SCHEDULE 1 PROVISIONS CONFERRING POWERS EXERCISED IN MAKING THESE REGULATIONS
In this Schedule—
“the 1998 Act” means the Social Security Act 1998 F1;
“the 1988 Order” means the Social Security (Northern Ireland Order 1998 F2;
“the 2000 Act” means the Child Support, Pensions and Social Security Act 2000 F3;
“the Transfer Act” means the Social Security Contributions (Transfer of Functions, etc.) Act 1999 F4
“the Transfer Order” means the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 F5; and
“the Welfare Reform Act” means the Welfare Reform and Pensions Act 1999 F6.
PART I POWERS EXERCISED BY THE TREASURY
Column (1) | Column (2) |
|---|---|
Enabling power | Relevant amendment |
Social Security Contributions and Benefits Act 1992 F7 | |
Section 1(6) and (7) | Paragraph 56(3) of Schedule 7 to the 1998 Act and paragraph 1(3) of Schedule 3 to the Transfer Act. |
Section 3(2), (2A), (3) and (5) | Section 48 and 49 of the 1998 Act and paragraph 3 of Schedule 3 to the Transfer Act. |
Section 4(5), (6) and (7) | Section 50 of the 1998 Act, paragraph 4 of Schedule 3 to the Transfer Act and section 74(3) of the 2000 Act. |
Section 5(1), (4) and (6) | Paragraph 1 of Schedule 9 to the Welfare Reform Act. |
Section 6(3), (6) and (7) | Paragraph 2 of Schedule 9 to the Welfare Reform Act. |
Section 6A(2) and (7) F8 | Paragraph 3 of Schedule 9 to the Welfare Reform Act. |
Section 10(9) F9 | |
Section 10A(7) F10 | Paragraph 11 of Schedule 3 to the Transfer Act. |
Section 11(3), (4) and (5) | Paragraph 12 of Schedule 3 to the Transfer Act and article 3 of S.I. 2001/477. |
Section 12(6) | Paragraph 13 of Schedule 3 to the Transfer Act. |
Section 13(1) and (7) | Paragraph 14(2) and (4) of Schedule 3 to the Transfer Act, and article 4 of S.I. 2001/477. |
Section 14(1), (2) and (5) | Paragraph 15 of Schedule 3 to the Transfer Act. |
Section 19(1) to (5A) | Paragraph 19(2) of Schedule 3 to the Transfer Act. |
Section 19A(2) and (3) F11 | Paragraph 20 of Schedule 3, and paragraph 4 of Schedule 9, to the Transfer Act. |
Section 116(2) and (3) | Paragraph 28 of Schedule 2 to the Jobseekers Act 1995, paragraph 67 of Schedule 7 to the 1998 Act and paragraph 22 of Schedule 3, and paragraph 5 of Schedule 7 to the Transfer Act. F12 |
Section 117 | Paragraph 68 of Schedule 7 to the 1998 Act and paragraph 23 of Schedule 3 to, and paragraph 6 of Schedule 7 to, the Transfer Act. |
Section 118 | Paragraph 24 of Schedule 3 to the Transfer Act. |
Section 119 | Paragraph 69 of Schedule 7 to the 1998 Act and paragraph 25 of Schedule 3, and paragraph 7 of Schedule 7 to, the Transfer Act. |
Section 120 | Paragraph 70 of Schedule 7 to the 1998 Act and paragraph 26 of Schedule 3, and paragraph 8 of Schedule 7 to the Transfer Act. |
Section 122(1) F13 | |
Section 175(3), (4) and (5) | Paragraph 29(4) of Schedule 3 to the Transfer Act. |
Schedule 1 | |
Paragraph 7A F14 | Paragraph 37 of Schedule 3 to, and paragraph 6 of Schedule 9 to, the Transfer Act. |
Paragraph 7B F15 | Paragraph 38 of Schedule 3, and paragraph 7 of Schedule 9, and the relevant entry in Part I of Schedule 10, to the Transfer Act, and section 76(3) and (4) of the 2000 Act. |
Paragraph 8(1)(a), (c), (ca) F16, (e), (f), (g), (h), (ia) F17 , (j), (k), (l), (m) and (q) and (1A) F18 | Paragraph 14 of Schedule 5 to the Pensions Act 1995 F19, paragraph 77(15) and (16) of Schedule 7 to the 1998 Act, paragraph 39 of Schedule 3 to the Transfer Act and section 74(5) and 77(4) and (5) of the 2000 Act. |
Paragraph 11 | Paragraph 41 of Schedule 3 to the Transfer Act. |
Social Security Contributions and Benefits (Northern Ireland) Act 1992 F20 | |
Section 1(6) and (7) | Paragraph 38(3) of Schedule 6 to the 1998 Order and paragraph 2 of Schedule 3 to the Transfer Order. |
Section 3(2), (2A), (3) and (5) | Articles 45 and 46 of the 1998 Order and paragraph 4 of Schedule 3 to the Transfer Order. |
Section 4(5), (6) and (7) | Paragraph 5 of Schedule 3 to the Transfer Order and section 78(3) of the 2000 Act. |
Section 5(1), (4) and (6) | Paragraph 1 of Schedule 10 to the Welfare Reform Act. |
Section 6(3), (6) and (7) | Paragraph 2 of Schedule 10 to the Welfare Reform Act. |
Section 6(A)(2) and (7) F21 | |
Section 10(9) F22 | |
Section 10A(7) F23 | Paragraph 12 of Schedule 3 to the Transfer Order. |
Section 11(3), (4) and (5) | Paragraph 13 of Schedule 3 to the Transfer Order and article 3 of S.I. 2001/477. |
Section 12(6) | Paragraph 14 of Schedule 3 to the Transfer Order. |
Section 13(1) and (7) | Paragraph 15(2) and (4) of Schedule 3 to the Transfer Order and article 4 of S.I. 2001/477. |
Section 14(1), (2) and (5) | Paragraph 16 of Schedule 3 to the Transfer Order. |
Section 19(1) to (5A) | Paragraph 19(2) of Schedule 3 to the Transfer Order. |
Section 116(2) and (3) | Paragraph 11 of Schedule 2 to the Jobseekers (Northern Ireland) Order 1995, paragraph 49 of Schedule 6 to the 1998 Order and paragraph 22 of Schedule 3, and paragraph 4 of Schedule 6 to the Transfer Order. F24 |
Section 117 | Paragraph 50 of Schedule 6 to the 1998 Order and paragraph 23 of Schedule 3, and paragraph 5 of Schedule 6 to, the Transfer Order. |
Section 118 | Paragraph 24 of Schedule 3 to the Transfer Order. |
Section 119 | Paragraph 51 of Schedule 6 to the 1998 Order and paragraph 25 of Schedule 3, and paragraph 6 of Schedule 6 to the Transfer Order. |
Section 121(1) F25 | |
Section 171(3), (4), (5) and (10) F26 | Paragraph 36 of Schedule 1 to the Social Security (Incapacity for Work) (Northern Ireland) Order 1994 F27 |
Schedule 1 | |
Paragraph 7A F28 | Paragraph 36 of Schedule 3, and paragraph 4 of Schedule 8, to the Transfer Order. |
Paragraph 7B F29 | Paragraph 37 of Schedule 3, and paragraph 5 of Schedule 8, and the relevant entry in Part 1 of Schedule 9 to the Transfer Order and section 80(3) and (4) of the 2000 Act. |
Paragraph 8(1)(a), (c), (ca) F30, (e), (f), (g), (h), (ia) F31, (j), (k), (l), (m) and (q) and (1A) F32 | Paragraph 11 of Schedule 3 to the Pensions (Northern Ireland) Order 1995 F33, paragraph 58(15) and (16) of Schedule 6 to the 1998 Order, paragraph 38 of Schedule 3 to the Transfer Order and sections 78(5) and 81(4) and (5) of the 2000 Act. |
Paragraph 10 | Paragraph 19 of Schedule 21 to the Friendly Societies Act 1992 and paragraph 40 of Schedule 3 to the Transfer Order. F34 |
PART II POWERS EXERCISED BY THE COMMISSIONERS OF THE INLAND REVENUE
Column (1) | Column (2) |
|---|---|
Enabling power | Relevant amendment |
Social Security Contributions and Benefits Act 1992 | |
Section 17(1), (2), (3) and (4) | Paragraph 6 of Schedule 1, paragraph 17 of Schedule 3, and the relevant entry in Part I of Schedule 10 to, the Transfer Act. |
Section 18 | Paragraph 7 of Schedule 1, and paragraph 18 of Schedule 3, to the Transfer Act and article 5 of S.I. 2001/477. |
Section 122(1) F35 | |
Schedule 1 | |
Paragraph 1 | Section 148(2), (3) and (4) of the Pensions Act 1995, paragraph 77(2), (3) and (4) of Schedule 7 to the 1998 Act, paragraph 31 of Schedule 3 to the Transfer Act and paragraph 78(2) to (5) of Schedule 12 to, and Part VI of Schedule 13, to the Welfare Reform Act. |
Paragraph 2 | Paragraph 32 of Schedule 3 to the Transfer Act. |
Paragraph 3 | Section 55 of, and paragraph 77(5) of Schedule 7 to the 1998 Act, paragraph 33 of Schedule 3 to the Transfer Act, section 77(1) of and Part VIII of Schedule 9 to the 2000 Act. |
Paragraph 3B(11) F36 | |
Paragraph 4 | Paragraph 16 of Schedule 1 and paragraph 34 of Schedule 3 to the Transfer Act. |
Paragraph 5 | Paragraph 77(6) of Schedule 7 to the 1998 Act, paragraph 34 of Schedule 3 to the Transfer Act and section 74(4) of the 2000 Act. |
Paragraph 5A F37 | Paragraph 34 of Schedule 3 to the Transfer Act. |
Paragraph 6 | Paragraph 77(8), (9), and (11) of Schedule 7 to, and the relevant entry in Schedule 8 to the 1998 Act and paragraph 17 of Schedule 1, paragraph 35 of Schedule 3, paragraph 9 of Schedule 7, paragraph 5 of Schedule 9, and the relevant entry in Part 1 of Schedule 10, to the Transfer Act |
Paragraph 7BA F38 | |
The Social Security Administration Act 1992 F39 | |
Section 113 | Section 60 of the 1998 Act, paragraph 5 of Schedule 5 to the Transfer Act and paragraph 7 of Schedule 6 to the 2000 Act. |
Section 162(12) | Paragraph 52(11) of Schedule 3 to the Transfer Act. |
Section 191 F40 | |
Social Security Contributions and Benefit (Northern Ireland) Act 1992 | |
Section 17 | Paragraph 7 of Schedule 1, paragraph 17 of Schedule 3, and the relevant entry in Part I of Schedule 9 to, the Transfer Order. |
Section 18 | Paragraph 8 of Schedule 1 to, and paragraph 18 of Schedule 3 to the Transfer Order and article 5 of S.I. 2001/477. |
Section 121(1) F41 | |
Schedule 1 | |
Paragraph 1 | Article 145(2), (3) and (4) of the Pensions (Northern Ireland) Order 1995, paragraph 58(1) to (4) of Schedule 6 to the 1998 Order, paragraph 30 of Schedule 3 to the Transfer Order and paragraph 86(2) to (5) of Schedule 12, and the relevant entry in Part VI of Schedule 13 to, the Welfare Reform Act. |
Paragraph 2 | Paragraph 31 of Schedule 3 to the Transfer Order. |
Paragraph 3 | Article 52 of, and paragraph 58(5) of Schedule 6 to, the 1998 Order, paragraph 32 of Schedule 3 to the Transfer Order, section 81(1) of, and the relevant entry in Part VIII of Schedule 9 to, the 2000 Act. |
Paragraph 3B(11) F42 | |
Paragraph 4 | Paragraph 16 of Schedule 1, and paragraph 33 of Schedule 3 to the Transfer Order. |
Paragraph 5 | Paragraph 58(6) of Schedule 7 to the 1998 Order, paragraph 34 of Schedule 3 to the Transfer Order and section 78(4) of the 2000 Act. |
Paragraph 5A F43 | Paragraph 33 of Schedule 3 to the Transfer Order. |
Paragraph 6 | Paragraph 58(8), (9) and (11) of Schedule 6, and the relevant entry in Schedule 7, to the 1998 Order, paragraph 20 of Schedule 1, paragraph 34 of Schedule 3, paragraph 7 of Schedule 6, paragraph 3 of Schedule 8, and the relevant entry in Part I of Schedule 9 to the Transfer Order. |
Paragraph 7BA F44 | |
Social Security Administration (Northern Ireland) Act 1992 F45 | |
Section 107 | Article 56 of the 1998 Order, paragraph 5 of Schedule 4 to the Transfer Order and paragraph 7 of Schedule 6 to the Child Support, Pensions and Social Security Act (Northern Ireland) 2000. F46 |
Section 142(12) | Paragraph 45(12) of Schedule 3 to the Transfer Order. |
Section 167(1) F47 | |
Finance Act 1999 F48 | |
Section 133(1) | |
SCHEDULE 2 CALCULATION OF EARNINGS FOR THE PURPOSES OF EARNINGS-RELATED CONTRIBUTIONS IN PARTICULAR CASES
Calculation of earnings
1.
This Schedule contains rules for the calculation of earnings in the assessment of earnings-related contributions in particular cases.
Calculation of earnings in respect of beneficial interest in assets within Part IV of Schedule 3
2.
(1)
Except where paragraph 3, 4, 5 or 6 applies, the amount of earnings comprised in any payment by way of the conferment of any beneficial interest in any asset specified in Part IV of Schedule 3, which falls to be taken into account in the computation of a person’s earnings shall be calculated or estimated at a price which that beneficial interest might reasonably be expected to fetch if sold in the open market on the day on which it is conferred.
(2)
For the purposes of sub-paragraph (1), where any asset is not quoted on a recognised stock exchange within the meaning of section 841 of the Taxes Act, it shall be assumed that, in the open market which is postulated, there is available to any prospective purchaser of the beneficial interest in the asset in question all the information which a prudent prospective purchaser might reasonably require if he were proposing to purchase if from a willing vendor by private treaty and at arm’s length.
Valuation of beneficial interest in units in a unit trust scheme
3.
The amount of earnings which is comprised in any payment by way of the conferment of a beneficial interest in any units in a unit trust scheme (within the meaning of section F49237 of the Financial Services and Markets Act 2000 having a published selling price and which falls to be taken into account in the calculation of a person’s earnings shall be calculated or estimated by reference to the published selling price on the day in question.
Here “published selling price” means the lowest selling price published on the date on which the payment in question is made, and where no such price is published on that date, it means the lowest selling price published on the last previous date on which such a price was published.
Conferment of a beneficial interest in an option to acquire asset falling within Part IV of Schedule 3
4.
The amount of earnings which is comprised in a payment by way of the conferment of a beneficial interest in an option to acquire any asset falling within Part IV of Schedule 3 shall be calculated or estimated by reference to the amount which would be comprised in accordance with paragraph 2, or, if paragraph 3, 5 or 6 would apply in accordance with that paragraph, in a payment by way of the conferment of a beneficial interest—
(a)
in the asset which may be acquired by the exercise of the option; or
(b)
where that asset (the first asset) may be exchanged for another asset (the second asset) and the value of the beneficial interest in the second asset is greater than that in the first, in that second asset,
on the day on which the beneficial interest in the option is conferred.
The amount shall be reduced by the amount or value, or, if variable, the least amount or value, of the consideration for which the asset may be so acquired.
Readily convertible assets
5.
(1)
The amount of earnings which is comprised in—
(a)
any payment by way of the conferment of a beneficial interest in any asset falling within Part III of Schedule 3;
(b)
any payment by way of the conferment of a beneficial interest in any asset falling within Part IV of Schedule 3 which is a readily convertible asset;
(c)
any payment by way of—
(i)
a voucher, stamp or similar document falling within paragraph 12 of Part IV of that Schedule where the asset for which it is capable of being converted is a readily convertible asset;
(ii)
a non-cash voucher not falling within Part V (whether or not also falling within paragraph 12 of Part IV of that Schedule) which is capable of being exchanged for a readily convertible asset;
and which is to be taken into account in computing a person’s earnings, shall be calculated in accordance with sub-paragraph (2) to (5).
(2)
In the case of an asset falling within paragraph 1 of Part III of Schedule 3 the amount is the best estimate which can reasonably be made of F50the amount of general earnings in respect of the provision of the asset.
(3)
In the case of an asset falling within paragraph 2 of Part III of Schedule 3, the amount is the best estimate that can reasonably be made of F50the amount of general earnings in respect of the enhancement of its value.
(4)
In the case of a voucher, stamp or similar document falling within—
(a)
sub-paragraph(1)(c); or
(b)
paragraph 3 of Part III of Schedule 3,
the amount is the best estimate that can reasonably be made of F50the amount of general earnings in respect of the provision of any asset for which the voucher is capable of being exchanged.
(5)
In the case of an asset falling within sub-paragraph(1)(b), the amount is the best estimate that can reasonably be made of F50the amount of general earnings in respect of the provision of the asset.
Assets not readily convertible: beneficial interests in alcoholic liquor on which duty has not been paid, gemstones and certain vouchers and non-cash vouchers
6.
The amount of earnings comprised in any payment by way of the conferment of a beneficial interest in—
(a)
an asset which—
(i)
falls within paragraph 9 or 10 of Part IV of Schedule 3 (payments by way of alcoholic liquor on which duty has not been paid or by way of gemstones not to be disregarded as payments in kind), and
(ii)
is not a readily convertible asset;
(b)
a voucher, stamp or similar document which falls within paragraph 12 of Part IV of that Schedule and which is not capable of being exchanged for a readily convertible asset; or
(c)
a non-cash voucher not excluded by virtue of Part 5 of that Schedule and which falls within paragraph 12 of Part IV of that Schedule (assets not to be disregarded as payments in kind) which is not capable of being exchanged for a readily convertible asset;
shall be calculated or estimated on the basis of the cost of the asset in question.
Here “the cost of the asset” in relation to any voucher, stamp or similar document includes the cost of any asset for which that voucher, stamp or similar document is capable of being exchanged.
Convertible and restricted interests in securities and convertible and restricted securities
F517.
(1)
The amount of earnings comprised in any payment by way of the conferment of—
(a)
a convertible interest in securities;
(b)
a restricted interest in securities; or
(c)
an interest in convertible or restricted securities,
falling to be taken into account in computing a person’s earnings from employed earner’s employment shall be computed in the same manner, and shall be taken into account at the same time, as applies under Chapters 1 to 5 of Part 7 of ITEPA 2003, for the purpose of computing his employment income.
This is subject to the following qualification.
(2)
For the purpose of sub-paragraph (1) no account shall be taken of any relief obtained under sections 428A or 442A of ITEPA 2003 (relief for secondary Class 1 contributions met by employee).
Convertible interest in shares
F528.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F52
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assignment or release of right to acquire shares where neither right nor shares readily convertible
F529.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assignment or release of a right, acquired as director or employee before 6th April 1999, to acquire shares where neither right nor shares readily convertible
F5210.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exercise of a replacement right to acquire shares, obtained as an earner before 6th April 1999
F5311.
(1)
This paragraph applies if—
(a)
an earner obtained, before 6th April 1999, a right to acquire shares in a body corporate;
(b)
the earner subsequently obtained a replacement right (within the meaning given in paragraph 16A(3) of Part 9 of Schedule 3);
(c)
the replacement right is exercised;
(d)
paragraph 11A of this Schedule does not apply; and
(e)
paragraph 16A of Part 9 of Schedule 3 does not apply because sub-paragraph (4) of that paragraph is not satisfied.
(2)
If this paragraph applies, the amount of earnings comprised in any payment realised by the exercise of the replacement right shall be calculated or estimated in accordance with sub-paragraph (3).
(3)
The basis for calculating the amount of a gain realised by the exercise of the replacement right shall be the best estimate that can reasonably be made of the amount found as follows.
F54Exercise, assignment or release of share option — market value of option or resulting shares increased by things done otherwise than for genuine commercial purposes
11A.
(1)
This paragraph applies for calculating or estimating the amount of earnings which is comprised in a payment which—
(a)
would be disregarded in the computation of earnings for the purposes of earnings-related contributions by virtue of paragraph 16 of Part 9 of Schedule 3; but
(b)
is not disregarded because paragraph 17 of that Part applies to it.
(2)
If this paragraph applies, the amount of earnings to be taken into account for the purpose of earnings related contributions is the amount which would, but for paragraph 16 F55or 16A of Part 9 of Schedule 3, have been taken into account by virtue of section 4(4)(a) of the Act.
This is subject to the following qualification.
(3)
If—
(a)
the right to acquire shares in a body corporate is not capable of being exercised more than ten years after the date on which it was obtained,
(b)
an amount of earnings was taken into account for the purpose of earnings-related contributions in respect of the earner’s obtaining that right, at the time he obtained it (“the deductible amount”), and
(c)
no exercise, assignment or release of the whole or any part of—
(i)
that right,
(ii)
any right replacing that right (“a replacement right”), or
(iii)
any subsequent replacement right,
has occurred on or after 10th April 2003,
the deductible amount may be deducted from the amount otherwise to be taken into account by virtue of this paragraph.
Interpretation of paragraphs 9, 10 and 11
F5612.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In those paragraphs—
(a)
“the total market value” means the price which the shares which are the subject of the right in question might reasonably be expected to fetch on sale in the open market;
(b)
the total market value of the subsequent right is similar to the total market value of the first right if it is not substantially greater than the first right;
(c)
“total discount” means the difference between the total value of the exercise price of the shares that are the subject of the right in question and the total market value of that right;
(d)
neither the consideration given for the grant of the right nor any entire consideration shall be taken to include the performance of any duties of or in connection with the office or employment by reason of which the right was granted and no part of the amount or value of the consideration given for the grant shall be deducted more than once;
(e)
“shares”, so far as the context permits, includes stock; and
(f)
“body corporate” includes—
(i)
a body corporate constituted under the law of a country or territory outside the United Kingdom; and
(ii)
an unincorporated association wherever constituted.
Apportionment of a payment to a retirement benefits scheme for the benefit of two or more people
F5713.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Valuation of non-cash vouchers
14.
(1)
The amount of earnings comprised in any payment by way of a non-cash voucher which is not otherwise disregarded by these Regulations and which falls to be taken into account in calculating an employed earner’s earnings shall be calculated on the basis set out in sub-paragraph (2).
(2)
The basis referred to in sub-paragraph (1) is that of an amount equal to the expense incurred (“the chargeable expense”)—
(a)
by the person at whose cost the voucher and the money, goods or services, for which it is capable or being exchanged, are provided;
(b)
in, or in connection with that provision,
and any money, goods or services obtained by the employed earner or any other person in exchange for the voucher shall be disregarded.
This is subject to the following F58qualifications.
F59(3)
For the purposes of sub-paragraph (2) the chargeable expense shall be reduced by any part of that which the employed earner makes good to the person incurring it.
F60(4)
The valuation of qualifying childcare vouchers is determined in accordance with paragraph 7 of Part 5 of Schedule 3.
Apportionment of earnings comprised in a cash or non-cash voucher provided for benefit of two or more employed earners
15.
(1)
The amount of earnings comprised in any payment by way of a cash voucher or a non-cash voucher provided for the benefit of two or more employed earners and which falls to be taken into account in computing the earnings of each of those earners shall be calculated or estimated on the basis set out in whichever of sub-paragraphs (2) or (3) applies.
(2)
If the respective proportion of the benefit of the voucher to which each of those earners is entitled is know at the time of the payment, the basis is that of a separate payment equal to that proportion.
(3)
In any case where the respective proportions are not know at the time of the payment, the basis is equal apportionment between all those earners.
(4)
In this paragraph—
(a)
“chargeable expense” has the same meaning, and is calculated in the same way, as in paragraph 14; and
(b)
if an employed earner makes good any part of the chargeable expense to the person incurring it, that chargeable expense in relation to that employed earner shall be reduced by that part.
SCHEDULE 3 PAYMENTS TO BE DISREGARDED IN THE CALCULATION OF EARNINGS FOR THE PURPOSES OF EARNINGS-RELATED CONTRIBUTIONS
PART I INTRODUCTORY
Introduction
1.
(1)
This Schedule contains provisions about payments which are to be disregarded in the calculation of earnings for the purposes of earnings-related contributions.
(2)
Part II contains provisions about the treatment of payments in kind.
(3)
Part III and IV specifies payments by way of assets which are not to be disregarded by virtue of paragraph 1 of Part II.
(4)
Part V specifies non-cash vouchers which are to be disregarded by virtue of paragraph 1 of Part II.
(5)
In computing earnings there are also to be disregarded—
(a)
the pensions and pension contributions specified in Part VI;
(b)
the payments in respect of training and similar courses specified in Part VII;
(c)
the travelling, relocation and overseas expenses specified in Part VIII;
(d)
the F61incentives by way of securities specified in Part IX; and
(e)
the miscellaneous payments specified in Part X.
Interpretation
2.
(1)
In this Schedule, unless the context otherwise requires—
(a)
a reference to a numbered Part is a reference to the Part of this Schedule which bears that number;
(b)
a reference in a Part, to a numbered paragraph is a reference to the paragraph of that Part which bears that number; and.
(c)
a reference in a paragraph to a lettered or numbered sub-paragraph is a reference to the sub-paragraph of that paragraph which bears that letter or number.
PART II PAYMENTS IN KIND
Certain payments in kind to be disregarded
1.
A payment in kind, or by way of the provision of services, board and lodging or other facilities is to be disregarded in the calculation of earnings.
This is subject to the paragraph 2 and also to any provision about a payment in kind of a particular description or in particular circumstances in any other Part of this Schedule.
Payments by way of assets not to be disregarded
2.
Payments falling within paragraph 1 do not include any payment by way of—
(a)
the conferment of any beneficial interest in—
(i)
any asset mentioned in Part III or Part IV,
F62(ii)
any contract of long-term insurance which falls within paragraph I, III or VI of Part II of Schedule 1 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001;
(b)
a non-cash voucher not of a description mentioned in Part V or to which paragraph 4 of Part X applies.
(2)
Sub-paragraph (1)(a)(i) is subject to the qualification that an asset, which falls within either Part III or Part IV, shall nevertherless be disregarded under paragraph 1 F63if no liability to income tax arises by virtue of section 323 of ITEPA 2003 (long service awards).
(3)
For the purposes of sub-paragraph (1)(a)(ii), if the F64contract—
(a)
falls within Part II of Schedule 1 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 and Part I of that Schedule; or
(b)
is treated for the purposes of that Order as falling within Part II of that Schedule by Article 3(3) of that Order,
that contract shall be treated as a contract of long-term insurance.
PART III PAYMENTS BY WAY OF READILY CONVERTIBLE ASSETS NOT DISREGARDED AS PAYMENTS IN KIND
F651.
A readily convertible asset within the meaning of section 702 of ITEPA 2003.
F652.
An asset which, in accordance with section 697 of ITEPA 2003 (PAYE: enhancing the value of an asset), would be treated, for the purposes of section 696 of that Act, as a readily convertible asset.
3.
Any voucher, stamp or similar document—
(a)
whether used singularly or together with other such vouchers, stamps or documents; and
(b)
which is capable of being exchanged for an asset falling within paragraph 1 or 2.
PART IV PAYMENTS BY WAY OF SPECIFIC ASSETS NOT DISREGARDED AS PAYMENTS IN KIND
F66 Securities
1.
Securities.
Here “company” includes—
(a)
any body corporate constituted under the law of, or of any part of, the United Kingdom or of any other country or territory and also any unincorporated body constituted under the law of a country or territory outside the United Kingdom; and
(b)
any body incorporated under the law of, or of any part of, the United Kingdom relating to a building society within the meaning of section119(1) of the Building Societies Act 1986 F67 or an industrial and provident society registered, or deemed to be registered, under the Industrial and Provident Societies Act 1965 F68 or the Industrial and Provident Societies Act (Northern Ireland) 1969 F69.
Certain debentures and other securities for loans
F702.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loans stocks of public and local authorities
F703.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F70
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F70
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F70
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Warrants etc for loan stock and debentures
F704.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Units in collective investment schemes
F705.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F70
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F70
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Options to acquire assets, currency, precious metals or other options
6.
Options to acquire, or dispose of—
(a)
currency of the United Kingdom or any other country or territory;
(b)
gold, silver, palladium or platinum;
(c)
an asset falling within any other paragraph of this Part of this Schedule;
(d)
an option to acquire, or dispose of, an asset falling within sub-paragraph (a), (b) or (c).
Contracts for futures
F717.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F71
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F71
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contracts for differences or to secure profit by reference to movements of indices
F718.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Alcoholic liquor on which duty has not been paid
9.
Any alcoholic liquor, within the meaning of section 1 of the Alcoholic Liquor Duties Act 1979 F72 in respect of which no duty has been paid under that Act.
Gemstones
10.
Any gemstone, including stones such as diamond, emerald, ruby, sapphire, amethyst, jade, opal or topaz and organic gemstones such as amber or pearl, whether cut or uncut and whether or not having an industrial use.
Certificates etc. conferring rights in respect of assets
11.
Certificates or other instruments which confer—
(a)
property rights in respect of any asset falling within paragraphs F731, 9 or 10;
(b)
any right to acquire, dispose of, underwrite or convert an asset, being a right to which the holder would be entitled if he held any such asset to which the certificate or instrument relates; or
(c)
a contractual right, other than an option, to acquire any such asset otherwise than by subscription.
Vouchers
12.
Any voucher, stamp or similar document—
(a)
whether used singularly or together with other such vouchers, stamps or documents; and
(b)
which is capable of being exchanged for an asset falling within any other paragraph of this Part.
PART V CERTAIN NON-CASH VOUCHERS TO BE DISREGARDED AS PAYMENTS IN KIND
1.
(1)
Subject to sub-paragraph (2), a non-cash voucher provided, to or for the benefit of the employed earner, by the employer or any other person on his behalf is to be disregarded in the calculation of an employed earner’s earnings by virtue of paragraph 1 of Part II only if it falls within any of paragraphs 2 to F749.
F75(2)
A non-cash voucher may also be disregarded—
(a)
by virtue of paragraph 7D of Part VIII (car fuel); F76...
F77(aa)
by virtue of paragraph 7E of Part 8 (van fuel); or
(b)
in the circumstances specified in paragraph 4 of Part X (payments by way of F78incidental overnight expenses).
2.
F81This paragraph only applies in the case of an employee who is in lower paid employment, within the meaning of section 217 of ITEPA 2003
F823.
A non-cash voucher exempted from liability to income tax under Chapter 4 of Part 3 by virtue of sections 266(1)(a) or 269 of ITEPA 2003 (exemptions: non-cash vouchers and credit-tokens).
F82. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F824.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F835.
A non-cash voucher in respect of which no liability to income tax arises by virtue of section 266(1) of ITEPA 2003 to the extent that the voucher is used to obtain anything the direct provision of which would fall within any of the following provisions of that Act—
(a)
section 246 (transport between work and home for disabled employees: general);
(b)
section 247 (provision of cars for disabled employees);
(c)
section 248 (transport home: late night working and failure of car-sharing arrangements)F84;
F85(d)
section 320C (recommended medical treatment).
5A.
A non-cash voucher in respect of which no liability to income tax arises by virtue of section 266(2) of ITEPA 2003 if the voucher evidences entitlement to use anything the direct provision of which would fall within any of the following provisions of that Act—
(a)
section 242 (works transport services);
(b)
section 243 (support for public bus services);
(c)
section 244 (cycles and cyclist’s safety equipment);
F86(d)
section 319 (mobile telephones).
5B.
A non-cash voucher in respect of which no liability to income tax arises by virtue of section 266(3) of ITEPA 2003 if the voucher can be used only to obtain anything the direct provision of which would fall within any of the following provisions of that Act—
(a)
section 245 (travelling and subsistence during public transport strikes);
(b)
section 261 (recreational benefits);
(c)
section 264 (annual parties and functions);
(d)
section 296 (armed forces' leave travel facilities);
(e)
section 317 (subsidised meals);
F87(f)
section 320A (eye tests and special corrective appliances).
6.
A non-cash voucher to the extent that no liability to income tax arises by virtue of any of the following sections of ITEPA 2003—
(a)
section 270 (exemption for small gifts of vouchers and tokens from third parties);
(b)
section 305 (offshore oil and gas workers: mainland transfers);
(c)
section 321 (suggestion awards);
(d)
section 323 (long service awards);
(e)
section 324 (small gifts from third parties).
Meal vouchers
F886A.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F89Interpretation – qualifying childcare vouchers
6B.
In paragraphs 7 and 7A—
(a)
“care”, “child” and “parental responsibility” have the same meaning as in section 318B of ITEPA 2003;
(b)
“chargeable expense” has the meaning given in paragraph 14 of Schedule 2;
(c)
“qualifying child care” has the same meaning as in section 318C of ITEPA 2003;
(d)
“qualifying week” means a tax week in respect of which a qualifying childcare voucher is received;
(e)
“relevant salary sacrifice arrangements” means arrangements (whenever made) under which the employees for whom the vouchers are provided give up the right to receive an amount of general earnings or specific employment income in return for the provision of the vouchers;
(f)
“relevant flexible remuneration arrangements” means arrangements (whenever made) under which the employees for whom the vouchers are provided agree with the employer that they are to be provided with the vouchers rather than receive some other description of employment income;
(g)
“relevant low-paid employees” means any of the employer’s employees who are remunerated by the employer at a rate such that, if the relevant salary sacrifice arrangements or relevant flexible remuneration arrangements applied to them, the rate at which they would then be so remunerated would be likely to be lower than the national minimum wage;
(h)
“scheme” means the manner by which an employer provides qualifying childcare vouchers and an employee is taken to join a scheme or have joined a scheme when the employer has agreed that vouchers will be provided to the employee under the scheme and there is a child falling within Condition A of paragraph 7(7); and
(i)
the administration costs for a voucher means the difference between the cost of provision of a voucher and its face value and the face value is the amount stated on or recorded in the voucher as the value of the provision of care for a child that may be obtained by using it.
F90F91Qualifying childcare vouchers for employees who joined a scheme before 6th April 2011
7.
(1)
F92A qualifying childcare voucher, where an employee joined a scheme—
(a)
before 6th April 2011;
(b)
before 6th April 2011 but ceased to be employed by the employer and was subsequently re-employed by the employer and re-joined the scheme before 6th April 2011; or
(c)
before 6th April 2011 and there was a continuous period of 52 weeks ending before 6th April 2011 throughout which vouchers were not being provided for the employee under the scheme,
subject to the qualifications in sub-paragraphs (2) and (5).
F93(1A)
F94The employee has not ceased to be employed by the employer nor has there been a a continuous period of 52 weeks throughout which vouchers were not being provided for the employee under the scheme.
(2)
Where the chargeable expense of the voucher exceeds the exempt amount, only that amount shall be disregarded by virtue of sub-paragraph (1).
(3)
The exempt amount is the amount found by the formula—
Here—
E is the sum of—
- (a)
F95£55; and
- (b)
the administration costs for the qualifying childcare voucher;
QW is the number of qualifying weeks—
- (a)
for which the earner has been employed by the secondary contributor during the tax year in which the qualifying childcare voucher is provided; and
- (b)
for which no other qualifying childcare voucher has been provided by the secondary contributor.
(4)
Where an earner has two or more employed earner's employments, the earnings from which fall to be aggregated in accordance with regulation 14 or 15, the reference to the secondary contributor in paragraph (b) of the definition of QW is a reference to the secondary contributor in respect any of those employments.
(5)
An earner is only entitled to one exempt amount even if childcare vouchers are provided in respect of more than one child.
(6)
F96In this paragraph “qualifying childcare voucher” means a non-cash voucher in relation to which Conditions A to C are met.
F97(7)
Condition A is that the voucher is provided to enable an employee to obtain care for a child who—
(a)
is a child or stepchild of the employee and is maintained (wholly or partly) at the employee’s expense; or
(b)
is resident with the employee and is a person in respect of whom the employee has parental responsibility.
(8)
Condition B is that the voucher can only be used to obtain qualifying child care.
(9)
Condition C is that the vouchers are provided under a scheme that is open—
(a)
to the employer’s employees generally; or
(b)
generally to those at a particular location,
subject to sub-paragraph (10).
(10)
Where the scheme under which the vouchers are provided involves—
(a)
relevant salary sacrifice arrangements; or
(b)
relevant flexible remuneration arrangements,
Condition C is not prevented from being met by reason only that the scheme is not open to relevant low-paid employees.
F98F99Qualifying childcare vouchers for employees who joined a scheme on or after 6th April 2011, or before 6th April 2011 where there has been a break in employment or a 52 week break in receiving vouchers recommencing on or after 6th April 2011
7A.
(1)
A qualifying childcare voucher, where an employee joined a scheme—
(a)
on or after 6th April 2011;
(b)
before 6th April 2011 but ceased to be employed by the employer and was subsequently re-employed by the employer and re-joined the scheme on or after 6th April 2011; or
(c)
before 6th April 2011 and there was a continuous period of 52 weeks ending on or after 6th April 2011 throughout which vouchers were not being provided for the employee under the scheme,
subject to the qualifications in sub-paragraphs (3) and (6).
(2)
In this paragraph a “qualifying childcare voucher” means a non-cash voucher in relation to which conditions A to D (see sub-paragraphs (7) to (11)) are met.
(3)
Where the chargeable expense of the voucher exceeds the exempt amount, only that amount shall be disregarded by virtue of sub-paragraph (1).
(4)
The exempt amount is the amount found by the formula—
Here—
E is, in the case of an employee the sum of—
- (a)
F100£25, if the relevant earnings amount for the tax year, as estimated in accordance with Condition D, exceeds the higher rate limit for the tax year;
- (b)
£28, if the relevant earnings amount for the tax year, as estimated in accordance with Condition D, exceeds the basic rate limit but does not exceed the higher rate limit for the tax year; or
- (c)
£55, in any other case; and
- (d)
the administration costs for the qualifying childcare voucher;
- (a)
QW is the number of qualifying weeks—
- (a)
for which the earner has been employed by the secondary contributor during the tax year in which the qualifying childcare voucher is provided; and
- (b)
for which no other qualifying childcare voucher has been provided by the secondary contributor.
- (a)
(5)
Where an earner has two or more employed earner’s employments, the earnings from which fall to be aggregated in accordance with regulation 14 or 15, the reference to the secondary contributor in paragraph (b) of the definition of QW is a reference to the secondary contributor in respect of any of those employments.
(6)
An earner is only entitled to one exempt amount even if childcare vouchers are provided in respect of more than one child.
(7)
Condition A is that the voucher is provided to enable an employee to obtain care for a child who—
(a)
is a child or stepchild of the employee and is maintained (wholly or partly) at the employee’s expense; or
(b)
is resident with the employee and is a person in respect of whom the employee has parental responsibility.
(8)
Condition B is that the voucher can only be used to obtain qualifying child care.
(9)
Condition C is that the vouchers are provided under a scheme that is open—
(a)
to the employer’s employees generally; or
(b)
generally to those at a particular location,
subject to sub-paragraph (10).
(10)
Where the scheme under which the vouchers are provided involves—
(a)
relevant salary sacrifice arrangements; or
(b)
relevant flexible remuneration arrangements,
Condition C is not prevented from being met by reason only that the scheme is not open to relevant low-paid employees.
(11)
Condition D is that the employer has, at the required time, made an estimate of the employee’s relevant earnings amount for the tax year in respect of which the voucher is provided.
(12)
In sub-paragraph (11) “the required time”, in the case of an employee, means—
(a)
if the employee joins the scheme under which the vouchers are provided at a time during the tax year, that time, and
(b)
otherwise, the beginning of the tax year.
(13)
In sub-paragraph (11) the “relevant earnings amount”, in the case of an employee provided with vouchers by an employer for any qualifying week in a tax year, and subject to sub-paragraph (14), means—
(a)
the aggregate of—
(i)
the amount of any relevant earnings (see sub-paragraph (15)) for the tax year from employment by the employer; and
(ii)
any amounts to be treated under Chapters 2 to 12 of Part 3 of ITEPA 2003 as earnings from such employment; less
(b)
the aggregate of any excluded amounts (see sub-paragraph (16)).
(14)
But if the employee becomes employed by the employer during the tax year, what would otherwise be the amount of the aggregate mentioned in sub-paragraph (13)(a) is the relevant multiple of that amount; and the relevant multiple is—
where—
RD is the number of days in the period beginning with the day on which the employee becomes employed by the employer and ending with the tax year.
(15)
In sub-paragraph (13)(a) “relevant earnings” means—
(a)
salary, wages or fees, F101and
F102(b)
guaranteed contractual bonuses;
(c)
contractual commission;
(d)
guaranteed overtime payments;
(e)
location or cost of living allowances;
(f)
shift allowances;
(g)
skills allowances;
(h)
retention and recruitment allowances; and
(i)
market rate supplements.
(16)
For the purposes of sub-paragraph (13)(b) the following are “excluded amounts”—
(a)
F105(za)
contributions under a pension scheme if the employee has authorised the employer to make the deductions from relevant payments (as defined by regulation 4 of the PAYE Regulations) for which relief at source is given under section 192(1) of the Finance Act 2004 (relief at source);
(b)
donations for which a deduction is made under section 713 of ITEPA 2003 (payroll giving) in calculating the employee’s net taxable earnings from employment by the employer for the tax year F106in accordance with the PAYE Regulations;
(c)
expenses within Chapter 3 of Part 3 of ITEPA 2003 (expenses payments) which the employer is authorised to exclude from the employee’s taxable earnings for the tax year in accordance with F107the PAYE Regulations;
(d)
payments in respect of removal expenses to which section 271 of ITEPA 2003 applies (as defined in section 272) and which are taxable earnings of the employee from employment by the employer for the tax year;
F108(e)
amounts equivalent to the amount of the personal allowance under section 35(1) of the Income Tax Act 2007, and in addition if applicable, the amount of the blind person’s allowance under section 38 of that Act.
8.
A non-cash voucher provided to or for the benefit of an employed earner in respect of employed earner’s employment by a person who is not the secondary contributor in respect of the provision of that voucher.
F1099
A non-cash voucher providing for health screening or medical check-ups to the extent that no liability to income tax arises in the provision of such health screening or medical check-ups F110by virtue of any provision of or under the Income Tax (Earnings and Pensions) Act 2003 which exempts from liability to income tax the provision by employers to employees of health screening and medical check-ups.
PART VI PENSIONS AND PENSION CONTRIBUTIONS
F111Pension payments and pension contributions disregarded
1.
The payments mentioned in paragraphs 2 to 11 are disregarded in the calculation of earnings for the purposes of earnings-related contributions.
F112 Contributions to, and benefits from, registered pension schemes
2.
A payment—
(a)
by way of employer’s contribution towards a registered pension scheme to which section 308F113... of ITEPA 2003 (exemption of contributions to registered pension scheme) applies;
(b)
by way of any benefit pursuant to a registered pension scheme to which—
(i)
section 204(1) (authorised pensions and lump sums) of, and Schedule 31 (taxation of benefits under registered pension schemes) to, the Finance Act 2004 applies; or
(ii)
section 208 or 209 of that Act (unauthorised payments) applies.
F112Migrant member relief and corresponding relief F114etc.
F1123.
F115(1)
A payment by way of—
(a)
an employer’s contribution to which paragraph 2 of Schedule 33 of the Finance Act 2004 (relief for employers' contributions) applies F116and any benefit referable to that contribution;
(b)
F119(ba)
an employer’s contribution to a pension scheme established by a government outside the United Kingdom for the benefit of its employees or primarily for their benefit, and any benefit referable to such a contribution (whenever made);
F120(c)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F121(d)
benefits from a pension scheme which are referable to contributions made before 6th April 2006, provided that section 386 of ITEPA 2003 did not apply to those contributions by virtue of section 390 of that Act; or
(e)
benefits subject to the unauthorised payment charge imposed by section 208 of the Finance Act 2004 as applied to a relevant non-UK scheme by virtue of paragraph 1 of Schedule 34 to that Act.
F122(2)
Expressions defined in Schedule 34 to the Finance Act 2004 have the same meaning in this paragraph as they have there.
Funded unapproved retirement benefit schemes.
4.
A payment by way of relevant benefits pursuant to a retirement benefits scheme which has not been approved by the Board for the purposes of Chapter I of Part XIV of the Taxes Act and attributable to payments prior to 6th April 1998.
Here “relevant benefits” has the meaning given in section 612 of the Taxes Act.
Payments to pension previously taken into account in calculating earnings
5.
A payment by way of any benefit pursuant to a retirement benefits scheme which has not been approved by the Board for the purposes of Chapter I of Part XIV of the Taxes Act and attributable to payments on or after 6th April 1998 F123and before 6th April 2006 which have previously been included in a person’s earnings for the purpose of the assessment of his liability for earnings-related contributions.
Payments in good faith to scheme solely for providing approved benefits.
F1246.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F125Payments to F126and benefits from pension schemes exempt from UK taxation under double taxation agreements
7.
(1)
A payment to a pension scheme which is afforded relief from taxation by virtue of F127any of the following provisions, and any benefit referable to that payment—
(a)
Article 25(8) of the Convention set out in the Schedule to the Double Taxation Relief (Taxes on Income) (France) Order 1968F128;
(b)
Article 17A of the Convention set out in the Schedule to the Double Taxation Relief (Taxes on Income) (Republic of Ireland) Order 1976F129;
F130(bb)
Article 27(2) of the Convention set out in the Schedule to the Double Taxation Relief (Taxes on Income) (Canada) Order 1980;
(c)
Article 28(3) of the Convention set out in the Schedule to the Double Taxation Relief (Taxes on Income)(Denmark) Order 1980F131.
F132(d)
Article 18 of the Convention set out in the Schedule to the Double Taxation Relief (Taxes on Income) (The United States of America) Order 2002.
F133(e)
Article 17(3) of the Convention set out in the Schedule to the Double Taxation Relief (Taxes on Income) (South Africa) Order 2002;
(f)
Article 17(3) of the Convention set out in the Schedule to the Double Taxation Relief (Taxes on Income) (Chile) Order 2003.
F134(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F135Contributions to, and benefits from, employer-financed retirement benefits schemes
8.
A payment by way of—
(a)
an employer’s contribution towards an employer-financed retirement benefits scheme; and
(b)
benefits, pursuant to an employer-financed retirement benefits scheme, to which paragraph 10 applies.
Here and in paragraph 10 “employer-financed retirement benefits scheme” has the meaning given in section 393A of ITEPA 2003.
Contributions to, and pension payments from, employer-financed pension only schemes
9.
(1)
A payment by way of—
(a)
an employer’s contribution towards an employer-financed pension only scheme; and
(b)
a pension, pursuant to an employer-financed pension only scheme, which is income charged to tax pursuant to Part 9 of ITEPA 2003 to which paragraph 10 applies.
(2)
In this paragraph “employer-financed pension only scheme” means a scheme—
(a)
financed by payments made by or on behalf of the secondary contributor, and
(b)
providing only a pension (and which is accordingly not an employer-financed retirement benefits scheme because it does not provide relevant benefits).
Here “relevant benefits” has the meaning given in section 393B of ITEPA 2003.
Payments from employer-financed retirement benefits schemes and employer-financed pension only schemes
10.
(1)
This paragraph applies to payments in paragraphs 8(b) and 9(1)(b) which—
(a)
if the scheme had been a registered pension scheme—
(i)
would have been authorised member payments under any of the provisions of section 164 of the Finance Act 2004 (authorised member payments) listed in sub-paragraph (4); and
(ii)
would satisfy any of the conditions in sub-paragraph (5); and
(b)
are made after the employment of the employed earner by—
(i)
the secondary contributor,
(ii)
a subsidiary of the secondary contributor, or
(iii)
a person connected with the secondary contributor or a subsidiary of the secondary contributor,
has ceased.
For the purposes of this sub-paragraph—
“subsidiary” has the meaning given in section 838 of the Taxes Act 1988; and
an employer is connected with any of the persons with respect to whom he would be a connected person by virtue of section 839 of that Act.
(2)
In the following provisions of this paragraph—
(a)
“the Act” means the Finance Act 2004;
(b)
a reference to a numbered section or Schedule (without more) is a reference to the section or Schedule bearing that number in the Act; and
(b)
any reference to a numbered pension rule is to the pension rule contained in section 165 bearing that number.
(3)
In applying any provision of the Act for the purposes of this paragraph, a reference to the scheme administrator is to be read as a reference to—
(a)
the responsible person, within the meaning of section 399A of ITEPA 2003, in relation to the employer-financed retirement benefits scheme, or
(b)
the person who would be the responsible person if the scheme were an employer-financed retirement benefits scheme.
(4)
The provisions referred to in sub-paragraph (1)(a)(i) are—
(a)
(b)
(c)
(5)
The conditions referred to in sub-paragraph (1)(a)(ii) are that, if the scheme had been a registered pension scheme—
F140(a)
any pension payable under its rules would have satisfied pension rules 1, 3 and 4;
(b)
in relation to any lump sum payable under its rules, section 166(1)(a) (pension commencement lump sum) and paragraphs 1 to 3 of Schedule 29, as modified by sub-paragraph (6) below, would have been satisfied;
(c)
in relation to any lump sum payable under its rules, section 166(1)(b) (serious ill-health lump sum) and paragraph 4 of Schedule 29, as modified by sub-paragraph (6) below, would have been satisfied; and
(d)
any pension is payable until the member’s death in instalments at least annually.
(6)
The amount to be disregarded shall be computed in accordance with Part 1 of Schedule 29 (lump sum rule) as if that Part were modified as follows—
(a)
in paragraph 1 (pension commencement lump sum)—
(i)
paragraphs (b) and (f) of sub-paragraph (1) were omitted,
(ii)
“(2)
But if a lump sum falling within sub-paragraph (1) exceeds the permitted lump sum, no part of it shall be disregarded.”;
(iii)
sub-paragraph (4) were omitted; and
(iv)
“(5)
Paragraph 2 defines the permitted lump sum.”;
(b)
“2.
The permitted lump sum is the higher of—
where—
MVF is the market value of the employee’s employer-financed retirement benefits scheme fund at the time the benefit is paid to the individual,
LS is the amount of the lump sum, and
MAP is the maximum annual pension which could be paid to the member under the arrangement.”;
(c)
paragraph 3 were omitted;
(7)
No payment by way of benefits shall be disregarded by virtue of this paragraph if they are payable in respect of a period during which an earner is—
(a)
engaged as a self-employed earner under a contract for services with, or
(b)
re-employed as an employed earner by,
the secondary contributor from employment with whom the benefits were derived.
F142Armed forces early departure scheme payments
10A.
A payment under a scheme established by the Armed Forces Early Departure Payments Scheme Order 2005 (S.I. 2005/437) F143or by the Armed Forces Early Departure Payments Scheme Regulations 2014 (S.I. 2014/2328).
Superannuation funds to which section 615(3) of the Taxes Act applies
11.
PART VII PAYMENTS IN RESPECT OF TRAINING AND SIMILAR COURSES
Payments in respect of training and similar payment disregarded
1.
Work-related training
2.
A payment of, or contribution towards, expenditure incurred on providing work-related training which, by virtue of F147sections 250 to 254 of ITEPA 2003 (exemption for work-related training), is not to be taken as F148general earnings of the office or employment in connection with which it is provided.
Education and training funded by employers
3.
New Deal 50plus: employment grant and training credit
4.
A payment to a person, as a participant in the scheme arranged under section 2(2) of the Employment and Training Act 1973 and known as New Deal 50plus, of an employment credit or a training grant under that scheme.
Retraining courses for recipients of jobseeker’s allowance
5.
A payment to a person as a participant in a scheme of the kind mentioned in section 60(1) of the Welfare Reform and Pensions Act 1999 (special schemes for claimants for jobseeker’s allowances) F151.
Payments to Jobmatch participants
6.
A payment made to a participant in a Jobmatch Scheme (including a pilot) arranged under section 2(1) of the Employment and Training Act 1973 F152 in his capacity as such.
Vouchers provided to Jobmatch participants
7.
A payment by way of the discharge of any liability by the use of a voucher given to a participant in a Jobmatch Scheme (including a pilot), arranged under section 2(1) of the Employment and Training Act 1973, in his capacity as such.
F153Employment Retention and Advancement payments
8.
A payment made to a participant in an Employment Retention and Advancement Scheme, arranged under section 2(1) of the Employment and Training Act 1973, in his capacity as such.
F154Return to Work Credit
9.
A payment made to a participant in a Return to Work Credit Scheme, arranged under section 2(1) of the Employment and Training Act 1973 in his capacity as such.
F155Working Neighbourhoods Pilot
10.
A payment made to a participant in a Working Neighbourhoods Pilot, arranged under section 2(1) of the Employment and Training Act 1973, in his capacity as such.
In-Work Credit
11.
A payment made to a participant in an In-Work Credit scheme, arranged under section 2(1) of the Employment and Training Act 1973, in his capacity as such.
F156Payments made by employers to earners in full-time attendance at universities &c.
12.
(1)
A payment to an employed earner receiving full-time instruction at a university, technical college or similar educational establishment (within the meaning of section 331 of the Taxes Act) if the conditions in sub-paragraphs (2) to (6) are satisfied, but subject to the exclusion in sub-paragraph (7).
(2)
The employed earner must have enrolled at the educational establishment for a course lasting at least one academic year at the time when payment is made.
(3)
The secondary contributor must require the employed earner to attend the course for an average of at least twenty weeks in an academic year.
(4)
The educational establishment—
(a)
must be open to members of the public generally,
(b)
must offer more than one course of practical or academic instruction.
(5)
The educational establishment must not be run by—
(a)
the secondary contributor, or a person who would be treated by section 839 of the Taxes Act as connected with him; or
(b)
a trade organisation of which the secondary contributor is a member.
(6)
The total amount of earnings payable to the earner in respect of his attendance, including lodging, travelling and subsistence allowances, but excluding any tuition fees, must not exceed F157£15,480 in respect of an academic year.
(7)
This paragraph does not apply to any payment made by the secondary contributor to the employed earner for, or in respect of, work done for the secondary contributor by the earner (whether during vacations or otherwise).
(8)
This paragraph has effect in respect of payments made in relation to the academic year beginning on 1st September 2005 and subsequent academic years.
(9)
In this paragraph—
“academic year” means the period beginning on 1st September of one calendar year and ending on 31st August of the following calendar year.
“trade organisation” means an organisation of secondary contributors (in their capacity as employers) the members of which carry on a particular profession or trade for the purposes of which the organisation exists.
PART VIII TRAVELLING, RELOCATION AND OTHER EXPENSES AND ALLOWANCES OF THE EMPLOYMENT
Travelling, relocation and incidental expenses disregarded
1.
The travelling, relocation and other expenses and allowances mentioned in this Part are disregarded in the calculation of an employed earner’s earnings.
Relocation expenses
2.
(1)
A payment of, or contribution towards, expenses reasonably incurred by a person in relation to a change of residence in connection with the commencement of, or an alteration in the duties of the person’s employment or the place where those duties are normally to be performed is disregarded if the conditions in sub-paragraphs (2) to (6) are met.
(2)
The first condition is that—
(a)
the payment or contribution—
F158(i)
is not, by virtue of section 271 of ITEPA 2003 (limited exemption of removal benefits and expenses) liable to income tax as general earnings under that Act; or
F160(b)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3)
The second condition is that the change of residence must result from—
(a)
the employee becoming employed by an employer;
(b)
an alteration of the duties of the employee’s employment (where his employer remains the same); or
(c)
an alteration of the place where the employee is normally to perform the duties of his employment (where both the employer and the duties which the employee is to perform remains the same).
(4)
The third condition is that the change of residence must be made wholly or mainly to allow the employee to have his residence within a reasonable daily travelling distance of—
(a)
the place where he performs, or is to perform, the duties of his employment (in a case falling within paragraph (3)(a);
(b)
the place where he performs, or is to perform, the duties of his employment (in a case falling within paragraph (3)(b); or
(c)
the new place where he performs, or is to perform, the duties of his employment (in a case falling within paragraph (3)(c).
References in this sub-paragraph and sub-paragraph (5) to the place where the employee performs, or is to perform, the duties of his employment are references to the place where he normally performs, or is normally to perform, the duties of the employment.
(5)
The fourth condition is that the employee’s former residence must not be within a reasonable daily travelling distance of the place where the employee performs or is to perform the duties of the employment.
F161(6)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F162(7)
For the purposes of this paragraph, Chapter 7 of Part 4 of ITEPA 2003 shall be read as if sections 272 (1)(b), 272 (3)(b), 274 and 287 were omitted
Travelling expenses—general
3.
For the purposes of this paragraph—
(a)
“F165travel expenses ” means—
(i)
amounts necessarily expended on travelling in the performance of the duties of the office or employment; or
(ii)
other expenses of travelling which are attributable to the necessary attendance at any place of the holder of the office or employment in the performance of the duties of the office or employment and are not expenses of ordinary commuting or private travel (within the meaning of F166section 338 of ITEPA 2003 (travel for necessary attendance);
F167(b)
section 339 of ITEPA 2003 (meaning of “workplace” and “permanent workplace”) shall apply as it applies for the purposes of section 338 of that Act
(c)
expenses of travel by the holder of an office or employment between two places at which he performs the duties of different offices or employments under or with companies in the same group are treated as necessarily expended in the performance of the duties which he is to perform at his destination; and
(d)
for purpose of sub-paragraph (c) companies are to be taken to be members of the same group if and only if—
(i)
one is a 51 per cent subsidiary of the other; or
(ii)
both are 51 per cent subsidiaries of a third company
within the meaning of section 838(1)(a) of the Taxes Act (subsidiaries).
F168Travel by unpaid directors of not-for-profit companies
3A.
(1)
A payment of, or contribution towards, the expenses of the earner’s employment if or to the extent that payment or contribution is paid wholly and exclusively for the purposes of paying or reimbursing travel expenses in respect of which conditions A to C are met.
(2)
Condition A is that —
(a)
the earner is obliged to incur the expenses as holder of the employment, and
(b)
the expenses are attributable to the earner’s necessary attendance at any place in the performance of the duties of the employment.
(3)
Condition B is that the employment is employment as a director of a not-for-profit company.
(4)
Condition C is that the employment is one from which the earner receives no earnings other than sums—
(a)
paid to the earner in respect of expenses, and
(b)
which are so paid by reason of the employment.
(5)
In this paragraph—
(a)
“director” has the same meaning as in the benefits code (see section 67 of ITEPA 2003), and
(b)
“not-for-profit company” means a company that does not carry on activities for the purpose of making profits for distribution to its members or others.
Travel where directorship held as part of a trade or profession
3B.
A payment of, or contribution towards, the expenses of the earner’s employment to the extent that those expenses are travel expenses which are exempt from income tax in accordance with section 241B of ITEPA 2003 (travel where directorship held as part of a trade or profession).
Travel between linked employments
3C.
A payment of, or contribution towards, the expenses of the earner’s employment to the extent that those expenses are travel expenses deductible for income tax purposes in accordance with section 340A of ITEPA 2003 (travel between linked employments).
F169Travel at start or finish of overseas employment
4.
A payment of, or a contribution towards, the expenses of the earner’s employment to the extent that those expenses—
(a)
are deductible for income tax purposes in accordance with section 341 of ITEPA 2003 (travel at start or finish of overseas employment); or
(b)
would be so deductible if—
(i)
Conditions B and C were omitted from that section; and
(ii)
the earnings of the employment were subject to income tax as employment income under that Act.
Travel between employments where duties performed abroad
4A.
A payment of, or a contribution towards, the expenses of the earner’s employment to the extent that those expenses—
(a)
are deductible for income tax purposes in accordance with section 342 of ITEPA 2003 (travel between employments where duties performed abroad), or
(b)
would be so deductible if—
(i)
Conditions E and F were omitted from that section; and
(ii)
the earnings of the employment were subject to income tax as employment income under that Act.
Travel costs and expenses where duties performed abroad: earner’s travel
4B.
(1)
So much of an employed earner’s earnings as equals the amount in sub-paragraph (2).
(2)
The amount in this sub-paragraph is—
(a)
the included amount within the meaning of section 370 of ITEPA 2003 (travel costs and expenses where duties performed abroad: employee’s travel); or
(b)
the amount which would be the included amount within the meaning of that section if the earner were resident and ordinarily resident in the United Kingdom.
Travel costs and expenses where duties performed abroad: visiting spouse’sF170, civil partner's or child’s travel
4C.
(1)
So much of an employed earner’s earnings as equals the amount in sub-paragraph (2).
(2)
The amount in this sub-paragraph is—
(a)
the included amount within the meaning of section 371 of ITEPA 2003 (travel costs and expenses where duties performed abroad: visiting spouse’sF171, civil partner's or child’s travel); or
(b)
the amount which would be the included amount within the meaning of that section if the earner were resident and ordinarily resident in the United Kingdom.
Foreign accommodation and subsistence costs and expenses (overseas employments)
4D.
So much of an employed earner’s earnings as equals the amount of the deduction—
(a)
permitted for income tax purposes under section 376 of ITEPA 2003 (foreign accommodation and subsistence costs and expenses (overseas employments)); or
(b)
which would be so permitted if the earnings of the employment were subject to tax as employment income under ITEPA 2003.
F172Travel costs and expenses of non-domiciled employee or the employee’s spouse, civil partner or child where duties performed in the United Kingdom
5.
So much of an employed earner’s earnings as equals the aggregate amount of the deductions—
(a)
permitted for income tax purposes under sections 373 and 374 of ITEPA 2003 (travel costs and expenses of a non-domiciled employee or the employee’s spouseF173, civil partner or child where duties are performed in the United Kingdom ); or
(b)
which would be so permitted if the earnings of the employment were subject to tax as employment income under ITEPA 2003.
Travelling expenses of workers on offshore gas and oil rigs
6.
A payment of, or a contribution towards, expenses where that payment or contribution is disregarded for the purposes of calculating the emoluments F174general earnings under section 305 of ITEPA 2003 (offshore oil and gas workers: mainland transfers).
F175Payments connected with cars and vans and exempt heavy goods vehicles provided for private use
7.
A payment—
(a)
by way of the discharge of any liability which by virtue of F176section 239(1) of ITEPA 2003 (payments and benefits connected with taxable cars and vans and exempt heavy goods vehicles); or
(b)
of expenses, which by virtue of F177section 239(2) of that Act;
F180Qualifying amounts of relevant motoring expenditure
7A.
To the extent that it would otherwise be earnings, the qualifying amount calculated in accordance with regulation 22A(4).
Qualifying amounts of mileage allowance payment in respect of cycles
7B.
(1)
To the extent that it would otherwise be earnings, the qualifying amount of a mileage allowance payment in respect of a cycle.
(2)
The qualifying amount is that which would be produced by the formula in regulation 22A(4) if the value for R were the rate for the time being approved under F181section 230(2) of ITEPA 2003 in respect of a cycle.
(3)
In this paragraph—
“cycle” has the meaning given in section 192(1) of the Road Traffic Act 1988; and
“mileage allowance payment” has the meaning given in F182section 229(2) of ITEPA 2003.
Qualifying amounts of passenger payment
7C.
(1)
To the extent that it would otherwise be earnings, the qualifying amount of a passenger payment.
(2)
The qualifying amount is that which would be produced by the formula in regulation 22A(4) if—
(a)
references to business travel were to business travel for which the employee F183receives passenger payments within the meaning of section 233(3) of ITEPA 2003; and
(b)
the value for R were the rate for the time being approved for a passenger payment under F184section 234 of ITEPA 2003.
(3)
F187Car fuel
7D.
(1)
A payment by way of the provision of car fuel which is chargeable to income tax under section 149 of ITEPA 2003.
F188Van fuel
7E.
A payment by way of the provision of van fuel which is chargeable to income tax under section 160 of ITEPA 2003.
Car parking facilities
8.
Specific and distinct payments of, or towards, expenses actually incurred
9.
F191(1)
For the avoidance of doubt, these shall be disregarded any specific and distinct payment of, or contribution towards, expenses which an employed earner actually incurs in carrying out his employment.
F194council tax or water or sewerage charges on accommodation provided for employee’s use
10.
A payment of, or a contribution towards meeting a person’s liability for F195council tax or water or sewerage charges in respect of accommodation occupied by him and provided for him by reason of his employment if by virtue of F196sections 99 or 100 of ITEPA 2003 (accommodation provided for performance of duties or as a result of a security threat), F197he is not liable to income tax F198... in respect of the provision of that accommodation.
This paragraph does not extend to Northern Ireland.
F199rates or water or sewerage charges on accommodation provided for employee’s use
11.
A payment of, or a contribution towards meeting, a person’s liability for F200rates or water or sewerage charges in respect of accommodation occupied by him and provided for him by reason of his employment if by virtue of F201sections 99 or 100 of ITEPA 2003 (accommodation provided for performance of duties or as a result of a security threat), he is not liable to income taxF202... in respect of the provision of that accommodation.
This paragraph extends only to Northern Ireland.
Foreign service allowance
12.
A payment by way of an allowance which is not regarded as income for any income tax purpose by virtue of F203section 299 of ITEPA 2003 (Crown employees' foreign service allowance).
F204HM Forces’ Operational Allowance
12A.
(1)
A payment of the Operational Allowance to members of the armed forces of the Crown.
(2)
The Operational Allowance is an allowance designated as such under a Royal Warrant made under section 333 of the Armed Forces Act 2006.
F205HM Forces’ Council Tax Relief
12B.
(1)
A payment of Council Tax Relief to members of the armed forces of the Crown.
(2)
Council Tax Relief is a payment designated as such under a Royal Warrant made under section 333 of the Armed Forces Act 2006.
F206HM Forces’ Continuity of Education Allowance
12C.
(1)
A payment of the Continuity of Education Allowance to or in respect of members of the armed forces of the Crown.
(2)
The Continuity of Education Allowance is an allowance designated as such under a Royal Warrant made under section 333 of the Armed Forces Act 2006.
Commonwealth War Graves Commission and British Council: extra cost of living allowance
13.
A payment by way of an allowance to a person in the service of the Commonwealth War Graves Commission or the British Council paid with a view to compensating him for the extra cost of living outside the United Kingdom in order to perform the duties of his employment.
Overseas medical treatment
14.
A payment of, or a contribution towards, expenses incurred in—
(a)
providing an employee with medical treatment outside the United Kingdom (including providing for him to be an in-patient) in a case where the need for the treatment arises while the employee is outside the United Kingdom for the purposes of performing the duties of his employment; or
(b)
providing insurance for the employee against the cost of such treatment in a case falling within sub-paragraph (a).
Here “medical treatment” includes all forms of treatment for, and all procedures for diagnosing, any physical or mental ailment, infirmity or defect.
F207Recommended medical treatment
14A.
A payment or reimbursement to which no liability to income tax arises by virtue of section 320C of ITEPA 2003 (recommended medical treatment).
F208Experts Seconded to European Commission
15.
A payment in respect of daily subsistence allowances paid by the European Commission to persons whose services are made available to the Commission by their employers under the detached national experts scheme which is exempt from income tax by virtue of section 304 of ITEPA 2003 (experts seconded to European Commission).
F209Experts seconded to a body of the European Union
15A.
A payment in respect of subsistence allowances paid—
(a)
by a body of the European Union that is located in the United Kingdom and listed in the table below;
(b)
to persons who, because of their expertise in matters relating to the subject matter of the functions of the body, are seconded to the body by their employers.
Bodies of the European Union located in the United Kingdom |
The European Medicines Agency |
The European Police College |
The European Banking Authority |
F210Expenses of MPs and other representatives
16.
A payment to which no liability to income tax arises by virtue of any of the following provisions of ITEPA 2003—
(a)
section 292 (accommodation expenses of MPs);
(b)
section 293 (overnight expenses of other elected representatives);
(c)
section 293A (UK travel and subsistence expenses of MPs);
F211(ca)
section 293B (UK travel expenses of other elected representatives);
(d)
section 294 (European travel expenses of MPs and other representatives).
PART IXF212Incentives by way of securities.
F213Certain payments by way of securities, restricted securities and restricted interests in securities, and gains arising from them, disregarded
1.
F213(1)
Payments by way of securities, restricted securities and restricted interests in securities, and gains arising from them, are disregarded in the calculation of an employed earner’s earnings to the extent mentioned in this Part.
(2)
For the purposes of paragraphs 13, 15 and 16—
(a)
“body corporate” includes—
(i)
a body corporate constituted under the law of a country or territory outside the United Kingdom, and
(ii)
an unincorporated association wherever constituted;
(b)
“total discount” means the difference between the total value of the exercise price of the shares that are subject to the right in question and the total market value of that right;
(c)
“total market value” means the price which the shares that are subject to the right in question might reasonably be able to fetch in the open market; and
(d)
the total market value of the subsequent right is similar to the total market value of the first right if it is not substantially greater than the first right.
Shares in secondary contributor or associated body
F2142.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F215 Rights to acquire securities
3.
A payment by way of a right to acquire securities.
“Short” share options granted on or after 6th April 1999
F2163A.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Enterprise management incentives
F2174.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F218Priority share allocations
F2185.
A payment by way of an allocation of shares in priority to members of the public in respect of which no liability to income tax arises by virtue of section 542 of ITEPA 2003.
Partnership share agreements
6.
A payment that is deducted from the earnings of the employment under a partnership share agreement.
Here “partnership share agreement” has the meaning given in F219paragraph 44 of Schedule 2 to ITEPA 2003.
F220Shares under share incentive plans
7.
A payment by way of an award of shares under a share incentive plan within the meaning of Schedule 2 to ITEPA 2003.
Securities and interests in securities which are not readily convertible assets
7A.
A payment by way of the acquisition of securities, interests in securities or securities options in connection with employed earner’s employment if, or to the extent that, what is acquired is not a readily convertible asset.
Here “acquisition” includes acquisition pursuant to an employment-related securities option within the meaning of section 471(5) of ITEPA 2003 as substituted by the Finance Act 2003.
Shares under approved profit sharing schemes
F2218.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F222 Restricted securities and restricted interests in securities
9.
(1)
A payment by way of the acquisition of restricted securities, or a restricted interest in securities, where those securities are, or that interest is, employment-related, if no charge to income tax arises under section 425 of ITEPA 2003 other than by virtue of subsection (2) of that section.
This is subject to the following qualification.
(2)
This paragraph does not apply if an election has been made as mentioned in subsection (3) of section 425 of ITEPA 2003.
(3)
References in this paragraph to section 425 of ITEPA 2003 are to that section as substituted by paragraph 3(1) of Schedule 22 to the Finance Act 2003.
Conditional interest in shares: gains from exercise etc. of share options
F22310.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Convertible shares
F22311.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Convertible shares: gains from the exercise etc. of share options
F22312.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Share option gains by directors and employees
F22313.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shares acquired under options granted before 9th April 1998
F22314.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assignment or release of option
F22315.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F224 Exercise of replacement share options where original option acquired before 6th April 1999
16.
(1)
A gain realised by the exercise of a replacement right to acquire shares in a body corporate where the original right was obtained before 6th April 1999 provided that—
(a)
sub-paragraph (4) is satisfied, and
(b)
paragraph 17 does not apply,
The disregard conferred by this paragraph is subject to the following limitation.
(2)
Only the value of the shares acquired by the exercise of the replacement right shall be disregarded.
(3)
In this paragraph and paragraph 17—
“the original right” means the right, acquired before 6th April 1999, to acquire shares in a body corporate; and
“replacement right” means a right to acquire shares, obtained, whether as the result of one transaction or a series of transactions, and whether directly or indirectly, in consequence of—
(a)
the assignment or release of the original right; or
(b)
the assignment or release of a right which was itself obtained in consequence of the assignment or release of that right.
(4)
This sub-paragraph is satisfied in respect of a transaction through which the replacement right was obtained if A is not substantially greater than R.
Here—
A is the market value of the shares which may be obtained by the exercise of the right acquired on that occasion, less any consideration which would have to be given on that occasion by or on behalf of the earner if that right were to be exercised immediately after its acquisition (disregarding any restriction on its exercise); and
R is the market value of the shares subject to the right assigned or released on that occasion, immediately before that occasion, less any consideration which would have been required to be given by or on behalf of the earner for the exercise of that right, disregarding any restriction on its exercise, subject to the following qualification.
If a transaction involves only a partial replacement of an earlier right, the amount of the earlier consideration to be deducted in computing R shall be proportionately reduced.
F225Payments resulting from exercise, assignment or release of options which are not disregarded by virtue of paragraph 16
17.
(1)
This paragraph applies to a payment—
(a)
made on or after 10th April 2003, and
(b)
which would otherwise fall to be disregarded by virtue of paragraph 16 F226or 16A of this Part,
where the market value of the shares has been increased by more than 10% by things done, on or after 6th April 1999, otherwise than for genuine commercial purposes.
(2)
For the purposes of sub-paragraph (1) “the shares” includes—
(a)
the shares subject to the right currently being exercised; and
(3)
The following are among the things that are, for the purposes of this paragraph, done otherwise than for genuine commercial purposes—
(a)
anything done as part of a scheme or arrangement the main purpose, or one of the main purposes, of which is the avoidance of tax or of contributions under the Act; and
(b)
any transaction between companies which, at the time of the transaction, are members of the same group on terms which are not such as might be expected to be agreed between persons acting at arm’s length.
(4)
But sub-paragraph (3)(b) does not apply to a payment for group relief within the meaning given in section 402(6) of the Taxes Act.
(5)
In sub-paragraph (3)(b) “group” means a body corporate and its 51% subsidiaries (within the meaning of section 838 of the Taxes Act), and other expressions used in this paragraph which are defined in, or for the purposes of, paragraph 16 have the same meaning here as they have in that paragraph.
PART X MISCELLANEOUS AND SUPPLEMENTAL
Other miscellaneous payments to be disregarded
1.
(1)
The payments listed in F229this Part are disregarded in the calculation of earnings.
(2)
Paragraph 4 contains additional rules about the way in which the components of a payment by way of expenses incidental to a qualifying absence from home are to be treated for the purpose of earnings-related contributions if the permitted maximum is exceeded.
Payments on account of sums already included in the computation of earnings
2.
A payment on account of a person’s earnings in respect of his employment as an employed earner which comprises, or represents and does not exceed sums which have previously been included in his earnings for the purpose of his assessment of earnings-related contributions.
F230Payments connected to amounts within regulation 22B
2A.
(1)
A payment (“A”) the subject of which represents, or arises or derives (whether wholly or partly or directly or indirectly) from, an amount (“B”) treated as remuneration under regulation 22B which has previously been included in an employed earner’s earnings for the purposes of assessing earnings-related contributions.
(2)
Paragraph (1) does not apply to the extent that A exceeds B.
(3)
For the purposes of determining whether paragraph (1) applies, A is to be treated as including the value of any payment made before A which represents, or arises or derives (whether wholly or partly or directly or indirectly) from, B.
Payments discharging liability for secondary Class 1 contributions following election under paragraph 3B of Schedule 1 to the Contributions and Benefits Act
3.
A payment by way of the discharge of any liability for secondary Class 1 contributions which has been transferred from the secondary contributor to the employed earner by election made jointly by them for the purposes of paragraph 3B(1) of Schedule 1 to the Contributions and Benefits Act (elections about contribution liability in respect of F231relevant employment income) F232.
Payments by way of incidental F233overnight expenses
4.
F234(1)
A payment by way of incidental overnight expenses, in whatever form, which by virtue of section 240 of ITEPA 2003 are not general earnings liable to income tax under that Act.
(2)
If a payment is made by way of incidental overnight expenses in connection with a qualifying period, but the amount of that payment (calculated in accordance with section 241 of ITEPA 2003) exceeds the permitted amount, sub-paragraphs (3) to (6) apply.
(3)
So much of the payment as is made by way of cash shall be included in the calculation of earnings.
(4)
The amount of cash for which a cash voucher can be exchanged shall be included in the calculation of earnings.
(5)
The cost of provision of any non-cash voucher shall be included in the calculation of earnings and anything for which the voucher can be exchanged shall be disregarded in that calculation.
(6)
Any payment by way of a benefit in kind shall be disregarded in the calculation of earnings.
F235(7)
In this paragraph—
“the cost of provision” in relation to a non-cash voucher is the cost incurred by the person at whose expense the voucher is provided;
“the permitted amount” has the meaning given in section 241(3) of ITEPA 2003; and
“qualifying period” has the meaning given in section 240(1)(b) and (4) of ITEPA 2003.
Gratuities and offerings
5.
(1)
A payment of, or in respect of, a gratuity or offering F236which—
(a)
satisfies the condition in either sub-paragraph (2) or (3); and
(b)
is not within sub-paragraph (4) or (5).
(2)
F237The condition in this sub-paragraph is that the payment—
(a)
is not made, directly or indirectly, by the secondary contributor; and
(b)
does not comprise or represent sums previously paid to the secondary contributor.
(3)
F238The condition in this sub-paragraph is that the secondary contributor does not allocate the payment, directly or indirectly, to the earner.
F239(4)
A payment made to the earner by a person who is connected with the secondary contributor is within this sub-paragraph unless—
(a)
it is—
(i)
made in recognition for personal services rendered to the connected person by the earner or by another earner employed by the same secondary contributor; and
(ii)
similar in amount to that which might reasonably be expected to be paid by a person who is not so connected; or
(b)
the person making the payment does so in his capacity as a tronc-master.
(5)
A payment made to the earner is within this sub-paragraph if it is made by a trustee holding property for any persons who include, or any class of persons which includes, the earner.
In this sub-paragraph “trustee” does not include a tronc-master.
(6)
A person is connected with the secondary contributor for the purposes of this paragraph if his relationship with the secondary contributor, or where the employer and secondary contributor are different, with either of them, is as described in subsection (2), (3), (4), (5), (6) or (7) of section 839 of the Taxes Act (connected persons).
Redundancy payments
6.
For the avoidance of doubt, in calculating the earnings paid to or for the benefit of an earner in respect of an employed earner’s employment, any payment by way of a redundancy payment shall be disregarded.
Sickness payments attributable to contributions made by employed earner
7.
If the funds for making a sickness payment under arrangements of the kind mentioned in section 4(1)(b) of the Contributions and Benefits Act are attributable in part to contributions to those funds made by the employed earner, for the purposes of section 4(1) of that Act the part of that payment which is attributable to those contributions shall be disregarded.
F240Expenses and other payments not charged to income tax under miscellaneous exemptions
8.
A payment which is not charged to tax under any of the following provisions of ITEPA 2003—
(a)
section 245 (travelling and subsistence during public transport strikes);
(b)
section 246 (transport between work and home for disabled employees: general);
(c)
section 248 (transport home: late night working and failure of car-sharing arrangements);
(d)
section 290A (accommodation outgoings of ministers of religion);
(e)
section 290B (allowances paid to ministers of religion in respect of accommodation outgoings);
(f)
section 321 (suggestion awards).
VAT on the supply of goods and services by employed earner
9.
If—
(a)
goods or services are supplied by an earner in employed earner’s employment;
(b)
earnings paid to or for the benefit of the earner in respect of that employment include the remuneration for the supply of those goods or services; and
(c)
value added tax is chargeable on that supply;
an amount equal to the value added tax chargeable on that supply shall be excluded from the calculation of those earnings.
Employee’s indemnity insurance
10.
A payment which by virtue of section 201AA of the Taxes Act (employee liabilities and indemnity insurance) F241 is deductible from the emoluments of the employment chargeable to tax under Schedule E.
Fees and subscriptions to professional bodies, learned societies etc
11.
A payment of, or a contribution towards any fee, contribution or annual subscription which, under section 201(1) of the Taxes Act (fees and subscriptions to professional bodies, learned societies etc) is deductible from the emoluments of any office or employment.
Holiday pay
12.
F242A payment in respect of a period of holiday entitlement where—
(a)
the sum paid is derived directly or indirectly from a fund—
(i)
to which more than one secondary contributor contributes, and
(ii)
the management and control of which are not vested in those secondary contributors; or
(b)
the person making the payment is entitled to be reimbursed from such a fund.
Payments to ministers of religion
13.
A payment of a fee in respect of employment as a minister of religion which does not form part of the stipend or salary paid in respect of that employment.
F243 Payments to miners and former miners, etc. in lieu of coal
14.
(1)
A payment in lieu of the provision of coal or smokeless fuel, if the employee is—
(a)
a colliery worker;
(b)
a former colliery worker;
and the condition in sub-paragraph (2) is met.
(2)
The condition is that the amount of coal or fuel in respect of which the payment is made does not substantially exceed the amount reasonably required for personal use.
(3)
That condition is assumed to be met unless the contrary is shown.
(4)
In this pans a coragraph, “colliery worker” meaal miner or any other person employed at or about a colliery otherwise than in clerical, administrative or technical work; and “former colliery worker” shall be construed accordingly.
(5)
This paragraph does not apply to Northern Ireland.
Here “miner” means any person employed in or about a colliery, whether on the surface or below ground, except a person employed—
(a)
in a clerical, technical or administrative capacity; or
(b)
at a coke oven, brick works or other activity not ancillary to coal mining.
(2)
This paragraph does not apply to Northern Ireland.
F244Rewards for assistance with lost or stolen cards
15.
(1)
A payment made by an issuer of charge cards, cheque guarantee cards, credit cards or debit cards, as a reward to an individual who assists in identifying or recovering lost or stolen cards in the course of his or her employment as an employed earner (other than employment by the issuer), together with any income tax paid by the issuer for the purpose of discharging any liability of the individual to income tax on the payment.
(2)
In this paragraph—
“charge card” means a credit card, the terms of which include the obligations to settle the account in full at the end of a specified period;
“cheque guarantee card” means a card issued by a bank or building society for the purpose of guaranteeing a payment or supporting the encashment of a cheque up to a specified value;
“credit card” means a card which—
(a)
may be used on its own to pay for goods or services or to withdraw cash, and
(b)
enables the holder to make purchases and to draw cash up to a prearranged limit; and
“debit card” means a card linked to a bank or building society current account, used to pay for goods or services by debiting the holder’s account.
F245Student loans
16.
(1)
A payment made in accordance with Regulations made under section 186 of the Education Act 2002 in respect of the repayment, reduction or extinguishing of the amounts payable in respect of a loan.
(2)
A payment for the purpose of discharging any liability of the earner to income tax for any tax year where the income tax in question is tax chargeable in respect of—
(a)
the payment referred to in paragraph (1), or
(b)
the payment made for the purpose of discharging the income tax liability itself.
F246Payment of PAYE tax in respect of notional payment
17.
A payment by way of income tax for which the employer is required to account to the Board under section 710(1) of ITEPA 2003 (notional payments: accounting for tax).
F247Payments made from the In-Work Emergency Discretion Fund
18.
Any In-Work Emergency Discretion Fund payment made to a person pursuant to arrangements made by the Secretary of State under section 2 of the Employment and Training Act 1973.
This paragraph does not apply in Northern Ireland.
Payments made from the In-Work Emergency Fund
19.
Any In-Work Emergency Fund payment made to a person pursuant to arrangements made by the Department of Economic Development under section 1 of the Employment and Training Act (Northern Ireland) 1950.
This paragraph applies only in Northern Ireland.
F248Up-Front Childcare Fund payments
20.
Any Up-Front Childcare Fund payment made pursuant to arrangements made by the Secretary of State under section 2 of the Employment and Training Act 1973.
This paragraph does not apply to Northern Ireland.
F249Better off in Work Credit payments
21.
Any Better off in Work Credit payment made pursuant to arrangements made by the Secretary of State under section 2 of the Employment and Training Act 1973.
This paragraph does not apply to Northern Ireland.
F250Fees relating to the Protection of Vulnerable Groups (Scotland) Scheme
22.
A payment of a fee in respect of an application to join the scheme administered under section 44 of the Protection of Vulnerable Groups (Scotland) Act 2007 (scheme to collate and disclose information about individuals working with vulnerable persons).
F251Fees relating to the Disclosure and Barring Service
23.
(1)
A fee paid by virtue of section 116A(4)(b) or (5)(b) of the Police Act 1997 (“the Police Act”) (fee for up-dating certificates).
(2)
A fee paid under—
(a)
section 113A(1)(b) of the Police Act (fee for criminal record certificates);
(b)
section 113B(1)(b) of the Police Act (fee for enhanced criminal record certificates);
(c)
section 114(1)(b) of the Police Act (fee for criminal record certificates: Crown employment); or
(d)
section 116(1)(b) of the Police Act (fee for enhanced criminal record certificates: judicial appointments and Crown employment);
where the application is made at the same time as an application under section 116A(4) or (5) of the Police Act for the certificate to be subject to up-date arrangements.
F252Advice relating to proposed employee shareholder agreements
24.
(1)
A payment, or reimbursement, in accordance with section 205A(7) of the Employment Rights Act 1996 (employee shareholder status), of any reasonable costs in obtaining relevant advice.
(2)
“Relevant advice” has the same meaning as section 326B(2) of ITEPA 2003 (advice relating to proposed employee shareholder agreements).
F253Payments on which Class 1 or Class 1A contributions have been paid pursuant to the Social Security Contributions (Limited Liability Partnership) Regulations 2014
25.
A payment made by an employer to an employed earner which represents an amount on which Class 1 or Class 1A contributions are payable by a limited liability partnership in respect of that earner by virtue of regulation 3 or 4 of the Social Security Contributions (Limited Liability Partnership) Regulations 2014.
SCHEDULE 4F254Provisions derived from the Income Tax Acts and the Income Tax (Pay As You Earn) Regulations 2003
PART I GENERAL
Interpretation
1.
F255(1)
In this Schedule the “PAYE Regulations” means the Income Tax (Pay As You Earn) Regulations 2003.
(2)
In this Schedule, except where the context otherwise requires—
“aggregated” means aggregated and treated as a single payment under paragraph 1(1) of Schedule 1 to the Act;
“allowable pension contributions” means any sum paid by an employee by way of contribution towards a pension fund or scheme which is withheld from the payment of PAYE income and for which a deduction must be allowed from employment income under section 592(7) or 594(1) of the Taxes Act (exempt approved schemes and exempt statutory schemes);
F256“closed tax year” means any year preceding the current year and cognate expressions shall be construed accordingly;
“Compensation of Employers Regulations” means the Statutory Maternity Pay (Compensation of Employers) and Miscellaneous Amendments Regulations 1994 F257...
“deductions working sheet” means any form of record on or in which are to be kept the matters required by this Schedule in connection with an employee’s general earnings and earnings-related contributions F258... F259...
“earnings-related contributions” means contributions payable under the Act by or in respect of an employed earner in respect of employed earner’s employment;
“employed earner” and “employed earner’s employment” have the same meaning as in the Act;
“employee” means any person in receipt of general earnings;
“employer” means the secondary contributor determined—
(a)
by section 7 of the Act;
(b)
under regulation 5 of, and Schedule 3 to, the Social Security (Categorisation of Earners) Regulations 1978; or
(c)
under regulation 122;
F260“general earnings” means so much of a person's remuneration or profits derived from employed earner's employment as constitutes earnings for the purposes of the Act;
F261...
“Inland Revenue” means any officer of the Board of Inland Revenue;
“mariner” has the same meaning as in regulation 115;
F262“non-Real Time Information employer” means an employer other than one within sub-paragraph (4);
F262“Real Time Information employer” has the meaning given in sub-paragraph (4);
F263...
“tax month” means the period beginning on the 6th day of any calendar month and ending on the 5th day of the following calendar month;
“tax period” means a tax quarter where paragraph 11 has effect, but otherwise means a tax month;
“tax quarter” means the period beginning on 6th April and ending on 5th July, or beginning on 6th July and ending on 5th October, or beginning on 6th October and ending on 5th January, or beginning on 6th January and ending on 5th April;
“voyage period” has the same meaning as in regulation 115;
“year” means tax year;
and other expressions have the same meaning as in the Income Tax Acts.
(3)
For the purposes of paragraphs 7(13), 9, 10, 11 and 22, “primary Class 1 contributions” and “earnings-related contributions” shall, unless the context otherwise requires, include any amount paid on account of earnings-related contributions in accordance with the provisions of regulation 8(6).
F264(4)
The following are Real Time Information employers for the purposes of this Schedule—
(a)
an employer who has entered into an agreement with HMRC to comply with the provisions of this Schedule which are expressed as relating to Real Time Information employers;
(b)
an employer within sub-paragraph (5);
F265(c)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ; and
(d)
on and after 6th October 2013, all employers.
(5)
An employer is within this paragraph if the employer has been given a general or specific direction by the Commissioners for Her Majesty's Revenue and Customs before 6th October 2013 to deliver to HMRC returns under paragraph 21A of this Schedule (real time returns of information about payments of general earnings).
Multiple employers
F2662.
(1)
If—
(a)
an employer has made an election under regulation 98 of the PAYE Regulations to be treated as a different employer in respect of each group of employees specified in the election, and
(b)
no improper purpose notice has been given, or if one has been given it has been withdrawn,
he shall be treated as having made an identical election for the purposes of this Schedule.
(2)
In this paragraph an “improper purpose notice” is a notice issued to the employer stating that it appears to the Inland Revenue that the election is made wholly or mainly for an improper purpose within the meaning of regulation 99(2) of the PAYE Regulations.
Intermediate employers
3.
(1)
Where an employee works for a person who is not his immediate employer, that person shall be treated as the employer for the purpose of this Schedule, and the immediate employer shall furnish the principal employer with such particulars of the employee’s F267general earnings as may be necessary to enable the principal employer to comply with the provisions of this Schedule.
This is subject to the qualification in sub-paragraph (4).
(2)
In this paragraph—
“the principal employer” means the person specified as the relevant person in the direction referred to in sub-paragraph (4), and
“the immediate employer” means the person specified as the contractor in that direction.
(3)
If the F268employee’s general earnings are actually paid to him by the immediate employer—
(a)
the immediate employer shall be notified by the principal employer of the amount of earnings-related contributions which may be deducted when F269those earnings are paid to the employee, and may deduct the amount so notified to him accordingly; and
(b)
the principal employer may make a corresponding deduction on making to the immediate employer the payment out of which F270those earnings will be paid.
(4)
(5)
Where an employee is paid a sickness payment which by virtue of regulation 23 is not made through the secondary contributor in relation to the employment—
(a)
the person making that payment shall furnish the secondary contributor with such particulars of that payment as may be necessary to enable the secondary contributor to comply with this Schedule; and
(b)
for the purposes only of this Schedule the secondary contributor shall be deemed to have made the sickness payment.
Employer’s earnings-related contributions
4.
F275Intermediaries
4A.
(1)
Where any payment of F276general earnings of an employee is made by an intermediary of the employer, the employer shall be treated, for the purposes of this Schedule other than–
(a)
paragraph 7(1),
(b)
paragraph 7(3)(a),
(c)
the references to a subsequent payment of F276general earnings or of monetary earnings in paragraph 7(3) and (8), and
(d)
paragraph 7(11),
as making the payment of those F276general earnings to the employee.
(2)
For the purposes of this paragraph, a payment of F276general earnings of an employee is made by an intermediary of the employer if it is made–
(a)
either–
(i)
by a person acting on behalf of the employer and at the expense of the employer, or
(ii)
by a person connected with him, or
(b)
by trustees holding property for any persons who include, or class of persons which includes, the employee.
(3)
Section 839 of the Taxes Act (connected persons) applies for the purposes of this paragraph.
F277Continuation of proceedings etc.
5.
Any legal proceedings or administrative act authorised by or done for the purposes of this Schedule and begun by one Inland Revenue officer may be continued by another officer, and any officer may act for any division or other area.
PART II DEDUCTION OF EARNINGS-RELATED CONTRIBUTIONS
Deduction of earnings-related contributions
6.
(1)
Every employer, on making during any year to any employee any payment of F278general earnings in respect of which earnings-related contributions are payable, or are treated as payable, or on making any payment of statutory maternity pay—
(a)
shall, if he has not already done so, prepare F279... a deductions working sheet for that employee, and
(b)
may deduct earnings-related contributions in accordance with this Schedule.
F280(1A)
Where a liability to pay retrospective contributions has arisen in respect of an employee, an employer shall amend the relevant deductions working sheet or where necessary prepare one in respect of that employee.
(2)
Subject to sub-paragraph (3), an employer shall not be entitled to recover any earnings-related contributions paid or to be paid by him on behalf of any employee otherwise than by deduction in accordance with this Schedule.
(3)
Sub-paragraph (2) does not apply to secondary Class 1 contributions in respect of which 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 (election in respect of transfer of secondary contribution liability on F281relevant employment income) F282 if the election provides for the collection of the amount in respect of which liability is transferred.
Calculation of deduction
7.
(1)
Subject to sub-paragraph (2), on making any payment of F283general earnings to the employee, the employer may deduct from those F283general earnings the amount of the earnings-related contributions based on those F283general earnings F284... which the employee is liable to pay under section 6(4) of the Act F285(the “section 6(4)(a) amount”).
(2)
Where two or more payments of F283general earnings fall to be aggregated, the employer may deduct the amount of the earnings-related contributions based on those F283general earnings, which are payable by the employee, either wholly from one such payment or partly from one and partly from the other or any one or more of the others.
F286(3)
If the employer–
(a)
(b)
is treated as making a payment of F283general earnings by paragraph 4A,
he may recover, in a case falling within paragraph (a) the amount not so deducted or, in a case falling within paragraph (b) the section 6(4)(a) amount, by deduction from any subsequent payment of F283general earnings made by the employer to that employee during F287the same year and, where the case falls within paragraph (b) F288or sub-paragraph 4(a) or (f), during the following year.
This sub-paragraph is subject to sub-paragraphs (4) and (5).
F289(3A)
Where an amount has been treated as retrospective earnings paid to or for the benefit of an employee, the employer may deduct the retrospective contributions based on those earnings from any payment of general earnings made by him to that employee—
(a)
after the relevant retrospective contributions regulations come into force, and
(b)
during the same and the following year.
This sub-paragraph is subject to sub-paragraph (5).
(4)
Sub-paragraph (3) applies only where—
(a)
the under-deduction occurred by reason of an error made by the employer in good faith;
(b)
(c)
the under-deduction occurred as a result of the cancellation, variation or surrender of the contracting-out certificate issued in respect of the employment in respect of which the payment of F283general earnings is made; or
(d)
F294(f)
the payment in question is made to a person whose place of employment is outside the United Kingdom and on whose general earnings Class 1 contributions are, but income tax is not, payable.
(5)
For the purposes of sub-paragraphs (3), F295(3A), (4), (8) and (11)—
(a)
the amount which by virtue of those sub-paragraphs may be deducted from any payment, or from any payments which fall to be aggregated, shall be an amount in addition to, but not in excess of, the amount deductible from those payments under the other provisions of this Schedule; and
(b)
for the purposes of Part III of this Schedule an additional amount which may be deducted by virtue of those sub-paragraphs F296in a case falling within paragraph (a) of any of those sub-paragraphs F297except sub-paragraph (3A) shall be treated as an amount deductible under this Schedule only in so far as the amount of the corresponding under-deduction has not been so treated.
F298This is subject to the following qualification.
F299(5A)
Where a payment—
(a)
falls within sub-paragraph (4)(e) F300or (f),
(b)
comprises a beneficial interest in F301securities, or
(c)
is treated as earnings within the meaning of Part 7 of the Income Tax (Earnings and Pensions) Act 2003,
sub-paragraph (5B) applies.
(5B)
If this sub-paragraph applies—
(a)
sub-paragraph (5)(a) shall have effect as if “, but not in excess of,” were omitted; and
(b)
sub-paragraph (8) shall have effect as if at the end there were added “or the following year”
(6)
Sub-paragraph (8) applies where an employer makes a payment consisting either soley of non-monetary earnings, or a combination of monetary and non-monetary earnings, to—
(a)
an employee;
(b)
an ex-employee,
and at the time of the payment of those earnings there are no, or insufficient, monetary earnings from which the employer could deduct the F302section 6(4)(a) amount.
(7)
In sub-paragraph (6)(b) “ex-employee” means a person who—
(a)
ceases to be employed by the employer in a particular year (“the cessation year”); and
(b)
receives such earnings from the employer after the cessation of employment but in the cessation year.
F303(8)
Where, in the circumstances specified in sub-paragraph (6), the employer–
(a)
does not deduct from the earnings referred to in that sub-paragraph the full section 6(4)(a) amount, or
(b)
is treated as making a payment of F283general earnings by paragraph 4A,
he may recover, in a case falling within paragraph (a) the amount not so deducted or, in a case falling within paragraph (b) the section 6(4)(a) amount, by deduction from any subsequent payment of monetary earnings to that employee, or ex-employee (as the case may be) during the same year.
This sub-paragraph is subject to sub-paragraph (5).
(9)
Sub-paragraph (11) applies if—
(a)
a person (“the ex-employee”) ceases in a particular tax year (“the cessation year”) to be employed by a particular employer (“the employer”); and
(b)
the ex-employee receives from the employer in the cessation year, after the cessation of employment, earnings in the form of—
(i)
a beneficial interest in F304securities,
(ii)
(iii)
any gain on which the ex-employee is chargeable to tax by virtue of F306section 4(4)(a) of the Act; and
(c)
at the time of the payment of those earnings there are no monetary earnings, or insufficient monetary earnings, from which the employer could deduct the F307section 6(4)(a) amount.
F308(10)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F309...
(11)
Where, in the circumstances specified in sub-paragraph (9), the employer has not deducted, from the earnings referred to in sub-paragraph (9)(b), the full amount of earnings-related contributions which by virtue of this Schedule he is entitled to deduct, he may, without prejudice to sub-paragraph (8) but subject to sub-paragraph (12)(b), recover the amount so under-deducted by deduction from the proceeds of sale of some, or all, of—
(a)
the F310securities referred to in of sub-paragraph 9(b)(i) and (ii); or
(b)
the F310securities which form the subject matter of the option referred to in sub-paragraph (9)(b)(iii).
(12)
For the purposes of sub-paragraph (11)—
(a)
the whole of the amount under-deducted may be recovered from the proceeds of sale of some, or all, of the F310securities referred to in that sub-paragraph; and
(b)
the employee’s prior written consent to that sale and the recovery of all or part of the under-deduction from the proceeds thereof, shall be required.
(13)
Subject to sub-paragraph (14), the employer shall record on the deductions working sheet for that employee the name and national insurance number of the employee, the year to which the working sheet relates, the appropriate category letter in relation to the employee (being the appropriate category letter indicated by the Board) and, in so far as relevant to that category letter, the following particulars regarding every payment of F283general earnings which he makes to the employee namely—
(a)
the date of payment;
(b)
the amount of—
(i)
earnings up to and including the current lower earnings limit where earnings equal or exceed that figure,
F311(ii)
earnings which exceed the current lower earnings limit but do not exceed the current primary threshold,
F312(iii)
earnings which exceed the current primary threshold but do not exceed the upper accrual point,
F313(iiia)
earnings which exceed the upper accrual point but do not exceed the current upper earnings limit,
F314(iv)
the sum of the primary Class 1 contributions and secondary Class 1 contributions payable on all the employee’s earnings, other than contributions recovered under sub-paragraph (3); and
(v)
the primary Class 1 contributions payable on the employee’s earnings;
(vi)
any statutory maternity pay;
F317(viia)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(ix)
any statutory shared parental pay.
The amounts to be recorded under sub-paragraphs (iv) and (v) are the amounts of contributions after deducting the amount of any reduction calculated in accordance with section 41(1) to (1B) F320... of the Pensions Act (“the reduction”), subject to the following qualification.
If the amount of the reduction exceeds the amount of the contributions in respect of which it falls to be made, the amount to be entered under sub-paragraph (v) is nil.
F321(c)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(14)
Where 2 or more payments of F283general earnings fall to be aggregated, the employer, instead of recording under heads (iv) and (v) of sub-paragraph (13)(b) separate amounts in respect of each such payment, shall under each head record a single amount, being the total of the contributions appropriate to the description specified in that head, in respect of the aggregated payments.
(15)
When an employer pays F283general earnings he shall record under the name of the employee to whom he pays the F283general earnings—
(a)
the date of payment;
(c)
any allowable F322pension contributions;
and retain the record for a period of three years after the end of the tax year in which the F283general earnings were paid.
F323Records where liability transferred from secondary contributor to employed earner: relevant employment income
8.
Where an election has been made for the purposes of paragraph 3B(1) of Schedule 1 to the Act (elections about transfer of liability for secondary contributions in respect of relevant employment income), the secondary contributor shall maintain records containing—
(a)
a copy of any such election;
(b)
a copy of the notice of approval issued by the Inland Revenue under paragraph 3B(1)(b) of that Schedule;
(c)
the name and address of the secondary contributor who has entered into the election;
(d)
the name of the employed earner; and
(e)
the national insurance number allocated to the employed earner.
Certificate of contributions paid
9.
(1)
Where the employer is required to give the employee a certificate in accordance with F324regulation 67 of the PAYE Regulations (information to employees about payments and tax deducted (Form P 60)), the employer shall enter on the certificate, in respect of the year to which the certificate relates—
(a)
the amount of any earnings up to and including the current lower earnings limit where earnings equal or exceed that figure;
(b)
the amount of any earnings in respect of which primary Class 1 contributions were, by virtue of section 6A of the ActF325, treated as having been paid, which exceed the current lower earnings limit but do not exceed the current primary threshold, other than earnings from non-contracted-out employment in respect of which primary Class 1 contributions were, by virtue of that section and regulation 127, treated as having been paid at the reduced rate;
(c)
the amount of any earnings in respect of which primary Class 1 contributions were payable which exceed the current primary threshold but do not exceed the F326upper accrual point, other than earnings from non-contracted-out employment in respect of which primary Class 1 contributions were payable at the reduced rate;
F327(ca)
the amount of any earnings in respect of which primary Class 1 contributions were payable which exceed the upper accrual point but do not exceed the current upper earnings limit, other than earnings from non-contracted-out employment in respect of which primary Class 1 contributions were payable at the reduced rate;
(d)
the amount of the earnings, if any, recorded under paragraphs (b) and (c), above the current lower earnings limit, in respect of which primary Class 1 contributions were payable or, where section 6A of the Act and regulation 127 applies, were treated as having been paid, at the reduced rate;
(e)
the amount of primary Class 1 contributions paid by the employee;
F328(f)
the amount of statutory maternity pay paid to the employee;
(h)
the amount of statutory adoption pay paid to the employeeF333; and
(i)
the amount of statutory shared parental pay paid to the employee;
(2)
(a)
has paid, or
(b)
is treated, by virtue of section 6A of the Act, as having paid,
primary Class 1 contributions in that year, the employer shall nevertheless give the employee such a certificate showing the information referred to in sub-paragraph (1).
F340(3)
In sub-paragraph (2), “relevant payments” has the meaning given in the PAYE Regulations.
PART III PAYMENT AND RECOVERY OR EARNINGS-RELATED CONTRIBUTIONS, CLASS 1A CONTRIBUTIONS AND CLASS 1B CONTRIBUTIONS, ETC.
Payment of earnings-related contributions monthly by employer
10.
(1)
Subject to F341sub-paragraph (1A) and paragraph 11 and 15(8), the employer shall pay the amount specified in sub-paragraph (2) to the F342Inland Revenue within 14 days F343or, 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 F344... tax month.
F345(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 F346general earnings paid by the employer in that F347... tax month, F348(and, where required, reported under paragraph 21A or 21D) other than amounts deductible under paragraph 7(2) which he did not deduct and amounts which he deducted under the Compensation of Employers RegulationsF349....
(3)
For the purposes of sub-paragraph (2), if two or more payments of F350general 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.
F351(3A)
The amount specified in sub-paragraph (2) must be adjusted to take account of errors corrected under paragraph 21E(5), other than in cases where paragraph 21E(4) appliesF352, or failures rectified under paragraph 21EA(2).
F353(4)
Where the amount specified in sub-paragraph (2) has been adjusted to take account of an error as provided for in sub-paragraph (3A) and the value of the adjustment is a negative amount, that amount is treated as having been paid to HMRC—
(a)
17 days after the end of the tax month in which the correction is made if payment is made using an approved method of electronic communications, and
(b)
14 days after the end of the tax month in which the correction is made, in any other case.
Payments of earnings-related contributions quarterly by employer
11.
(1)
Subject to F354sub-paragraph (1A) and paragraph 15(8), the employer shall pay the amount specified in sub-paragraph (2) to the F355Inland Revenue within 14 days of the end of every F356... tax quarter F357or, 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
F358(b)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F359(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 F360general earnings paid by the employer in that F361... tax quarter, F362(and, where required, reported under paragraph 21A or 21D)
other than amounts deductible under paragraph 7(2) which he did not deduct and amounts which he deducted under the Compensation of Employers RegulationsF363....
(3)
For the purposes of sub-paragraph (2), where two or more payments F364of 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.
F365(3A)
The amount specified in sub-paragraph (2) must be adjusted to take account of errors corrected under paragraph 21E(5), other than in cases where paragraph 21E(4) appliesF366, or failures rectified under paragraph 21EA(2).
F367(3B)
Where the amount specified in sub-paragraph (2) has been adjusted to take account of an error as provided for in sub-paragraph (3A) and the value of the adjustment is a negative amount, that amount is treated as having been paid to HMRC—
(a)
17 days after the end of the tax quarter in which the correction is made if payment is made using an approved method of electronic communications, and
(b)
14 days after the end of the tax quarter in which the correction is made, in any other case.
F368(4)
The condition specified in this sub-paragraph is that for F369tax months falling within the current year, the average monthly amount found by the formula below will be less than £1500.
The formula is—
F370(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 F371Inland 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)
F372any amount payable in respect of retrospective earnings;
- (c)
F373...
- (a)
F374“P” is the amount which would be payable to HMRC under regulation F375 67G or 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 F371Inland Revenue under
F376regulation 54(1) of the Education (Student Loans) (Repayment) Regulations 2009 (payment of repayments deducted to HMRC)
if the reduction referred to in paragraph (3) of that regulation F377...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.
F378...
SP is the amount—
- (a)
recoverable by the employer from F379the Inland Revenue, or
- (b)
deductible from amounts for which the employer would otherwise be accountable to F379the Inland Revenue,
in respect of payments to his employees by way of F380... statutory maternity pay, F381F382statutory paternity payF383, statutory shared parental pay and statutory adoption pay.
- (a)
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.
F384Payments to and recoveries from HMRC for each tax period by Real Time Information employers: returns under paragraph 21E(6) F385or 21EA(3)
11ZA.
(1)
This paragraph applies if, during any tax period, an employer makes a return under paragraph 21E(6) (returns under paragraph 21A and 21D: amendments) other than by virtue of paragraph 21E(4)F386, or paragraph 21EA(3) (failure to make a return under paragraph 21A or 21D of Schedule 4).
(2)
The amount specified in paragraph 10(2) or, as the case may be, 11(2) for the final tax period in the year covered by the return is to be adjusted to take account of the information in the return.
(3)
If the value of the adjustment required by paragraph (2) is a negative amount, the employer may recover that amount—
(a)
by setting it off against the amount the employer is liable to pay under paragraph 10(2) or, as the case may be, 11(2) for the tax period the return is made in; or
(b)
from the Commissioners for Her Majesty's Revenue and Customs.
F387(3A)
Where sub-paragraph (3) applies the negative amount is treated as having been paid to HMRC—
(a)
17 days after the end of the final tax period in the year covered by the return where payment is made using an approved method of electronic communication, and
(b)
14 days after the end of the final tax period in the year covered by the return in any other case.
(4)
But paragraph (3) does not apply in relation to primary Class 1 contributions in a case where those contributions were deducted in error and the excess deduction has not been refunded to the employee.
F388Payments of earnings-related contributions in respect of retrospective earnings
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.
Payment of earnings-related contributions by employer (further provisions)
12.
F389(1)
The Inland Revenue shall give a receipt to the employer for the total amount paid under paragraph F39010, 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 F391Inland Revenue on account of earnings-related contributions under paragraph F39010, 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)F392, the amounts which he is liable to pay subsequently in respect of other payments of F393general 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 F393general 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.
Payment of Class 1B contributions
13.
(1)
A person who is liable to pay a Class 1B contribution (“the employer”), shall pay that Class 1B contribution to the F394Inland Revenue not later than 19th October F395or, 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 F394Inland 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 F394Inland Revenue under paragraph 10 or 11 for any F396... tax period in the same year.
Employer failing to pay earnings-related contributions
14.
(1)
If within F39717 days of the end of any F398... tax period F399a non-Real Time Information employer
has paid no amount of earnings-related contributions to the F400Inland Revenue under paragraph 10 or 11 for that F398... tax period and the F400Inland Revenue is unaware of the amount, if any, which the employer is liable so to pay, the F400Inland 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 F400Inland Revenue under that paragraph in respect of the F398... tax period in question.
(2)
(3)
If the F400Inland Revenue is not satisfied that an amount of earnings-related contributions paid F401... under paragraph 10 or 11 for any F398... tax period is the full amount which the employer is liable to payF401..., the F400Inland Revenue may give a notice under sub-paragraph (1) despite the payment of that amount.
Specified amount of earnings-related contributions payable by the employer
15.
(1)
If after F40217 days following the end of any F403... tax period the employer has paid no amount of earnings-related contributions to F404HMRC under paragraph 10 or 11 for that F403... tax period and there is reason to believe that the employer is liable to pay such contributions, F404HMRC, upon consideration of the employer’s record of past payments F405whether of earnings-related contributions or of combined amounts, may to the best of F406their judgment specify the amount of earnings-related contributions F407or of a combined amount which F408they consider the employer is liable to pay and give notice to him of that amount.
F409(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 F410Education (Student Loans) (Repayment) Regulations 2009.
F411(1B)
In arriving at an amount under paragraph (1), HMRC may also take into account any returns made by the employer under this Schedule in the tax period in question or earlier tax periods.
(2)
If, on the expiration of the period of 7 days allowed in the notice, the specified amount F412... or any part thereof is unpaid, the amount so unpaid—
(a)
(b)
may be certified by F414HMRC.
(3)
The provisions of sub-paragraph (2) shall not apply if, during the period allowed in the notice, the employer pays to F415HMRC the full amount of earnings-related contributions which the employer is liable to pay under paragraph 10 or 11 for that F403... tax period, or the employer satisfies F415HMRC 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 F416HMRC 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 F403... tax periods, a notice may be given by F417HMRC under sub-paragraph (1) which extends to two or more consecutive F403... tax periods, and this Schedule shall have effect as if those F403... tax periods were the latest F403... tax period specified in the notice.
(6)
A notice may be given by F418HMRC under sub-paragraph (1) notwithstanding that an amount of earnings-related contributions has been paid F419... by the employer under paragraph 10 or 11 for any F403... tax period, if, after seeking the employer’s explanation as to the amount of earnings-related contributions paid, F418HMRC is not satisfied that the amount so paid is the full amount which the employer is liable to pay F419... 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 F418HMRC that no further amount of earnings-related contributions is due for the relevant F403... tax period.
(7)
Where, during the period allowed in a notice given by F420HMRC under sub-paragraph (1), the employer claims, but does not satisfy F420HMRC, that the payment F421... made in respect of any F403... tax period specified in the notice is F422or includes the full amount of earnings-related contributions he is liable to pay to F420HMRC for that period, the employer may require F420HMRC to inspect the employer’s documents and records as if F420HMRC had called upon the employer to produce those documents and records in accordance with F423Schedule 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 F420HMRC 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 F424HMRC under it F425whether 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 F403... 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 F424HMRC under paragraph 10 or 11 for any subsequent F403... 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.
Recovery of earnings-related contributions or Class 1B contributions
16.
(1)
The F426... Tax Acts and any regulations underF427 F428section 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 F429HMRC for any F426... tax period in accordance with paragraph 10 or 11 or which he is treated as liable to F429HMRC F430whether separately or as part of a combined amount for any F426... tax period under paragraph 15; or
(b)
any amount of Class 1B contributions which an employer is liable to pay to the F429HMRC 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 F431as 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 F432other 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)
(b)
Class 1B contributions which the employer is liable to pay to F433HMRC in respect of any year;
(c)
a combination of those classes of contributions as specified in heads (a) and (b); or
(d)
without specifying the respective amount of those contributions and of F435other 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 F436 (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),
(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 F426... 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; F439...
(c)
tax which the employer is liable to pay for any F426... tax period in respect of each of his several employees.
F440(d)
amounts due under the Income Tax (Construction Industry Scheme) Regulations 2005; or
(e)
payments of repayments of student loans due under the F441Education (Student Loans) (Repayment) Regulations 2009.
F442(6)
For the purposes of this paragraph “combined amount” has the meaning given in paragraph 15(1A).
Interest on overdue earnings-related contributions or Class 1B contributions
17.
(1)
F443Subject to F444sub-paragraph (4A) and paragraph 21, where, in relation to the year ended 5th April 1993 or any subsequent year, an employer has not—
F445(a)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b)
paid a Class 1B contribution by 19th October F446or, 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 F447HMRC.
(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 ActF448;
(b)
“the reckonable date” means, in relation to—
F449(i)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(ii)
a Class 1B contribution, the 19th October F450or, 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.
F451(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 1882F452.
F453(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.
F454(5)
A certificate of F455HMRC 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.
F456(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).
F457Application of paragraphs 16 and 17 in cases of wilful failure to pay
17A.
(1)
If regulation 86(1)(a) applies paragraphs 16 and 17F458, and section 101 of the Finance Act 2009, in respect of an earnings-related contribution, 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.
Payment of interest on repaid earnings-related contributions or Class 1B contributions
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 F459... 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—
F460(i)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(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 F461... Class 1B contribution was paid if that date is later than the date referred to in paragraph (a).
Repayment of interest
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 F462if—
(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 F46352, 52A or 55.
Remission of interest for official error
20.
(1)
Where interest is payable in accordance with paragraph 17F464, or section 101 of the Finance Act 2009 in relation to any earnings-related contribution, 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 20
21.
(1)
This paragraph applies where—
(a)
secondary Class 1 contributions are payable in respect of F465relevant 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 ActF466.
(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.
F467Real time returns of information about payments of general earnings
21A.
(1)
F468Subject to F469sub-paragraph (1A), on or before making any payment of general earnings to an employee a Real Time Information employer must deliver to HMRC the information specified in Schedule 4A (real time returns) in accordance with this paragraph F470unless—
(a)
the employer is not required to maintain a deductions working sheet for any employees, or
(b)
an employee’s earnings are below the lower earnings limit and the employer is required to make a return under regulation 67B(1), regulation 67D(3), regulation 67E(6) or regulation 67EA(3) of the PAYE Regulations.
F471(1A)
But a Real Time Information employer—
(a)
which for the tax year 2014-15 meets Conditions A and B, or
(b)
which for the tax year 2015-16 meets Conditions A and C,
may instead for that tax year deliver to HMRC the information specified in Schedule 4A (real time returns) in respect of every payment of general earnings made to an employee in a tax month on or before making the last payment of general earnings in that month.
(1B)
Condition A is that at 5th April 2014 the employer is one to whom HMRC has issued an employer’s PAYE reference.
F471(1C)
Condition B is that at 6th April 2014 the Real Time Information employer employs no more than 9 employees.
(1D)
Condition C is that at 6th April 2015 the Real Time Information employer employs no more than 9 employees.
(1E)
In this paragraph “employer’s PAYE reference” means—
(a)
the combination of letters, numbers, or both, used by HMRC to identify an employer for the purposes of the PAYE Regulations, and
(b)
the number which identifies the employer’s HMRC office.
(2)
The information must be included in a return.
(3)
Subject to paragraph (4), if payments of general earnings are made to more than one employee at the same time, the return under sub-paragraph (2) must include the information required by Schedule 4A in respect of each employee to whom a payment of general earnings is made at that time.
(4)
If payments of general earnings are made to more than one employee at the same time but the employer operates more than one payroll, the employer must make a return in respect of each payroll.
(5)
The return is to be made using an approved method of electronic communications and regulation 90N(2) (mandatory use of electronic communications) applies as if the return was a paragraph 22 return within the meaning given by regulation 90M (paragraph 22 return and specified payments).
F472(6)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F472(7)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(8)
Schedule 24 to the Finance Act 2007 (penalties for errors), as that Schedule applies to income tax returns, shall apply in relation to the requirement to make a return contained in sub-paragraph (2).
F473Employees in respect of whom employer is not required to maintain a deductions worksheet
21AA.
(1)
This paragraph applies if an employer makes a payment of general earnings to an employee in respect of whom the employer is not required to maintain a deductions working sheet.
(2)
The employer need not deliver the information required by paragraph 21A in respect of that employee on or before making the payment.
(3)
The employer must deliver that information no later than the end of the period of 7 days starting with the day following the day on which the payment is made.
Employees paid in specified circumstances
21AB.
(1)
This paragraph applies if—
(a)
an employer makes a payment of general earnings to an employee, and
(b)
all of the circumstances in sub-paragraph (2) apply.
(2)
The circumstances are that—
(a)
the payment includes an amount of general earnings which is for work undertaken by the employee on—
(i)
the day the payment is made, or
(ii)
provided that the payment is made before the employee leaves the place of work at the end of the employee’s period of work, the day before the payment is made,
(b)
in respect of the work mentioned in paragraph (a), it was not reasonably practicable for the employer to calculate the payment due before the completion of the work, and
(c)
it is not reasonably practicable for the employer to deliver the information required by paragraph 21A on or before making the payment.
(3)
The employer need not deliver the information required by paragraph 21A on or before making the payment.
(4)
The employer must deliver that information no later than the end of the period of 7 days starting with the day following the day on which the payment is made.
Paragraphs 21AA and 21AB: supplementary
21AC
Where paragraph 21AA or 21AB applies, the information required by paragraph 21A in respect of the payment of general earnings may be included in a return with the information for any other payment of general earnings.
Benefits and expenses – returns under regulations 85 to 87 of the PAYE Regulations
21AD.
(1)
This paragraph applies if an employer makes a payment of general earnings to an employee which, for the purposes of tax, falls to be included in a return under—
(a)
regulations 85 and 86 of the PAYE Regulations (employers: annual return of other earnings (Forms P11D and P9D) – information which must be provided for each employee), or
(b)
regulations 85 and 87 of the PAYE Regulations (employers: annual return of other earnings (Forms P11D and P9D) – information which must also be provided for benefits code employees) or would fall to be so included if the employee’s employment was subject to the benefits code for the purposes of regulation 85 of the PAYE Regulations.
(2)
If the employer is unable to comply with the requirement in paragraph 21A(1) to deliver the information required by that paragraph on or before making the payment, the employer must instead deliver the information as soon as reasonably practicable after the payment is made and in any event no later than 14 days after the end of the tax month in which the payment is made.
F467Modification of the requirements of paragraph 21A: notional payments
21B.
(1)
This F474paragraph applies if an employer makes a payment of general earnings to an employee which, for the purposes of tax, is a notional payment within the meaning given by section 710(2) of ITEPA 2003 (including a notional payment arising by virtue of a retrospective tax provision).
(2)
If the employer is unable to comply with the requirement in paragraph 21A(1) to deliver the information required by that paragraph on or before making the payment, the employer must instead deliver the information as soon as reasonably practicable after the payment is made and in any event no later than—
(a)
the time at which the employer delivers the information required by regulation 67B of the PAYE Regulations (real time returns of information about relevant payments) in respect of the payment;
F475(b)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ; or
(c)
14 days after the end of the tax month the payment is made in,
whichever is earliest.
F467Relationship between paragraph 21A and aggregation of earnings
21C.
(1)
Where an employee's earnings are aggregated, a Real Time Information employer or, as the case may be, Real Time Information employers must make such arrangements as are necessary to ensure that the information specified in paragraph (2) in respect of all the aggregated earnings is included in the information given in respect of one of the employee's employments only.
(2)
The information specified in this paragraph is the information specified in paragraphs 7 and 10(b) and (d) of Schedule 4A (real time returns).
F476Notifications of payments of general earnings to and by providers of certain electronic payment methods
21CA.
(1)
A Real Time Information employer who makes a payment of general earnings using an approved method of electronic communications which falls to be included in a return under paragraph 21A must—
(a)
generate a reference and include it in that return,
(b)
notify the service provider that the payment is a payment of general earnings, and
(c)
generate a sub-reference in respect of the payment of general earnings and notify the service provider of that sub-reference.
(2)
A service provider who receives a notification under paragraph (1)(b) must notify HMRC of the information it holds that is required for generating a reference in relation to the payment of general earnings.
(3)
In sub-paragraphs (1) and (2), “service provider” means the provider of the approved method of electronic communications by which the payment is made.
(4)
For the purposes of sub-paragraphs (1) and (3), an “approved method of electronic communications” is any method of electronic communications which has been approved for the purposes of regulation 90H (mandatory electronic payment).
(5)
Any direction given under regulation 67CA of the PAYE Regulations (notification of relevant payments to and by providers of certain electronic payment methods) applies for the purposes of the obligations in this paragraph as if it referred to payments of general earnings.
F467Exceptions to paragraph 21A
21D.
(1)
This paragraph applies to—
(a)
an individual who is a practising member of a religious society or order whose beliefs are incompatible with the use of electronic communications;
(b)
a partnership, if all the partners fall within sub-paragraph (a);
(c)
a company, if all the directors and the company secretary fall within sub-paragraph (a);
(d)
a care and support employer.
F477(e)
an employer to whom a direction has been given under sub-paragraph (12).
F478But this is subject to sub-paragraph (2B).
(2)
A Real Time Information employer to whom this paragraph applies may proceed in accordance with this paragraph instead of paragraph 21A.
F479(2A)
Before 6th April 2014, a Real Time Information employer to whom this paragraph applies may proceed as if the employer were a non-Real Time Information employer and accordingly the provisions of this Schedule apply to such an employer.
F480(2B)
This paragraph does not apply if a Real Time Information employer within sub-paragraph (1) makes a return using an approved method of electronic communications.
(3)
F481On and after 6th April 2014, the Real Time Information employer must deliver to HMRC the information specified in Schedule 4A in respect of each employee to whom a payment of general earnings is made in a tax F482quarter unless the employer is not required to maintain a deductions working sheet for any employees and, for the purposes of this paragraph, references in Schedule 4A to a payment of general earnings shall be read as if they were references to all the payments made to the employee in the tax F482quarter.
(4)
The information must be included in a return in such a form as HMRC may approve or prescribe.
(5)
The return required under sub-paragraph (4) must be delivered within 14 days after the end of the tax F483quarter the return relates to.
(6)
If payments of general earnings have been made to more than one employee in the tax F484quarter, the return under sub-paragraph (4) must include the information required by Schedule 4A in respect of each employee to whom a payment of general earnings has been made.
F485(7)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F485(8)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(9)
Schedule 24 to the Finance Act 2007, as that Schedule applies to income tax returns, shall apply in relation to the requirement to make a return contained in sub-paragraph (4).
(10)
In sub-paragraph (1)(c), “company” means a body corporate or unincorporated association but does not include a partnership.
(11)
In sub-paragraph (1)(d), “care and support employer” means an individual (“the employer”) who employs a person to provide domestic or personal services at or from the employer's home where—
(a)
the services are provided to the employer or a member of the employer's family;
(b)
the recipient of the services has a physical or mental disability, or is elderly or infirm; and
(c)
it is the employer who delivers the return (and not some other person on the employer's behalf).
F486(12)
Where the Commissioners for Her Majesty’s Revenue and Customs are satisfied that—
(a)
it is not reasonably practicable for an employer to make a return using an approved method of electronic communications, and
(b)
it is the employer who delivers the return (and not some other person on the employer’s behalf),
they may make a direction specifying that the employer is not required to make a return using an approved method of electronic communications.
F467Returns under paragraphs 21A and 21D: amendments
21E.
(1)
This paragraph applies where F487there is an inaccuracy in a return, whether careless or deliberate, made under paragraph 21A (real time returns of information about payments of general earnings) or 21D (exceptions to paragraph 21A) and sub-paragraph (2), (3) or (4) applies.
(2)
(3)
This sub-paragraph applies where the F490inaccuracy was the omission of details of a payment of general earnings to an employee.
(4)
This sub-paragraph applies where retrospective earnings increase the total amount of the general earnings paid to the employee for any tax year in which the employer was a Real Time Information employer.
F491(5)
When the employer becomes aware of an inaccuracy in a return under paragraph 21A or 21D, the employer must provide the correct information in the next return for the tax year in question.
(6)
But if the information given has not been corrected before 20th April following the end of the tax year in question, the employer must make a return under this sub-paragraph.
(7)
A return under sub-paragraph (6)—
(a)
must include the following—
(i)
the information specified in paragraphs F4922 to 7 and 10 to 12 of Schedule 4A,
F493(ii)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(iii)
the value of the adjustment, if any, to the information given under each of the paragraphs of Schedule 4A referred to in sub-paragraph (2) in the final return under paragraph 21A or 21D containing information in respect of the employee in the tax year in question,
(iv)
if an adjustment is made to the information given under paragraph 7 or 10(b) or (d) of Schedule 4A, the information specified in paragraph 6 of that Schedule,
(v)
if an adjustment is made to the information given under paragraph 10(d) of Schedule 4A that decreases the amount reported under that paragraph, an indication of whether the employer has refunded the primary Class 1 contributions paid in error to the employee, and
(vi)
if an adjustment is made to the information given under paragraph 16 of Schedule 4A, the information specified in paragraph 17 of that Schedule if it has not already been provided;
(b)
must be made as soon as reasonably practicable after the F494employer becomes aware of the inaccuracy; and
(c)
must be made using an approved method of electronic communications F495and regulation 90N(2) (mandatory use of electronic communications) applies as if the return was a paragraph 22 return within the meaning given by regulation 90M (paragraph 22 return and specified payments).
(8)
In the application of sub-paragraphs (6) and (7) to cases within sub-paragraph (3), if no information was given in any returns under paragraph 21A or 21D in respect of the employee in the tax year, the value of any adjustments required must be calculated as if there was a final return containing information for the employee in the year and the figure requiring adjustment was zero.
(9)
Sub-paragraph (7)(c) does not apply if the employer is one to whom paragraph 21D applies but in those circumstances the return must be in such a form as HMRC may approve or prescribe.
F496Failure to make a return under paragraph 21A or 21D
21EA.
(1)
This paragraph applies where an employer does not make a return required by paragraph 21A (real time returns of information about payments of general earnings) or 21D (exceptions to paragraph 21A).
(2)
The employer must provide the information in the next return made under paragraph 21A or 21D for the tax year in question.
(3)
But if the information has not been provided before 20th April following the end of the tax year in question, the employer must submit a return under this sub-paragraphF497....
(4)
A return under sub-paragraph (3) must—
(a)
include the information specified in Schedule 4A,
(b)
be made as soon as reasonably practicable after the discovery of the failure to make the return, and
(c)
be made using an approved method of electronic communications and regulation 90N(2) (mandatory use of electronic communications) applies as if the return were a paragraph 22 return within the meaning given by regulation 90M (paragraph 22 return and specified payments).
(5)
Sub-paragraph (4)(c) does not apply if the employer is one to whom paragraph 21D applies but in those circumstances the return must be in such a form as HMRC may approve or prescribe.
(6)
F498If a return under sub-paragraph (3) is not made before 20th May following the tax year in question section 98A of TMA 1970 (special penalties in the case of certain returns) applies to F499that returnF500, but this sub-paragraph does not apply to a return in respect of the tax year 2014-15 or a subsequent tax year.
F467Additional information about payments
21F.
(1)
A Real Time Information employer must inform HMRC of each of the amounts specified in Schedule 4B (additional information about payments) for each tax period unless sub-paragraph (4) or (5) applies.
(2)
The information must be given in a return.
(3)
The return must be delivered within 14 days after the end of the tax period.
(4)
This sub-paragraph applies if—
(a)
all of the amounts are zero; and
(b)
the employer has not made a return under sub-paragraph (2) in the tax year.
(5)
This paragraph applies if none of the amounts has changed in the tax period.
(6)
If an employer makes an error in a return under this paragraph, the employer must provide the correct information in the first return made under sub-paragraph (2) after the discovery of the error.
(7)
But if the information given has not been corrected before 20th April following the end of the year in question, the employer must provide the correct information for the year in question in a return under this sub-paragraph.
F501(7A)
A Real Time Information employer may send to HMRC a notification (included within a return under this paragraph or otherwise) if—
(a)
for a tax period, the employer was not required to make any returns in accordance with paragraph 21A or 21D because no payments of general earnings were made during the tax periods, or
(b)
the employer has sent the final return under paragraph 21A or 21D that the employer expects to make—
(i)
in the circumstances described in paragraph 5 of Schedule A1 to the PAYE Regulations (real time returns); or
(ii)
for the year.
(8)
A return under sub-paragraph (2) or (7) F502and a notification under paragraph (7A)—
(a)
must state—
(i)
the year to which the return relates,
(ii)
the employer's HMRC office number,
(iii)
the employer's PAYE reference, F503...
(iv)
the employer's accounts office referenceF504, and;
(v)
if the notification is under sub-paragraph (7A)(b)(i), include the date of cessation;
(b)
is to be made using an approved method of electronic communications.
F505(9)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(10)
For the purposes of sub-paragraph (8)(b), regulation 90N(2) (mandatory use of electronic communications) applies as if the return was a paragraph 22 return within the meaning given by regulation 90M (paragraph 22 return and specified payments).
(11)
The requirement to use an approved method of electronic communications does not apply if the employer is one to whom paragraph 21D (exceptions to paragraph 21A) applies but in those circumstances the return must be in such a form as HMRC may approve or prescribe.
(12)
Schedule 24 to the Finance Act 2007 (penalties for errors), as that Schedule applies to income tax returns, shall apply in relation to the requirement to make a return contained in sub-paragraph (2) or (7).
F506Penalty: failure to comply with paragraph 21A or 21D
21G.
(1)
Where a Real Time Information employer fails to deliver a return in accordance with paragraph 21A (real time returns of information about payments of general earnings) to paragraph 21AB (employees paid in specific circumstances), paragraph 21AD (benefits and expenses – returns under the PAYE Regulations), paragraph 21B (modification of the requirements of paragraph 21A: notional payments) or paragraph 21D (exceptions to paragraph 21A), Schedule 55 to the Finance Act 2009 (amount of penalty: real time information for PAYE) and regulations 67I to 67K of the PAYE Regulations (penalties) apply in relation that failure as if—
(a)
the return under paragraph 21A (real time returns of information about payments of general earnings) or paragraph 21D (exceptions to paragraph 21A), as the case may be, were a return falling within item 4 of the Table in paragraph 1 of Schedule 55, and
(b)
references to the PAYE Regulations were references to these Regulations,
but this is subject to sub-paragraph (2).
(2)
Where a Real Time Information employer (P) is liable to a penalty in consequence of a failure to deliver a return (“the tax return”) under regulation 67B (real time returns of information about relevant payments) or regulation 67D (exceptions to regulation 67B) of the PAYE Regulations, P shall not also be liable to a penalty in respect of any failure in relation to an associated return under paragraph 21A (real time returns of information about payments of general earnings) or 21D (exceptions to paragraph 21A).
(3)
A tax return and a return under paragraph 21A or 21D are “associated” if the return under paragraph 21A or 21D is required to be delivered at the same time as the tax return.
Return by employer at end of year
22.
F507A1
This F508paragraph applies to—
(a)
non-Real Time Information employers;
(b)
Real Time Information employers in relation to years in which they were, for the whole of the year, non-Real Time information employers; and
(c)
Real Time Information employers to whom HMRC has given a notice requiring a return under regulation 73 of the PAYE Regulations (annual return of relevant payments liable to deduction of tax (Forms P35 and P14) in respect of a tax year.
(1)
F509Before 20th May following the end of the year the employer shall render to F510HMRC 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 F510HMRC 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)
F513(ii)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F514(iii)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(d)
the total amount of any statutory maternity pay paid during the year; F515...
F519(daa)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(db)
the total amount of statutory adoption pay paid during the yearF520; and
(dc)
the total amount of statutory shared parental pay paid during the year.
F521(e)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2)
The return required by sub-paragraph (1) shall include a statement and declaration in the form approved or prescribed by F510HMRC 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 F510HMRC 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; F522...
F523(da)
F526(daa)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(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 2002F527; and
(dc)
in respect of statutory shared parental pay paid during the year to all his employees the total of the amounts determined under regulation 5 (deductions from payments to the Commissioners) of the Statutory Shared Parental Pay (Administration) Regulations 2014.
F521(e)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F528(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.
F529(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4)
(5)
If, within 14 days of the end of any year, an employer has failed to pay to the F510HMRC the total amount of earnings-related contributions which he is liable so to pay, the F510HMRC 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), F533the returns referred to in sub-paragraphs (1) and (2A) may be made in such other form as F510HMRC and the employer approve, and in that case—
(a)
sub-paragraphs (2) to (5) shall not apply; and
(7)
F535Section 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) F536and (2A).
F537Additional return by employer at end of year where liability transferred to employed earner: elections under paragraph 3B(1) of Schedule 1 to the Act.
23.
(1)
This paragraph applies where—
(a)
secondary Class 1 contributions are payable in respect of F538relevant 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)
F539Before 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 F540Inland Revenue.
Special return by employer at end of voyage period
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 F541Inland Revenue in such form as the F541Inland 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 F542general earnings apportioned to each such period in the voyage period;
(c)
the appropriate category letter for each apportionment of F542general earnings;
(d)
the amounts of all the earnings-related contributions payable on each apportionment of F542general 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 F542general 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
(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 rateF544.
F545(h)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Return by employer of recovery under the Statutory Sick Pay Percentage Threshold Order
F54625.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F547Retention by employer of contribution and election records
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 F548... 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.
F549(4A)
Sub-paragraph (4B) applies in relation to an employer who makes deductions, or applies for a repayment, under section 4 of the National Insurance Contributions Act 2014 on account of an employment allowance for which the employer qualifies for a tax year (or who intends to do so).
(4B)
So far as they are not otherwise covered by sub-paragraph (4), “contribution records” includes any documents or records relating to—
(a)
the employer's qualification for the employment allowance, or
(b)
the calculation of any amount that has been, or could be, deducted or repaid under section 4 of the National Insurance Contributions Act 2014 on account of the employment allowance.
(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.
Certificate of employer's liability to pay contributions after inspection of documents
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).
Death of an employer
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 F550general earnings on behalf of another person, by the person succeeding him or, if no person succeeds him, the person on whose behalf he paid F550general earnings.
Succession to a business, etc
28.
(1)
This paragraph applies where there has been a change in the employer from whom an employee receives F550general 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 F551the employee after, the change took place, or of any corresponding employer’s earnings-related contributions.
Payments by cheque
29.
(1)
Sub-paragraph (2) applies for the purposes of paragraphs 10, 11, 13, 15, 17 and 18.
(2)
If any payment to the F552Inland 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 F552Inland Revenue, and “pay”, “paid”, “unpaid” and “overpaid” shall be construed accordingly.
F553PART 3ADEBTS OF MANAGED SERVICE COMPANIES
Interpretation of this Part
29A.
(1)
In this Part of this Schedule—
“HM Revenue and Customs” means Her Majesty’s Revenue and Customs;
“lower amount” means the amount mentioned in paragraph 29C(5);
“managed service company” has the meaning given by section 61B of ITEPA;
“paragraph (b) associate” means a person who—
(a)
is within section 688A(2)(d), and
(b)
is within that provision by virtue of a connection with a person who is within section 688A(2)(b);
“paragraph (c) associate” means a person who—
(a)
is within section 688A(2)(d), and
(b)
is within that provision by virtue of a connection with a person who is within section 688A(2)(c);
“qualifying period” means a tax period beginning on or after 6th August 2007;
“relevant contributions debt” means a debt specified in paragraph 29B;
“specified amount” means the amount mentioned in paragraph 29C(1)(b);
“transfer notice” means the notice mentioned in paragraph 29C(4);
“transferee” means the person mentioned in paragraph 29C(4).
(2)
In this Part of this Schedule references to section 688A, however expressed, are references to section 688A of ITEPA.
Relevant contributions debts of managed service companies
29B.
(1)
A managed service company has a relevant contributions debt if—
(a)
a managed service company must pay an amount of contributions for a qualifying period, and
(b)
one of conditions A to E is met.
(2)
Condition A is met if—
(a)
a decision has been made in accordance with section 8 of the Social Security Contributions (Transfer of Functions, etc.) Act 1999 that an amount of Class 1 National Insurance contributions is due in respect of a qualifying period, and
(b)
any part of the amount has not been paid within 14 days from the date on which the decision became final and conclusive.
(3)
Condition B is met if—
(a)
an employer delivers a return under paragraph 22(1) (return by employer at end of year) for the tax year 2007-08, or any later tax year, showing an amount of total contributions deducted by the employer for that tax year,
(b)
HM Revenue and Customs prepare a certificate under paragraph 22(5) (certificate that contributions specified in return under paragraph 22(1) remain unpaid) showing how much of that amount remains unpaid, and
(c)
any part of that amount remains unpaid at the end of a period of 14 days beginning with the date on which the certificate is prepared.
(4)
Condition C is met if—
(a)
HM Revenue and Customs prepare a certificate under paragraph 14(1) (employer failing to pay earnings-related contributions) showing an amount of contributions which the employer is liable to pay for a qualifying period, and
(b)
any part of that amount remains unpaid at the end of a period of 14 days beginning with the date on which the certificate is prepared.
(5)
Condition D is met if—
(a)
HM Revenue and Customs serve notice on an employer under paragraph 15(1) (specified amount of earnings-related contributions payable by the employer) requiring payment of the amount of Class 1 contributions which they consider the employer is liable to pay, and
(b)
any part of that amount remains unpaid at the end of a period of 14 days beginning with the date on which the notice is prepared.
(6)
Condition E is met if—
(a)
HM Revenue and Customs prepare a certificate under F554paragraph 26A (certificate of employer's liability to pay contributions after inspection of documents) showing an amount of contributions which it appears that the employer is liable to pay for a qualifying period,
(b)
HM Revenue and Customs make a written demand for payment of that amount of contributions, and
(c)
any part of that amount remains unpaid at the end of a period of 14 days beginning with the date on which the written demand for payment is made.
Transfer of debt of managed service company
29C.
(1)
This paragraph applies if—
(a)
a managed service company has a relevant contributions debt, and
(b)
an officer of Revenue and Customs is of the opinion that the relevant contributions debt or a part of the relevant contributions debt (the “specified amount”) is irrecoverable from the managed service company within a reasonable period.
(2)
HM Revenue and Customs may make a direction authorising the recovery of the specified amount from the persons specified in section 688A(2) (managed service companies: recovery from other persons).
(3)
Upon the making of a direction under sub-paragraph (2), the persons specified in section 688A(2) become jointly and severally liable for the relevant contributions debt, but subject to what follows.
(4)
HM Revenue and Customs may not recover the specified amount from any person in accordance with a direction made under sub-paragraph (2) until they have served a notice (a “transfer notice”) on the person in question (the “transferee”).
(5)
If an officer of Revenue and Customs is of the opinion that it is appropriate to do so, HM Revenue and Customs may accept an amount less than the specified amount (the “lower amount”) from a transferee; but this acceptance shall not prejudice the recovery of the specified amount from any other transferee.
(6)
HM Revenue and Customs may not serve a transfer notice on a person mentioned in section 688A(2)(c), or on a paragraph (c) associate, if the relevant contributions debt is incurred before 6th January 2008.
(7)
HM Revenue and Customs may not serve a transfer notice on a person mentioned in section 688A(2)(c), or on a paragraph (c) associate, unless an officer of Revenue and Customs certifies that, in his opinion, it is impracticable to recover the specified amount from persons mentioned in paragraphs (a) and (b) of section 688A(2) and from paragraph (b) associates.
(8)
In determining, for the purposes of sub-paragraph (7), whether it is impracticable to recover the specified amount from the persons mentioned in paragraphs (a) and (b) of section 688A(2) and from paragraph (b) associates the officer of Revenue and Customs may have regard to all managed service companies in relation to which a person is a person mentioned in paragraph (a) or (b) of section 688A(2) or a paragraph (b) associate.
(9)
In determining which of the persons mentioned in section 688A(2)(c) and which of the paragraph (c) associates are to be served with transfer notices and the amount of those notices, HM Revenue and Customs must have regard to the degree and extent to which those persons are persons who (directly or indirectly) have encouraged or been actively involved in the provision by the managed service company of the services of the individual mentioned in that provision.
Time limits for issue of transfer notices
29D.
(1)
A transfer notice must be served before the end of the period specified in this paragraph.
(2)
Sub-paragraphs (3) to (7) apply if the transfer notice is served on a person mentioned in paragraph (a) or (b) of section 688A(2) or on a paragraph (b) associate.
(3)
In a case in which condition A in paragraph 29B is met, the transfer notice must be served before the end of a period of 12 months beginning with the date on which the decision became final and conclusive.
(4)
In a case in which condition B in paragraph 29B is met, the transfer notice must be served before the end of a period of 12 months beginning with the date on which HM Revenue and Customs received the return delivered under paragraph 22.
(5)
In a case in which condition C in paragraph 29B is met, the transfer notice must be served before the end of a period of 12 months beginning with the date on which HM Revenue and Customs prepare the certificate under paragraph 14(1).
(6)
In a case in which condition D in paragraph 29B is met, the transfer notice must be served before the end of a period of 12 months beginning with the date on which HM Revenue and Customs serve notice to the employer under paragraph 15(1).
(7)
In a case in which condition E in paragraph 29B is met, the transfer notice must be served before the end of a period of 12 months beginning with the date on which HM Revenue and Customs carry out the inspection of the employer’s contribution records under F555Schedule 36 to the Finance Act 2008.
(8)
If the transfer notice is served on a person mentioned in paragraph (c) of section 688A(2), or on a paragraph (c) associate, the transfer notice must be served before the end of a period of three months beginning with the date on which the officer of Revenue and Customs certifies the matters specified in paragraph 29C(7).
Contents of transfer notice
29E.
(1)
A transfer notice must contain the following information—
(a)
the name of the managed service company to which the relevant contributions debt relates;
(b)
the address of the managed service company to which the relevant contributions debt relates;
(c)
the amount of the relevant contributions debt;
(d)
the tax periods to which the relevant contributions debt relates;
(e)
if the tax periods to which the relevant contributions debt relates are comprised in more than one tax year, the apportionment of the relevant contributions debt among those tax years;
(f)
which of the conditions A to E specified in paragraph 29B is met;
(g)
the transferee’s name;
(h)
the transferee’s address;
(j)
whether the transferee is a person mentioned in paragraph (a), (b) or (c) of section 688A, a paragraph (b) associate or a paragraph (c) associate;
(k)
if the transferee is a person mentioned in paragraph (c) of section 688A or a paragraph (c) associate—
(i)
the date on which the officer of Revenue and Customs certified the matters specified in paragraph 29C(7), and
(ii)
the names of the persons from whom it has been impracticable to recover the specified amount;
(l)
the specified amount;
(m)
the tax periods to which the specified amount relates;
(n)
if the tax periods to which the specified amount relates are comprised in more than one tax year, the apportionment of the specified amount among those tax years;
(o)
the address to which payment must be sent;
(p)
the address to which an appeal must be sent.
(2)
The transfer notice may specify the lower amount if HM Revenue and Customs are prepared to accept the lower amount from the transferee.
(3)
The transfer notice must also contain a statement, made by the officer of Revenue and Customs serving the notice, that in his opinion the specified amount is irrecoverable from the managed service company within a reasonable period.
Payment of the specified amount
29F.
(1)
If a transfer notice is served, the transferee must pay the specified amount to HM Revenue and Customs at the address specified in the transfer notice.
(2)
The transferee must pay the specified amount within 30 days beginning with the date on which the transfer notice is served (the “specified period”).
(3)
If a transfer notice is served on a person mentioned in paragraph (a) or (b) of section 688A(2), or on a paragraph (b) associate, the specified amount carries interest from the reckonable date until the date on which payment is made.
(4)
If a transfer notice is served on a person mentioned in paragraph (c) of section 688A(2), or on a paragraph (c) associate, the specified amount carries interest from the day following the expiry of the specified period until the date on which payment is made.
F556(5)
For the purposes of sub-paragraph (3) “the reckonable date” has the meaning given by paragraph 17(3)(b)(i).
Appeals
29G.
(1)
A transferee may appeal against the transfer notice.
(2)
A notice of appeal must—
(a)
be given to HM Revenue and Customs at the address specified in the transfer notice within 30 days beginning with the date on which the transfer notice was served, and
(b)
specify the grounds of the appeal.
(3)
The grounds of appeal are any of the following—
(a)
that the relevant contributions debt (or part of the relevant contributions debt) is not due from the managed service company to HM Revenue and Customs;
(b)
that the specified amount does not relate to a company which is a managed service company;
(c)
that the specified amount is not irrecoverable from the managed service company within a reasonable period;
(d)
that the transferee is not a person mentioned in section 688A(2);
(e)
that the transferee was not a person mentioned in section 688A(2) during the tax periods to which the specified amount relates;
(f)
that the transferee was not a person mentioned in section 688A(2) during some part of the tax periods to which the specified amount relates;
(g)
that the transfer notice was not served before the end of the period specified in paragraph 29D;
(h)
that the transfer notice does not satisfy the requirements specified in paragraph 29E;
(j)
in the case of a transferee mentioned in section 688A(2)(c) or of a paragraph (c) associate, that it is not impracticable to recover the specified amount from persons mentioned in paragraphs (a) and (b) of section 688A(2) or from paragraph (b) associates;
(k)
in the case of a transferee mentioned in section 688A(2)(c) or of a paragraph (c) associate, that the amount specified in the transfer notice does not have regard to the degree and extent to which the transferee is a person who (directly or indirectly) has encouraged or been actively involved in the provision by the managed service company of the services of the individual mentioned in that provision.
(4)
Sub-paragraph (3)(a) is subject to paragraph 29H(4).
F557(5)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Procedure on appeals
29H.
(1)
On an appeal F558that is notified to the tribunal, the tribunal shall uphold or quash the transfer notice.
(2)
The general rule in sub-paragraph (1) is subject to the following qualifications.
(3)
In the case of the ground of appeal specified in paragraph 29G(3)(a), the F559tribunal shall investigate the matter and shall—
(a)
uphold the amount of the relevant contributions debt specified in the transfer notice, or
(b)
reduce or increase the amount of the relevant contributions debt specified in the transfer notice to such amount as in F560the tribunal’s opinion is just and reasonable.
(4)
If the F561tribunal determines the amount of the relevant contributions debt of a managed service company under sub-paragraph (3), that amount is conclusive as to the amount of that relevant contributions debt in any later appeal relating to that debt.
(5)
In the case of the ground of appeal specified in paragraph 29G(3)(f), the F562tribunal may reduce the amount specified in the transfer notice to an amount determined in accordance with the equation—
(6)
In paragraph (5)—
RA means the reduced amount;
P means the number of days in the tax periods specified in the transfer notice during which the transferee was a person mentioned in section 688A(2);
TP means the number of days in the tax periods specified in the transfer notice;
AS means the amount specified in the transfer notice.
(7)
Withdrawal of transfer notices
29J.
(1)
A transfer notice shall be withdrawn if the F565tribunal quashes it.
(2)
A transfer notice may be withdrawn if, in the opinion of an officer of Revenue and Customs, it is appropriate to do so.
(3)
If a transfer notice is withdrawn, HM Revenue and Customs must give written notice of that fact to the transferee.
Application of Part 6 of the Taxes Management Act 1970
29K.
(1)
For the purposes of this Chapter, Part 6 of the Taxes Management Act 1970 (collection and recovery) applies as if—
(a)
the transfer notice were an assessment of tax on employment income, and
(b)
the amount of earnings-related contributions specified in the transfer notice, and any interest payable on that amount under sub-paragraph (3) or (4) of paragraph 29F were income tax charged on the transferee;
and that Part of that Act applies with the modification specified in sub-paragraph (2) and any other necessary modifications.
(2)
Summary proceedings for the recovery of the specified amount may be brought in England and Wales or Northern Ireland at any time before the end of a period of 12 months beginning immediately after the expiry of the period mentioned in paragraph 29F(2).
(3)
The specified amount is one cause of action or one matter of complaint for the purposes of proceedings under sections 65, 66 and 67 of the Taxes Management Act 1970 (magistrates’ courts, county courts and inferior courts in Scotland).
(4)
But sub-paragraph (3) does not prevent the bringing of separate proceedings for the recovery of each of the amounts which the transferee is liable to pay for any tax period.
Repayment of surplus amounts
29L.
(1)
This paragraph applies if the amounts paid to HM Revenue and Customs in respect of a relevant contributions debt exceed the specified amount.
(2)
HM Revenue and Customs shall repay the difference on a just and equitable basis and without unreasonable delay.
(3)
Interest on any sum repaid shall be paid in accordance with paragraph 18 (payment of interest on repaid earnings-related contributions).
F566PART 3BSecurity for the payment of Class 1 contributions
Interpretation
29M.
In this Part—
“employer” has the meaning given in paragraph 29O(1);
“a further notice” has the meaning given in paragraph 29U(3);
“PGS” has the meaning given in paragraph 29S(1).
Requirement for security
29N.
In circumstances where an officer of Revenue and Customs considers it necessary for the protection of Class 1 contributions, the officer may require a person described in paragraph 29P(1) to give security or further security for the payment of amounts which an employer is or may be liable to pay to HMRC under paragraph 10, 11F567, 11ZA or 11A.
Employers
29O.
(1)
An “employer” is any employer within the meaning given in paragraph 1(2) other than—
(a)
the Crown;
(b)
a person to whom sub-paragraph (2) applies;
F568(c)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .; and
(d)
a care and support employer within the meaning given in regulation 90NA(3) of these Regulations.
(2)
This sub-paragraph applies to persons who at the relevant time could not be liable to a penalty under Schedule 56 to the Finance Act 2009 by virtue of paragraph 10 of that Schedule (suspension of penalty for failure to make payments on time during currency of agreement for deferred payment).
(3)
In sub-paragraph (2), the relevant time is a time at which, but for sub-paragraph (1)(b), the officer would require security.
Persons from whom security can be required
29P.
(1)
The persons are—
(a)
the employer;
(b)
any of the following in relation to the employer—
(i)
a director;
(ii)
a company secretary;
(iii)
any other similar officer; or
(iv)
any person purporting to act in such a capacity; and
(c)
in a case where the employer is a limited liability partnership, a member of the limited liability partnership.
(2)
An officer of Revenue and Customs may require—
(a)
a person to give security or further security of a specified value in respect of the employer; or
(b)
more than one person to give security or further security of a specified value in respect of the employer, and where the officer does so those persons shall be jointly and severally liable to give that security or further security.
Notice of requirement
29Q.
(1)
An officer of Revenue and Customs must give notice of a requirement for security to each person from whom security is required and the notice must specify—
(a)
the value of security to be given;
(b)
the manner in which security is to be given;
(c)
the date on or before which security is to be given; and
(d)
the period of time for which security is required.
(2)
The notice must include, or be accompanied by, an explanation of—
(a)
the employer's right to make a request under paragraph 10(1) of Schedule 56 to the Finance Act 2009; and
(b)
the effect of paragraph 29R(2) and (3).
(3)
In a case which falls within paragraph 29P(2)(b), the notice must include, or be accompanied by, the names of each other person from whom security is required.
(4)
The notice may contain such other information as the officer considers necessary.
(5)
A person shall not be treated as having been required to provide security unless HMRC comply with this paragraph and paragraph 29R(1).
(6)
Notwithstanding anything in regulation 1(4)(b), where the notice, or a further notice, (“contributions notice”) is to be given with a notice or further notice mentioned in regulations 97Q(1) and 97U(3) of the PAYE Regulations (“PAYE notice”) the contributions notice shall be taken to be given at the same time that the PAYE notice is given.
Date on which security is due
29R.
(1)
The date specified under paragraph 29Q(1)(c) may not be earlier than the 30th day after the day on which the notice is given.
(2)
If, before the date specified under paragraph 29Q(1)(c), the employer makes a request under paragraph 10(1) of Schedule 56 to the Finance Act 2009, the requirement to give security on or before that date does not apply.
(3)
In a case which falls within sub-paragraph (2), if HMRC does not agree to the employer's request, security is to be given on or before the 30th day after the day on which HMRC notifies the employer of that decision.
Application for reduction in the value of security held
29S.
(1)
A person who has given security (“PGS”) may apply to an officer of Revenue and Customs for a reduction in the value of security held by HMRC if—
(a)
PGS' circumstances have changed since the day the security was given because—
(i)
of hardship; or
(ii)
PGS has ceased to be a person mentioned in paragraph 29P(1); or
(b)
since the day the security was given there has been a significant reduction in the number of employed earners of the employer to whom the security relates or that employer has ceased to be an employer.
(2)
Where paragraph 29P(2)(b) applies, a person who has not contributed to the value of the security given may not make an application under sub-paragraph (1).
Outcome of application under paragraph 29S
29T.
(1)
If an application under paragraph 29S(1) is successful, the officer must inform PGS of the reduced value of security that is still required or, where that value is nil, that the requirement for security has been cancelled.
(2)
HMRC may make such arrangements as they think fit to ensure the necessary reduction in the value of security held.
Outcome of application under paragraph 29S: further provision
29U.
(1)
This paragraph applies—
(a)
in cases which fall within paragraph 29P(2)(b); and
(b)
where PGS' application is made under paragraph 29S(1)(a).
(2)
As a consequence of arrangements made under paragraph 29T(2), an officer of Revenue and Customs may require any other person who was given notice under paragraph 29Q in relation to the security (“the original security”), or any other person mentioned in paragraph 29P(1), to provide security in substitution for the original security.
(3)
Where an officer of Revenue and Customs acts in reliance on sub-paragraph (2), the officer must give notice (“a further notice”).
(4)
Paragraph 29Q(1) to (5) and paragraph 29R apply in relation to a further notice.
(5)
Subject to sub-paragraph (6), paragraph 29V(1) applies in relation to a further notice.
(6)
A person who is given a further notice and who was also given notice under paragraph 29Q in relation to the original security may only appeal on the grounds that the person is not a person mentioned in paragraph 29P(1).
Appeals
29V.
(1)
A person who is given notice under paragraph 29Q may appeal against the notice or any requirement in it.
(2)
PGS may appeal against—
(a)
the rejection by an officer of Revenue and Customs of an application under paragraph 29S(1); and
(b)
a smaller reduction in the value of security held than PGS applied for.
(3)
Notice of an appeal under this paragraph must be given—
(a)
before the end of the period of 30 days beginning with—
(i)
in the case of an appeal under sub-paragraph (1), the day after the day on which the notice was given; and
(ii)
in the case of an appeal under sub-paragraph (2), the day after the day on which PGS was notified of the outcome of the application; and
(b)
to the officer of Revenue and Customs by whom the notice was given or the decision on the application was made, as the case may be.
(4)
Notice of an appeal under this paragraph must state the grounds of appeal.
(5)
On an appeal under sub-paragraph (1) that is notified to the tribunal, the tribunal may—
(a)
confirm the requirements in the notice;
(b)
vary the requirements in the notice; or
(c)
set aside the notice.
(6)
On an appeal under sub-paragraph (2) that is notified to the tribunal, the tribunal may—
(a)
confirm the decision on the application; or
(b)
vary the decision on the application.
(7)
On the final determination of an appeal under this paragraph—
(a)
subject to any alternative determination by a tribunal or court, any security to be given is due on the 30th day after the day on which the determination is made; or
(b)
HMRC may make such arrangements as they think fit to ensure the necessary reduction in the value of the security held.
(8)
Part 5 of the Taxes Management Act 1970 (appeals and other proceedings) applies in relation to an appeal under this paragraph as it applies in relation to an appeal under the Taxes Acts but as if—
(a)
sections 46D, 47B, 50(6) to (9) and (11)(c) and 54A to 57 were omitted; and
(b)
in section 48(1)—
(i)
in paragraph (a) the reference to “the Taxes Acts” were a reference to “paragraph 29V of Schedule 4 to the Social Security (Contributions) Regulations 2001”; and
(ii)
in paragraph (b) the reference to “any provision of the Taxes Acts” were a reference to “paragraph 29V of Schedule 4 to the Social Security (Contributions) Regulations 2001”.
Appeals: further provision for cases which fall within paragraph 29R(2)
29W.
In a case which falls within paragraph 29R(2), if the request mentioned in that provision is made before an appeal under paragraph 29V(1), paragraph 29V(3)(a)(i) applies as if the words “the day after the day on which the notice was given” were “the day after the day on which HMRC notifies the employer of its decision”.
Offence
29X.
(1)
Section 684(4A) of the Income Tax (Earnings and Pensions) Act 2003 (PAYE regulations – security for payment of PAYE: offence) applies in relation to a requirement imposed under these Regulations as it applies in relation to a requirement imposed under the PAYE Regulations.
(2)
For the purposes of section 684(4A) as it applies by virtue of sub-paragraph (1)—
(a)
in relation to a requirement for security under a notice under paragraph 29Q the period specified is the period which starts with the day the notice is given and ends with—
(i)
the first day after the date specified under paragraph 29Q(1)(c); or
(ii)
in a case which falls within paragraph 29R(2), the first day after the date determined under paragraph 29R(3);
(b)
in relation to a requirement for security under a further notice the period specified is the period which starts with the day the further notice is given and ends with—
(i)
the first day after the date specified under paragraph 29Q(1)(c) as it applies in relation to the further notice; or
(ii)
in a case which falls within paragraph 29R(2), the first day after the date determined under paragraph 29R(3) as it applies in relation to the further notice; and
(c)
in relation to a requirement for security to which paragraph 29V(7)(a) applies the period specified is the period which starts with the day the determination is made and ends with the first day after—
(i)
the day the tribunal or court determines to be the day that the security is to be given; or
(ii)
the day determined in accordance with that paragraph,
as the case may be.
PART IV ASSESSMENT AND DIRECT COLLECTION
Provisions for direct payment
30.
In cases of employed earner’s employment, where the employer does not fulfil the conditions prescribed in regulation 145(1)(b) as to residence or presence in Great Britain or Northern Ireland or is a person who, by reason of any international treaty to which the United Kingdom is a party or of any international convention binding on the United Kingdom, is exempt from the provisions of the Act or is a person against whom, for a similar reason, the provisions of the Act are not enforceable, the provisions of paragraph 31 shall apply to the employee, unless the employer, being a person entitled to pay the primary contributions due in respect of the earnings from the said employment, is willing to pay those contributions.
F569Application of paragraphs 31 and 31A
30A.
(1)
Paragraph 31(4) to (7) does not apply on or after 6th April 2014.
(2)
Paragraph 31(7A) and (7B) applies only in relation to closed tax years ending on or before 5th April 2014.
(3)
Paragraph 31A applies on and after 6th April 2014.
Direct collection involving deductions working sheets
31.
(1)
In any case falling within paragraph 30, F570... sub-paragraphs (2) to (8) shall apply.
(2)
The employee F571... shall record on F572a working sheet his name, national insurance number and category letter indicated by F573HMRC, and whenever, in respect of an employment such as is specified in paragraph 30, the employee receives any F574general earnings during F575the relevant tax year, he shall also record on that working sheet the amount of the F574earnings, the date on which he received them, and the earnings-related contributions payable by him in respect of those F574earnings .
(3)
Not later than the time for the payment of income tax, if any, the employee shall pay to F573HMRC the amount of the earnings-related contributions payable by the employee in respect of the F576general earnings which have been received by him and for which the income tax is or would have been payable.
F577(3A)
Before 20 May 2014 the employee must deliver to HMRC a return in the prescribed form for the tax year 2013-14 showing the following information:
(a)
the total amount of the general earnings and earnings-related contributions payable during the tax year 2013-14,
(b)
the appropriate category letter,
(c)
the employee’s name and address, and
(d)
the employee’s national insurance number, and
the provisions of paragraph 22(5) regarding the certification and recovery of earnings-related contributions remaining unpaid by an employer for any year shall apply in the case of any earnings-related contributions remaining unpaid by the employee.
(4)
If, by the time specified in sub-paragraph (3), the employee has paid no amount of earnings-related contributions to F573HMRC in respect of the F578general earnings mentioned in that sub-paragraph, and F573HMRC is unaware of the amount, if any, which the employee is liable so to pay, or if an amount has been paid but F573HMRC is not satisfied that it is the full amount which the employee is liable to pay to him in respect of those F578earnings, sub-paragraph (5) applies.
(5)
If this sub-paragraph applies, F573HMRC may give notice to the employee requiring him to render, within the time limited in the notice, a return in the prescribed form containing particulars of all F579general earnings received by him during the period specified in the notice and such other particulars affecting the calculations of the earnings-related contributions payable in respect of the F579earnings in question as may be specified in the notice, and in such a case the provisions of—
(a)
paragraph 14 regarding the ascertaining and certifying by F573HMRC of earnings-related contributions payable by an employer, and
(b)
paragraph 16 regarding the recovery of those contributions.
shall apply with the necessary modifications for the purposes of ascertaining, certifying and recovering the earnings-related contributions payable by the employee.
(6)
If the employee ceases to receive F580general earnings falling within sub-paragraph (2), he shall immediately render to F581F573HMRC, in such form as they may prescribe, a return showing such particulars as they may require for the identification of the employee, the year to which the return relates, the appropriate category letter, the last date on which he received any such F580earnings, the total of those F580earnings and the earnings-related contributions payable from the beginning of the year to that date.
(7)
F582Before 20th May following the end of the year, the employee shall (unless sub-paragraph (6) has applied) render to F583F573HMRC, in such form as they may prescribe, a return showing such particulars as they may require for the identification of the employee, the year to which the return relates, the total of the F584general earnings and earnings-related contributions payable during the year, together with the appropriate category letter, and the provisions of paragraph 22(5) regarding the certification and recovery of earnings-related contributions remaining unpaid by an employer for any year shall apply in the case of any earnings-related contributions remaining unpaid by the employee.
F585(7A)
Where a liability arises to pay contributions in respect of retrospective earnings relating to a closed tax year, the F586employee shall render a replacement return for the 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 sub-paragraph (7), setting out the revised earnings and earnings-related contributions.
(7B)
Where sub-paragraph (7A) applies, the F586employee shall amend the relevant deductions working sheet or where necessary prepare one in accordance with sub-paragraph (2)
(8)
The employee shall retain deductions working sheets F587... for not less than three years after the end of the year to which they relate.
(9)
F588Section 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 to Schedule 1 to the Act, shall apply in relation to the requirement to make a return contained in sub-paragraphs F589F590(3A) and (7A).
F591Direct collection involving deductions working sheets on and after 6th April 2014
31A.
(1)
On receiving any general earnings which fall to be recorded on a deductions working sheet under paragraph 31(2), subject to sub-paragraph (2), an employee must proceed in accordance with paragraph 21A(1), (2) and (5).
(2)
If the employee falls within paragraph 21D(1)(a), the employee may instead proceed in accordance with paragraph 21D(3), (4) and (5).
(3)
For the purposes of sub-paragraph (1), paragraph 21A(8) and paragraphs 21AB, 21AC, 21AD, 21B and 21C apply as if the employee were a Real Time Information employer.
(4)
For the purposes of sub-paragraph (2), paragraph 21D(9) applies as if the employee were a Real Time Information employer.
(5)
For the purposes of sub-paragraphs (1) and (2), paragraphs 15, 16, 21E, 21EA and 21F(7A) and (8) and Schedule 4A apply as if the employee were a Real Time Information employer, but the information required by paragraph 10(a) and (b) of that Schedule need not be provided.
F592SCHEDULE 4AReal time returns
1.
The information specified in this Schedule is as follows and terms used in this Schedule which are defined for the purposes of Schedule 4 bear the same meaning as in that Schedule.
Information about the employer and the employee
2.
The information specified in paragraphs 2 to F5936, 8 to 15 and 18 to 20 of Schedule A1 (real time returns) to the PAYE Regulations.
F5942A.
For the purposes of paragraph 2, the references in paragraphs 5 and 6 of Schedule A1 to the PAYE Regulations to regulation 67F of those Regulations shall be taken as references to paragraph 21F of Schedule 4 to these Regulations.
Information about payments to the employee, etc
3.
The amount of the payment made that is included in the amount of the employee’s earnings from the employment for the purposes of determining the amount of earnings-related contributions payable.
F5953A.
The total of the amounts referred to in paragraph 3 in the year to date.
4.
For the purposes of assessing earnings-related contributions based on the payment, the number of earnings periods the payment relates to.
5.
Where—
(a)
the earner is concurrently employed in more than one employed earner’s employment under the same employer but regulation 14 (aggregation of earnings paid in respect of separate employed earner’s employments under the same employer) does not apply; or
(b)
regulation 15 (aggregation of earnings paid in respect of different employed earner’s employments by different persons and apportionment of contribution liability) applies in relation to the earner,
an indication of whether the return relates to earnings which have been or will be aggregated.
6.
The appropriate category letter or, as the case may be, letters in relation to the employee (being the appropriate letter or letters indicated by HMRC).
7.
For the category letter or, as the case may be, each category letter in relation to the employee (being the appropriate letter or letters indicated by HMRC), the total of the amounts required to be recorded by paragraph 7(13)(b)(i) to (iiia) of Schedule 4 (calculation of deduction) for the year to date.
8.
If the employee is a director, in so far as relevant to the relevant category letter (being the appropriate category letter indicated by HMRC) in relation to the employee—
(a)
an indication of whether, for the purposes of assessing earnings-related contributions based on the payment, the employer has relied on regulation 8(2) or (3) (earnings periods for directors), or
(b)
an indication of whether, for the purposes of assessing earnings-related contributions based on the payment, the employer has relied or, if the earnings fall to be aggregated, will rely on regulation 8(6).
9.
Where regulation 8(2) applies and the appointment was in the current tax year, the week in which the appointment was made.
10.
In so far as relevant to the relevant category letter or, as the case may be, letters (being the appropriate category letter or letters indicated by HMRC) in relation to the employee—
(a)
the total amount of secondary Class 1 contributions payable on the employee’s earnings in the earnings period in which the return is made,
(b)
the total amount of secondary Class 1 contributions payable on the employee’s earnings in the year to date,
(c)
the total amount of primary Class 1 contributions payable on the employee’s earnings in the earnings period in which the return is made, and
(d)
the total amount of primary Class 1 contributions payable on the employee’s earnings in the year to date.
11.
In a case where the earnings the return relates to will fall to be aggregated with other earnings in the same earnings period, the information required by paragraphs 6, 7 and 10 need only be provided when the final payment of general earnings in the earnings period is made.
F59612.
If the employee’s employment is contracted-out or was contracted-out at any time during the year—
(a)
the number notified by HMRC on the relevant contracting-out certificate as the employer’s number, and
(b)
the number notified by HMRC on the relevant contracting-out certificate as the registered pension scheme’s number.
F59712A.
Whether, during the period since the employer last made a return under paragraph 21A or 21D of Schedule 4 containing information about the employee—
(a)
the employee has been absent from the employment because of a trade dispute at the employer’s place of work, or
(b)
the employee has been absent from the employment without pay for any other reason.
12B.
In cases—
(a)
falling within paragraph 30 of Schedule 4, or
(b)
where the employer has no obligation to deduct or repay tax in accordance with regulation 21 of the PAYE Regulations
the amount of the payment after statutory deductions, being the amount of the payment referred to in paragraph 3 minus the total amount of primary Class 1 contributions for the period (see paragraph 10(c)) minus the value of the deduction due under the Education (Student Loans) (Repayment) Regulations 2009 or the Education (Student Loans) (Repayment) Regulations (Northern Ireland) 2009.
12C.
The value of any amount which is not subject to tax or national insurance contributions paid to the employee at the same time as the payment.
12D.
The value of any deductions made from the payment which do not otherwise fall to be reported under Schedule 4.
Information about statutory sick pay
F59813.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Information about statutory maternity pay
14.
If any, the total amount of statutory maternity pay paid during the year to date in this employment.
Information about ordinary statutory paternity pay
15.
If any, the total amount of F599... statutory paternity pay paid during the year to date in this employment.
Information about additional statutory paternity pay
F60016.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F60117.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F602Information about statutory shared parental pay
17A.
If any, the total amount of statutory shared parental pay paid during the year to date in this employment.
17B.
Where statutory shared parental pay has been paid during the year to date, the following information from the employee’s application for the payment under, as the case may be, regulation 6, 7, 19, or 20 (notification and evidential requirements) of the Statutory Shared Parental Pay (General) Regulations 2014—
(a)
the name of the employee’s spouse or partner who has the main responsibility (apart from the employee) for the care of the child to which the application relates, and
(b)
where there is such a number, the national insurance number of the employee’s spouse or partner who has the main responsibility (apart from the employee) for the care of the child to whom the application relates.
For the purposes of this regulation “partner” has the meaning given in regulation 2(1) of the Statutory Shared Parental Pay (General) Regulations 2014.
Information about statutory adoption pay
18.
If any, the total amount of statutory adoption pay paid in the year to date in this employment.
SCHEDULE 4BAdditional information about payments
1.
The amounts specified in this Schedule are as follows and terms used in this Schedule which are defined for the purposes of Schedule 4 bear the same meaning as in that Schedule.
Deductions in respect of statutory payments
2.
In respect of statutory maternity pay paid during the year to date to all employees the total of the amounts determined under regulation 3 (determination of the amount of additional payment to which a small employer shall be entitled) of the Statutory Maternity Pay (Compensation of Employers) and Miscellaneous Amendments Regulations 1994 and deducted by virtue of regulation 4 (right of employer to prescribed amount) of those Regulations.
3.
In respect of F603... statutory paternity pay paid during the year to date to all employees, the total of the amounts determined under regulation 5 (deductions from payments to HMRC) of the Statutory Paternity Pay and Statutory Adoption Pay (Administration) Regulations 2002.
F6044.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F6054A.
In respect of statutory shared parental pay paid during the year to all employees, the total amounts determined under regulation 5 (deductions from payments to the Commissioners) of the Statutory Shared Parental Pay (Administration) Regulations 2014.
5.
In respect of statutory adoption pay paid during the year to date to all employees, the total of the amounts determined under regulation 5 of the Statutory Paternity Pay and Statutory Adoption Pay (Administration) Regulations 2002.
F6066.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Regional secondary contributions holiday for new businesses
7.
The total of the appropriate amounts within the meaning given by section 7 of the National Insurance Contributions Act 2011 (regional secondary contributions holiday for new businesses) deducted by or refunded to the employer under section 4 of that Act in the year to date.
SCHEDULE 5 ELECTIONS ABOUT F607SECURITIES OPTIONS, RESTRICTED SECURITIES AND CONVERTIBLE SECURITIES
1.
(1)
An election for the purposes of paragraph 3B(1) of Schedule 1 to the Act shall contain—
F608(a)
details of the securities options, restricted securities and convertible securities to which it relates, or of the period to which it relates, within which these are intended to be awarded or acquired;
(b)
a statement that the election relates to relevant employment income arising from the securities or securities options referred to in sub-paragraph (1)(a) on which the employed earner is liable to pay secondary Class 1 contributions under—
(i)
in the case of securities options, section 476 of ITEPA 2003 and section 4(4)(a) of the Act;
(ii)
in the case of restricted securities, section 426 of ITEPA 2003 and regulation 22(7);
(iii)
in the case of convertible securities, section 438 of ITEPA 2003 and regulation 22(7), and
an explanation of the effect of the relevant provision;
(c)
the amount or proportion (as the case may be) of the liability for secondary Class 1 contributions to be transferred;
(d)
a statement that its purpose is to transfer the liability for the secondary Class 1 contributions referred to in paragraph (c) from the secondary contributor to the employed earner;
F609(dd)
a statement that it does not apply in relation to any liability, or any part of any liability, arising as a result of regulations being given retrospective effect by virtue of section 4B(2) of either the Social Security Contributions and Benefits Act 1992 or the Social Security Contributions and Benefits (Northern Ireland) Act 1992;
(e)
a statement as to the method by which the secondary contributor will secure that the liability for amounts of contributions, transferred under the election, is met;
(f)
a statement as to the circumstances in which it shall cease to have effect;
(g)
a declaration by the employed earner that he agrees to be bound by its terms; and
(h)
evidence sufficient to show that the secondary contributor agrees to be bound by its terms.
(2)
The declaration referred to in sub-paragraph (1)(g) must either be signed by the employed earner or, if it is made by electronic communications, made by him in such electronic form and by such means of electronic communications as may be authorised by the Board.
2.
(1)
An election to which this Schedule applies shall be made either in writing or in such electronic form and by such means of electronic communications as may be authorised by the Board.
(2)
An election to which this Schedule applies may be contained in two documents, one made by the employed earner and the other by the secondary contributor, in which case—
(a)
the document made by the employed earner shall contain the matters listed in paragraph 1(1)(a) to (g); and
(b)
the document made by the secondary contributor shall contain the matters listed in paragraph 1(1)(a) to (f) and (h).
3.
(1)
Where an election to which this Schedule applies has been made, the secondary contributor shall notify the employed earner to whom any of his liabilities are transferred by the election of—
(a)
any transferred liability that arises;
(b)
the amount of any transferred liability that arises; and
(c)
the contents of any notice of withdrawal by the Board of any approval that relates to the election.
(2)
The secondary contributor shall notify the employed earner of the matters set out in sub-paragraph (1)(a) and (b) as soon as reasonably practicable.
(3)
The secondary contributor shall notify the employed earner of the matters set out in sub-paragraph (1)(c) within 14 days of receipt of the notice of withdrawal in question.
SCHEDULE 6
PART 1 PRESCRIBED ESTABLISHMENTS AND ORGANISATIONS FOR THE PURPOSES OF SECTION 116(3) OF THE ACT
1.
Any of the regular naval, military or air forces of the Crown.
2.
Royal Fleet Reserve.
3.
Royal Naval Reserve.
4.
Royal Marines Reserve.
5.
Army Reserve.
6.
Territorial Army.
7.
Royal Air Force Reserve.
8.
Royal Auxiliary Air Force.
9.
The Royal Irish Regiment, to the extent that its members are not members of any force falling within paragraph 1.
PART II ESTABLISHMENTS AND ORGANISATIONS OF WHICH HER MAJESTY’S FORCES SHALL NOT CONSIST
10.
By virtue of regulation 140, Her Majesty’s forces shall not be taken to consist of any of the establishments or organisations specified in Part I of this Schedule by virtue only of the employment in such establishment or organisation of the following persons—
(a)
(b)
any person who is serving as a member of any military force of Her Majesty’s forces and who entered that force, or was recruited for that force outside the United Kingdom, and the depot of whose unit is situated outside the United Kingdom;
(c)
any person who is serving as a member of any air force of Her Majesty’s forces and who entered that force, or was recruited for that force, outside the United Kingdom, and is liable under the terms of his engagement to serve only in a specified part of the world outside the United Kingdom.
SCHEDULE 7Corresponding Northern Ireland Enactments
1.
In this Schedule—
“the 1998 Order” means the Social Security (Northern Ireland) Order 1998 F612;
“the 2000 Act” means the Child Support, Pensions and Social Security Act 2000;
“the Transfer Order” means the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 F613;
“the Welfare Reform Act” means the Welfare Reform and Pensions Act 1999; and
“the Welfare Reform Order” means the Welfare Reform and Pensions (Northern Ireland) Order 1999 F614.
PART I ENACTMENTS CORRESPONDING TO PRIMARY LEGISLATION APPLICABLE TO GREAT BRITAIN
Enactment applying in Great Britain | Corresponding enactment applying in Northern Ireland | Relevant Northern Ireland amendment |
|---|---|---|
National Insurance Act 1965 | National Insurance Act (Northern Ireland) 1996 F615 | |
Section 3 | Section 3 | |
Employment and Training Act 1973 | Employment and Training Act (Northern Ireland) 1950 F616 | |
Section 2(2) | Section 1 | Article 3 of the Employment and Training (Amendment) (Northern Ireland) Order 1988 F617 and Article 5 of the Industrial Training (Northern Ireland) Order 1990 F618. |
Social Security Act 1975 F619 | Social Security (Northern Ireland) Act 1975 F620 | |
Section 4 | Section 4 | |
Section 5(3) | Section 5(3) F621 | |
Section 7 | Section 7 | |
Section 8 | Section 8 | |
Section 39(4) | Section 39(4) | |
Section 130(2) | Section 125(2) F622 | |
Social Security Pensions Act 1975 | Social Security Pensions (Northern Ireland) Order 1975 | |
Section 3(1) | Article 5(1) | |
Section 6(1)(a) | Article 8(1)(a) | |
Companies Act 1985 F623 | Companies (Northern Ireland) Order 1986 F624 | |
Section 718 | Article 667 | Amended by paragraph 8 of Schedule 8 to S.R. 1997 No. 251. |
Section 735 (definition of “company”) | Article 3(1) | |
Social Security Act 1986 | Social Security (Northern Ireland) Order 1986 F625 | |
Section 7 | Article 9 F626 | |
Children Act 1999 | Children (Northern Ireland) Order 1995 | |
Part X | Part XI | |
Section 71(13) (definition of “nanny”) | Article 119(6) | |
Section 105(1) (definition of “relative”) | Article 2(2) | |
Social Security Contributions and Benefits Act 1992 | Social Security Contributions and Benefits (Northern Ireland) Act 1992 F627 | |
Section 1(6) | Section 1(6) | Paragraph 38(3) of Schedule 6 to the 1998 Order and paragraph 2 of Schedule 3 to the Transfer Order. |
Section 2(1) and (2) | Section 2(1) and (2) | |
Section 3 | Section 3 | Articles 45 and 46 of the 1998 Order and paragraph 4 of Schedule 3 to the Transfer Order. |
Section 4(1) and (4) | Section 4(1) and (4) | Subsection (4) was substituted by Article 47(1) of the 1998 Order. |
Section 5(1) | Section 5(1) | Substituted by paragraph 1 of Part I of Schedule 10 to the Welfare Reform Act. |
Section 6 | Section 6 | Substituted by paragraph 2 of Part I of Schedule 10 to the Welfare Reform Act and amended by section 81(3) of the 2000 Act. |
Section 6A | Section 6A F628 | |
Section 8(1) and (2) | Section 8(1) and (2) | Section 8 was substituted by paragraph 4 of Part I of Schedule 10 to the Welfare Reform Act. |
Section 9 | Section 9 | Substituted by paragraph 5 of Part I of Schedule 10 to the Welfare Reform Act. |
Section 10 | Section 10 | Substituted by section 78(2) of the 2000 Act. |
Section 10ZA | Section 10ZA F629 | |
Section 10A | Section 10A F630 | Paragraph 12 of Schedule 3 to the Transfer Order and section 78 of the Welfare Reform Act. |
Section 11 | Section 11 | Paragraph 13 of Schedule 3 to Transfer Order and article 3 of S.I. 2001/477. |
Section 12 | Section 12 | Paragraph 14 of Schedule 3, and paragraph 1 of Schedule 8 to the Transfer Order. |
Section 13 | Section 13 | Paragraph 15 of Schedule 3 to the Transfer Order and article 4 of S.I. 2001/477. |
Section 14(1) | Section 14(1) | |
Section 15 | Section 15 | Article 4 of S.I. 2000/755 and article 5 of S.I. 2001/477. |
Section 16 | Section 16 | Paragraph 6 of Schedule 1 to the Transfer Order. |
Section 17 | Section 17 | Paragraph 7 of Schedule 1, paragraph 17 of Schedule 3 and Schedule 9 to the Transfer Order. |
Section 18 | Section 18 | Paragraph 8 of Schedule 1, paragraph 18 of Schedule 3 to the Transfer Order, article 4 of S.I. 2000/755 and article 5 of S.I. 2001/477. |
Section 19(1), (2) and (4) | Section 19(1), (2) and (4) respectively | |
Section 19A | Section 19A F631 | Paragraph 20 of Schedule 3 and paragraph 2 of Schedule 8 to the Transfer Order. |
Section 20(1) | Section 20(1) | Paragraph 2(2) of Schedule 1 to the Social Security (Incapacity for Work) (Northern Ireland) Order 1994 F632, Schedule 3 to the Jobseekers (Northern Ireland) Order 1995 F633, paragraph 18(1) of Schedule 2 to the Pensions (Northern Ireland) Order 1995 F634 and paragraph 2(2) of Schedule 8, paragraph 5(2) of Schedule 9 and Part V of Schedule 10 to the Welfare Reform Order. |
Section 112 | Section 112 | Schedule 1 to the Employment Rights (Northern Ireland) Order 1996 F635 and paragraph 21 of Schedule 3 to the Transfer Order. |
Section 122(1) (definition of “pensionable age”) | Section 121(1) (definition of “pensionable age”) | Paragraph 9 of Schedule 2 to the Pensions (Northern Ireland) Order 1995. |
Section 151(6) | Section147(6) | Paragraph 10 of Schedule 1 to the Transfer Order. |
Section 164(9)(b) | Section 160(9)(b) | Paragraph 14(2) of Schedule 1 to the Transfer Order. |
Schedule 1 | Schedule 1 | |
Paragraph 1(1) | Paragraph 1(1) | |
Paragraph 1(7) | Paragraph 1(7) | |
Paragraph 1(8) | Paragraph 1(8) | |
Paragraph 3(1) | Paragraph 3(1) | Paragraph 58(5) of Schedule 6 to the 1998 Order. |
Paragraph 3B | Paragraph 3B F636 | |
Paragraph 6(3) and (4A) | Paragraph 6(3) and (4A) F637 | Amended by paragraph 3 of Schedule 8 to the Transfer Order. |
Schedule 2 | Schedule 2 F638 | |
Social Security Administration Act 1992 | Social Security Administration (Northern Ireland) Act 1992 F639 | |
Section 17 | Section 15 | |
Section 18 | Section 16 | |
Section 73 | Section 71 | Paragraph 32 of Schedule 2 to the Jobseekers (Northern Ireland) Order 1995. |
Section 162(5) | Section 142(5) | Article 4(1) of the Social Security (Contributions) (Northern Ireland) Order 1994 F640, Article 61(2) of the 1998 Order, paragraph 9(2) of Part III of Schedule 10 to the Welfare Reform Act and section 78(7) of the 2000 Act. |
Section 179 | Section 155 | Paragraph 48 of Schedule 2 to the Jobseekers (Northern Ireland) Order 1995, paragraph 84 of Schedule 6 to the 1998 Order and paragraph 5 of Schedule 1 to the Tax Credits Act 1999 F641. |
Trade Union and Labour Relations (Consolidation) Act 1992 | Employment Rights (Northern Ireland) Order 1996. F642 | |
Section 189 | Article 217 | Regulation 10 of S.R. 1999 No. 432. |
Pension Schemes Act 1993 | Pension Schemes (Northern Ireland) Act 1993. F643 | |
Section 8(1) | Section 4(1) | Article 133(2) of, and paragraph 14 of Schedule 3 to the Pensions (Northern Ireland) Order 1995 and paragraph 37(a) of Schedule 1 to the Transfer Order. |
Section 9(2) | Section 5(2) | Article 133(3) of the Pensions (Northern Ireland) Order 1995. |
Section 9(3) | Section 5(3) | Article 133(4) of, and paragraph 17 of Schedule 3 to the Pensions (Northern Ireland) Order 1995, and paragraph 38(3) of Schedule 3 to the Transfer Order. |
Section 41(1) to (1B) | Section 37(1) to (1B) | Subsection (1) was amended by paragraph 95 of Schedule 6 to the 1998 Order and further amended by paragraph 6(2), and subsections (1A) and (1B) were substituted by paragraph 6(3), of Part II of Schedule 10 to the Welfare Reform Act. |
Section 42A(1) to (2A) | Section 38A(1) to (2A) | Section 38A was inserted by Article 134(4) of the Pensions (Northern Ireland) Order 1995, subsections (1) to (2A) were substituted by paragraph 96 of Schedule 6 to the 1998 Order and subsections (2) and (2A) were further substituted by paragraph 7(3) of Part I of Schedule 10 to the Welfare Reform Act. |
Section 43 | Section 39 | Paragraph 34 of Schedule 3 to the Pensions (Northern Ireland) Order 1995 and paragraph 54 of Schedule 1 to the Transfer Order. |
Section 44(1) | Section 40(1) | Article 160(a) of the Pensions (Northern Ireland) Order 1995 and paragraph 55(2) and (3) of Schedule 1 to the Transfer Order. |
Section 55(2) | Section 51(2) | Substituted by Article 138 of the Pensions (Northern Ireland) Order 1995 and amended by paragraph 7(2) of Schedule 2 to the Welfare Reform Act. |
Jobseekers Act 1995 | Jobseekers (Northern Ireland) Order 1995 | |
Section 2(1)(a) | Article 4(1)(a) | |
Social Security Contributions (Transfer of Functions, etc.) Act 1999 | The Transfer Order | |
Section 8(1)(a) and (k)(ii) | Article 7(1)(a) and (k)(ii) | |
PART II ENACTMENTS CORRESPONDING TO SUBORDINATE LEGISLATION APPLICABLE TO GREAT BRITAIN
Subordinate legislation applying in Great Britain | Subordinate legislation applying in Northern Ireland | Relevant amendment to the Northern Ireland provision |
|---|---|---|
National Insurance (Contributions) Regulations 1969 | National Insurance (Contributions) Regulations (Northern Ireland) 1962 F644 | S.R. & O. (N.I.) 1963 No. 59 and 1970 No. 295. |
Regulation 9(3) and (4A) | Regulation 10(3) and (4A) respectively | |
National Insurance (Married Women) Regulations 1973 F645— | National Insurance (Married Women) Regulations (Northern Ireland) 1973 F646 | |
Regulation 2(1)(a) | Regulation 2(1)(a) | |
Regulation 2(2) | Regulation 2(2) | |
Regulation 3(1)(a) | Regulation 3(1)(a) | |
Regulation 3(2) | Regulation 3(2) | |
Regulation 4(2) | Regulation 4(2) | |
Regulation 16 | Regulation 16 | |
Social Security (Contributions) Regulations 1975 | Social Security (Contributions) Regulations (Northern Ireland) 1975 F647 | |
Regulation 91 | Regulation 89 | |
Regulation 94 | Regulation 92 | |
Social Security (Categorisation of Earners) Regulations 1978 | Social Security (Categorisation of Earners) Regulations (Northern Ireland) 1978 F648 | |
Schedule 3 | Schedule 3 | Regulation 4 of S.R. 1984 No. 81, regulation 3 of S.R. 1990 No. 339, regulation 4 of S.R. 1994 No. 92 and regulation 4 of S.R. 1998 No. 250. See also S.R. 1999 No. 2. |
Social Security (Payments on account, Overpayments and Recovery) Regulations 1988 | Social Security (Payments on account, Overpayments and Recovery) Regulations (Northern Ireland) 1988. F649 | |
Regulation 13 | Regulation 13 | Regulation 15(3) of S.R. 1996 No. 289 and regulation 11 of S.I. 1999/2573. |
Social Security (Refunds) (Repayment of Contractual Maternity Pay) Regulations 1990 | Social Security (Refunds) (Repayment of Contractual Maternity Pay) Regulations (Northern Ireland) 1990 F650. | |
Regulation 2 | Regulation 2 | |
Statutory Maternity Pay (Compensation of Employers) and Miscellaneous Amendments Regulations 1994 | Statutory Maternity Pay (Compensation of Employers) and Miscellaneous Amendments Regulations (Northern Ireland) 1994 F651. | |
Regulation 3 | Regulation 3 | |
Regulation 4 | Regulation 4 | |
F652. . . | F653. . . | |
Article 2 | Article 2 | |
Social Security (Adjudication) Regulations 1995 | Social Security (Adjudication) Regulations (Northern Ireland) 1995 F654 | |
Regulation 13 | Regulation 13 F655 | |
Social Security (Additional Pension) (Contributions Paid in Error) Regulations 1996 | Social Security (Additional Pension) (Contributions Paid in Error) Regulations (Northern Ireland) 1996 F656 | |
Regulation 3 | Regulation 3 | |
Employer’s Contributions Re-imbursement Regulations 1996 | Employer’s Contributions Re-imbursement Regulations (Northern Ireland) 1996 F657 | |
Regulations 5, 6 and 8 | Regulations 5, 6 and 8 respectively | |
F658Education (Student Loans) (Repayment) Regulations 2009 | F659Education (Student Loans) (Repayment) Regulations (Northern Ireland) 2009 | |
Regulation 39(1) | Regulation 39(1) | |
Social Security (Crediting and Treatment of Contributions, and National Insurance Numbers) Regulations 2001 | Social Security (Crediting and Treatment of Contributions, and National Insurance Numbers) Regulations (Northern Ireland) 2001 F660 | |
Regulation 4 | Regulation 4 | |
Regulation 9 | Regulation 9 |
SCHEDULE 8 REVOCATIONS
PART I REVOCATIONS APPLICABLE TO GREAT BRITAIN OR TO THE UNITED KINGDOM
Column (1) | Column (2) | Column (3) |
|---|---|---|
Regulations revoked | References | Extent of revocation |
The Social Security (Contributions) Regulation 1979 | S.I. 1979/591 | The whole of the Regulations |
The Social Security (Contributions) Amendment Regulations 1980 | S.I. 1980/1975 | The whole of the Regulations |
The Social Security (Contributions) Amendment Regulations 1981 | S.I. 1981/82 | The whole of the Regulations |
The Social Security (Contributions) (Mariners) Amendment Regulations 1982 | S.I. 1982/206 | The whole of the Regulations |
The Contracting-out (Recovery of Class 1 Contributions) Regulations 1982 | S.I. 1982/1033 | The whole of the Regulations |
The Social Security (Contributions) Amendment Regulations 1982 | S.I. 1982/1573 | The whole of the Regulations |
The Social Security and Statutory Sick Pay (Oil and Gas (Enterprise) Act 1982) (Consequential) Regulations 1982 | S.I. 1982/1738 | Regulation 4 |
The Social Security (Contributions) Amendment (No. 2) Regulations 1982 | S.I. 1982/1739 | The whole of the Regulations |
The Social Security (Contributions) Amendment Regulations 1983 | S.I. 1983/10 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 2) Regulations 1983 | S.I. 1983/53 | The whole of the Regulations |
The Social Security (Contributions, Re-rating) Consequential Amendment Regulations 1983 | S.I. 1983/73 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 4) Regulations 1983 | S.I. 1983/395 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 3) Regulations 1983 | S.I. 1983/496 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 5) Regulations 1983 | S.I. 1983/1689 | The whole of the Regulations |
The Social Security (Contributions) Amendment Regulations 1984 | S.I. 1984/77 | The whole of the Regulations |
The Social Security (Contributions, Re-rating) Consequential Amendment Regulations 1984 | S.I. 1984/146 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 2) Regulations 1984 | S.I. 1984/1756 | The whole of the Regulations |
The Social Security (Contributions, Re-rating) Consequential Amendment Regulations 1985 | S.I. 1985/143 | The whole of the Regulations |
The Social Security (Contributions) Amendment Regulations 1985 | S.I. 1985/396 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 2) Regulations 1985 | S.I. 1985/397 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 3) Regulations 1985 | S.I. 1985/398 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 4) Regulations 1985 | S.I. 1985/399 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 5) Regulations 1985 | S.I. 1985/400 | The whole of the Regulations |
The Social Security (Contributions and Credits) (Transitional and Consequential Provisions) Regulations 1985 | S.I. 1985/1398 | Regulations 2, 4, 5 and 6 |
The Social Security (Contributions) Amendment (No. 6) Regulations 1985 | S.I. 1985/1726 | The whole of the Regulations |
The Social Security (Contributions, Re-rating) Consequential Amendment Regulations 1986 | S.I. 1986/198 | The whole of the Regulations |
The Social Security (Contributions) Amendment Regulations 1986 | S.I. 1986/485 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 2) Regulations 1987 | S.I. 1987/413 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 3) Regulations 1987 | S.I. 1987/1590 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 4) Regulations 1987 | S.I. 1987/2111 | The whole of the Regulations |
The Social Security (Contributions) Amendment Regulations 1988 | S.I. 1988/299 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 2) Regulations 1988 | S.I. 1988/674 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 3) Regulations 1988 | S.I. 1988/860 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 4) Regulations 1988 | S.I. 1988/992 | The whole of the Regulations |
The Social Security (Contributions) Amendment Regulations 1989 | S.I. 1989/345 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 2) Regulations 1989 | S.I. 1989/571 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 3) Regulations 1989 | S.I. 1989/572 | The whole of the Regulations |
The Social Security (Contributions) (Transitional and Consequential Provisions) Regulations 1989 | S.I. 1989/1677 | The whole of the Regulations |
The Social Security (Refunds) (Repayment of Contractual Maternity Pay) Regulations 1990 | S.I. 1990/536 | Regulation 4 |
The Social Security (Contributions) Amendment Regulations 1990 | S.I. 1990/604 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 2) Regulations 1990 | S.I. 1990/605 | The whole of the Regulations |
The Social Security (Contributions) (Re-rating) Consequential Amendment Regulations 1990 | S.I. 1990/906 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 3) Regulations 1990 | S.I. 1990/1779 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 4) Regulations 1990 | S.I. 1990/1935 | The whole of the Regulations |
The Social Security (Contributions) Amendment Regulations 1991 | S.I. 1991/504 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 2) Regulations 1991 | S.I. 1991/639 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 3) Regulations 1991 | S.I. 1991/640 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 4) Regulations 1991 | S.I. 1991/1632 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 5) Regulations 1991 | S.I. 1991/1935 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 6) Regulations 1991 | S.I. 1991/2505 | The whole of the Regulations |
The Social Security (Contributions) Amendment Regulations 1992 | S.I. 1992/97 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 2) Regulations 1992 | S.I. 1992/318 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 3) Regulations 1992 | S.I. 1992/667 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 4) Regulations 1992 | S.I. 1992/668 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 5) Regulations 1992 | S.I. 1992/669 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 6) Regulations 1992 | S.I. 1992/1440 | The whole of the Regulations |
The Social Security (Contributions) Amendment Regulations 1993 | S.I. 1993/260 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 2) Regulations 1993 | S.I. 1993/281 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 3) Regulations 1993 | S.I. 1993/282 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 4) Regulations 1993 | S.I. 1993/583 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 5) Regulations 1993 | S.I. 1993/821 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 6) Regulations 1993 | S.I. 1993/2094 | The whole of the Regulations |
The Social Security (Miscellaneous Amendments) Regulations 1993 | S.I. 1993/2736 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 7) Regulations 1993 | S.I. 1993/2925 | The whole of the Regulations |
The Social Security (Contributions) Amendment Regulations 1994 | S.I. 1994/563 | The whole of the Regulations |
The Social Security (Contributions) (Miscellaneous Amendments) Regulations 1994 | S.I. 1994/667 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 2) Regulations 1994 | S.I. 1994/1553 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 3) Regulations 1994 | S.I. 1994/2194 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 4) Regulations 1994 | S.I. 1994/2299 | The whole of the Regulations |
The Statutory Sick Pay Percentage Threshold Order 1995 | S.I. 1995/512 | Article 6(3) |
The Social Security (Contributions) Amendment Regulations 1995 | S.I. 1995/514 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 2) Regulations 1995 | S.I. 1995/714 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 3) Regulations 1995 | S.I. 1995/730 | The whole of the Regulations |
The Social Security (Incapacity Benefit) (Consequential and Transitional Amendments and Savings) Regulations 1995 | S.I. 1995/829 | Regulation 13 |
The Social Security (Contributions) Amendment (No. 4) Regulations 1995 | S.I. 1995/1003 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 5) Regulations 1995 | S.I. 1995/1570 | The whole of the Regulations |
The Employer’s Contributions Reimbursement Regulations 1996 | S.I. 1996/195 | Regulation 13 |
The Social Security (Contributions) Amendment Regulations 1996 | S.I. 1996/486 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 2) Regulations 1996 | S.I. 1996/663 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 3) Regulations 1996 | S.I. 1996/700 | The whole of the Regulations |
The Social Security Contributions, Statutory Maternity Pay and Statutory Sick Pay (Miscellaneous Amendments) Regulations 1996 | S.I. 1996/777 | Regulation 5 |
The Social Security (Contributions) Amendment (No. 4) Regulations 1996 | S.I. 1996/1047 | The whole of the Regulations |
The Social Security (Additional Pension) (Contributions Paid in Error) Regulations 1996 | S.I. 1996/1245 | Regulation 4 |
The Social Security (Credits and Contributions) (Jobseeker’s Allowance Consequential and Miscellaneous Amendments) Regulations 1996 | S.I. 1996/2367 | Regulation 3 |
The Social Security (Contributions) Amendment (No. 5) Regulations 1996 | S.I. 1996/2407 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 6) Regulations 1996 | S.I. 1996/3031 | The whole of the Regulations |
The Social Security (Contributions) Amendments Regulations 1997 | S.I. 1997/545 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 2) Regulations 1997 | S.I. 1997/575 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 3) Regulations 1997 | S.I. 1997/820 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 4) Regulations 1997 | S.I. 1997/1045 | The whole of the Regulations |
The Social Security (Contributions) Amendment Regulations 1998 | S.I. 1998/523 | The whole of the Regulations |
The Social Security (Contributions) (Re-rating) Consequential Amendment Regulations 1998 | S.I. 1998/524 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 2) Regulations 1998 | S.I. 1998/680 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 3) Regulations 1998 | S.I. 1998/2211 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 4) Regulations 1998 | S.I. 1998/2320 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 5) Regulations 1998 | S.I. 1998/2894 | The whole of the Regulations |
The Social Security (Contributions) (Re-rating) Consequential Amendment Regulations 1999 | S.I. 1999/361 | The whole of the Regulations |
The Social Security (Contributions) Amendment Regulations 1999 | S.I. 1999/561 | The whole of the Regulations |
The Social Security Contributions, Statutory Maternity Pay and Statutory Sick Pay (Miscellaneous Amendments) Regulations 1999 | S.I. 1999/567 | Regulations 2 to 6 and 8 to 11 |
The Social Security (Contributions and Credits) (Miscellaneous Amendments) Regulations 1999 | S.I. 1999/568 | Regulations 2 to 12 and 14 to 19 |
The Social Security (Contributions) Amendment (No. 2) Regulations 1999 | S.I. 1999/827 | The whole of the Regulations |
The Social Security (Contributions) Amendment (No. 3) Regulations 1999 | S.I. 1999/975 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 4) Regulations 1999 | S.I. 1999/1965 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 5) Regulations 1999 | S.I. 1999/2736 | The whole of the Regulations |
The Social Security (Contributions) (Amendment) Regulations 2000 | S.I. 2000/175 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 2) Regulations 2000 | S.I. 2000/723 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 3) Regulations 2000 | S.I. 2000/736 | The whole of the Regulations |
The Social Security Contributions (Notional Payment of Primary Class 1 Contribution) Regulations 2000 | S.I. 2000/747 | Regulations 7 to 9 |
The Social Security (Contributions) (Re-rating) Consequential Amendment Regulations 2000 | S.I. 2000/760 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 4) Regulations 2000 | S.I. 2000/761 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 5) Regulations 2000 | S.I. 2000/1149 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 6) Regulations 2000 | S.I. 2000/2084 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 7) Regulations 2000 | S.I. 2000/2077 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 8) Regulations 2000 | S.I. 2000/2207 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 9) Regulations 2000 | S.I. 2000/2343 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 10) Regulations 2000 | S.I. 2000/2744 | The whole of the Regulations |
The Social Security (Contributions) (Amendment) Regulations 2001 | S.I. 2001/45 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 2) Regulations 2001 | S.I. 2001/313 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 3) Regulations 2001 | S.I. 2001/596 | The whole of the Regulations |
The Social Security (Crediting and Treatment of National Insurance Contributions) Regulations 2001 | S.I. 2001/769 | Regulation 11 |
PART II REVOCATIONS APPLICABLE TO NORTHERN IRELAND
Column (1) | Column (2) | Column (3) |
|---|---|---|
Regulations revoked | References | Extent of revocation |
The Social Security (Contributions) Regulations (Northern Ireland) 1979 | S.R. 1979 No. 186 | The whole of the Regulations |
The Social Security (Contributions Re-rating) Consequential Amendment Regulations (Northern Ireland) 1980 | S.R. 1980 No. 93 | The whole of the Regulations |
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1980 | S.R. 1980 No. 463 | The whole of the Regulations |
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1981 | S.R. 1981 No. 30 | The whole of the Regulations |
The Social Security (Contributions) (Mariners) (Amendment) Regulations (Northern Ireland) 1982 | S.R. 1982 No. 69 | The whole of the Regulations |
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1982 | S.R. 1982 No. 375 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 2) Regulations (Northern Ireland) 1982 | S.R. 1982 No. 408 | The whole of the Regulations |
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1983 | S.R. 1983 No. 8 | The whole of the Regulations |
The Social Security (Contributions, Re-rating) Consequential Amendment Regulations (Northern Ireland) 1983 | S.R. 1983 No. 9 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 3) Regulations (Northern Ireland) 1983 | S.R. 1983 No. 64 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 4) Regulations (Northern Ireland) 1983 | S.R. 1983 No. 70 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 5) Regulations (Northern Ireland) 1983 | S.R. 1983 No. 412 | The whole of the Regulations |
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1984 | S.R. 1984 No. 43 | The whole of the Regulations |
The Social Security (Contributions, Re-rating) Consequential Amendment Regulations (Northern Ireland) 1984 | S.R. 1984 No. 46 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 2) Regulations (Northern Ireland) 1984 | S.R. 1984 No. 403 | The whole of the Regulations |
The Social Security (Contributions, Re-rating) Consequential Amendment Regulations (Northern Ireland) 1985 | S.R. 1985 No. 25 | The whole of the Regulations |
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1985 | S.R. 1985 No. 59 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 2) Regulations (Northern Ireland) 1985 | S.R. 1985 No. 61 | The whole of the Regulations |
The Social Security (Contributions and Credits) (Transitional and Consequential Provisions) Regulations (Northern Ireland) 1985 | S.R. 1985 No. 260 | Regulations 2, 4, 5 and 6 |
The Social Security (Contributions) (Amendment No. 3) Regulations (Northern Ireland) 1985 | S.R. 1985 No. 334 | The whole of the Regulations |
The Social Security (Contributions, Re-rating) Consequential Amendment Regulations (Northern Ireland) 1986 | S.R. 1986 No. 45 | The whole of the Regulations |
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1986 | S.R. 1986 No. 71 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 2) Regulations (Northern Ireland) 1987 | S.R. 1987 No. 143 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 3) Regulations (Northern Ireland) 1987 | S.R. 1987 No. 348 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 4) Regulations (Northern Ireland) 1987 | S.R. 1987 No. 468 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 2) Regulations (Northern Ireland) 1988 | S.R. 1988 No. 121 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 4) Regulations (Northern Ireland) 1988 | S.R. 1988 No. 204 | The whole of the Regulations |
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1989 | S.R. 1989 No. 70 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 2) Regulations (Northern Ireland) 1989 | S.R. 1989 No. 104 | The whole of the Regulations |
The Social Security (Contributions) (Transitional and Consequential Provisions) Regulations (Northern Ireland) 1989 | S.R. 1989 No. 384 | The whole of the Regulations |
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1990 | S.R. 1990 No. 97 | The whole of the Regulations |
The Social Security (Contributions) (Re-rating) Consequential Amendment Regulations (Northern Ireland) 1990 | S.R. 1990 No. 101 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 2) Regulations (Northern Ireland) 1990 | S.R. 1990 No. 110 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 3) Regulations (Northern Ireland) 1990 | S.R. 1990 No. 320 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 4) Regulations (Northern Ireland) 1990 | S.R. 1990 No. 350 | The whole of the Regulations |
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1991 | S.R. 1991 No. 68 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 3) Regulations (Northern Ireland) 1991 | S.R. 1991 No. 106 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 4) Regulations (Northern Ireland) 1991 | S.R. 1991 No. 310 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 5) Regulations (Northern Ireland) 1991 | S.R. 1991 No. 404 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 6) Regulations (Northern Ireland) 1991 | S.R. 1991 No. 490 | The whole of the Regulations |
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1992 | S.R. 1992 No. 41 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 3) Regulations (Northern Ireland) 1992 | S.R. 1992 No. 126 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 4) Regulations (Northern Ireland) 1992 | S.R. 1992 No. 127 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 5) Regulations (Northern Ireland) 1992 | S.R. 1992 No. 138 | The whole of the Regulations |
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1993 | S.R. 1993 No. 59 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 3) Regulations (Northern Ireland) 1993 | S.R. 1993 No. 71 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 4) Regulations (Northern Ireland) 1993 | S.R. 1993 No. 114 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 5) Regulations (Northern Ireland) 1993 | S.R. 1993 No. 130 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 6) Regulations (Northern Ireland) 1993 | S.R. 1993 No. 368 | The whole of the Regulations |
The Social Security (Contributions) (Miscellaneous Amendments) Regulations (Northern Ireland) 1993 | S.R. 1993 No. 437 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 7) Regulations (Northern Ireland) 1993 | S.R. 1993 No. 463 | The whole of the Regulations |
The Social Security (Contributions) (Miscellaneous Amendments) Regulations (Northern Ireland) 1994 | S.R. 1994 No. 94 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 2) Regulations (Northern Ireland) 1994 | S.R. 1994 No. 219 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 3) Regulations (Northern Ireland) 1994 | S.R. 1994 No. 328 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 4) Regulations (Northern Ireland) 1994 | S.R. 1994 No. 343 | The whole of the Regulations |
The Statutory Sick Pay Percentage Threshold Order (Northern Ireland) 1995 | S.R. 1995 No. 69 | Article 6(3) |
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1995 | S.R. 1995 No. 61 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 2) Regulations (Northern Ireland) 1995 | S.R. 1995 No. 88 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 3) Regulations (Northern Ireland) 1995 | S.R. 1995 No. 91 | The whole of the Regulations |
The Social Security (Incapacity Benefit) (Consequential and Transitional Amendments and Savings) Regulations (Northern Ireland) 1995 | S.R. 1995 No. 150 | Regulation 13 |
The Social Security (Contributions) (Amendment No. 5) Regulations (Northern Ireland) 1995 | S.R. 1995 No. 257 | The whole of the Regulations |
The Employer’s Contributions Reimbursement Regulations (Northern Ireland) 1996 | S.R. 1996 No. 30 | Regulation 13 |
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1996 | S.R. 1996 No. 58 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 2) Regulations (Northern Ireland) 1996 | S.R. 1996 No. 79 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 3) Regulations (Northern Ireland) 1996 | S.R. 1996 No. 89 | The whole of the Regulations |
The Social Security (Contributions) Statutory Maternity Pay and Statutory Sick Pay (Miscellaneous Amendments) Regulations (Northern Ireland) 1996 | S.R. 1996 No. 108 | Regulation 2 |
The Social Security (Contributions) (Amendment No. 4) Regulations (Northern Ireland) 1996 | S.R. 1996 No. 152 | The whole of the Regulations |
The Social Security (Additional Pension) (Contributions Paid in Error) Regulations (Northern Ireland) 1996 | S.R. 1996 No. 188 | Regulation 4 |
The Social Security (Credits and Contributions) (Jobseeker’s Allowance Consequential and Miscellaneous Amendments) Regulations (Northern Ireland) 1996 | S.R. 1996 No. 430 | Regulation 3 |
The Social Security (Contributions) (Amendment No. 5) Regulations (Northern Ireland) 1996 | S.R. 1996 No. 433 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 6) Regulations (Northern Ireland) 1996 | S.R. 1996 No. 566 | The whole of the Regulations |
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1997 | S.R. 1997 No. 100 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 3) Regulations (Northern Ireland) 1997 | S.R. 1997 No. 163 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 4) Regulations (Northern Ireland) 1997 | S.R. 1997 No. 180 | The whole of the Regulations |
The Social Security (Contributions) (Re-rating) Consequential Amendment Regulations (Northern Ireland) 1998 | S.R. 1998 No. 71 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 2) Regulations (Northern Ireland) 1998 | S.R. 1998 No. 103 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 3) Regulations (Northern Ireland) 1998 | S.R. 1998 No. 317 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 5) Regulations (Northern Ireland) 1998 | S.R. 1998 No. 416 | The whole of the Regulations |
The Social Security (Contributions) (Re-rating) Consequential Amendment Regulations (Northern Ireland) 1999 | S.R. 1999 No. 64 | The whole of the Regulations |
The Social Security (Contributions) Statutory Maternity Pay and Statutory Sick Pay (Miscellaneous Amendments) Regulations (Northern Ireland) 1999 | S.R. 1999 No. 117 | Regulations 2 to 10 |
The Social Security (Contributions and Credits) (Miscellaneous Amendments) Regulations (Northern Ireland) 1999 | S.R. 1999 No. 118 | Regulations 3 to 13 and 15 to 21 |
The Social Security (Contributions) (Amendment) Regulations (Northern Ireland) 1999 | S.R. 1999 No. 119 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 2) Regulations (Northern Ireland) 1999 | S.R. 1999 No. 151 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 3) Regulations (Northern Ireland) 1999 | S.R. 1999 No. 171 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 4) (Northern Ireland) Regulations 1999 | S.I. 1999/1966 | The whole of the Regulations |
The Social Security (Contributions) (Amendment) (Northern Ireland) Regulations 2000 | S.I. 2000/176 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 2) (Northern Ireland) Regulations 2000 | S.I. 2000/346 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 3) (Northern Ireland) Regulations 2000 | S.I. 2000/737 | The whole of the Regulations |
The Social Security Contributions (Notional Payment of Primary Class 1 Contribution) (Northern Ireland) Regulations 2000 | S.I. 2000/748 | Regulations 7 to 9 |
The Social Security (Contributions) (Re-rating) Consequential Amendment (Northern Ireland) Regulations 2000 | S.I. 2000/757 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 4) (Northern Ireland) Regulations 2000 | S.I. 2000/758 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 5) (Northern Ireland) Regulations 2000 | S.I. 2000/1150 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 6) (Northern Ireland) Regulations 2000 | S.I. 2000/2086 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 7) (Northern Ireland) Regulations 2000 | S.I. 2000/2078 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 8) (Northern Ireland) Regulations 2000 | S.I. 2000/2208 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 9) (Northern Ireland) Regulations 2000 | S.I. 2000/2344 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 10) (Northern Ireland) Regulations 2000 | S.I. 2000/2743 | The whole of the Regulations |
The Social Security (Contributions) (Amendment) (Northern Ireland) Regulations 2001 | S.I. 2001/46 | The whole of the Regulations |
The Social Security (Contributions) (Amendment No. 2) (Northern Ireland) Regulations 2001 | S.I. 2001/314 | The whole of the Regulations |
The Social Security (Crediting and Treatment of National Insurance Contributions) Regulations (Northern Ireland) 2001 | S.R. 2001 No. 102 | Regulation 10 |