The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013

JurisdictionUK Non-devolved
CitationSI 2013/622

2013 No. 622

Social Security

The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013

Made 14th March 2013

Laid before Parliament 15th March 2013

Coming into force in accordance with Regulation 1

These Regulations are made by the Treasury and the Commissioners for Her Majesty’s Revenue and Customs with the concurrence of the Secretary of State and the Department for Social Development1in relation to regulations 33, 39, 40 and 42 and to regulation 2 in so far as it relates to regulations 33, 39, 40 and 42.

The powers exercised by the Treasury are those conferred by sections 1(6), 3(2) and (3), 10(9), 12(6), 13(1) and (7), 19(1) and (5A), and 175(3) and (4) of, and paragraph 7B(5A) of Schedule 1 to, the Social Security Contributions and Benefits Act 19922and sections 1(6), 3(2) and (3), 10(9), 12(6), 13(1) and (7), 19(1) and (5A) and 171(3), (4) and (10) of, and paragraph 7B(5A) of Schedule 1 to, the Social Security Contributions and Benefits (Northern Ireland) Act 19923and now exercisable by them.

The powers exercised by the Commissioners for Her Majesty’s Revenue and Customs are those conferred by section 175(4) of, and paragraph 6(1) and (2) of Schedule 1 to, the Social Security Contributions and Benefits Act 19924and section 171(4) and (10) of, and paragraph 6(1) and (2) of Schedule 1 to, the Social Security Contributions and Benefits (Northern Ireland) Act 19925and now exercisable by them6.

1 General

PART 1

General

Citation, commencement, effect and interpretation
S-1 Citation, commencement, effect and interpretation

Citation, commencement, effect and interpretation

1.—(1) These Regulations may be cited as the Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013.

(2) Regulations 1, 2 and 5 to 42 come into force on 6th April 2013 and apply in relation to the tax year 2013-14 and subsequent tax years.

(3) Regulations 3 and 4 come into force on 6th April 2014 and apply in relation to the tax year 2014-15.

(4) The amendments made by regulation 36 have effect in relation to contributions paid in respect of the tax year 2012-2013 and subsequent tax years.

(5) In these Regulations “the 2001 Regulations” mean the Social Security (Contributions) Regulations 20017.

Amendment of the 2001 Regulations
S-2 Amendment of the 2001 Regulations

Amendment of the 2001 Regulations

2. The 2001 Regulations are amended as provided for in regulations 3 to 28 and 33 to 40.

2 Closure of the Simplified Deduction Scheme

PART 2

Closure of the Simplified Deduction Scheme

Amendment of regulation 90NA
S-3 Amendment of regulation 90NA

Amendment of regulation 90NA

3. In regulation 90NA (employers) omit paragraph (1)(d) (but not the “and” after it).

Amendment of Schedule 4
S-4 Amendment of Schedule 4

Amendment of Schedule 4

4.—(1) Schedule 4 (provisions derived from the Income Tax Acts and the Income Tax (Pay As You Earn) Regulations 2003)8is amended as follows.

(2) In paragraph 1(2) (interpretation) in the definition of “deductions working sheet” omit from “or under” to the end.

(3) In paragraph 6(1)(a) (deduction of earnings related contributions) omit “, or in the case of an employee to whom regulation 35 of the PAYE Regulations (simplified deduction scheme) applies, maintain”.

(4) In paragraph 26(4) (retention by employer of contribution and election records) omit “(other than deductions working sheets issued under regulation 35 of the PAYE Regulations (simplified deduction schemes: records))9)”.

(5) In paragraph 29O omit sub-paragraph (1)(c) (employers) (but not the “and” after it).

3 Real Time Information

PART 3

Real Time Information

CHAPTER 1

Real Time Information

Amendment of Schedule 4 (provisions derived from the Income Tax Acts and the Income Tax (Pay As Your Earn) Regulations 2003
S-5 Amendment of Schedule 4 (provisions derived from the Income Tax Acts and the Income Tax (Pay As Your Earn) Regulations 2003

Amendment of Schedule 4 (provisions derived from the Income Tax Acts and the Income Tax (Pay As Your Earn) Regulations 2003

5. Schedule 4 (provisions derived from the Income Tax Acts and the Income Tax (Pay As You Earn) Regulations is amended as provided for in regulations 6 to 22.

Interpretation
S-6 Interpretation

Interpretation

6. In paragraph 1 (interpretation) omit sub-paragraph (4)(c) (but not the “and” after it).

Payment of earnings-related contributions monthly by employer
S-7 Payment of earnings-related contributions monthly by employer

Payment of earnings-related contributions monthly by employer

7. In paragraph 10(3A) (payment of earnings-related contributions monthly by employer) after “applies” insert “, or failures rectified under paragraph 21EA(2)10”.

Payments of earnings-related contributions quarterly by employer
S-8 Payments of earnings-related contributions quarterly by employer

Payments of earnings-related contributions quarterly by employer

8. In paragraph 11(3A) (payments of earnings-related contributions quarterly by employer) after “applies” insert “, or failures rectified under paragraph 21EA(2)”.

Payments to and recoveries from HMRC for each tax period by Real Time Information employers: return under paragraph 21E(6) or 21EA(3)
S-9 Payments to and recoveries from HMRC for each tax period by Real Time Information employers: return under paragraph 21E(6) or 21EA(3)

Payments to and recoveries from HMRC for each tax period by Real Time Information employers: return under paragraph 21E(6) or 21EA(3)

9.—(1) In paragraph 11ZA(1) (payments to and recoveries from HMRC for each tax period by Real Time Information employers: returns under paragraph 21E(6)) after “21E(4)” insert “, or paragraph 21EA(3) (failure to make a return under paragraph 21A or 21D of Schedule 4)”.

(2) Accordingly, in the heading of paragraph 11ZA after “21E(6)” insert “or 21EA(3)”.

Real Time returns of information about payments of general earnings
S-10 Real Time returns of information about payments of general earnings

Real Time returns of information about payments of general earnings

10.—(1) Paragraph 21A (real time returns of information about payments of general earnings) is amended as follows.

(2) In sub-paragraph (1) for “unless the employer is not required” to the end substitute—

“unless—

(a)

(a) the employer is not required to maintain a deductions working sheet for any employees, or

(b)

(b) an employee’s earnings are below the lower earnings limit and the employer is required to make a return under regulation 67B(1), regulation 67D(3), regulation 67E(6) or regulation 67EA(3) of the PAYE Regulations11.”.

(3) Omit sub-paragraphs (6) and (7).

Exceptions to paragraph 21A
S-11 Exceptions to paragraph 21A

Exceptions to paragraph 21A

11. After paragraph 21A (real time returns of information about payments of general earnings) insert—

S-21AA

Employees in respect of whom employer is not required to maintain a deductions worksheet

21AA.—(1) This paragraph applies if an employer makes a payment of general earnings to an employee in respect of whom the employer is not required to maintain a deductions working sheet.

(2) The employer need not deliver the information required by paragraph 21A in respect of that employee on or before making the payment.

(3) The employer must deliver that information no later than the end of the period of 7 days starting with the day following the day on which the payment is made.

S-21AB

Employees paid in specified circumstances

21AB.—(1) This paragraph applies if—

(a)

(a) an employer makes a payment of general earnings to an employee, and

(b)

(b) all of the circumstances in sub-paragraph (2) apply.

(2) The circumstances are that—

(a)

(a) the payment includes an amount of general earnings which is for work undertaken by the employee on—

(i) the day the payment is made, or

(ii) provided that the payment is made before the employee leaves the place of work at the end of the employee’s period of work, the day before the payment is made,

(b)

(b) in respect of the work mentioned in paragraph (a), it was not reasonably practicable for the employer to calculate the payment due before the completion of the work, and

(c)

(c) it is not reasonably practicable for the employer to deliver the information required by paragraph 21A on or before making the payment.

(3) The employer need not deliver the information required by paragraph 21A on or before making the payment.

(4) The employer must deliver that information no later than the end of the period of 7 days starting with the day following the day on which the payment is made.

S-21AC

Paragraphs 21AA and 21AB: supplementary

21AC. Where paragraph 21AA or 21AB applies, the information required by paragraph 21A in respect of the payment of general earnings may be included in a return with the information for any other payment of general earnings.

S-21AD

Benefits and expenses – returns under regulations 85 to 87 of the PAYE Regulations

21AD.—(1) This paragraph applies if an employer makes a payment of general earnings to an employee which, for the purposes of tax, falls to be included in a return under—

(a)

(a) regulations 85 and 86 of the PAYE Regulations (employers: annual return of other earnings (Forms P11D and P9D) – information which must be provided for each employee), or

(b)

(b) regulations 85 and 87 of the PAYE Regulations (employers: annual return of other earnings (Forms P11D and P9D) – information which must also be provided for benefits code employees) or would fall to be so included if the employee’s employment was subject to the benefits code for the purposes of regulation 85 of the PAYE Regulations.

(2) If the employer is unable to comply with the requirement in paragraph 21A(1) to deliver the information required by that paragraph on or before making the payment, the employer must instead deliver the information as soon as reasonably practicable after the payment is made and in any event no later than 14...

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