2019 No. 85

Social Security

The Social Security (Contributions) (Amendment) Regulations 2019

Made

Laid before Parliament

Coming into force

The Treasury, in exercise of the powers conferred by subsections (6) and (7) of section 4 of the Social Security Contributions and Benefits Act 19921 and subsections (6) and (7) of section 4 of the Social Security Contributions and Benefits (Northern Ireland) Act 19922, make the following Regulations.

The Secretary of State and the Department for Communities3 concur in the making of these Regulations.

Citation and commencement1

These Regulations may be cited as the Social Security (Contributions) (Amendment) Regulations 2019 and come into force on 5th April 2019.

Amendment of the Social Security (Contributions) Regulations 2001

2

The Social Security (Contributions) Regulations 20014 are amended as follows.

3

After regulation 22B (amounts to be treated as earnings: Part 7A of ITEPA 2003)5 insert—

Amounts to be treated as earnings paid to or for the benefit of the earner: Schedule 11 to the Finance (No. 2) Act 201722C

1

Where an amount is within regulation 22B(2) by reason of a relevant step within paragraph 1 of Schedule 11 (employment income provided through third parties: loans etc outstanding on 5 April 2019) to the Finance (No. 2) Act 20176 it shall be treated for the purposes of Part 1 of the Act7 as being paid to or for the benefit of the employed earner in respect of the employed earner’s employment at such time as the relevant step which gives rise to it is treated as being taken under paragraph 1(2) of that Schedule.

2

In paragraph (1) “relevant step” means a relevant step for the purposes of Part 7A of ITEPA 20038.

Mike FreerRebecca HarrisTwo of the Lords Commissioners of Her Majesty’s Treasury

The Secretary of State concurs as indicated in the preamble

Guy OppermanParliamentary Under-Secretary of State for Pensions and Financial InclusionDepartment for Work and Pensions

The Department for Communities concurs as indicated in the preamble

Colum BoyleA senior officer of the Department for Communities
EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Social Security (Contributions) Regulations 2001 (S.I. 2001/1004) (the “SSCR Regulations”).

Regulation 2 introduces the amendments to the SSCR Regulations.

Regulation 3 inserts a new regulation 22C in the SSCR Regulations.

New regulation 22C(1) stipulates how a specified sub-category of amounts which count as employment income of an employed earner by virtue of Chapter 2 of Part 7A of the Income Tax (Earnings and Pensions) Act 2003 (“ITEPA 2003”) are to be treated for the purposes of Part 1 of both the Social Security Contributions and Benefits Act 1992 and the Social Security Contributions and Benefits (Northern Ireland) Act 1992. The specified sub-category is amounts that count as employment income of the employed earner by virtue of Chapter 2 of Part 7A of ITEPA 2003 as a result of the operation of paragraph 1 of Schedule 11 (employment income provided through third parties: loans etc outstanding on 5 April 2019) to the Finance (No. 2) Act 2017. New regulation 22C(1) makes clear that these amounts should be treated as being paid to or for the benefit of the employed earner in respect of the employed earner’s employment as at the time the relevant step is treated as being taken under paragraph 1(2) of Schedule 11 to the Finance (No. 2) Act 2017.

New regulation 22C(2) applies the meaning of “relevant step” in Part 7A of ITEPA 2003 to the references to “relevant step” in new regulation 22C(1).

A Tax Information and Impact Note has not been prepared for this Instrument as it contains no substantive changes to tax policy.