Paragraph 12 Payments made by employers to earners in full-time attendance at universities &c.F1

United Kingdom

(1)

A payment to an employed earner receiving full-time instruction at a university, technical college or similar educational establishment (within the meaning of section 331 of the Taxes Act) if the conditions in sub-paragraphs (2) to (6) are satisfied, but subject to the exclusion in sub-paragraph (7).

(2)

The employed earner must have enrolled at the educational establishment for a course lasting at least one academic year at the time when payment is made.

(3)

The secondary contributor must require the employed earner to attend the course for an average of at least twenty weeks in an academic year.

(4)

The educational establishment—

(a)

must be open to members of the public generally,

(b)

must offer more than one course of practical or academic instruction.

(5)

The educational establishment must not be run by—

(a)

the secondary contributor, or a person who would be treated by section 839 of the Taxes Act as connected with him; or

(b)

a trade organisation of which the secondary contributor is a member.

(6)

The total amount of earnings payable to the earner in respect of his attendance, including lodging, travelling and subsistence allowances, but excluding any tuition fees, must not exceed F2£15,480 in respect of an academic year.

(7)

This paragraph does not apply to any payment made by the secondary contributor to the employed earner for, or in respect of, work done for the secondary contributor by the earner (whether during vacations or otherwise).

(8)

This paragraph has effect in respect of payments made in relation to the academic year beginning on 1st September 2005 and subsequent academic years.

(9)

In this paragraph—

“academic year” means the period beginning on 1st September of one calendar year and ending on 31st August of the following calendar year.
“trade organisation” means an organisation of secondary contributors (in their capacity as employers) the members of which carry on a particular profession or trade for the purposes of which the organisation exists.

Annotations

Textual amendments

F1: Sch. 3 Pt. VII para. 12 added (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, 4(2)
F2: Word in Sch. 3 Pt. VII para. 12(6) substituted (with effect in accordance with reg. 1(b) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 7) Regulations 2007 (S.I. 2007/2401), regs. 1(a), 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.