The Social Security (Contributions) (Miscellaneous Amendments) Regulations 1993

Explanatory Note

(This note is not part of the Regulation)

These Regulations—

(a) further amend the Social Security (Contributions) Regulations 1979 by providing that where an employer meets any part of an employee’s liability in respect of council tax, that payment is disregarded as earnings where the employer provides the accommodation and such provision does not give rise to a liability to income tax for that employee; and

(b) amend section 10 of the Social Security Contributions and Benefits Act 1992 so that where an employee’s business travel exceeds 18,000 miles a year, the Class 1A contribution due in respect of fuel provided by the employer for the employee’s private motoring is no longer reduced by 50%.

They do not impose any additional administrative costs on business but the effect of regulation 3 will be to increase certain employers' national insurance contributions.

An assessment of the cost to business of applying regulation 3 has been placed in the Libraries of both Houses of Parliament. Copies can be obtained by post from the Department of Social Security, Room 09/03, Adelphi, 1-11 John Adam Street, London WC2N 6HT.