Explanatory note

These Regulations amend the Social Security (Contributions) Regulations 2001 (S.I. 2001/1004; “SSCR”).

Regulation 2 substitutes a new paragraph 8 in Part 10 of Schedule 3 to the SSCR. The four existing “disregards” are retained but reordered, and two new ones are added. These refer to relief for income tax that is being given by a separate instrument: the Enactment of Extra-Statutory Concessions (No. 2) Order 2009 (S.I. 2010/157). The latter will amend the Income Tax (Earnings and Pensions) Act 2003 so as to give legal effect to the extra-statutory concession numbered A61 that was referred to in the consultation document issued in July 2009: Extra-Statutory Concessions – Second Technical Consultation on Draft Legislation.

The effect is that expenses paid for or reimbursed to ministers of religion in respect of heating, lighting, cleaning and gardening in connection with living accommodation provided with the employment will be disregarded in the computation of the minister’s earnings for liability to Class 1 National Insurance contributions. Similar relief is given in respect of allowances paid to ministers for the purpose of meeting such expenses.

A full Impact Assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.