2014 No. 3228
Social Security

The Social Security (Contributions) (Amendment No. 6) Regulations 2014

Made
Laid before Parliament
Coming into force
The Treasury make the following Regulations in exercise of the powers conferred by sections 3(2) and (3) of the Social Security Contributions and Benefits Act 19921 and sections 3(2) and (3) of the Social Security Contributions and Benefits (Northern Ireland) Act 19922.
The Secretary of State and the Department for Social Development3 concur with the making of these Regulations.

Citation and commencement

1.

These Regulations may be cited as the Social Security (Contributions) (Amendment No. 6) Regulations 2014 and come into force on 1st January 2015.

Amendments to the Social Security (Contributions) Regulations 2001

2.

Schedule 3 (payments to be disregarded in the calculation of earnings for the purposes of earnings-related contributions) to the Social Security (Contributions) Regulations 20014 is amended as follows.

3.

In Part 5 (certain non-cash vouchers to be disregarded as payments in kind) after paragraph 5(c)—

(a)

for “.” substitute “;”; and

(b)

insert—

“(d)

section 320C (recommended medical treatment)5.”.

4.

In Part 8 (travelling, relocation and other expenses and allowances of the employment) after paragraph 14 (overseas medical treatment) insert—

“Recommended medical treatment

14A.

A payment or reimbursement to which no liability to income tax arises by virtue of section 320C of ITEPA 2003 (recommended medical treatment).”.

David Evennett
Gavin Barwell
Two of the Lords Commissioners of Her Majesty’s Treasury

The Secretary of State concurs.

Signed by authority of the Secretary of State for Work and Pensions

Mark Harper
Minister of State
Department for Work and Pensions

The Department for Social Development concurs.

Sealed with the Official Seal of the Department for Social Development on 3rd December 2014

Anne McCleary
A senior officer of the Department for Social Development
EXPLANATORY NOTE
(This note is not part of the Regulations)

These Regulations amend the Social Security (Contributions) Regulations 2001 (S.I. 2001/1004) (“SSCR 2001”). Schedule 3 to SSCR 2001 deals with payments which are to be disregarded in the calculation of earnings for the purposes of earnings-related contributions.

Regulation 3 inserts new disregards into Part 5 and Part 8 of Schedule 3 to SSCR 2001. The new disregards refer to the exemption from income tax provided by section 320C of the Income Tax (Earnings and Pensions) Act 2003 (c. 1) (“ITEPA 2003”).

The effect is that when an employer meets the cost of an employee’s recommended medical treatment in the form of a non-cash voucher, expenses payment or reimbursement, then that payment or payment in kind will be disregarded in the calculation of the employee’s earnings for liability for Class 1 National Insurance contributions.

The disregard will apply to a recommendation for medical treatment which meets the conditions set out in sections 320C(3)(a) and (b) of ITEPA 2003 and any requirements specified in regulations made under section 320C(3)(c) of ITEPA 2003, up to an annual cap of £500 per employee.

A Tax Information and Impact Note covering this instrument was published on 10th December 2013 alongside the Finance Bill 2014 and is available on the HMRC website at http://www.hmrc.gov.uk/thelibrary/tiins.htm. It remains an accurate summary of the impacts that apply to this instrument.