2005 No. 778
The Social Security (Contributions) (Amendment No. 3) Regulations 2005
Made
Laid before Parliament
Coming into force
The Treasury, with the concurrence of the Secretary of State insofar as required, in exercise of the powers conferred upon them by sections 3(2) and (3), 10(9), 13(1) and (7), 14(1) and 175(3) and (4) of the Social Security Contributions and Benefits Act 19921 and, with the concurrence of the Department for Social Development insofar as required, in exercise of the powers conferred upon them by sections 3(2) and (3), 10(9), 13(1) and (7), 14(1) and 171(3) and (4) of the Social Security Contributions and Benefits (Northern Ireland) Act 19922 make the following Regulations:
Citation, commencement and interpretation1
1
These Regulations may be cited as the Social Security (Contributions) (Amendment No. 3) Regulations 2005 and shall come into force on 6th April 2005.
2
In these Regulations, “the principal Regulations” means the Social Security (Contributions) Regulations 20013.
Amendment of the principal Regulations
2
The principal Regulations shall be amended as follows.
3
1
Amend regulation 1(2) (interpretation) as follows.
2
Before the definition of “the Act” insert—
“the acquired gender” has the same meaning as it has in the Gender Recognition Act 20044;
3
After the definition of “electronic communications” 5 insert—
“full gender recognition certificate” means a certificate issued under section 4 of the Gender Recognition Act 2004;
4
At the end of regulation 8 (earnings periods for directors) add—
7
If a full gender recognition certificate is issued under the Gender Recognition Act 2004 to a person aged at least 60 but not more than 64—
a
whose gender before its issue was female; and
b
whose acquired gender is male;
the periods in the year of issue respectively falling before and after its issue shall be treated, for the purpose of computing liability for primary Class 1 contributions, as separate earnings periods.
5
In regulation 40 (prescribed general earnings in respect of which Class 1A contributions not payable)6 omit paragraphs (5), (8) and (9).
6
1
Amend regulation 49 (payment of precluded Class 3 contributions) as follows.
2
In paragraph (1) omit sub-paragraph (e).
3
After paragraph (2) insert—
2A
No person shall be entitled to pay a Class 3 contribution in respect of the year in which he attains pensionable age or any subsequent year.
This is subject to the following qualification.
2B
A person—
a
who has attained the age of 60;
b
to whom a full gender recognition certificate is issued; and
c
whose acquired gender is male;
is not precluded from paying Class 3 contributions for the relevant years.
2C
For the purposes of paragraph (2B) the relevant years are—
a
the year in which the person attains the age of 60;
b
any subsequent year before that in which the full gender recognition certificate is issued; and
c
the year in which the full gender recognition certificate is issued.
7
After regulation 65A (amount of Class 3 contributions payable by virtue of regulation 50A)7 insert—
Amount of Class 3 contributions payable after issue of a full gender recognition certificate65B
The amount of a contribution payable by virtue of regulation 49(2B) (Class 3 contributions not precluded where gender recognition certificate issued) which is paid in the year in which the full gender recognition certificate is issued or the following year shall, notwithstanding section 13(6) of the Act, be calculated by reference to the weekly rate which would have been applicable if it had been paid during the contribution year to which it relates.
8
In paragraph 14 of Schedule 2 (valuation of non-cash vouchers—
a
in sub-paragraph (2), for “qualification” substitute “qualifications”; and
b
at the end add the following sub-paragraph—
4
The valuation of qualifying childcare vouchers is determined in accordance with paragraph 7 of Part 5 of Schedule 3.
9
1
Amend Schedule 3 (amounts to be disregarded in the computation of earnings) as follows.
2
In Part 5 (certain non-cash vouchers to be disregarded as payments in kind) for paragraph 78 substitute—
Qualifying childcare vouchers7
1
A qualifying childcare voucher, subject to the qualifications in sub-paragraphs (2) and (5).
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
£50; 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
For the purposes of this paragraph—
a
“chargeable expense” has the meaning given in paragraph 14 of Schedule 2;
b
“qualifying childcare voucher” and “qualifying week” have the meanings given in section 270A of the Income Tax (Earnings and Pensions) Act 20039;
c
the administration costs for a voucher means the difference between the cost of provision of a voucher and its face value; and
d
the face value of a voucher 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.
3
In Part 6, in paragraph 7—
a
in the heading for “Pensions” substitute “Payments to pension schemes”; and
b
after paragraph (c) insert—
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 200210.
Transitional provision10
In relation to any earnings period ending on or before 6th October 2005, paragraph 7(3) of Part 5 of Schedule 3 to the principal Regulations11 shall have effect as if, for the purposes of paragraph (a) of QW, the number of qualifying weeks for which the employee had been employed, before the end of the earnings period were 26, regardless of the number of weeks for which he had actually been employed.
Revocation11
Regulation 28(3)(d) of the Social Security (Contributions, Categorisation of Earners and Intermediaries) (Amendment) Regulations 200412 (which is spent by virtue of the substitution made by regulation 9(2) of this instrument) is revoked.
The Secretary of State concurs.
Signed by authority of the Secretary of State for Work and Pensions.
The Department for Social Development concurs.
Sealed with the Official Seal of the Department for Social Development on 16th March 2005
(This note is not part of the Regulations)