Social Security (Contributions) Amendment (No.4) Regulations 1987
| Jurisdiction | UK Non-devolved |
1987 No. 2111
SOCIAL SECURITY
The Social Security (Contributions) Amendment (No.4) Regulations 1987
Made 8th December 1987
Laid before Parliament 16th December 1987
Coming into force 6th January 1988
The Secretary of State for Social Services, in exercise of powers conferred upon him by sections 3(2) and (3), 4(2)(b), (6), (6A) and (6D), 11(3), 131, 166(2) and 168 of, and paragraphs 6(1)(b) and (h) of Schedule 1, and Schedule 20, to the Social Security Act 19751and of all other powers enabling him in that behalf, after agreement by the Social Security Advisory Committee that proposals to make these Regulations should not be referred to it2, hereby makes the following Regulations:—
Citation, commencement and interpretation
1.—(1) These Regulations may be cited as the Social Security (Contributions) Amendment (No. 4) Regulations 1987 and shall come into force on 6th January 1988.
(2) In these Regulations “the principal Regulations” means the Social Security (Contributions) Regulations 19793.
Amendment of regulation 8 of the principal Regulations
2. In regulation 8 of the principal Regulations (equivalent amounts) —
(a) in paragraph (2)(c) for the words “applying sub-paragraph (b) of this paragraph” there shall be substituted the words “multiplying each of the said limits by 4 1/3”;
(b) in paragraph (3) for the words “the last preceding paragraph” there shall be substituted the words “paragraph (2) of this Regulation”.
Amendment of regulation 8A of the principal Regulations
3. In regulation 8A of the principal Regulations (equivalent earnings brackets for earners paid otherwise than weekly,4—
(a) in paragraph (3)(c) for the words “applying sub-paragraph (b) of this paragraph” there shall be substituted the words “multiplying each lower bracket by 4 1/3”;
(b) in paragraph (4) for the words “the last preceding paragraph” there shall be substituted the words “paragraph (3) of this Regulation”.
Insertion of regulation 19B in the principal Regulations
4. After regulation 19A of the principal Regulations (certain payments by trustees to be disregarded) there shall be inserted the following regulation:—
“Payments to directors which are to be disregarded
19B.—(1) For the purposes of earnings-related contributions, there shall be excluded from the computation of a person’s earnings any payment in so far as it is a payment —
(a)
(a) by a company,
(b)
(b) to or for the benefit of a director of that company,
(c)
(c) in respect of any employed earner’s employment of that director with that company, and
(d)
(d) in respect of which the conditions set out in paragraph (2), (3) or (4) of this regulation are satisfied.
(2) The conditions referred to in paragraph (1) of this regulation as being set out in this paragraph are —
(a)
(a) that the director is a partner in a firm carrying on a profession;
(b)
(b) that being a director of a company is a normal incident of membership of that profession and of membership of the firm of the director;
(c)
(c) that the director is required by the terms of his partnership to account to his firm for the payment; and
(d)
(d) that the payment forms an insubstantial part of the gross returns of that firm.
(3) The conditions referred to in paragraph (1) of this regulation as being set out in this paragraph are —
(a)
(a) that the director was appointed to that office by a company having the right to do so by virtue of its shareholding in, or an agreement with, the company making the payment;
(b)
(b) that by virtue of an agreement with the company that appointed him, the director is required to account for the payment to that company; and
(c)
(c) that the payment forms part of the profits brought into charge to corporation tax or income tax of the company that appointed the director.
(4) The conditions referred to in paragraph (1) of this regulation as being...
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