The Social Security Contributions (Disregarded Payments) (Coronavirus) (No. 2) Regulations 2020
S.I. 2020/1523 · Made 11 December 2020
Social Security
Made 11th December 2020
Laid before Parliament 14th December 2020
Coming into force 25th January 2021
The Treasury make the following Regulations in exercise of the powers conferred by sections 3(2)(b) and (3), and 10(9)(a), of the Social Security Contributions and Benefits Act 1992f1, and sections 3(2)(b) and (3), and 10(9)(a), of the Social Security Contributions and Benefits (Northern Ireland) Act 1992f2.
The Secretary of State and the Department for Communities concur in the making of regulations 1 and 2.
Annotations to the whole text
Footnotes
- f1
-
1992 c. 4 (“the 1992 Act”). Section 3(2) was amended by paragraph 3 of Schedule 3 to the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2). Section 10 was substituted by section 74(2) of the Child Support, Pensions and Social Security Act 2000 (c. 19), and relevantly amended by paragraph 174(12) of Schedule 6 to the Income Tax (Earnings and Pensions) Act 2003 (c. 1).
- f2
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1992 c. 7 (“the 1992 NI Act”). Section 3(2) was amended by S.I. 1999/671. Section 10 was substituted by section 78(2) of the Child Support, Pensions and Social Security Act 2000, and relevantly amended by paragraph 195(12) of Schedule 6 to the Income Tax (Earnings and Pensions) Act 2003.
Contents
- 1Citation, commencement, interpretation and effect
- 2Payments to be disregarded in the calculation of earnings for the purposes of earnings-related contributions
- 3Prescribed general earnings in respect of which Class 1A contributions not payable
- Signature
- Explanatory note
1Citation, commencement, interpretation and effect
These Regulations may be cited as the Social Security Contributions (Disregarded Payments) (Coronavirus) (No. 2) Regulations 2020.
These Regulations come into force on 25th January 2021 and have effect in relation to payments made on or after that date, but before the end of the tax year 2020-21.
In these Regulations, “coronavirus test” means a test which detects the presence of a viral antigen or viral ribonucleic acid (RNA) specific to severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2).
2Payments to be disregarded in the calculation of earnings for the purposes of earnings-related contributions
A payment that is made to an employed earner in respect of the cost of a coronavirus test taken, or to be taken, by that employed earner.
3Prescribed general earnings in respect of which Class 1A contributions not payable
Class 1A contributionsf1 are not to be payable in respect of general earnings which are payments made to an employed earner in respect of the cost of a coronavirus test taken, or to be taken, by that employed earner.
Signature
James Morris
Rebecca Harris
Two of the Lords Commissioners of Her Majesty’s Treasury
10th December 2020
The Secretary of State concurs as indicated in the preamble.
Signed by authority of the Secretary of State for Work and Pensions
Guy Opperman
Parliamentary Under-Secretary of State
Department for Work and Pensions
11th December 2020
The Department for Communities concurs as indicated in the preamble.
Sealed with the Official Seal of the Department for Communities on 11th December 2020.
L.S.
Anne McCleary
A senior officer of the Department for Communities
Explanatory note
(This note is not part of the Regulations)
These Regulations provide for payments made to employed earners for coronavirus tests to be disregarded when calculating the amount of earnings for the purposes of calculating liability to pay primary and secondary Class 1 contributions (“NICs”), and also that such payments are also not liable to Class 1A NICs.
Regulation 1 provides for citation, commencement and effect, and defines the key term “coronavirus test”.
Regulation 2, as read with regulation 1, provides that payments made to earners on or after 25th January 2021, but before the end of the tax year 2020-21, in respect of the cost of a coronavirus test taken or to be taken by that employed earner, will be disregarded when calculating the amount of earnings for the purpose of calculating liability to pay primary and secondary Class 1 NICs. Regulation 3 provides that Class 1A NICs are also not payable in respect of general earnings comprising such payments.
A Tax Information and Impact Note covering this instrument will be published on the website at https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.