The Social Security (Miscellaneous Amendments No. 2) Regulations 2015

JurisdictionEngland & Wales
CitationSI 2015/478

2015No. 478

SOCIAL SECURITY

The Social Security (Miscellaneous Amendments No. 2) Regulations 2015

3rdMarch2015

4thMarch2015

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 in relation to regulations 14, 17, 21 and 25 and the Department for Social Development( 1) in relation to regulations 14, 17, 21 and 26.

The powers exercised by the Treasury are those conferred by sections 1(6) and (7), 2(2)(b) and (2A), 3(2) and (3), 12(6), 13(1) and (7), 19(3) and (5A), 119 and 175(3) and (4) of, and paragraphs 7B, 7BB, and 8(1)(q) and (1A) of Schedule 1 to, the Social Security Contributions and Benefits Act 1992( 2), sections 1(6) and (7), 2(2)(b) and (2A), 3(2) and (3), 12(6), 13(1) and (7), 19(3) and (5A), 119 and 171(3) and (4) of, and paragraphs 7B, 7BB and 8(1)(q) and (1A) of Schedule 1 to, the Social Security Contributions and Benefits (Northern Ireland) Act 1992( 3),

and section 3 of the National Insurance Contributions Act 2015( 4) and now exercisable by them.

The powers exercised by the Commissioners for Her Majesty's Revenue and Customs are those conferred by sections 17 and 175(4) of and paragraph 6 of Schedule 1 to, the Social Security Contributions and Benefits Act 1992( 5) and sections 17 and 171(4) of, and paragraph 6 of Schedule 1 to, the Social Security Contributions and Benefits (Northern Ireland) Act 1992( 6) and now exercisable by them( 7).

Citation, commencement and effect

1.-(1) These Regulations may be cited as the Social Security (Miscellaneous Amendments No. 2) Regulations 2015.

(2) Regulation 21(2) (amendment to paragraph 10A of Part 6 of Schedule 3 to the Social Security (Contributions) Regulations 2001( 8)), comes into force on 1st April 2015.

(3) Regulation 22(5) (substitution of paragraph 23 of Schedule 4) has effect in relation to returns made by employers for the tax year 2014-15 and subsequent tax years.

(4) Subject to paragraph (2) of this regulation, these regulations come into force on 6th April 2015.

PART 1

Amendment of the Social Security (Contributions) Regulations 2001

2. The Social Security (Contributions) Regulations 2001 are amended as follows.

3.-(1) Amend regulation 1(2) (definitions) as follows.

(2) For the definition of "due date" substitute-

""due date" in Part 6 means, in relation to-

(a) any Class 1 contribution, the date by which payment falls to be made;(b) any Class 2 contribution which a person is liable or entitled to pay, the 31st January following the end of the tax year in respect of which it is paid or payable; and(c) any Class 3 contribution, the date 42 days after the end of the year in respect of which it is paid.".

(3) After the definition of "earnings-related contributions" insert-

"employment and support allowance" has the same meaning as in the Welfare Reform Act 2007( 9);".

4.-(1) Amend regulation 43 (exception from liability for Class 2 contributions)( 10) as follows.

(2) In the heading omit "liability for".

(3) In paragraph (1), after sub-paragraph (a) insert-

"(ab) in respect of the whole of which the earner is in receipt of employment and support allowance;".

(4) In paragraphs (1) and (3) for "liability to pay" substitute "paying".

5.-(1) Amend regulation 61B (voluntary Class 2 contributions: tax years 2006-07 to 2015-16: unavailability of pension statements 2013-14 to 2016-17)( 11) as follows.

(2) In paragraph (2) omit "under regulation 46 or 147(1)(a)".

(3) In paragraph (7)-

(a) for "regulations" substitute "regulation"; and(b) omit "and 61A".

6. In regulation 63A(4) (collection of unpaid Class 2 contributions through PAYE code)( 12), after the words "in the period beginning with the", omit "contribution".

7. In regulation 67(1) (collection and recovery of earnings-related contributions, and Class 1B contributions)( 13)-

(a) for "the general earnings from an office or employment" substitute "PAYE income"; and(b) after paragraph (1) insert-"(1A) PAYE income has the meaning given in section 683 of ITEPA 2003."( 14).

8. In regulation 72 (Class 1A contribution due on succession to business)( 15)-

(a) in paragraph 1(a) omit "general"; and(b) in paragraph (4)-(i) omit the definition of "general earnings"; and(ii) omit "general" in the definition of "relevant tax month".

9. In regulation 73 (Class 1A contribution due on cessation of business)( 16)-

(a) in paragraph (1)(a) omit "general"; and(b) in paragraph 4-(i) omit the definition of "general earnings"; and(ii) omit "general" in the definition of "relevant final tax month".

10. In regulation 87A(2) (notification of commencement or cessation of payment of Class 2 or Class 3 contributions on or after 6th April 2009)( 17) after "6th April 2009" insert "but before 6th April 2015" and amend the heading of the regulation accordingly.

11. After regulation 87A insert -

"Notification of commencement or cessation of self-employment or Class 3 contributions on or after 6th April 2015

87AA.

-(1) A person (P) to whom paragraph (2) applies shall immediately notify the relevant date to HMRC in writing or by such means of electronic communication as may be approved.(2) This paragraph applies where P on or after 6th April 2015-(a) commences or ceases to be a self-employed earner; or(b) is entitled to pay a Class 3 contribution and either wishes to do so or cease doing so.(3) In paragraph (1) "the relevant date" means-(a) in relation to a person to whom paragraph (2)(a) applies, the date on which P commences or ceases to be a self-employed earner;(b) in relation to a person to whom paragraph (2)(b) applies, the date on which P wishes to commence or cease paying Class 3 contributions.(4) P is to be treated as having immediately notified HMRC in accordance with paragraph (1) if P has notified HMRC within such further time, if any, as HMRC may allow.".

12.-(1) Amend regulation 89 (method of, and time for, payment of Class 2 and Class 3 contributions etc)( 18) as follows.

(2) In paragraph (1)-

(a) after the first mention of "accordance with" insert "the Taxes Management Act 1970 (as modified by section 11A of the Act) or in accordance with,";(b) after "regulation 90" insert "or in accordance with regulation 90ZA or 148C"( 19); and(c) after "paragraph" omit "(2),".

(3) Omit paragraphs (1A) and (2).

(4) In paragraph (2A)(a)( 20)-

(a) after "regulation 87" for "or" substitute ","; and(b) after "87A" insert "or 87AA".

(5) In paragraph (3) for "or 87A" substitute ", 87A or 87AA".

(6) In paragraph (4)-

(a) in sub-paragraph (a) omit "or (6)";(b) in sub-paragraph (b) omit-(i) "person's liability for Class 2 contributions or"; and(ii) "the number of contribution weeks in respect of which the liability arises together with the weekly rate, and of the date specified as the date of notification, or, where he is entitled to pay contributions, of"; and(c) at the end of the paragraph omit the words from "shall, if he is liable to pay" to "if he is entitled to pay a contribution, he".

(7) In paragraph (5)-

(a) in sub-paragraph (a)-(i) for "or 87A" insert ", 87A or 87AA";(ii) omit paragraph (i);(iii) in paragraph (ii) for "biannual contribution period" substitute "tax year"; and(b) in sub-paragraph (b)(iii)-(i) for "or 87A" substitute ", 87A or 87AA";(ii) omit "ceased to be liable to pay Class 2 contributions or"; and(iii) omit "as the case may be".

(8) Omit paragraph (6).

(9) In paragraph (7)-

(a) omit sub-paragraphs (a), (b) and (c); and(b) for sub-paragraph (e) substitute-"(e) "notification date" means 31st October following the end of the tax year.".

13. After regulation 89 insert-

"Class 2 contributions for tax years up to 2014-15

89A.

-(1) This regulation applies where a person (P) is liable to pay a Class 2 contribution in respect of any contribution week in a tax year up to and including the 2014-15 tax year.(2) An officer of HMRC may issue P with written notice of the amount of Class 2 contributions for which P is liable in respect of any tax year up to and including the 2014-15 tax year.(3) P shall pay the amount of contributions for which he is liable no later than the date specified in the notice. This paragraph is subject to paragraphs (4) and (5).(4) Where P-(a) is liable to pay a Class 2 contribution in respect of any contribution week falling within the period defined in paragraph (5) ("the specified contribution period"); and(b) has notified HMRC of such liability in accordance with the provisions of regulation 87 or 87A,

HMRC shall issue P with written notice of the amount of Class 2 contributions for which P is liable to pay in respect of the specified contribution period no later than 1st June 2015 and P shall pay the amount set out in that notice to HMRC no later than 31st July 2015.

(5) For the purposes of paragraph (4), the specified contribution period is the period of not less than 26 contribution weeks falling within the 2014-15 tax year commencing with the first day of the twenty seventh contribution week in that year.".

14. After regulation 90 insert-

"Class 2 contributions - maternity allowance

90ZA.

-(1) This regulation applies in connection with maternity allowance under section 35 or 35B( 21) of the Act.

(2) A person who is, or will be, either liable or entitled to pay a Class 2 contribution in respect of a week in a tax year may pay a Class 2 contribution in respect of that week at any time in the period-(a) beginning with that week; and(b) ending with 31st January next following the end of the relevant tax year.(3) Where a person pays a Class 2 contribution in accordance with paragraph (2)-(a) the contribution is to be treated, before the end of the tax year, as a Class 2 contribution under section 11(6) of the Act, and(b) the contribution is to be treated after the end of the tax year-(i) if the person is liable under section 11(2) of the Act to pay a Class 2 contribution in respect of that week, as a Class 2 contribution under section 11(2) of the Act; or(ii) otherwise, as a Class 2...

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