{
  "url": "https://openlegislation.uk/social-security-contributions-amendment-regulations-2014/note",
  "json_url": "https://openlegislation.uk/social-security-contributions-amendment-regulations-2014/note.json",
  "legislation": "uksi/2014/608",
  "legislation_title": "The Social Security (Contributions) (Amendment) Regulations 2014",
  "legislation_url": "https://openlegislation.uk/social-security-contributions-amendment-regulations-2014",
  "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”).\nRegulation 3 amends regulation 67A of the principal Regulations to make provision for a tolerance of £100 between the amount due and the sum paid over to Her Majesty’s Revenue and Customs (“HMRC”) for a tax period. As a consequence where there is a difference between the amount due and the amount paid of no more than £100, the employer will not be liable to a late payment penalty under Schedule 56 to the Finance Act 2009 (c. 10).\nRegulation 4 amends Part 8 of Schedule 3 to the principal Regulations to make provision for disregarding certain travel expenses in the calculation of earnings from employed earners’ employment when computing liability for Class 1 National Insurance Contributions. Sections 241A, 241B and 340A of the Income Tax (Earnings and Pensions) Act 2003 (2003 c.1; “ITEPA”) were inserted by SI 2014/211 and enacted existing HMRC extra-statutory concessions set out in paragraphs (a), (b) and (c) of the concession numbered A4. A list of extra-statutory concessions published by HMRC is available at: http://www.hmrc.gov.uk/specialist/esc.pdf. These sections provide that no liability to income tax will arise (or, in the case of section 340A, that a deduction is allowed for income tax purposes) in relation to travel expenses which meet the criteria set out in those sections.\nRegulation 5 introduces the amendments to Schedule 4 to the principal Regulations, which Schedule, amongst other matters, makes provision for the return of information to HMRC in real time.\nRegulation 6 amends the definition of “deductions working sheet” in paragraph 1 to reflect that HMRC will no longer be issuing deductions working sheets to employers who are required to file using an approved method of electronic communications.\nRegulation 7 amends paragraph 21A which requires a Real Time Information (“RTI”) employer to provide the information specified in Schedule 4A to those Regulations on or before making a payment to an employee. Regulation 7 substitutes paragraph 21A(1A) and (1B) and inserts new sub-paragraphs (1C), (1D) and (1E). These sub-paragraphs alter the filing requirement for either or both of the tax years 2014-15 and 2015-16 for employers who are existing employers at 5th April 2014 and who employ no more than 9 employees. Where in the tax year 2014-15 Conditions A and B are met and where in the tax year 2015-16 Conditions A and C are met, these employers are permitted to deliver one return, on or before the date of the last payment in that tax month, in respect of all the relevant payments in that month. Condition A (paragraph (1B)) is that at 5th April 2014 the employer must have an employer’s PAYE reference (a reference issued by HMRC to identify each PAYE Scheme). Condition B (paragraph (1C)) and Condition C (paragraph (1D)) are that at 6th April 2014 and 6th April 2015 the employer employs no more than 9 employees.\nRegulation 8 makes two amendments to paragraph 21D, which allows certain employers (“paper filer employers”) to file on paper rather than using an approved method of electronic communications. Regulation 8(a) and (b) clarify that where a paper filer employer files a return electronically, that employer will no longer be within paragraph 21D. As a consequence the employer will be required to make returns on or before making a payment to an employee. Regulation 8(c) amends paragraph 21D so that paper filer employers are required to submit information within 14 days of the end of a tax quarter.\nRegulation 9 makes minor amendments to paragraph 21E to clarify that the paragraph applies to both a careless inaccuracy and a deliberate inaccuracy in, or omission from, a return.\nRegulation 10 amends paragraph 31 which makes provision for direct collection by an employee where the employer has no presence in the United Kingdom. The regulation makes a number of amendments including making provision requiring such an employee to deliver a final return to HMRC for the tax year 2013-14 by 19th May 2014 and lists the information to be provided, including the total of general earnings received and earnings-related contributions payable in that tax year.\nA Tax Information and Impact Note covering this instrument (with the exception of regulations 3 and 4) was published on 15th March 2012 alongside the Income Tax (Pay As You Earn) (Amendment) Regulations 2012 (S. I. 2012/822). This was updated as a result of changes to the impacts as a result of the year long pilot on RTI and is available on the HMRC website at http://www.hmrc.gov.uk/thelibrary/tiins.htm. It remains an accurate summary of the impacts that apply to this instrument.\nA Tax Information and Impact Note covering regulation 3 was published on 20th March 2013 alongside the Budget documentation and is available on the HMRC website at http://www.hmrc.gov.uk/thelibrary/tiins.htm. It remains an accurate summary of the impacts that apply to regulation 3.\nIn line with government commitments, a Tax Information and Impact Note has not been prepared in respect of regulation 4. There has been no change in policy, and there is no change to the tax, administrative or other impacts.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2014/608/note",
    "retrieved_at": "2026-10-29T00:23:34.455065+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."
}