Social Security Contributions (Intermediaries) (Northern Ireland) Regulations 2000
| Jurisdiction | UK Non-devolved |
| Citation | SI 2000/728 |
| Year | 2000 |
2000 No. 728
SOCIAL SECURITY, NORTHERN IRELAND
The Social Security Contributions (Intermediaries) (Northern Ireland) Regulations 2000
Made 13th March 2000
Laid before Parliament 13th March 2000
Coming into force 6th April 2000
The Treasury, with the concurrence of the Department for Social Development1, in exercise of the powers conferred on them by sections 4A, 121(1) and 171(3), (4) and (10) of the Social Security Contributions and Benefits (Northern Ireland) Act 19922and of all other powers enabling them in that behalf, and the Commissioners of Inland Revenue, in exercise of the powers conferred on them by Article 7(1)(m) of the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 19993, and of all other powers enabling them in that behalf, hereby make the following Regulations:
Citation, commencement and effect
1.—(1) These Regulations may be cited as the Social Security Contributions (Intermediaries) (Northern Ireland) Regulations 2000 and shall come into force on 6th April 2000.
(2) These Regulations have effect for the tax year 2000–01 and subsequent years and apply in relation to services performed, or to be performed, on or after 6th April 2000.
(3) Payments or other benefits in respect of such services received before that date shall be treated as if received in the tax year 2000–01.
Interpretation
2.—(1) In these Regulations unless the context otherwise requires–
“arrangements” means the arrangements referred to in regulation 6(1)(b);
“associate” has the meaning given by regulation 3;
“attributable earnings” in relation to a worker shall be construed in accordance with regulation 6(3)(a);
“the Board” means the Commissioners of Inland Revenue;
“business” shall be construed in accordance with section 4A(6) of the Contributions and Benefits Act;
“Class 1A contributions” has the meaning given by section 10 of the Contributions and Benefits Act4;
“client” shall be construed in accordance with regulation 6(1)(a);
“company” means any body corporate or unincorporated association, but does not include a partnership;
“the Contributions and Benefits Act” means the Social Security Contributions and Benefits (Northern Ireland) Act 1992;
“the Contributions Regulations” means the Social Security (Contributions) Regulations (Northern Ireland) 19795;
“intermediary” has the meaning given by regulation 5;
“relevant benefit” means any benefit falling within regulation 4 that is provided to the intermediary or to or on behalf of the worker under the arrangements;
“relevant payment” means any payment made to an intermediary or to or on behalf of the worker under the arrangements;
“secondary Class 1 contributions” has the meaning given by section 6 of the Contributions and Benefits Act6;
“secondary contributor” has the meaning given by section 7 of the Contributions and Benefits Act7;
“the Taxes Act” means the Income and Corporation Taxes Act 19888;
“tax year” means year of assessment;
“worker” means the individual referred to in regulation 6(1)(a).
(2) References in these Regulations to payments or benefits received or receivable from a partnership or unincorporated association include payments or benefits to which a person is or may be entitled in his capacity as a member of the partnership or association.
(3) For the purposes of these Regulations–
(a)
(a) anything done by or in relation to an associate of an intermediary is treated as done by or in relation to the intermediary, and
(b)
(b) a payment or other benefit provided to a member of an individual’s family or household is treated as provided to the individual.
(4) The reference in paragraph (3)(b) to an individual’s family or household shall be construed in accordance with section 168(4) of the Taxes Act.
(5) For the purposes of these Regulations a man and a woman living together as husband and wife are treated as if they were married to each other.
Meaning of associate
3.—(1) In these Regulations “associate”–
(a)
(a) in relation to an individual, has the meaning given by section 417(3) and (4) of the Taxes Act9, subject to the following provisions of this regulation;
(b)
(b) in relation to a company, means a person connected with the company within the meaning of section 839 of the Taxes Act10; and
(c)
(c) in relation to a partnership, means any associate of a member of the partnership.
(2) Where an individual has an interest in shares or obligations of the company as a beneficiary of an employee benefit trust, the trustees are not regarded as associates of his by reason only of that interest except in the following circumstances.
(3) The exception is where–
(a)
(a) the individual, either on his own or with one or more of his associates, or
(b)
(b) any associate of his, with or without other such associates,
has been the beneficial owner of, or able (directly or through the medium of other companies or by any other indirect means) to control, more than 5 per cent. of the ordinary share capital of the company.
(4) In paragraph (2) “employee benefit trust” has the same meaning as in paragraph 7 of Schedule 8 to the Taxes Act11.
Meaning of benefit
4.—(1) For the purposes of these Regulations a “benefit” includes anything that, if received by an employee for performing the duties of an employment within Schedule E–
(a)
(a) would be an emolument of the employment, or
(b)
(b) would be chargeable to tax as an emolument of the employment,
or that would be such an emolument, or chargeable as such an emolument, apart from any exemption.
(2) The amount of a benefit is taken to be–
(a)
(a) in the case of a cash benefit, the amount received, and
(b)
(b) in the case of a non-cash benefit, the cash equivalent of the benefit.
(3) The cash equivalent of a non-cash benefit is taken to be whichever is the greater of–
(a)
(a) the amount that would be chargeable to tax under section 19(1) of the Taxes Act12if the benefit were an emolument chargeable to tax under Case I of Schedule E, and
(b)
(b) the cash equivalent determined in accordance with the rules in section 596B of that Act13.
(4) For the purposes of these Regulations a benefit is treated as received–
(a)
(a) in the case of a cash benefit, when payment is made of or on account of the benefit; and
(b)
(b) in the case of a non-cash benefit, when it is used or enjoyed.
Meaning of intermediary
5.—(1) In these Regulations “intermediary” means any person, including a partnership or unincorporated association of which the worker is a member–
(a)
(a) whose relationship with the worker in any tax year satisfies the conditions specified in paragraph (2), (6), (7) or (8), and
(b)
(b) from whom the worker, or an associate of the worker–
(i) receives, directly or indirectly, in that year a payment or benefit that is not chargeable to tax under Schedule E, or
(ii) is entitled to receive, or in any circumstances would be entitled to receive, directly or indirectly, in that year any such payment or benefit.
(2) Where the intermediary is a company the conditions are that–
(a)
(a) the intermediary is not an associated company of the client, within the meaning of section 416 of the Taxes Act14, by reason of the intermediary and the client both being under the control of the worker, or under the control of the worker and another person, and
(b)
(b) either–
(i) the worker has a material interest in the intermediary, or
(ii) the payment or benefit is received or receivable by the worker directly from the intermediary, and can reasonably be taken to represent remuneration for services provided by the worker to the client.
(3) A worker is treated as having a material interest in a company for the purposes of paragraph (2)(a) if–
(a)
(a) the worker, alone or with one or more associates of his, or
(b)
(b) an associate of the worker, with or without other such associates,
has a material interest in the company.
(4) For this purpose a material interest means–
(a)
(a) beneficial ownership of, or the ability to control, directly or through the medium of other companies or by any other indirect means, more than 5 per cent. of the ordinary share capital of the company; or
(b)
(b) possession of, or entitlement to acquire, rights entitling the holder to receive more than 5 per cent. of any distributions that may be made by the company; or
(c)
(c) where the company is a close company, possession of, or entitlement to acquire, rights that would in the event of the winding up of the company, or in any other circumstances, entitle the holder to receive more than 5 per cent. of the assets that would then be available for distribution among the participators.
In sub-paragraph (c) “close company” has the meaning given by sections 414 and 415 of the Taxes Act15, and “participator” has the meaning given by section 417(1) of that Act.
(5) Where the intermediary is a partnership the conditions are as follows.
(6) In relation to payments or benefits received or receivable by the worker as a member of the partnership, the conditions are–
(a)
(a) that the worker, alone or with one or more relatives, is entitled to 60 per cent. or more of the profits of the partnership; or
(b)
(b) that most of the profits of the partnership derive from the provision of services under the arrangements–
(i) to a single client, or
(ii) to a single client together with an associate or associates of that client; or
(c)
(c) that under the profit sharing arrangements the income of any of the partners is based on the amount of income generated by that partner by the provision of services under the arrangements.
In sub-paragraph (a) “relative” means husband or wife, parent or remoter forebear, child or remoter issue, or brother or sister.
(7) In relation to payments or benefits received or receivable by the worker otherwise than as a member of the partnership, the conditions are that the payment or benefit–
(a)
(a) is...
To continue reading
Request your trial