Citation and commencement

1. These Regulations may be cited as the Social Security (Contributions)(Amendment No. 5) Regulations 2002 and shall come into force on 28th November 2002.

Interpretation

regulation-2"> 2. In these Regulations “the principal Regulations” means the Social Security (Contributions) Regulations 2001( 3 ) and “regulation” and “Schedule” mean a regulation of or Schedule to the principal Regulations, as the case may be.

Amendments to the principal Regulations

3. In regulation 70(4) for the words from “includes” to the end substitute “means the person liable, in accordance with section 10(2) or 10ZA( 4 ) of the Act, to pay a Class 1A contribution”.

4. In paragraph 1(2) of Schedule 4 for the definition of “employer” substitute–

• “ “employer” means, subject to paragraph 3, the secondary contributor determined–

  (a)

  by section 7 of the Act, or

  (b)

  under regulation 5 of and Schedule 3 to the Social Security (Categorisation of Earners) Regulations 1978 ( 5 ) , or

  (c)

  under regulation 122; ” .

5. In paragraph 4 of Schedule 4 for “is required to pay” substitute “pays”.

6. After paragraph 4 of Schedule 4 insert–

“ Intermediaries

4A. —(1) Where any payment of emoluments of an employee is made by an intermediary of the employer, the employer shall be treated, for the purposes of this Schedule other than–

(a) paragraph 7(1),

(b) paragraph 7(3)(a),

(c) the references to a subsequent payment of emoluments or of monetary earnings in paragraph 7(3) and (8), and

(d) paragraph 7(11),

as making the payment of those emoluments to the employee.

(2) For the purposes of this paragraph, a payment of emoluments of an employee is made by an intermediary of the employer if it is made–

(a) either–

(i) by a person acting on behalf of the employer and at the expense of the employer, or

(ii) by a person connected with him, or

(b) by trustees holding property for any persons who include, or class of persons which includes, the employee.

(3) Section 839 of the Taxes Act (connected persons) applies for the purposes of this paragraph. ”

7. —(1) Amend paragraph 7 of Schedule 4 as follows.

(2) In sub-paragraph (1) omit “thereon” and add at the end “(the “section 6(4)(a) amount”)”.

(3) For sub-paragraph (3) substitute–

“ (3) If the employer–

(a) on making any payment of emoluments to an employee does not deduct from those emoluments the full section 6(4)(a) amount, or

(b) is treated as making a payment of emoluments by paragraph 4A,

he may recover, in a case falling within paragraph (a) the amount not so deducted or, in a case falling within paragraph (b) the section 6(4)(a) amount, by deduction from any subsequent payment of emoluments made by the employer to that employee during the same year.

• This sub-paragraph is subject to sub-paragraphs (4) and (5). ”

(4) In sub-paragraph (4) insert at the end the following paragraph–

“ ; or

(e) the employer is treated as making a payment of emoluments by paragraph 4A. ”

(5) In sub-paragraph (5)(b) after “sub-paragraphs” insert “in a case falling within paragraph (a) of any of those sub-paragraphs”.

(6) In sub-paragraph (6) for the words from “amount” to the end substitute “section 6(4)(a) amount”.

(7) For sub-paragraph (8) substitute–

“ (8) Where, in the circumstances specified in sub-paragraph (6), the employer–

(a) does not deduct from the earnings referred to in that sub-paragraph the full section 6(4)(a) amount, or

(b) is treated as making a payment of emoluments by paragraph 4A,

he may recover, in a case falling within paragraph (a) the amount not so deducted or, in a case falling within paragraph (b) the section 6(4)(a) amount, by deduction from any subsequent payment of monetary earnings to that employee, or ex-employee (as the case may be) during the same year.

• This sub-paragraph is subject to sub-paragraph (5). ”

(8) In sub-paragraph (9)(c) for the words from “amount” to the end substitute “section 6(4)(a) amount”.