The Social Security (Contributions) Regulations 2001

Direct collection involving deductions working sheets

31.—(1) In any case falling within paragraph 30, the Inspector may issue a deductions working sheet to the employee (and, if no such working sheet has been issued, the employee shall obtain one from the Inspector), and sub-paragraphs (2) to (8) shall apply.

(2) The employee to whom a deductions working sheet has been issued under sub-paragraph (1) shall record on that working sheet his name, national insurance number and category letter indicated by the Board, and whenever, in respect of an employment such as is specified in paragraph 30, the employee receives any emoluments during the year for which the deductions working sheet was issued, he shall also record on that working sheet the amount of the emoluments, the date on which he received them, and the earnings-related contributions payable by him in respect of those emoluments.

(3) Not later than the time for the payment of income tax, if any, the employee shall pay to the Collector the amount of the earnings-related contributions payable by the employee in respect of the emoluments which have been received by him and for which the income tax is or would have been payable.

(4) If, by the time specified in sub-paragraph (3), the employee has paid no amount of earnings-related contributions to the Collector in respect of the emoluments mentioned in that sub-paragraph, and the Collector is unaware of the amount, if any, which the employee is liable so to pay, or if an amount has been paid but the Collector is not satisfied that it is the full amount which the employee is liable to pay to him in respect of those emoluments, sub-paragraph (5) applies.

(5) If this sub-paragraph applies, the Collector may give notice to the employee requiring him to render, within the time limited in the notice, a return in the prescribed form containing particulars of all emoluments received by him during the period specified in the notice and such other particulars affecting the calculations of the earnings-related contributions payable in respect of the emoluments in question as may be specified in the notice, and in such a case the provisions of—

(a) paragraph 14 regarding the ascertaining and certifying by the Collector of earnings-related contributions payable by an employer, and

(b) paragraph 16 regarding the recovery of those contributions.

shall apply with the necessary modifications for the purposes of ascertaining, certifying and recovering the earnings-related contributions payable by the employee.

(6) If the employee ceases to receive emoluments falling within sub-paragraph (2), he shall immediately render to the Inspector or, if so required to the Collector, in such form as the Board may prescribe, a return showing such particulars as they may require for the identification of the employee, the year to which the return relates, the appropriate category letter, the last date on which he received any such emoluments, the total of those emoluments and the earnings-related contributions payable from the beginning of the year to that date.

(7) Not later than 44 days after the end of the year, the employee shall (unless sub-paragraph (6) has applied) render to the Inspector or, if so required to the Collector, in such form as the Board may prescribe, a return showing such particulars as they may require for the identification of the employee, the year to which the return relates, the total of the emoluments and earnings-related contributions payable during the year, together with the appropriate category letter, and the provisions of paragraph 22(5) regarding the certification and recovery of earnings-related contributions remaining unpaid by an employer for any year shall apply in the case of any earnings-related contributions remaining unpaid by the employee.

(8) The employee shall retain deductions working sheets issued under sub-paragraph (1) for not less than three years after the end of the year to which they relate.

(9) Section 98A of the Taxes Management Act 1970 (special penalties for certain returns) as modified by the provisions of paragraph 7 to Schedule 1 to the Act, shall apply in relation to the requirement to make a return contained in sub-paragraphs (6) and (7).