The Social Security (Categorisation of Earners) Amendment Regulations 1994

Made: 14th March 1994

Laid before Parliament: 16th March 1994

Coming into force: 6th April 1994

The Secretary of State for Social Security, in exercise of powers conferred by sections 2(2), 7(2), 122(1) and 175(1) to (3) of the Social Security Contributions and Benefits Act 1992[^f00001] and of all other powers enabling him in that behalf, after agreement by the Social Security Advisory Committee that proposals to make these Regulations should not be referred to it[^f00002], hereby makes the following Regulations:

Citation, commencement and interpretation

1

• (1) These Regulations may be cited as the Social Security (Categorisation of Earners) Amendment Regulations 1994 and shall come into force on 6th April 1994.

• (2) In these Regulations “the principal Regulations” means the Social Security (Categorisation of Earners) Regulations 1978[^f00003], and unless the context otherwise requires references to Schedules and to paragraphs of Schedules are references to Schedules to the principal Regulations and to paragraphs of those Schedules.

Amendment of regulation 1 of the principal Regulations

2

In regulation 1(2) of the principal Regulations (interpretation) after the definition of “educational establishment” there shall be inserted the following definitions–

• “foreign employer” in paragraph 9[^f00004] of Schedule 3 to these regulations means a person– who does not fulfil the conditions as to residence or presence in Great Britain prescribed under section 1(6)(a) of the Social Security Contributions and Benefits Act 1992[^f00005]; and who, if he did fulfil those conditions as to residence or presence in Great Britain referred to in (a) above, would be the secondary contributor in relation to any payment of earnings to or for the benefit of the person employed;
• “host employer” in paragraph 9 of Schedule 3 to these regulations means a person having a place of business in Great Britain;

Amendment of Schedule 1 to the principal Regulations

3

In Part III of Schedule 1 (employments which are to be disregarded) after paragraph 12 there shall be added–

• (1) in Column (A) the following paragraph–

(13) Employment (other than employment described in paragraph 12 of Column (A) of this Schedule) as a Queen’s Gurkha officer or as any other member of the Brigade of Gurkhas of a person who was recruited for that Brigade in Nepal.

• (2) in Column (B) the following paragraph–

(13) None.

Amendment of Schedule 3 to the principal Regulations

4

In Schedule 3 (employments in respect of which persons are treated as secondary Class 1 contributors) after paragraph 8 there shall be added–

• (1) in Column (A) the following paragraph–

(9) Employment by a foreign employer where– (a) in pursuance of that employment the personal service of the person employed is made available to a host employer; and (b) the personal service is rendered for the purposes of the business of that host employer; and (c) that personal service for the host employer begins on or after 6th April 1994.

• (2) in Column (B) the following paragraph–

(9) The host employer to whom the personal service of the person employed is made available.

Signed

Signed by authority of the Secretary of State for Social Security.

William Hague — Parliamentary Under-Secretary of State, — Department of Social Security — 14th March 1994

Explanatory note

(This note is not part of the Regulations)

These Regulations further amend the Social Security (Categorisation of Earners) Regulations 1978 (“the principal Regulations”).

Regulation 2 amends regulation 1 of the principal Regulations by inserting definitions of “foreign employer” and “host employer”.

Regulation 3 amends Part III of Schedule 1 to the principal Regulations by extending the description of employments to be disregarded in relation to liability for contributions to members of the Brigade of Gurkhas recruited in Nepal.

Regulation 4 amends Schedule 3 to the principal Regulations by extending the description of employments in respect of which persons are treated as secondary Class 1 contributors to workers seconded, on or after 6th April 1994, by foreign employers to employers in Great Britain.

Regulations 1, 2 and 3 do not impose any additional costs on business. The effect of regulation 4 will be to increase the National Insurance contributions payable by some employers.

An assessment of the cost to business of applying regulation 4 has been placed in the Libraries of both Houses of Parliament. Copies can be obtained by post from the Department of Social Security, Room 09/03, Adelphi, 1–11 John Adam Street, London WC2N 6HT.

Footnotes

[^f00001]: 1992 c. 4; section 122(1) is cited because of the meaning ascribed to the word “prescribe”.

[^f00002]: See the Social Security Administration Act 1992 (c. 5), section 173(1)(b).

[^f00003]: S.I. 1978/1689. The amending instruments are S.I. 1980/1713, 1984/350 and 1990/1894.

[^f00004]: Paragraph 9 is added by regulation 4 of these Regulations.

[^f00005]: See regulation 119 of S.I. 1979/591; relevant amending instrument is S.I. 1992/97.