These Regulations amend the Social Security (Contributions) Regulations 2001 (S.I 2001/1004).

Regulation 1 deals with citation and commencement.

Regulation 2 inserts a new Part 3A into Schedule 4 to the 2001 Regulations. That Schedule contains adaptations of the Income Tax (Pay as You Earn) Regulations 2003 (S.I. 2003/2682: “the PAYE Regulations”) for the purpose of enabling earnings-related contributions to be collected, accounted for and recovered in the same way as employment income on which tax is recovered by PAYE. Part 3A reflects changes made to the PAYE Regulations by the Income Tax (Pay as You Earn) (Amendment No. 2) Regulations 2007 (S.I. 2007/2069 “the PAYE Amendment Regulations”) in consequence of the insertion of Chapter 9 (managed service companies) into Part 2 of the Income Tax (Earnings and Pensions) Act 2003 (c. 1) by paragraph 4 of Schedule 3 to the Finance Act 2007 (c. 11).

A full Regulatory Impact Assessment was published by HM Revenue and Customs and is available on their website at www.hmrc.gov.uk/ria/full-ria-man-serv-coys.pdf or from the Ministerial Correspondence Unit, HM Revenue and Customs, Yorke House, Castle Meadow, Nottingham. It is also annexed to the Explanatory Memorandum to the PAYE Amendment Regulations which is available alongside those Regulations on the OPSI website.