# The Social Security (Contributions) Regulations 2001, Regulation 42: Exception from liability to pay Class 1B contributions

Extent: E+W+S+N.I.

(1) A person shall be excepted from liability to pay a Class 1B contribution for any year in respect of—
(a) the amount of any general earnings which are chargeable emoluments under section 10A(4) of the Act of an employee included in a PAYE settlement agreement; and
(b) the total amount of income tax in respect of which that person is accountable to the Board in relation to general earnings of such an employee in accordance with a PAYE settlement agreement,
where the employee is a person falling within paragraph (2) or (3).
(2) The employee falls within this paragraph if he is subject to the legislation of a contracting party, other than the United Kingdom, to the Agreement on the European Economic Area signed at Oporto on 2nd May 1992 as adjusted by the Protocol signed at Brussels on 17th March 1993 .
(3) The employee falls within this paragraph if he is subject to the legislation of a country outside the United Kingdom in respect of which there is an Order in Council under section 179 of the Administration Act (reciprocal agreements with countries outside the United Kingdom) giving effect to a reciprocal agreement.
(4) If a person is excepted from liability to pay a Class 1B contribution for any year under paragraphs (1) to (3), he shall be entitled, if he so wishes, to pay that contribution for that year.

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Source: https://www.legislation.gov.uk/uksi/2001/1004/regulation/42 (the official version)
Page: https://openlegislation.uk/social-security-contributions-regulations-2001/regulation-42
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.