The Social Security (Contributions, Categorisation of Earners and Intermediaries) (Amendment) Regulations 2004

JurisdictionUK Non-devolved
CitationSI 2004/770

2004 No. 770

SOCIAL SECURITY

The Social Security (Contributions, Categorisation of Earners and Intermediaries) (Amendment) Regulations 2004

Made 16th March 2004

Laid before Parliament 16th March 2004

Coming into force 6th April 2004

The Treasury, in exercise of the powers conferred upon them by sections 2(2) and (2A), 3(2), (2A) and (3), 4(6) and (7), 4A, 10(8) and (9), 10A(7), 19(1), (2)(b) and (5A), 122(1) and 175(3) and (4) of, and paragraphs 7B and 8(1)(ia) and (1A) of Schedule 1 to the Social Security Contributions and Benefits Act 19921(“the 1992 Act”) with the concurrence of the Secretary of State insofar as required and sections 2(2) and (2A), 3(2), (2A) and (3), 4(6) and (7), 4A, 10(8) and (9), 10A(7), 18(1), 19(1), (2)(b) and (5A),121(1) and 171(3), (4) and (10) of, and paragraphs 7B and 8(1)(ia) and (1A) of Schedule 1 to, the Social Security Contributions and Benefits (Northern Ireland) Act 19922(“the 1992 Northern Ireland Act”), with the concurrence of the Department for Social Development insofar as required3, and the Commissioners of Inland Revenue in exercise of the powers conferred upon them by sections 18(1), 175(3) and (4) of, and paragraphs 3(1), (3) and (6) and 6(1) of Schedule 1 to the 1992 Act4and sections 18(1), 171(3) and (4) of, and paragraphs 3(1), (3) and (6) and 6(1) of Schedule 1 to the 1992 Northern Ireland Act5hereby make the following Regulations:

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, Categorisation of Earners and Intermediaries) (Amendment) Regulations 2004 and shall come into force on 6th April 2004.

(2) The substitution by regulation 12 of regulations 52 and 52A of the Contributions Regulations for the former regulation 52, and the consequential amendments made to those Regulations by regulations 11, 14, 26 and 32(11) of these Regulations have effect only in respect of contributions payable in respect of the year 2003-04 and subsequent years.

(3) In these Regulations—

“the Categorisation Regulations” means the Social Security (Categorisation of Earners) Regulations 19786and “the Northern Ireland Categorisation Regulations” means the Social Security (Categorisation of Earners) Regulations (Northern Ireland) 19787;

“the Contributions Regulations” means the Social Security (Contributions) Regulations 20018; and

“the Intermediaries Regulations” means the Social Security Contributions (Intermediaries) Regulations 20009and “the Northern Ireland Intermediaries Regulations” means the Social Security Contributions (Intermediaries) (Northern Ireland) Regulations 200010.

Amendment of the Contributions Regulations

Amendment of the Contributions Regulations

S-2 The Contributions Regulations shall be amended as follows.

The Contributions Regulations shall be amended as follows.

2. The Contributions Regulations shall be amended as follows.

S-3 In regulation 1(2) (interpretation)— after the definition of...

3. In regulation 1(2) (interpretation)—

(a) after the definition of “apportionment” insert—

““approved method of electronic communications” in relation to the delivery of information or the making of a payment in accordance with a provision of these Regulations, means a method of electronic communications which has been approved, by specific or general directions issued by the Board, for the delivery of information of that kind or the making of a payment of that kind under that provision;”

(b) for the definition of “business travel”11substitute—

““business travel” has the meaning given in section 236(1) of ITEPA 200312;”;

(c) for the definition of “cash voucher” substitute—

““cash voucher” has the meaning given to it in section 75 of ITEPA 2003;”;

(d) in the definition of “conditional interest in shares”, for the words from “sections” to the end substitute “Chapter 2 of Part 7 of ITEPA 2003 as originally enacted13;”.

(e) omit the definitions of “income tax month” and “month”;

(f) for the definition of “non-cash voucher” substitute—

““non-cash voucher” has the meaning given to it in section 84 of ITEPA 2003;”;

(g) after the definition of “non-contracted out rate” insert—

““official computer system” means a computer system maintained by or on behalf of the Board;

“the PAYE Regulations” means the Income Tax (Pay As You Earn) Regulations 200314;”;

(h) omit the definition of “Schedule E”; and

(i) after the definition of “the Taxes Act” insert—

““tax month” has the meaning given in paragraph 1(2) of Schedule 4;”.

S-4 In regulation 22A (amounts to be treated as earnings in...

4. In regulation 22A (amounts to be treated as earnings in connection with the use of qualifying vehicles other than cycles) 15

(a) in paragraph (3)—

(i) for “section 197AD(2) of the Taxes Act” substitute “section 229(2) of ITEPA 2003”; and

(ii) for the words from “Here “qualifying vehicle”” to “the Taxes Act,” substitute —

“Here “qualifying vehicle” means a vehicle to which section 235 of ITEPA 2003 applies,”;

and

(b) in paragraph (4) for “paragraph 4(2) of Schedule 12AA to the Taxes Act” substitute “section 230(2) of ITEPA 2003”.

S-5 In regulation 27(5)(a) (payments to directors which are to be...

5. In regulation 27(5)(a) (payments to directors which are to be disregarded)—

(a) omit “and (2)”; and

(b) at the end add “and Part 2 of Schedule 1 to ITEPA 2003”.

S-6 Omit regulations 32 to 35.

Omit regulations 32 to 35.

6. Omit regulations 32 to 35.

S-7 In regulation 36 (reduction of Class 1A contribution in respect...

7. In regulation 36 (reduction of Class 1A contribution in respect of things provided in connection with two or more employments or to two or more earners)—

(a) in paragraph (1) for “to which Chapter II of Part V of the Taxes Act applies” substitute “other than excluded employments within the meaning of the benefits code (see Chapter 2 of Part 3 of ITEPA 2003)”; and

(b) in paragraph (2) omit “(or, where regulation 35 applies, shall be further reduced)”.

S-8 Omit regulation 37.

Omit regulation 37.

8. Omit regulation 37.

S-9 In regulation 40 (prescribed general earnings in respect of...

9. In regulation 40 (prescribed general earnings in respect of which Class 1A contributions are not payable)—

(a) in paragraph (2)(c)16for “2 to 7” substitute “3 to 7A”;

(b) in paragraph (6)(c)17after “(superannuation funds approved before 6th April 1980)” insert “or sections 590 (annuities) and 591 (taxable pension income)”;

(c) in paragraph (8)(a) for “Part X” substitute “Part 1018or 10A19”.

S-10 In regulation 42(1) (exception from liability to pay Class 1B...

10. In regulation 42(1) (exception from liability to pay Class 1B contributions)—

(a) in sub-paragraph (a) for “of the chargeable emoluments” substitute “general earnings which are chargeable emoluments”; and

(b) in sub-paragraph (b) for “emoluments” substitute “general earnings”.

S-11 In regulation 51(2) (disposal of contributions not properly...

11. In regulation 51(2) (disposal of contributions not properly paid) for “regulation 52(1)” substitute “regulation 52 or 52A”.

S-12 For regulation 52 substitute— 52 Return of contributions paid...

12. For regulation 5220substitute—

S-52

Return of contributions paid in error

52.—(1) This regulation applies if a contribution other than a Class 4 contribution has been paid in error.

This regulation is subject to regulations 51 and 57.

(2) If this regulation applies, an application may be made to the Board for the return of the contribution paid in error.

(3) An application under paragraph (2) shall be made to the Board—

(a)

(a) in writing, or in such form and by such means of electronic communications as are approved; and

(b)

(b) within the time permitted by paragraph (8).

(4) On the making of an application under paragraph (2) the Board shall return the contribution paid in error.

This is subject to paragraphs (5) and (6).

(5) Paragraph (4) does not require the return of contributions unless the amount to be returned exceeds—

(a)

(a) in the case of Class 1 contributions, 1/15 of a contribution at the main primary percentage payable on earnings at the upper earnings limit in respect of primary Class 1 contributions prescribed in regulation 10 for the last or only year in respect of which the contributions were paid; or

(b)

(b) in the case of a Class 1A or Class 1B contribution, 50 pence.

(6) Paragraph (4) does not require the return of a primary Class 1 contribution which is treated as properly paid by regulation 3 of the Social Security (Additional Pension) (Contributions Paid in Error) Regulations 199621.

(7) Contributions paid by a secondary contributor on behalf of any person in error—

(a)

(a) if they are not recovered from that person by the secondary contributor, may be returned to the secondary contributor; and

(b)

(b) if they are recovered by the secondary contributor from that person may be returned—

(i) to that person; or

(ii) with that person’s consent given in writing or in such form and by such means of electronic communications as may be approved, to the secondary contributor.

(8) An application for the return of any contribution paid in error shall be made within the period of six years from the end of the year in which the contribution was due to be paid.

This is subject to the following qualification.

If the application is made after the end of that period, an officer of the Board shall admit it if satisfied that—

(a)

(a) the person making the application had reasonable excuse for not making the application within that period; and

(b)

(b) the application was made without unreasonable delay after the excuse had ceased.

(9) In this regulation “error” means, and means only, an error which—

(a)

(a) is made at the time of the payment; and

(b)

(b) relates to some past or present matter.

S-52A

Return of contributions paid in excess of maxima prescribed in...

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