Explanatory note

These Regulations amend the Social Security (Contributions) Regulations 1979 (S.I. 1979/591) (“the principal Regulations”).

Regulation 1 provides for citation and commencement, and regulation 2 for interpretation.

Regulation 3 amends regulation 19(1) of the principal Regulations (payments to be disregarded) by adding a new sub-paragraph (zt). The new sub-paragraph relates to payments made under special schemes for claimants of jobseeker’s allowance (“employment zone schemes”), being schemes such as are mentioned in section 60(1) of the Welfare Reform and Pensions Act 1999 (c. 30). Such payments are to be disregarded for the purposes of earnings-related contributions.

Regulation 4 amends regulation 25(2)(b) of the principal Regulations (earnings for the purposes of certificates of exception). The effect of the amendment is that payments under employment zone schemes are to be disregarded in computing a self-employed earner’s net earnings for the purposes of the exception from liability to pay Class 2 contributions on account of small earnings (see section 11(4) of the Social Security Contributions and Benefits Act 1992 (c. 4)).