Regulation 23 Prevention of double liability to national insurance contributions and allowance of certain deductionsF1
England, Wales and Scotland
Paragraph (2) applies where—
a person (“the payee”) receives a payment (“the end-of-line remuneration”) from another person (“the paying intermediary”),
the end-of-line remuneration can reasonably be taken to represent remuneration for services of the payee to F2another person (“the client”),
a payment (“the deemed payment”) has been treated by regulation 14(3) as paid to the payee,
the underlying chain payment can reasonably be taken to be for the same services of the payee to F3the client, and
the recipient of the underlying chain payment has (whether by deduction from that payment or otherwise) borne the cost of any amounts due, under Income Tax (Pay As You Earn) Regulations 2003 and Contributions Regulations in respect of the deemed payment from the person treated by regulation 14(3) as making the deemed payment.
For national insurance contributions purposes, the paying intermediary may treat the amount of the end-of-line remuneration as reduced (but not below nil) by the amount (see regulation 17) of the deemed payment less the amount of income tax and primary Class 1 national insurance contributions deducted from that amount.
Nothing in paragraph (2) shall be read as removing a worker’s entitlement to Statutory Maternity Pay which would have existed but for the operation of that paragraph.
In sub-paragraph (1)(d) “the underlying chain payment” means the chain payment whose amount is used at Step 1 of regulation 17(1) as the starting point for calculating the amount of the deemed direct earnings.
Annotations
Textual amendments
- F1
Part 2 inserted (incorporating regs. 13-23) (6.4.2017) by The Social Security (Miscellaneous Amendments No. 2) Regulations 2017 (S.I. 2017/373), regs. 1, 2(13)
- F2
Words in reg. 23(1)(b) substituted (6.4.2021) by The Social Security Contributions (Intermediaries) (Miscellaneous Amendments) Regulations 2020 (S.I. 2020/1220), regs. 1(1)(3), 2(15)(a) (with reg. 5)
- F3
Words in reg. 23(1)(d) substituted (6.4.2021) by The Social Security Contributions (Intermediaries) (Miscellaneous Amendments) Regulations 2020 (S.I. 2020/1220), regs. 1(1)(3), 2(15)(b) (with reg. 5)
Notes on Part 2
Textual amendments
- F2
Pt. 2 heading substituted (6.4.2021) by The Social Security Contributions (Intermediaries) (Miscellaneous Amendments) Regulations 2020 (S.I. 2020/1220), regs. 1(1)(3), 2(8)(a) (with reg. 5)