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The Social Security (Contributions) (Amendment No. 4) Regulations 2020

S.I. 2020/923 · Made 3 September 2020

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

Social Security

Made 3rd September 2020

Laid before Parliament 7th September 2020

Coming into force 29th September 2020

The Treasury, in exercise of the power conferred by section 3(2) and (3) of the Social Security Contributions and Benefits Act 1992f1 and now exercisable by them, makes the following Regulations.

The Secretary of State concurs to the making of these Regulations.

Annotations to the whole text

Footnotes

f1

1992 c. 4. Section 3(2) was amended by paragraph 3 of Schedule 3 to the Social Security Contributions (Transfer of Functions, etc) Act 1999 (c. 2), so that the power to make regulations became exercisable by the Treasury with the concurrence of the Secretary of State with effect from 1 April 1999.

Contents

  1. 1Citation and commencement
  2. 2Amendment to the Social Security (Contributions) Regulations 2001
  3. Signature
  4. Explanatory note

1Citation and commencement

These Regulations may be cited as the Social Security (Contributions) (Amendment No. 4) Regulations 2020 and come into force on 29th September 2020.

2Amendment to the Social Security (Contributions) Regulations 2001

(1)

Schedule 3 (payments to be disregarded etc…) to the Social Security (Contributions) Regulations 2001f1 is amended as follows.

(2)

In Part 7 (payments in respect of training and similar courses), after paragraph 12f2 (payments made by employers to earners in full-time attendance at universities &c), insert—

“Payments exempted from income tax under section 254A of ITEPA 2003f3

13.

A care leaver’s apprenticeship bursary payment which is exempted from income tax under section 254A of ITEPA 2003.”.

Signature

Rebecca Harris

James Morris

Two of the Lords Commissioners of Her Majesty’s Treasury

3rd September 2020

The Secretary of State concurs.

Guy Opperman

Parliamentary Under Secretary of State

Department of Work and Pensions

3rd September 2020

Explanatory note

(This note is not part of the Regulations)

These Regulations make an amendment to the Social Security (Contributions) Regulations 2001 (S.I. 2001/1004) (“the Contributions Regulations”).

Schedule 3 to the Contributions Regulations provides for certain payments to be disregarded in the calculation of earnings for the purposes of establishing liability to Class 1 National Insurance contributions (NICs).

Regulation 1 provides for citation and commencement.

Regulation 2 makes an amendment to the Contributions Regulations to take into account new tax provisions in the Income Tax (Earnings and Pensions) Act 2003 (c. 1) (ITEPA), inserted by the Finance Act 2020 (c. 14), and changes made by S.I. 2020/922. Regulation 2(2) inserts a new paragraph 13 into Part 7 of Schedule 3 to the Contributions Regulations, so that any bursary payment made by the Education and Skills Funding Agency to a care leaver apprentice, in respect of which no liability to income tax arises by virtue of section 254A of ITEPA and S.I. 2020/922, is also disregarded for the purpose of establishing liability to Class 1 NICs.

A joint Tax Information and Impact Note covering the amendment to tax and NICs policy connected to this instrument was published on 11th March 2020 and is available at https://www.gov.uk/government/publications/income-tax-and-national-insurance-exemptions-for-bursary-payments-to-care-leavers/income-tax-and-national-insurance-exemptions-for-bursary-payments-to-care-leavers. It remains an accurate summary of the impacts that apply to this instrument.