, by the person succeeding him or, if no person succeeds him, the person on whose behalf he paid [F124general earnings].

Textual Amendments

Succession to a business, etcU.K.

28.—(1) This paragraph applies where there has been a change in the employer from whom an employee receives [F124general earnings] in respect of his employment in any trade, business, concern or undertaking, or in connection with any property, or from whom an employee receives any annuity other than a pension.

(2) Where this paragraph applies, in relation to any matter arising after the change, the employer after the change shall be liable to do anything which the employer before the change would have been liable to do under this Schedule if the change had not taken place.

(3) Sub-paragraph (2) is subject to the qualification that the employer after the change shall not be liable for the payment of any earnings-related contributions which were deductible from emoluments paid to the employee before, unless they are also deductible from emoluments paid to [F125the employee after], the change took place, or of any corresponding employer’s earnings-related contributions.

Textual Amendments

Payments by chequeU.K.

29.—(1) Sub-paragraph (2) applies for the purposes of paragraphs 10, 11, 13, 15, 17 and 18.

(2) If any payment to the [F126Inland Revenue] is made by cheque, and the cheque is paid on its first presentation to the banker on whom it is drawn, the payment shall be treated as made on the day on which the cheque was received by the [F126Inland Revenue], and “pay”, “paid”, “unpaid” and “overpaid” shall be construed accordingly.

Textual Amendments

Back to top

Options/Help

Print Options

You have chosen to open The Whole Instrument

The Whole Instrument you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Instrument as a PDF

The Whole Instrument you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open the Whole Instrument

The Whole Instrument you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open Schedules only

The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

Close

Legislation is available in different versions:

Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.

Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.

Point in Time: This becomes available after navigating to view revised legislation as it stood at a certain point in time via Advanced Features > Show Timeline of Changes or via a point in time advanced search.

Close

See additional information alongside the content

Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.

Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.

Close

Opening Options

Different options to open legislation in order to view more content on screen at once

Close

More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources
Close

Timeline of Changes

This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.

Close

More Resources

Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as made version that was used for the print copy
  • correction slips

Click 'View More' or select 'More Resources' tab for additional information including:

  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • links to related legislation and further information resources