Social Security Contributions (Transfer of Functions, etc. ) Act 1999

Part I — General

Transfer of functions

Transfer to Board of certain functions relating to contributions, etc

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• (1) Schedule 1 to this Act (which contains amendments transferring to the Board certain functions of the Secretary of State which have been exercised by the Contributions Agency and certain associated functions of the Secretary of State in relation to benefits, together with other amendments related to the transfer of those functions) shall have effect.

• (2) The functions of the Secretary of State under the provisions of subordinate legislation specified in Schedule 2 to this Act are hereby transferred to the Board.

Transfer of other functions to Treasury or Board

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Schedule 3 to this Act (which contains amendments transferring to the Treasury or the Board certain other functions of the Secretary of State, together with amendments related to the transfer of those functions) shall have effect.

Exercise by Board of functions transferred to them

General functions of Board

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• (1) The Commissioners for Her Majesty’s Revenue and Customs shall be responsible for the collection and management of contributions.

• (6) In Schedule 2 to the Social Security Contributions and Benefits Act 1992 (levy of Class 4 contributions with income tax) and Schedule 2 to the Social Security Contributions and Benefits (Northern Ireland) Act 1992, paragraph 6(2) (which is superseded by subsection (1) above) shall cease to have effect.

• (7) In this section “contributions” includes contributions under Part I of the Social Security Contributions and Benefits (Northern Ireland) Act 1992.

Recovery of contributions where income tax recovery provisions not applicable

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The provisions of Schedule 4 shall have effect with respect to the recovery of—

• (a) those Class 1, Class 1A and Class 1B contributions to which regulations under paragraph 6 or 7BZA of Schedule 1 to the Social Security Contributions and Benefits Act 1992 or paragraph 6 or 7BZA of Schedule 1 to the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (power to combine collection of contributions with income tax) do not apply,

• (aa) those Class 2 contributions in relation to which—

• (i) the regulations mentioned in paragraph (a), and

• (ii) Part 6 of the Taxes Management Act 1970 (collection and recovery),

do not apply,

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (c) interest or penalties payable under regulations made under paragraph 7A . . . of Schedule 1 to the Social Security Contributions and Benefits Act 1992 or paragraph 7A . . . of Schedule 1 to the Social Security Contributions and Benefits (Northern Ireland) Act 1992, and

• (d) interest or penalties—

• (i) payable under regulations made under paragraph 7B of Schedule 1 to the Social Security Contributions and Benefits Act 1992 and to which regulations under paragraph 7BZA of that Schedule do not apply, or

• (ii) payable under regulations made under paragraph 7B of Schedule 1 to the Social Security Contributions and Benefits (Northern Ireland) Act 1992 and to which regulations under paragraph 7BZA of that Schedule do not apply.

Powers relating to enforcement

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Schedule 5 to this Act (which relates to the enforcement powers of the Board in relation to functions transferred to them by this Act) shall have effect.

Disclosure of information

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Schedule 6 to this Act (which contains amendments relating to the supply or disclosure of information) shall have effect.

Use of information by Board

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Part II — Decisions and appeals

Decisions by officers of Board

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• (1) Subject to the provisions of this Part, it shall be for an officer of the Board—

• (a) to decide whether for the purposes of Parts I to V of the Social Security Contributions and Benefits Act 1992 a person is or was an earner and, if so, the category of earners in which he is or was to be included,

• (b) to decide whether a person is or was employed in employed earner’s employment for the purposes of Part V of the Social Security Contributions and Benefits Act 1992 (industrial injuries),

• (c) to decide whether a person is or was liable to pay contributions of any particular class and, if so, the amount that he is or was liable to pay,

• (d) to decide whether a person is or was entitled to pay contributions of any particular class that he is or was not liable to pay and, if so, the amount that he is or was entitled to pay,

• (e) to decide whether contributions of a particular class have been paid in respect of any period,

• (ea) to decide whether a person is or was entitled to make a deduction under section 4 of the National Insurance Contributions Act 2014 (deductions etc of employment allowance) and, if so, the amount the person is or was entitled to deduct,

• (eb) to decide whether a person is or was entitled to a repayment under that section and, if so, the amount of the repayment,

• (f) subject to and in accordance with regulations made for the purposes of this paragraph by the Secretary of State with the concurrence of the Board, to decide any issue arising as to, or in connection with, entitlement to statutory sick pay , statutory maternity pay, statutory paternity pay, statutory adoption pay , statutory shared parental pay , statutory parental bereavement pay or statutory neonatal care pay,

• (g) to make any other decision that falls to be made under Parts 11 to 12ZE of the Social Security Contributions and Benefits Act 1992 (statutory sick pay, statutory maternity pay, statutory paternity pay, statutory adoption pay) , statutory shared parental pay , statutory parental bereavement pay and statutory neonatal care pay),

• (ga) to make any decision that falls to be made under regulations under section 7 of the Employment Act 2002 (funding of employers’ liabilities to make payments of statutory paternity pay, statutory adoption pay, statutory shared parental pay , statutory parental bereavement pay or statutory neonatal care pay),

• (h) to decide any question as to the issue and content of a notice under subsection (2) of section 121C of the Social Security Administration Act 1992 (liability of directors etc. for company’s contributions),

• (i) to decide any issue arising under section 27 of the Jobseekers Act 1995 (employment of long-term unemployed: deductions by employers), or under any provision of regulations under that section, as to—

• (i) whether a person is or was an employee or employer of another,

• (ii) whether an employer is or was entitled to make any deduction from his contributions payments in accordance with regulations under section 27 of that Act,

• (iii) whether a payment falls to be made to an employer in accordance with those regulations,

• (iv) the amount that falls to be so deducted or paid, or

• (v) whether two or more employers are, by virtue of regulations under section 27 of that Act, to be treated as one,

• (ia) to decide whether to give or withdraw an approval for the purposes of paragraph 3B(1)(b) of Schedule 1 to the Social Security Contributions and Benefits Act 1992;

• (j) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (k) to decide whether a person is liable to a penalty under—

• (i) paragraph 7A(2) or 7B(2)(h) of Schedule 1 to the Social Security Contributions and Benefits Act 1992, or

• (ii) section 113(1)(a) of the Social Security Administration Act 1992,

• (l) to decide the . . . penalty payable under any of the provisions mentioned in paragraph (k) above, and

• (m) to decide such issues relating to contributions, other than the issues specified in paragraphs (a) to (l) above or in paragraphs 16 and 17 of Schedule 3 to the Social Security Act 1998, as may be prescribed by regulations made by the Board.

• (1A) No decision in respect of Class 2 contributions under section 11(2) of the Social Security Contributions and Benefits Act 1992 may be made under subsection (1) in relation to an issue specified in paragraph (c) or (e) of that subsection if the person to whom the decision would relate—

• (a) has appealed under Part 5 of the Taxes Management Act 1970 in relation to that issue,

• (b) can appeal under that Part in relation to that issue, or

• (c) might in the future, without the agreement of Her Majesty's Revenue and Customs or permission of the tribunal, be able to appeal under that Part in relation to that issue.

• (2) Subsection (1)(c) and (e) above do not include any decision relating to Class 4 contributions other than a decision falling to be made—

• (a) under subsection (1) of section 17 of the Social Security Contributions and Benefits Act 1992 as to whether by regulations under that subsection a person is or was excepted from liability for Class 4 contributions, or his liability is or was deferred, or

• (b) under regulations made by virtue of subsection (3) or (4) of that section or section 18 of that Act.

• (3) Subsection (1)(g) above does not include—

• (a) any decision as to the making of subordinate legislation, or

• (b) any decision as to whether the liability to pay statutory sick pay , statutory maternity pay, statutory paternity pay, statutory adoption pay , statutory shared parental pay , statutory parental bereavement pay or statutory neonatal care pay is a liability of the Board rather than the employer.

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Regulations with respect to decisions

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• (1) Subject to the provisions of this Part and of the Social Security Administration Act 1992, provision may be made by the Board by regulations as to the making by their officer of any decision under or in connection with the Social Security Contributions and Benefits Act 1992, the Social Security Administration Act 1992 or the Jobseekers Act 1995 which falls to be made by such an officer.

• (2) Where it appears to an officer of the Board that a matter before him involves a question of fact requiring special expertise, he may direct that in dealing with that matter he shall have the assistance of one or more experts.

• (3) In subsection (2) above “expert” means a person appearing to the officer of the Board to have knowledge or experience which would be relevant in determining the question of fact requiring special expertise.

Decisions varying or superseding earlier decisions

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• (1) Subject to subsection (2A) below,The Board may by regulations make provision—

• (a) for any decision of an officer of the Board under section 8 of this Act (including a decision superseding an earlier decision) to be varied either within the prescribed period or in prescribed cases or circumstances,

• (b) for any such decision to be superseded, in prescribed circumstances, by a subsequent decision made by an officer of the Board, and

• (c) for any such decision as confirmed or varied by the First-tier Tribunal or Upper Tribunal on appeal to be superseded, in the event of a material change of circumstances since the decision was made, by a subsequent decision made by an officer of the Board.

• (2) The date as from which—

• (a) any variation of a decision, or

• (b) any decision superseding an earlier decision,

is to take effect shall be determined in accordance with the regulations.

• (2A) The decisions in relation to which provision may be made by regulations under this section shall not include decisions falling within section 8(1)(ia) above.

• (3) In this section “prescribed” means prescribed by regulations under this section.

Appeals against decisions of Board

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• (1) This section applies to any decision of an officer of the Board under section 8 of this Act or under regulations made by virtue of section 10(1)(b) or (c) of this Act (whether as originally made or as varied under regulations made by virtue of section 10(1)(a) of this Act).

• (2) In the case of a decision to which this section applies—

• (a) if it relates to a person’s entitlement to statutory sick pay, statutory maternity pay, statutory paternity pay, statutory adoption pay , statutory shared parental pay , statutory parental bereavement pay or statutory neonatal care pay, the employee and employer concerned shall each have a right to appeal to the tribunal, and

• (b) in any other case, the person in respect of whom the decision is made and such other person as may be prescribed shall have a right to appeal to the tribunal.

• (3) In subsection (2)(b) above “prescribed” means prescribed by the Board by regulations.

• (4) This section has effect subject to section 121D of the Social Security Administration Act 1992 (appeals in relation to personal liability notices).

Exercise of right of appeal

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• (1) Any appeal against a decision must be brought by a notice of appeal in writing given within 30 days after the date on which notice of the decision was issued.

• (2) The notice of appeal shall be given to the officer of the Board by whom notice of the decision was given.

• (3) The notice of appeal shall specify the grounds of appeal.

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Regulations with respect to appeals

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• (1) The Board may, by regulations made with the concurrence of the Lord Chancellor and the Lord Advocate, make provision with respect to appeals to the tribunal under this Part.

• (2) Regulations under subsection (1) above may, in particular—

• (a) make provision with respect to any of the matters dealt with in the following provisions of the Taxes Management Act 1970 —

• (i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (ii) sections 48 to 54 (appeals to the tribunal under the Taxes Acts), and

• (iii) section 56 (payment of tax where there is a further appeal), or

• (b) provide for any of those provisions of that Act to apply, with such modifications as may be specified in the regulations, in relation to an appeal to the tribunal under this Part.

• (2A) Regulations under subsection (1) above may provide for sections 11(2) and 13(2) of the Tribunals, Courts and Enforcement Act 2007 to apply with such modifications as may be specified in the regulations in relation to an appeal to the tribunal under this Part.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Matters arising as respects decisions

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• (1) The Board may by regulations make provision as respects matters arising—

• (a) pending any decision of an officer of the Board under section 8 of this Act which relates to—

• (i) statutory sick pay, statutory maternity pay, statutory paternity pay, statutory adoption pay , statutory shared parental pay , statutory parental bereavement pay or statutory neonatal care pay, or

• (ii) any person’s liability for contributions,

• (b) pending the determination by the tribunal of an appeal against any such decision,

• (c) out of the variation, under regulations made under section 10 of this Act or on appeal, of any such decision, or

• (d) out of the making of a decision which, under regulations made under that section, supersedes an earlier decision.

• (2) Regulations under this section may, in particular—

• (a) make provision making a person liable to pay contributions pending the determination by the tribunal of an appeal against a decision of an officer of the Board, and

• (b) make provision as to the repayment in prescribed circumstances of contributions paid by virtue of the regulations.

• (3) Regulations under this section must be made with the concurrence of the Secretary of State in so far as they relate to statutory sick pay , statutory maternity pay, statutory paternity pay, statutory adoption pay , statutory shared parental pay , statutory parental bereavement pay or statutory neonatal care pay.

Power to make provision for period before commencement of new social security appeal provisions

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• (1) The Secretary of State may by regulations modify any of the enactments to which this subsection applies during any period in which section 8 of this Act is in force but Chapter II of Part I of the Social Security Act 1998 (social security decisions and appeals) is not yet wholly in force.

• (2) Subsection (1) above applies to—

• (a) Part II of the Social Security Administration Act 1992 (adjudication), and

• (b) the Acts amended by section 16 of, and Schedule 7 to, this Act.

Decisions under Pension Schemes Act 1993

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• (1) The function of determining the questions referred to in subsection (1) of section 170 of the Pension Schemes Act 1993, as that section has effect before the commencement of paragraph 131 of Schedule 7 to the Social Security Act 1998, is hereby transferred to an officer of the Board.

• (2) In section 170 of the Pension Schemes Act 1993 (decisions and appeals), as substituted by paragraph 131 of Schedule 7 to the Social Security Act 1998, for subsections (2) to (4) there is substituted—