Regulation 40 Prescribed general earnings in respect of which Class 1A contributions not payableF19

United Kingdom

(1)

Class 1A contributions shall not be payable in respect of the F1general earnings prescribed by paragraphs (2) to (7).

(2)

The F2general earnings prescribed by this paragraph are F3those which are excluded from the calculation of a person’s earnings in respect of any employed earner’s employment by virtue of the following provisions of Schedule 3—

F4(za)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(a)

in Part VI, F5paragraphs 2(b), 3 to 5, 7, 10 and 11;

F6(ab)

in Part 7, paragraph 12;

(b)

in Part VIII, paragraphs F74 to 5 and 13;

(c)

in Part IX, paragraphs F83 to 7A; and

(d)

in Part X, paragraphs 5, F99, 11 to 13 and 15.

(3)

The general earnings prescribed by this paragraph are those which are payments which are not excluded from the calculation of a person’s earnings in respect of any employed earner’s employment by virtue of paragraph 1 of Part II of Schedule 3 (payments in kind), but which are so excluded by virtue of paragraph 3 of Part VIII of Schedule 3 (qualifying travelling expenses) or paragraph 9 of that Part (specific and distinct expenses).

F10(4)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F11(5)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F12(6)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6A)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7)

F13The general earnings prescribed by this paragraph are so much of any general earnings as are not charged to income tax as employment income by virtue of; any of the following extra-statutory concessions published by the Board as at 1st September 2000—

F14(a)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F15(b)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)

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

F16(d)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(e)

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

(f)

A56 (benefits in kind: tax treatment of accommodation in Scotland provided for employees);

F17(g)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(h)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(i)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(j)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(k)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(l)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(m)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(n)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(o)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(p)

A91 (living accommodation provided by reason of employment);

(q)

A97 (Jobmatch programme).

Sub-paragraphs (b) and (q) do not apply to Northern Ireland and sub-paragraph (f) applies only to Scotland.

(8)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1. (a)
2. (b)
3. (c)
4. (d)
5. (e)
6. (f)
F18

(9)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Annotations

Textual amendments

F1: Words in reg. 40(1) substituted (1.9.2003) by The Social Security (Contributions) (Amendment No. 5) Regulations 2003 (S.I. 2003/2085), regs. 1, 6(2)
F2: Words in reg. 40(2)-(6) substituted (1.9.2003) by The Social Security (Contributions) (Amendment No. 5) Regulations 2003 (S.I. 2003/2085), regs. 1, 6(3)(a)
F3: Word in reg. 40(2)-(6) substituted (1.9.2003) by The Social Security (Contributions) (Amendment No. 5) Regulations 2003 (S.I. 2003/2085), regs. 1, 6(3)(b)
F4: Reg. 40(2)(za) omitted (with application in accordance with reg. 1(2) of the amending S.I.) by virtue of The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 33
F5: Words in reg. 40(2)(a) substituted (6.4.2006) by The Social Security (Contributions) (Amendment No. 2) Regulations 2006 (S.I. 2006/576), regs. 1, 4(a)
F6: Reg. 40(2)(ab) inserted (with effect in accordance with reg. 1 of the amending S.I.) by The Social Security (Contributions) (Amendment No. 2) Regulations 2005 (S.I. 2005/728), regs. 1, 3(2)
F7: Words in reg. 40(2)(b) substituted (28.11.2016) by The Social Security (Contributions) (Amendment No. 4) Regulations 2016 (S.I. 2016/1067), regs. 1, 3
F8: Words in reg. 40(2)(c) substituted (6.4.2004) by The Social Security (Contributions, Categorisation of Earners and Intermediaries) (Amendment) Regulations 2004 (S.I. 2004/770), regs. 1(1), 9(a)
F9: Words in reg. 40(2)(d) substituted (26.7.2001) by The Social Security (Contributions) (Amendment No. 5) Regulations 2001 (S.I. 2001/2412), regs. 1, 3(2)(b)
F10: Reg. 40(4) omitted (6.4.2012) by virtue of The Social Security (Contributions) (Amendment No. 2) Regulations 2012 (S.I. 2012/817), regs. 1(1), 7(1)
F11: Reg. 40(5)(8)(9) omitted (6.4.2005) by virtue of The Social Security (Contributions) (Amendment No. 3) Regulations 2005 (S.I. 2005/778), regs. 1(1), 5
F12: Reg. 40(6)(6A) omitted (6.4.2006) by virtue of The Social Security (Contributions) (Amendment No. 2) Regulations 2006 (S.I. 2006/576), regs. 1, 4(b)
F13: Words in reg. 40(7) substituted (1.9.2003) by The Social Security (Contributions) (Amendment No. 5) Regulations 2003 (S.I. 2003/2085), regs. 1, 6(7)(a)
F14: Reg. 40(7)(a) omitted (26.7.2001) by virtue of The Social Security (Contributions) (Amendment No. 5) Regulations 2001 (S.I. 2001/2412), regs. 1, 3(3)
F15: Reg. 40(7)(b) omitted (1.9.2003) by virtue of The Social Security (Contributions) (Amendment No. 5) Regulations 2003 (S.I. 2003/2085), regs. 1, 6(7)(b)
F16: Reg. 40(7)(d) omitted (1.9.2003) by virtue of The Social Security (Contributions) (Amendment No. 5) Regulations 2003 (S.I. 2003/2085), regs. 1, 6(7)(b)
F17: Reg. 40(7)(g)-(o) omitted (1.9.2003) by virtue of The Social Security (Contributions) (Amendment No. 5) Regulations 2003 (S.I. 2003/2085), regs. 1, 6(7)(b)
F18: Words in reg. 40(8) omitted (1.9.2003) by virtue of The Social Security (Contributions) (Amendment No. 5) Regulations 2003 (S.I. 2003/2085), regs. 1, 6(8)
F19: Words in reg. 40 heading substituted (1.9.2003) by The Social Security (Contributions) (Amendment No. 5) Regulations 2003 (S.I. 2003/2085), regs. 1, 6(2)

Notes on the whole SI

Textual amendments

F1: See sections 3(2) and (5), 4(5) and (6), 116, 117, 118, 119 and 120 of the Social Security Contributions and Benefits Act 1992 (c. 4) (“the Act”) as amended respectively by paragraphs 3, 4, 22, 23, 24, 25 and 26 of Schedule 3 to the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2) (“the Transfer Act”). The functions of the Department of Health and Social Services for Northern Ireland under the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7) and the Social Security Administration (Northern Ireland) Act 1992 (c. 8) were transferred to the Department for Social Development by Article 8(b) of and Part II of Schedule 6 to the Departments (Transfer and Assignment of Functions) Order (Northern Ireland) 1999 (S.R. 1999 No. 481).
F2: See section 176(2)(b) of the Act.