The Social Security (Contributions) Regulations 2001

[F1 Amounts] to be treated as earnings U.K.

22.—(1) For the purposes of section 3 of the Act (earnings)F2 , the amounts specified in paragraphs [F3 (2) to [F4 (14)]] shall be treated as remuneration derived from an employed earner’s employment.

(2) The amount specified in this paragraph is the amount of any payment by a company to or for the benefit of any of its directors if—

(a) apart from this regulation the payment would, when made, not be earnings for the purposes of the Act; and

(b) the payment is made on account of or by way of an advance on a sum which would be earnings for those purposes.

[F5 (3) The amount specified in this paragraph is the amount equal to the cash equivalent in respect of car fuel which is treated as earnings from the employment of the earner for income tax purposes by virtue of section 149 of ITEPA 2003.

(4) The amount specified in this paragraph is the amount which is treated as earnings from the employment of the employed earner by virtue of section 222(2) of ITEPA 2003.

(5) The amount specified in this paragraph is the amount which counts as employment income of the employed earner under Chapter 2 of Part 7 of ITEPA 2003 computed in accordance with section 428 of ITEPA 2003 in respect of conditional shares or interests in conditional shares acquired before 16th April 2003.

• References in this paragraph and paragraph (6) to ITEPA 2003 are to that Act as originally enacted.

(6) The amount specified in this paragraph is the amount which counts as employment income of the employed earner by virtue of Chapter 4 of Part 7 of ITEPA 2003 (shares: post-acquisition charges) in respect of shares or interests in shares acquired before 16th April 2003.

(7) The amounts specified in this paragraph are those—

(a) which count as employment income of the employed earner in relation to employment-related securities (within the meaning given by section 421B(8) of ITEPA 2003); and

(b) to which section 698 of ITEPA 2003 (PAYE: special charges on employment-related securities) applies.

• References in this paragraph [F6 and paragraphs (9) and (10)] to ITEPA 2003 are to that Act as amended F7 ... .

(8) The amount specified in this paragraph is the amount—

(a) which counts as employment income of the employed earner by virtue of sections 500 to 508 of ITEPA 2003; and

(b) in respect of which income tax is recoverable in accordance with PAYE regulations.]

[F8 (9) The amount specified in this paragraph is any amount—

(a) which, by reason of the operation of Schedule 2 to the Finance (No. 2) Act 2005, counts as employment income of the employed earner under any of Chapters 2 to 4 of Part 7 of ITEPA 2003; and

(b) where the relevant date for that income determined under section 698(6) of ITEPA 2003 (whether or not the PAYE Regulations apply to that income) is on or after 2nd December 2004 and before 20th July 2005.

(10) The amount specified in this paragraph is any amount—

(a) which by virtue of the operation of section 92 of the Finance Act 2006 counts as employment income of the employed earner under any of Chapters 2 to 4 of Part 7 of ITEPA 2003; and

(b) where the relevant date for that income determined under section 698(6) of ITEPA 2003 (whether or not the PAYE Regulations apply to that income) is on or after 2nd December 2004 and before 19th July 2006.]

[F9 (11) The amount specified in this paragraph is the amount treated as earnings from the employment by virtue of section 226A of ITEPA 2003 (amount treated as earnings).]

[F10 (12) The amount specified in this paragraph is any amount—

(a) paid or reimbursed to an employed earner in respect of expenses;

(b) provided pursuant to relevant salary sacrifice arrangements within the meaning of section 289A(5) of ITEPA 2003; and

(c) which is not a payment or reimbursement of relevant motoring expenditure within the meaning of paragraph (3) of regulation 22A.

(13) The amount specified in this paragraph is any amount paid or reimbursed to an employed earner in respect of expenses which is calculated according to a set rate rather than by reference to the actual amount incurred in respect of the expenses where such a rate is not—

(a) contained in regulations made by the Commissioners for Her Majesty’s Revenue and Customs under section 289A(6)(a); or

(b) approved under section 289B of ITEPA 2003.]

[F11 (14) The amount specified in this paragraph is the amount of a termination award which is treated as earnings from the employment of the employed earner by virtue of section 402B of ITEPA 2003.]

Textual Amendments

F1 Word in reg. 22 heading substituted (1.9.2003) by The Social Security (Contributions) (Amendment No. 5) Regulations 2003 (S.I. 2003/2085), regs. 1, 5(2)

F2 Section 3 was amended by sections 48 and 49 of the Social Security Act 1998 (c. 14) and paragraph 3 of Schedule 3 to the Transfer Act.

F3 Words in reg. 22(1) substituted (6.4.2016) by The Social Security (Contributions) (Amendment) (No. 2) Regulations 2016 (S.I. 2016/352), regs. 1, 4(2)

F4 Word in reg. 22(1) substituted (6.4.2018) by The Social Security (Contributions) (Amendment No. 2) Regulations 2018 (S.I. 2018/257), regs. 1(1), 2(2)(a)

F5 Reg. 22(3)-(8) substituted for (1.9.2003) by The Social Security (Contributions) (Amendment No. 5) Regulations 2003 (S.I. 2003/2085), regs. 1, 5(4)

F6 Words in reg. 22(7)(b) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 2) Regulations 2007 (S.I. 2007/1057), regs. 1(1), 2(3)(a)

F7 Words in reg. 22(7)(b) omitted (with effect in accordance with reg. 1(3) of the amending S.I.) by virtue of The Social Security (Contributions) (Amendment No. 2) Regulations 2007 (S.I. 2007/1057), regs. 1(1), 2(3)(b)

F8 Reg. 22(9)(10) added (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 2) Regulations 2007 (S.I. 2007/1057), regs. 1(1), 2(4)

F9 Reg. 22(11) inserted (1.9.2013) by The Social Security (Contributions) (Amendment No.3) Regulations 2013 (S.I. 2013/1907), regs. 1, 3(b)

F10 Reg. 22(12)(13) inserted (6.4.2016) by The Social Security (Contributions) (Amendment) (No. 2) Regulations 2016 (S.I. 2016/352), regs. 1, 4(3)

F11 Reg. 22(14) inserted (6.4.2018) by The Social Security (Contributions) (Amendment No. 2) Regulations 2018 (S.I. 2018/257), regs. 1(1), 2(2)(b)