Citation, commencement, effect and interpretation

1. —(1) These Regulations may be cited as the Social Security (Contributions) (Amendment No. 4) Regulations 2014 and come into force on 6th October 2014.

(2) Regulation 3(4) has effect in relation to a failure to deliver a return to Her Majesty’s Revenue and Customs in respect of any payment of general earnings made on or after 6th October 2014.

(3) Regulation 3(5) has effect in relation to a failure to deliver a return to Her Majesty’s Revenue and Customs in respect of any payment of general earnings made—

(a) on or after 6th October 2014 where the employer is a large existing Real Time Information employer; and

(b) on or after 6th March 2015 where—

(i) the employer is a small existing Real Time Information employer; or

(ii) a person becomes a new Real Time Information employer after 6th October 2014.

(4) In this regulation—

“general earnings” has the meaning given by paragraph 1(2) of Schedule 4 to the Social Security (Contributions) Regulations 2001 (interpretation)( 6 );

“large existing Real Time Information employer” means a Real Time Information employer which as at 6th October 2014 employs at least 50 employees;

“new Real Time Information employer” means a Real Time Information employer to which HMRC issues an employer’s PAYE reference after 6th October 2014;

“Real Time Information employer” has the meaning given by paragraph 1(4) of Schedule 4 to the Social Security (Contributions) Regulations 2001 (interpretation)( 7 );

“small existing Real Time Information employer” means a Real Time Information employer which as at 6th October 2014 employs no more than 49 employees.

(5) For the purposes of paragraph (4) “employer’s PAYE reference” in relation to a Real Time Information employer means the combination of letters, numbers, or both, used by HMRC to identify a Real Time Information employer for the purposes of the Income Tax (Pay As You Earn) Regulations 2003( 8 ) and the number which identifies that employer’s HMRC office.

Amendment of the Social Security (Contributions) Regulations 2001

2.The Social Security (Contributions) Regulations 2001 are amended as provided for in regulation 3.

3. —(1)Schedule 4 to the Social Security (Contributions) Regulations 2001 (provisions derived from the Income Tax Acts etc ) is amended as provided for in paragraphs (2) to (7).

(2) In paragraph 1, (interpretation), in the definition of “Compensation of Employers Regulations” omit “and the Statutory Sick Pay Percentage Threshold Order 1995”.

(3) In paragraph 11(4), (payments of earnings-related contributions quarterly by an employer)( 9 ), in the definition of “SP” omit “statutory sick pay,”.

(4) In paragraph 21EA(6), (failure to make a return under paragraph 21A or 21D)( 10 ), at the end of the text insert “, but this sub-paragraph does not apply to a return in respect of the tax year 2014-15 or a subsequent tax year”.

(5) After paragraph 21F, (additional information about payments)( 11 ), insert—

“ Penalty: failure to comply with paragraph 21A or 21D

21G. —(1) Where a Real Time Information employer fails to deliver a return in accordance with paragraph 21A (real time returns of information about payments of general earnings) to paragraph 21AB (employees paid in specific circumstances) ( 12 ) , paragraph 21AD (benefits and expenses – returns under the PAYE Regulations) ( 13 ) , paragraph 21B (modification of the requirements of paragraph 21A: notional payments) ( 14 ) or paragraph 21D (exceptions to paragraph 21A) ( 15 ) , Schedule 55 to the Finance Act 2009(amount of penalty: real time information for PAYE) ( 16 ) and regulations 67I to 67K of the PAYE Regulations (penalties) ( 17 ) apply in relation that failure as if—

(a) the return under paragraph 21A (real time returns of information about payments of general earnings) or paragraph 21D (exceptions to paragraph 21A), as the case may be, were a return falling within item 4 of the Table in paragraph 1 of Schedule 55 ( 18 ) , and

(b) references to the PAYE Regulations were references to these Regulations,

but this is subject to sub-paragraph (2).

(2) Where a Real Time Information employer (P) is liable to a penalty in consequence of a failure to deliver a return (“the tax return”) under regulation 67B (real time returns of information about relevant payments) or regulation 67D (exceptions to regulation 67B) of the PAYE Regulations ( 19 ) , P shall not also be liable to a penalty in respect of any failure in relation to an associated return under paragraph 21A (real time returns of information about payments of general earnings) or 21D (exceptions to paragraph 21A).

(3) A tax return and a return under paragraph 21A or 21D are “associated” if the return under paragraph 21A or 21D is required to be delivered at the same time as the tax return. ” .

(6) In paragraph 22, (return by employer at end of year)( 20 ), omit sub-paragraph (3).

(7) Omit paragraph 25 (return by employer of recovery under the Statutory Sick Pay Order)( 21 ).

(8) In Schedule 4A, (real time returns), omit paragraph 13 (information about statutory sick pay)( 22 ).

(9) In Schedule 4B, (additional information about payments), omit paragraph 6.

(10) In Part 2 of Schedule 7, (enactments corresponding to subordinate legislation application to Great Britain)( 23 )—

(a) in the first column (subordinate legislation applying in Great Britain) omit the entry relating to the “Statutory Sick Pay Percentage Threshold Order 1995”; and

(b) in the second column (subordinate legislation applying in Northern Ireland) omit the entry relating to the “Statutory Sick Pay Percentage Threshold Order (Northern Ireland) 1995”.