The Social Security (Contributions) (Amendment No. 8) (Northern Ireland) Regulations 2000

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend the Social Security (Contributions) Regulations (Northern Ireland) 1979 (S.R. 1979 No. 186) (“the principal Regulations”).

Regulation 1 provides for citation, commencement and effect, and regulation 2 for interpretation.

Regulations 3 and 4 make amendments to the principal Regulations in consequence of the amendment of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7) by section 78 of the Child Support, Pensions and Social Security Act 2000 (c. 19) (Class 1A contributions: benefits in kind etc.) (“section 78”). Section 78 has effect in relation to the tax year beginning 6th April 2000 and any subsequent tax year and these regulations have retrospective effect in relation to the tax year beginning on 6th April 2000 by virtue of subsection (9) of that section.

Regulation 3 amends regulation 22E of the principal Regulations (reduction of certain Class 1A contributions on account of the number of employments in the cases of a car made available by reason of two or more employments and of a car made available to two or more employed earners) so that it applies to anything provided or made available rather than to cars only.

Regulation 4 inserts a new regulation 22HA in the principal Regulations. The new regulation prescribes emoluments in respect of which Class 1A contributions are not payable.

Those emoluments prescribed by paragraphs (2) and (3) of regulation 22HA are already excluded from the computation, or disregarded in the calculation, of earnings for the purposes of earnings-related contributions by virtue of regulation 19 of the principal Regulations (payments to be disregarded). Paragraph (4) of regulation 22HA prescribes certain emoluments paid in respect of removal expenses. Paragraph (5) of regulation 22HA prescribes emoluments which consist in the provision, or are provided in connection with all or part of the costs and expenses, of child care. Paragraph (6) of regulation 22HA prescribes emoluments by way of any benefit pursuant to certain schemes or funds.

Paragraph (7) of regulation 22HA prescribes emoluments which, for tax purposes, are the subject of extra-statutory concessions published by the Inland Revenue. Extra-statutory concessions may be obtained from the Inland Revenue Leaflets and Booklets Orderline, PO Box 37, St Austell, Cornwall, PL25 5YN and are available also on the Inland Revenue website (http://www.inlandrevenue.gov.uk).

Regulation 5 amends regulation 33A of the principal Regulations (repayment of Class 1A contributions) so as to reflect that Class 1A contributions are payable in respect of anything provided or made available rather than in respect of cars and fuel only.

The purpose of the amendments to the principal Regulations made by regulations 6 to 36 is to replace the two existing systems for the payment of Class 1A contributions with a single system. The existing systems are contained in regulations 47 to 47K of the principal Regulations (payment direct to the Inland Revenue) and in Schedule 1 to the principal Regulations (PAYE/contributions returns) (“Schedule 1”). The amendments made by regulations 6 to 36 have effect in relation to contributions to be paid in respect of the tax year beginning on 6th April 2000 and any subsequent tax year. They provide for a single system for the payment of Class 1A contributions to the Inland Revenue, with provision for the charging of interest, and the imposition of penalties, in respect of non-payment or late payment, and interest on refunds of such contributions.

Regulation 6 amends regulation 42 of the principal Regulations (treatment for the purpose of any contributory benefit of contributions paid under an arrangement.)

Regulation 7 amends regulation 46 of the principal Regulations (collection and recovery of earnings-related contributions, Class 1A contributions and Class 1B contributions).

Regulation 8 inserts a new regulation 46A in the principal Regulations (providing for the authorisation by the Inland Revenue of alternative arrangements for the payment of earnings-related contributions).

Regulation 9 substitutes regulation 47 of the principal Regulations (direct payment of Class 1A contributions).

Regulation 10 amends regulation 47A of the principal Regulations (due date for a direct payment Class 1A contribution).

Regulation 11 amends regulations 47B and 47C of the principal Regulations (provisions relating to a direct payment Class 1A contribution due on succession to, and cessation of, business).

Regulation 12 amends regulation 47D of the principal Regulations (employer failing to pay a direct payment Class 1A contribution).

Regulation 13 amends regulation 47E of the principal Regulations (specified amount of a direct payment Class 1A contribution).

Regulation 14 amends regulation 47F of the principal Regulations (interest on an overdue direct payment Class 1A contribution).

Regulation 15 amends regulation 47G of the principal Regulations (payment of interest on a repaid direct payment Class 1A contribution).

Regulation 16 amends regulation 47H of the principal Regulations (repayment of interest paid on a direct payment Class 1A contribution).

Regulation 17 amends regulation 47I of the principal Regulations (remission of interest on a direct payment Class 1A contribution).

Regulation 18 amends regulation 47J of the principal Regulations (return by employer).

Regulation 19 amends regulation 47K of the principal Regulations (penalties for incorrect and incomplete returns).

Regulation 20 inserts new regulations 47L and 47M in the principal Regulations. Regulation 47L provides for the application of certain provisions of Taxes Management Act 1970 (c. 9) to penalties for failure to make a return and incorrect returns relating to Class 1A contributions. Regulation 47M provides for amounts in respect of Class 1A contributions which fall to be repaid to an employer to be set off against secondary earnings-related contributions which he is subsequently liable to pay.

Regulation 21 amends regulation 48 of the principal Regulations (special provisions relating to primary Class 1 contributions).

Regulations 22 to 36 amend certain of the Regulations of Schedule 1 (PAYE/contributions returns) so that they no longer apply to the payment of Class 1A contributions.

The costs to business of the amendments in the Child Support, Pensions and Social Security Act 2000 were covered in the Regulatory Impact Assessment for that Act. A copy of this Assessment can be obtained from the Department of Social Security, Better Regulation Unit, Level 3, the Adelphi, 1–11 John Adam Street, London, WC2N 6HT. A copy of the Assessment is available also on the Department of Social Security website (http://www.dss.gov.uk) and has been placed in the libraries of both Houses of Parliament.