Explanatory note

These Regulations amend paragraph 3ZB(6) of Part 8 of Schedule 3 to the Social Security (Contributions) Regulations 2001 (S.I. 2001/1004) (“the Contributions Regulations”) by substituting a new sub-paragraph (a). This is a technical amendment which corrects an error in the Social Security (Contributions) (Amendment) (No. 2) Regulations 2016 (S.I. 2016/352).

The amendment disregards section 51(1)(b) of ITEPA 2003 for the purposes of determining whether the condition in sub-paragraphs (4)(b) or (5)(b) of paragraph 3ZB of Schedule 3 to the Contributions Regulations is met. The effect of the amendment is that when considering the conditions in modified section 51 in sub-paragraphs (4)(b) or(5)(b), a company will only meet these conditions where they are not an associated company of the client and the worker has a material interest in the employment intermediary.

A Tax Information Note covering the changes made by these Regulations was published on 9th December 2015 alongside the draft Finance Bill 2016 and is available on the website at https://www.gov.uk/government/publications/income-tax-employment-intermediaries-and-relief-for-travel-and-subsistence/income-tax-employment-intermediaries-and-relief-for-travel-and-subsistence.

It remains an accurate summary of the impacts that apply to this instrument.