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The Income Tax (Sub-contractors in the Construction Industry and Employments) (Amendment) Regulations 2000

S.I. 2000/2742 · Made 9 October 2000

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

INCOME TAX

Made 9th October 2000

Laid before the House of Commons 9th October 2000

Coming into force 10th October 2000

The Commissioners of Inland Revenue, in exercise of the powers conferred upon them by sections 203 and 566 of the Income and Corporation Taxes Act 1988f1 hereby make the following Regulations:

Annotations to the whole text

Footnotes

f1

1988 c. 1. Section 203 has been amended. Relevant amendments are those made by section 128 of, and paragraph 4 of Schedule 3 to, the Finance Act 1988 (c. 39), section 45(3) of, and Part IV of Schedule 17 to, the Finance Act 1989 (c. 26), paragraph 38 of Schedule 19, and Part V(23) of Schedule 26, to the Finance Act 1995 (c. 9). There are amendments to section 566 which are not relevant for the purposes of this instrument.

Contents

  1. 1Citation and commencement
  2. 2Amendment of the Income Tax (Sub-contractors in the Construction Industry) Regulations 1993
  3. 3Amendment of the Income Tax (Employment) Regulations 1993
  4. Signature
  5. Explanatory note

1Citation and commencement

These Regulations may be cited as the Income Tax (Sub-contractors in the Construction Industry and Employments) (Amendment) Regulations 2000 and shall come into force on 10th October 2000.

2Amendment of the Income Tax (Sub-contractors in the Construction Industry) Regulations 1993

In regulation 9(2) of the Income Tax (Sub-contractors in the Construction Industry) Regulations 1993f1 for the definition of N substitute—

  • “N is the amount which would be payable to the collector under the Social Security Contributions and Benefits Act 1992f2 and the Social Security (Contributions) Regulations 1979f3 or, in Northern Ireland, under the Social Security Contributions and Benefits (Northern Ireland) Act 1992f4 and the Social Security (Contributions) Regulations (Northern Ireland) 1979f5 disregarding—

    1. (a)

      any amount of secondary Class 1 contributions in respect of which liability has been transferred to the employed earner by virtue of an election made jointly by the employed earner and the secondary contributor for the purpose of paragraph 3B(1) of Schedule 1 to either the Social Security Contributions and Benefits Act 1992 or the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (transfer of liability to be borne by earner)f6; and

    2. (b)

      any adjustment to the amount so payable to the collector under regulation 7(3) of the Tax Credits (Payments by Employers) Regulations 1999f7 (funding of payment by relevant employer or relevant subsequent employer of tax credit);”.

3Amendment of the Income Tax (Employment) Regulations 1993

In regulation 41(3) of the Income Tax (Employments) Regulations 1993f1 for the definition of N substitute—

  • “N is the amount which would be payable to the collector under the Social Security Contributions and Benefits Act 1992 and the Social Security (Contributions) Regulations 1979, or, in Northern Ireland, under the Social Security (Contributions) and Benefits (Northern Ireland) Act 1992 and the Social Security (Contributions) Regulations (Northern Ireland) 1979 disregarding—

    1. (a)

      any amount of secondary Class 1 contributions in respect of which liability has been transferred to the employed earner by virtue of an election made jointly by the employed earner and the secondary contributor for the purposes of paragraph 3B(1) of Schedule 1 to either the Social Security Contributions and Benefits Act 1992 or the Social Security Contributions and Benefits (Northern Ireland) Act 1992; and

    2. (b)

      any adjustment to the amount so payable to the collector under regulation 7(3) of the Tax Credits (Payments by Employers) Regulations 1999 (funding of payment by relevant employer or relevant subsequent employer of tax credit);”.

Signature

Tim Flesher

Ann Chant

Two of the Commissioners of Inland Revenue

9th October 2000

Explanatory note

(This note is not part of the Regulations)

These Regulations amend the Income Tax (Sub-contractors in the Construction Industry) Regulations 1993 (S.I. 1993/743) and the Income Tax (Employments) Regulations 1993 (S.I. 1993/744). The amendments made by regulations 2 and 3 substitute a new definition of “N” in the formulae to determine whether an employer is entitled to account, under those Regulations, to the Collector of Taxes quarterly for sums due in respect of income tax, National Insurance contributions, tax credits and student loan repayments. The new definition provides that, in addition to disregarding any adjustment to the amount payable to the collector in respect of the funding of tax credits by the employer, there shall also be disregarded any amount of secondary Class 1 contributions in respect of which liability has been transferred from the secondary contributor to the employed earner. Such a transfer of liability is possible under an election made jointly by the secondary contributor and the employed earner under paragraph 3B of Schedule 1 to the Social Security Contributions and Benefits Act 1992 or the Social Security Contributions and Benefits (Northern Ireland) Act 1992.

These Regulations contain provisions which are consequential on the Social Security (Contributions) (Amendment No. 10) Regulations 2000 and the Social Security (Contributions) (Amendment No. 10) (Northern Ireland) Regulations 2000.