The Social Security (Contributions, Categorisation of Earners and Intermediaries) (Amendment) Regulations 2004

Amendment of the Contributions Regulations

31.—(1) Part 2 (deduction of earnings related contributions) is amended as follows.

(2) In paragraph 6 (deduction of earnings-related contributions)—

(a) in sub-paragraph (1) for “emoluments” substitute “general earnings”;

(b) in sub-paragraph (1)(a) for “regulation 20 of the Income Tax Regulations (employee on fixed pay)” substitute “regulation 35 of the PAYE Regulations (simplified deduction scheme)”.

(3) In paragraph 7 (calculation of deduction)(1)—

(a) for “emoluments”, wherever it occurs, substitute “general earnings”;

(b) in sub-paragraph (3) after “paragraph (b)” in the second place it occurs insert “or sub-paragraph 4(a) or (f)”;

(c) in sub-paragraph (4)—

(i) at the end of paragraph (d) omit “or”;

(ii) after paragraph (e) insert—

“; or

(f) the payment in question is made to a person whose place of employment is outside the United Kingdom and on whose general earnings Class 1 contributions are, but income tax is not, payable.”;

(d) in sub-paragraph (5A)(a) after “(4)(e)” add “or (f)”;

(e) in sub-paragraph (9)(b)—

(i) for “shares”, in each place where it occurs, substitute “securities”;

(ii) in sub-paragraph (ii) for “regulation 22(3)” substitute “regulation 22(5), (6) or (7)”; and

(iii) in sub-paragraph (iii) for “section 135 of the Taxes Act 1988 (gains by directors and employees from share options)” substitute “section 4(4)(a) of the Act”;

(f) omit sub-paragraph (10);

(g) in sub-paragraphs (11) and (12) for “shares”, in each place where it occurs, substitute “securities”; and

(h) in sub-paragraph (15) for “superannuation”, in each place where it occurs, substitute “pension”.

(4) In paragraph 9 (certificate of contributions paid)(2)—

(a) in sub-paragraph (1)—

(i) for “regulation 39 of the Income Tax Regulations (certificate of tax deducted)” substitute “regulation 67 of the PAYE Regulations (information to employees about payments and tax deducted (Form P 60))”; and

(ii) for “Board” substitute “Inland Revenue”; and

(b) in sub-paragraph (2)—

(i) for “regulation 39 of the Income Tax Regulations” substitute “regulation 67 of the PAYE Regulations”;

(ii) for “emoluments” substitute “general earnings”; and

(iii) after “concerned” insert “or the employee was not in the employer’s employment on the last day of the tax year,”.

(1)

Paragraph 7 has been amended: relevant amendments are made by regulation 7 of S.I. 2002/2929, and regulation 2 of S.I. 2003/1337.

(2)

Paragraph 9 has been amended by regulations 2 and 16 of S.I. 2003/193, and regulation 3 of S.I. 2003/1337.