{
  "url": "https://openlegislation.uk/social-security-contributions-amendment-no-4-regulations-2004/note",
  "json_url": "https://openlegislation.uk/social-security-contributions-amendment-no-4-regulations-2004/note.json",
  "legislation": "uksi/2004/2096",
  "legislation_title": "The Social Security (Contributions) (Amendment No. 4) Regulations 2004",
  "legislation_url": "https://openlegislation.uk/social-security-contributions-amendment-no-4-regulations-2004",
  "path": "note",
  "kind": "note",
  "number": null,
  "heading": "Explanatory note",
  "text": "(This note is not part of the Regulations)\nThese Regulations amend the Social Security (Contributions) Regulations 2001 (S.I. 2001/1004: (“the principal Regulations”) to reflect the provisions on National Insurance contributions in relation to securities-based remuneration, introduced by sections 3 and 4 (agreements and joint elections) of the National Insurance Contributions and Statutory Payments Act 2004 (c. 3: “the Act”).\nRegulation 1 provides for the citation, commencement and effect.\nRegulation 2 introduces the changes made to the principal Regulations.\nRegulation 3 amends regulation 1(2) of the principal Regulations by inserting a new definition of “relevant employment income”.\nRegulation 4 amends regulation 69 of the principal Regulations so that a joint election to transfer the liability to pay contributions from the secondary contributor to an employed earner can be made in respect of relevant employment income.\nRegulation 5 amends Schedule 2 to the principal Regulations. Section 85 of, and Schedule 16 to, the Finance Act 2004 (c. 12) provides income tax relief where there has been an election or agreement that an employee is to meet the secondary Class 1 contributions. New paragraph 7 ensures that the amount of relevant employment income to be taken into account for the purposes of calculating secondary Class 1 contributions is not reduced by the amount of that relief.\nRegulation 6 amends paragraph 3 of Part 10 of Schedule 3 to the principal Regulations. It provides that a payment discharging liability for secondary Class 1 contributions, which has been transferred from the secondary contributor to the employed earner in respect of relevant employment income, shall be disregarded in the calculation of earnings.\nRegulation 7 amends Part 2 of Schedule 4 to the principal Regulations so that where there has been an election to transfer the liability to pay contributions on relevant employment income from the secondary contributor to an employed earner, an employer may deduct earnings-related contributions if the election provides for the collection of the amount in respect of which liability is transferred, an employer shall make an additional return at the end of the year in respect of each employed earner, the secondary contributor shall keep certain records and the employed earner shall be liable to pay interest on the late payment of contributions.\nRegulation 8 amends Schedule 5 to the principal Regulations so that elections to transfer the liability to pay contributions on relevant employment income from the secondary contributor to an employed earner, shall contain details of the relevant employment income to which the election relates and a statement that the election relates to relevant employment income on which the employed earner is liable to pay secondary Class 1 contributions.\nThese Regulations do not impose any new costs on business. A regulatory impact assessment in respect of the effects on business of the Act was placed in the libraries of both Houses of Parliament, and a copy is available on the Inland Revenue website at http://www.inlandrevenue.gov.uk or from the Inland Revenue by contacting 020 7438 7823.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2004/2096/note",
    "retrieved_at": "2026-10-29T05:20:21.461486+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}