# The Social Security (Contributions) (Amendment) Regulations 2004 S.I. 2004/173 · made 29 January 2004 These Regulations amend the Social Security (Contributions) Regulations 2001 (S.I. 2001/1004: “the 2001 Regulations”). Made under: Social Security Contributions and Benefits Act 1992; Social Security Contributions and Benefits (Northern Ireland) Act 1992 ## Introductory text SOCIAL SECURITY Made 29th January 2004 Laid before Parliament 30th January 2004 Coming into force 23rd February 2004 The Treasury, with the concurrence of the Secretary of State for Work and Pensions, in exercise of the powers conferred upon them by sections 3(2) and (3) and 175(3) of the Social Security Contributions and Benefits Act 1992, and, with the concurrence of the Department for Social Development, in exercise of the powers conferred upon them by sections 3(2) and (3) and 171(3) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992, make the following Regulations: ## 1 Citation and commencement These Regulations may be cited as the Social Security (Contributions) (Amendment) Regulations 2004 and shall come into force on 23rd February 2004. ## 2 Amendment of the Social Security (Contributions) Regulations 2001 (1) Paragraph 5 of Part 10 of Schedule 3 to the Social Security (Contributions) Regulations 2001 (gratuities and offerings to be disregarded in the computation of earnings) shall be amended as follows. (2) In sub-paragraph (1) for the words from “which satisfies either” to the end of the sub-paragraph substitute— “which— (a) satisfies the condition in either sub-paragraph (2) or (3); and (b) is not within sub-paragraph (4) or (5).”. (3) In sub-paragraph (2) for “The first condition” substitute “The condition in this sub-paragraph”. (4) In sub-paragraph (3) for “The alternative condition” substitute “The condition in this sub-paragraph”. (5) At the end of the paragraph add— “(4) A payment made to the earner by a person who is connected with the secondary contributor is within this sub-paragraph unless— (a) it is— (i) made in recognition for personal services rendered to the connected person by the earner or by another earner employed by the same secondary contributor; and (ii) similar in amount to that which might reasonably be expected to be paid by a person who is not so connected; or (b) the person making the payment does so in his capacity as a tronc-master. (5) A payment made to the earner is within this sub-paragraph if it is made by a trustee holding property for any persons who include, or any class of persons which includes, the earner. In this sub-paragraph “trustee” does not include a tronc-master. (6) A person is connected with the secondary contributor for the purposes of this paragraph if his relationship with the secondary contributor, or where the employer and secondary contributor are different, with either of them, is as described in subsection (2), (3), (4), (5), (6) or (7) of section 839 of the Taxes Act (connected persons).”. ## Signature Jim Murphy Joan Ryan Two of the Lords Commissioners of Her Majesty’s Treasury 29th January 2004 The Secretary of State concurs. Signed by authority of the Secretary of State for Work and Pensions. Chris Pond Parliamentary Under Secretary of State, Department for Work and Pensions 29th January 2004 The Department for Social Development concurs. Sealed with the Official Seal of the Department for Social Development on 29th January 2004 L.S. John O'Neill Senior Officer of the Department for Social Development ## Explanatory note (This note is not part of the Regulations) These Regulations amend the Social Security (Contributions) Regulations 2001 (S.I. 2001/1004: “the 2001 Regulations”). Regulation 1 provides for the citation and commencement of the instrument. Regulation 2 amends paragraph 5 of Part 10 of Schedule 3 to the 2001 Regulations, adding two new sub-paragraphs (4) and (5). Before amendment, that paragraph provided a conditional disregard for gratuities and offerings (“the paragraph 5 disregard”). The new sub-paragraph (4) excludes from the paragraph 5 disregard a payment made by a person connected with the secondary contributor unless— (a) it is— (i) made in recognition of personal services rendered to the connected person by the employed earner or another earner employed by the same secondary contributor, and (ii) similar in amount to that which might reasonably be expected to be paid by a person who was not so connected; or (b) the person making the payment is a tronc-master. The new sub-paragraph (5) also excludes from the paragraph 5 disregard a payment made by a trustee holding property for persons who include, or any class of persons which includes, the earner. For the purposes of this sub-paragraph the reference to a trustee does not include a tronc-master. These Regulations do not impose new costs on business. --- Source: https://www.legislation.gov.uk/uksi/2004/173 (the official version) Page: https://openlegislation.uk/social-security-contributions-amendment-regulations-2004 Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.