Citation, commencement and effect

1. —(1) These Regulations may be cited as the Social Security Contributions (Intermediaries) (Amendment) Regulations 2002 and shall come into force on 6th April 2002.

(2) These Regulations have effect for the year of assessment 2002–03 and subsequent years of assessment and apply in relation to services performed, or to be performed, on or after 6th April 2002.

(3) Payments or other benefits in respect of such services received before that date shall be treated as if received in the year of assessment 2002–03.

Interpretation

regulation-2"> 2. In these Regulations “the principal Regulations” means the Social Security Contributions (Intermediaries) Regulations 2000( 2 ) and “regulation” means a regulation of the principal Regulations.

Amendments to the principal Regulations

3. In regulation 2(1) for the definition of “the Contributions Regulations” substitute the following definition—

“ “the Contributions Regulations” means the Social Security (Contributions) Regulations 2001 ( 3 ) ; ” .

4. In regulation 7(1), in paragraph (a) of Step Seven, for “ 17A” substitute “22(2)”.

5. After regulation 7(5) add the following paragraphs—

“ (6) The reference in Step Three of the calculation in paragraph (1) to expenses met by the intermediary includes expenses met by the worker and reimbursed by the intermediary.

(7) Where the intermediary is a partnership and the worker is a member of the partnership, expenses met by the worker for and on behalf of the intermediary shall be treated for the purposes of paragraph (6) as expenses met by the worker and reimbursed by the intermediary.

(8) Where—

(a) the intermediary provides a vehicle for the worker, and

(b) the worker would have been entitled to an amount of mileage allowance relief under section 197AF of the Taxes Act ( 4 ) for a tax year in respect of the use of the vehicle if the worker had been employed by the client, or would have been so entitled if the worker had been employed by the client and the vehicle had not been a company vehicle,

Step Three of the calculation in paragraph (1) shall have effect as if that amount were an amount of expenses deductible under that Step.

(9) Where—

(a) the intermediary is a partnership,

(b) the worker is a member of the partnership, and

(c) the worker provides a vehicle for the purposes of the business of the partnership,

then for the purposes of paragraph (8) the vehicle shall be regarded as provided by the intermediary for the worker.

(10) Where the intermediary makes payments to the worker that are exempt from income tax under Schedule E by virtue of section 197AD or 197AE of the Taxes Act (mileage allowance payments and passenger payments), paragraph (a) of Step Seven of the calculation in paragraph (1) shall have effect as if the intermediary had made payments to the worker that constituted remuneration derived from the worker’s employment by the intermediary. ” .

6. —(1) In regulation 8—

(a) in paragraph (2) for “6A” substitute “8”;

(b) in paragraph (5) after sub-paragraph (c) add—

“ (d) the company ceasing to trade. ” .