The Social Security (Contributions) Amendment (No. 6) Regulations 1992

Insertion of Regulation 26D into Schedule 1

9.  After Regulation 26C in Schedule 1 there shall be inserted the following Regulation–

“Payment of Class 1A contributions on succession to, or cessation of, business

26D.— (1) The provisions of paragraphs (4), (5) and (6) of this Regulation shall apply in relation to the payment of Class 1A contributions–

(a) in the circumstances specified in paragraph (2)(a) of this Regulation, in respect of the employees described in paragraph (3)(a) of this Regulation; and

(b) in the circumstances specified in paragraph (2)(b) of this Regulation, in respect of the employees described in paragraph (3)(b) of this Regulation.

(2) For the purposes of–

(a) paragraph (1)(a) of this Regulation, the circumstances are that there is a change in the employer who is liable to pay emoluments to or for the benefit of all the persons who are employed in a business in respect of their employment in that business;

(b) paragraph (1)(b) of this Regulation, the circumstances are that an employer ceases to carry on business and upon that cessation no other person becomes liable to pay emoluments to or for the benefit of any employee in respect of his employment in that business.

(3) For the purposes of–

(a) paragraph (1)(a) of this Regulation, the employees are those who ceased to be employed in the business referred to in sub-paragraph (a) of paragraph(2) of this Regulation before the change of employer referred to in that sub-paragraph occurred;

(b) paragraph (1)(b) of this Regulation, the employees are all those who were employed in the business referred to in sub-paragraph (b) of paragraph (2) of this Regulation at any time in the relevant final year or the year immediately preceding the relevant final year.

(4) Not later than 12 days after the end of the relevant final income tax month, the employer shall record on the deductions working sheet for the relevant final year, for each employee in respect of whom he is liable to pay a Class 1A contribution referred to in paragraph (1) of this Regulation in respect of that year, the following particulars in addition to any particulars required under Regulation 13(6) or 13A(b), namely–

(a) the appropriate category letter indicated by the Secretary of State for recording the amount of the Class 1A contributions payable by an employer, and

(b) the amount of the Class 1A contribution which the employer has calculated as being payable by him in accordance with section 4A(4) of the Act for that year in respect of the employee and car in question.

(5) Not later than 14 days after the end of the relevant final income tax month, the employer shall pay to the Collector–

(a) any Class 1A contribution referred to in paragraph (1) of this Regulation in respect of the relevant final year; and

(b) where the relevant final income tax month is the month beginning on 6th April or 6th May, any Class 1A contribution referred to in paragraph (1) of this Regulation in respect of the year immediately preceding the relevant final year.

(6) The employer shall include the amount of any Class 1A contribution which is payable in accordance with paragraph (5)(a) of this Regulation in the return required by Regulation 30(1) for the relevant final year, by showing that amount in the particulars required under paragraph (1)(i) of that Regulation and by including that amount in the particulars required under paragraph (2)(h) and (i) of that Regulation.

(7) In this Regulation, unless the context otherwise requires–

(a) “business” includes any trade, concern or undertaking;

(b) “employer” means–

(i) where the circumstances are those specified in sub-paragraph (a) of paragraph (2) of this Regulation, the employer before the change referred to in that sub-paragraph;

(ii) where the circumstances are those specified in sub-paragraph (b) of paragraph (2) of this Regulation, the employer referred to in that sub-paragraph;

(c) “relevant final income tax month” means the income tax month in which the employer has made any payments of emoluments which, by reason of either–

(i) the change of employer referred to in paragraph (2)(a) of this Regulation, or

(ii) the cessation of business referred to in paragraph (2)(b) of this Regulation,

were, in respect of the employment of all those persons who were employed by him in that income tax month, the final payments of emoluments to be made by him in the year in which those payments were made; and

(d) “relevant final year” means the year in which the relevant final income tax month occurs.”.