2005 No. 728
The Social Security (Contributions) (Amendment No. 2) Regulations 2005
Made
Laid before Parliament
Coming into force
The Treasury, in exercise of the powers conferred by sections 3(2) and 10(9)(a) of the Social Security Contributions and Benefits Act 19921 with the concurrence of the Secretary of State so far as required, and, in exercise of the powers conferred by sections 3(2) and 10(9)(a) of the Social Security Contributions and Benefits (Northern Ireland) Act 19922, with the concurrence of the Department for Social Development so far as required, make the following Regulations:
Citation, commencement and effect1
These Regulations may be cited as the Social Security (Contributions) (Amendment No. 2) Regulations 2005, shall come into force on 6th April 2005 and have effect in relation to payments of earnings made in respect of the academic year beginning on 1st September 2005 and subsequent academic years.
Amendment of the Social Security (Contributions) Regulations 20012
The Social Security (Contributions) Regulations 20013 are amended as follows.
Amendment of regulation 403
1
Amend regulation 40 (prescribed general earnings in respect of which Class 1A contributions are not payable)4 as follows.
2
In paragraph (2), after sub-paragraph (a) insert—
ab
in Part 7, paragraph 12;
Amendment of Part 7 of Schedule 34
1
Part 7 of Schedule 3 to the principal Regulations (payments in respect of training and similar courses disregarded in the computation of employed earner’s earnings)5 is amended as follows.
2
At the end add the following paragraph—
Payments made by employers to earners in full-time attendance at universities &c.12
1
A payment to an employed earner receiving full-time instruction at a university, technical college or similar educational establishment (within the meaning of section 331 of the Taxes Act) if the conditions in sub-paragraphs (2) to (6) are satisfied, but subject to the exclusion in sub-paragraph (7).
2
The employed earner must have enrolled at the educational establishment for a course lasting at least one academic year at the time when payment is made.
3
The secondary contributor must require the employed earner to attend the course for an average of at least twenty weeks in an academic year.
4
The educational establishment—
a
must be open to members of the public generally,
b
must offer more than one course of practical or academic instruction.
5
The educational establishment must not be run by—
a
the secondary contributor, or a person who would be treated by section 839 of the Taxes Act as connected with him; or
b
a trade organisation of which the secondary contributor is a member.
6
The total amount of earnings payable to the earner in respect of his attendance, including lodging, travelling and subsistence allowances, but excluding any tuition fees, must not exceed £15,000 in respect of an academic year.
7
This paragraph does not apply to any payment made by the secondary contributor to the employed earner for, or in respect of, work done for the secondary contributor by the earner (whether during vacations or otherwise).
8
This paragraph has effect in respect of payments made in relation to the academic year beginning on 1st September 2005 and subsequent academic years.
9
In this paragraph—
“academic year” means the period beginning on 1st September of one calendar year and ending on 31st August of the following calendar year.
“trade organisation” means an organisation of secondary contributors (in their capacity as employers) the members of which carry on a particular profession or trade for the purposes of which the organisation exists.
The Secretary of State concurs.
Signed by authority of the Secretary of State for Works and Pensions
The Department for Social Development concurs.
Sealed with the Official Seal of the Department for Social Development on 15th March 2005
(This note is not part of the Regulations)