Regulation 4 Insertion of regulation 22HA in the principal Regulations

After regulation 22H^f1 of the principal Regulations (calculation of Class 1A contributions) there shall be inserted the following regulation—

“Prescribed emoluments in respect of which Class 1A contributions are not payable

22HA

(1)

Class 1A contributions shall not be payable in respect of the emoluments prescribed by paragraphs (2) to (7) of this regulation.

(2)

The emoluments prescribed by this paragraph are emoluments which are excluded from the computation of a person’s earnings in respect of any employed earner’s employment by virtue of regulation 19(1)(b)^f2, (c), (g), (k) to (m)^f3, (p)^f4, (v)(ii)^f5, (zd)(ii)^f6, (zk) to (zn)^f7 or (zp)^f8, or regulation 19(2), of these Regulations.

(3)

The emoluments prescribed by this paragraph are emoluments which are payments which are not excluded from the computation of a person’s earnings in respect of any employed earner’s employment by virtue of regulation 19(1)(d)^f9 of these Regulations but which—

(a)

are so excluded by virtue of regulation 19(1)(zc)^f10 of these Regulations; or

(b)

are disregarded in the calculation of earnings paid to or for the benefit of an earner in respect of any employed earner’s employment by virtue of regulation 19(4)(b) of these Regulations.

(4)

The emoluments prescribed by this paragraph are emoluments which—

(a)

are excluded from the computation of a person’s earnings in respect of any employed earner’s employment by virtue of regulation 19(1)(y)(ii)^f11 of these Regulations; and

(b)

are not paid in respect of eligible removal expenses within the meaning of Part III of Schedule 11A^f12 to the 1988 Act (eligible removal expenses).

(5)

The emoluments prescribed by this paragraph are emoluments which consist in the provision, or are provided in connection with all or part of the costs and expenses, of child care (but not school fees) incurred by an employed earner in respect of a child not exceeding the age of 16 for whom he has parental responsibility.

(6)

The emoluments prescribed by this paragraph are emoluments by way of any benefit pursuant to—

(a)

a retirement benefits scheme which falls within section 596(1)(a), (b)^f13 or (c) of the 1988 Act (exceptions from section 595) or to which section 596(2)(b) of the 1988 Act applies;

(b)

a pilots' benefit fund under section 607^f14 of the 1988 Act (pilots' benefit fund);

(c)

a fund to which section 608 of the 1988 Act (superannuation funds approved before 6th April 1980) applies.

(7)

The emoluments prescribed by this paragraph are so much of any emoluments as are not charged to income tax under Schedule E by virtue of any of the following extra-statutory concessions published by the Inland Revenue^f15 as at 1st September 2000—

(a)

A2 (meal vouchers);

(b)

A11 (residence in the United Kingdom: year of commencement or cessation of residence);

(c)

A22 (long service awards);

(d)

A37 (tax treatment of directors' fees received by partnerships and other companies);

(e)

A57 (suggestion schemes);

(f)

A58 (travelling and subsistence allowance when public transport disrupted);

(g)

A59 (disabled persons' home to work travel);

(h)

A65 (workers on offshore oil and gas rigs or platforms: free transfers from or to mainland);

(i)

A66 (employees' late night journeys from work to home);

(j)

A70 (small gifts to employees by third parties and staff Christmas parties);

(k)

A72 (pension schemes and accident insurance policies);

(l)

A74 (meals provided by employers);

(m)

A85 (transfers of assets by employees and directors to employees and others);

(n)

A91 (living accommodation provided by reason of employment).

(8)

In this regulation—

• “child care” includes—

  1. (a)

     care provided in accordance with the provisions of Part XI of the Children (Northern Ireland) Order 1995^f16 (child minding and day care for young children);

  2. (b)

     in the case of a child aged 12 or over, care provided by a child minder;

  3. (c)

     in the case of a child under the age of 12, care provided by a child minder where that care does not exceed, in total, 2 hours in any day;

  4. (d)

     care provided by a relative or nanny;

  5. (e)

     care provided during out-of-school hours and during school holidays;

  6. (f)

     full-time and part-time care;

• “emolument” means an amount which for the purposes of the Income Tax Acts is or falls to be treated as an emolument received by an earner from any employment;

• “relative” and “nanny” have the meanings assigned to them in Articles 2(2) and 119(6) respectively of the Children (Northern Ireland) Order 1995.”