The Social Security (Contributions) Amendment (No. 7) Regulations 1993

Explanatory Note

(This note is not part of the Regulations)

These Regulations further amend the Social Security (Contributions) Regulations 1979 (“the principal Regulations”).

Regulation 2 amends regulation 18 of the principal Regulations (calculation of earnings) so that where a payment of earnings is made in the form of a beneficial interest in any asset capable of being traded on a recognised investment exchange and having a published selling price, the value of that payment is to be determined by reference to that price.

Regulation 3 inserts paragraphs 9A, 9B, 15 and 16 into Schedule 1A to the principal Regulations. (Schedule 1A lists certain assets which are not capable of being payments in kind for the purposes of calculating earnings.) Paragraph 9A refers to assets other than those already listed in that Schedule and which are capable of being traded on a recognised investment exchange, paragraph 9B refers to vouchers, and paragraphs 15 and 16 define certain terms.

These Regulations do not impose any additional administrative costs on business but the effect will be to require the payment of secondary (employers') Class 1 national insurance contributions which had not previously been due on certain payments of earnings, where those payments of earnings are made by means of assets now covered by these Regulations.

An assessment of the cost to business of applying these Regulations 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.