The Social Security (Contributions) Regulations 2001

• (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.

PART 5 — EXCEPTION FROM LIABILITY FOR CLASS 2 CONTRIBUTIONS, PROVISIONS ABOUT CLASS 3 CONTRIBUTIONS, AND REALLOCATION AND REFUND OF CONTRIBUTIONS (OTHER THAN CLASS 4)

Exception from liability for Class 2 contributions

43

• (1) Subject to paragraphs (2) and (3), a self-employed earner shall not be treated under section 11(5B) of the Act as having actually paid a Class 2 contribution for any contribution week—

• (a) in respect of the whole of which the earner is in receipt of incapacity benefit;

• (ab) in respect of the whole of which the earner is in receipt of employment and support allowance;

• (b) throughout the whole of which the earner is incapable of work;

• (c) in respect of which the earner is in receipt of maternity allowance;

• (d) throughout the whole of which he is undergoing imprisonment or detention in legal custody; or

• (e) in respect of any part of which the earner is in receipt of carer’s allowance, the carer support payment component of carer support given in accordance with the Carer’s Assistance (Carer Support Payment) (Scotland) Regulations or an unemployability supplement.

• (2) For the purposes of paragraph (1), in computing the period of a contribution week—

• (a) subject to sub-paragraph (b), Sunday shall be disregarded;

• (b) in the case of a self-employed earner who objects on religious grounds to working on a specific day in each contribution week other than Sunday, and does not object to working on Sunday, that specific day shall be disregarded instead of Sunday.

• (3) If a self-employed earner is not treated as having actually paid a Class 2 contribution for any contribution week by virtue of paragraph (1), he shall be entitled, subject to Part 6, to pay a contribution for that week if he so wishes.

Application for, and duration and cancellation of, certificates of exception

44

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Earnings for the purposes of certificates of exception

45

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Certificates of exception—exception from liability for, and entitlement to pay, Class 2 contributions

46

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Return of Class 2 contributions paid by low earners

47

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Class 3 contributions

48

• (1) Subject to sections 13(2) and 14(1) of the Act (Class 3 contributions only payable for purposes of satisfying certain ... conditions and circumstances in which persons shall not be entitled to pay Class 3 contributions) and these Regulations, any person who is over the age of 16 and fulfils the conditions as to residence or presence in Great Britain or in Northern Ireland prescribed in regulation 145, may, if he so wishes, pay Class 3 contributions.

• (2) It shall be a condition of a person’s right to pay a Class 3 contribution that he—

• (a) complies with Part 7 in so far as it applies to persons paying such a contribution, and

• (b) complies with either of the two conditions specified in paragraph (3).

• (3) The conditions are that the person specified in paragraph (1) shall either—

• (a) pay the contribution not later than 42 days after the end of the year in respect of which it is paid; or

• (b) subject to regulations 50, 50A... , 50C and 65BA(1) and Part 6, pay the contribution—

• (i) where the contribution is payable in respect of any year before 6th April 1982, before the end of the second year following the year in respect of which it is paid; and where the contribution is payable in respect of any year after 5th April 1982, before the end of the sixth year following the year in respect of which it is paid; or

• (ii) where the year in respect of which it is paid includes a period of at least 6 months throughout which the contributor has been undergoing full-time education, or full-time apprenticeship or training for which, in either case, any earnings are less than the lower earnings limit, or has been undergoing imprisonment or detention in legal custody, before the end of the sixth year following the year in which the education, or apprenticeship or training, or imprisonment or detention terminated; and

• (iii) where the year first mentioned in head (ii) is immediately preceded or followed by a year in which the conditions specified in that head are not satisfied in respect only of the length of the period specified in that head, in respect of that preceding or following year, before the end of the sixth year following the year in which the education, apprenticeship, training, imprisonment or detention described in that head terminated.

Precluded Class 3 contributions

49

• (1) Subject to paragraph (2), no person shall be entitled to pay a Class 3 contribution—

• (a) in respect of any year if he would, but for the payment of such a contribution, be entitled to be credited with a contribution;

• (b) in respect of any year in which the aggregate of his earnings factors derived from earnings in respect of which primary Class 1 contributions, payable at the main primary percentage, have been paid, credited earnings, or Class 2 or Class 3 contributions paid or credited is less than 25 times the lower earnings limit and either the period has passed within which any Class 3 contributions may be treated as paid for that year under regulation 4 of the Social Security (Crediting and Treatment of Contributions, and National Insurance Numbers) Regulations 2001 or he has sooner, in accordance with regulation 56, applied for the return of any Class 3 contributions paid in respect of that year;

• (c) in respect of any year if the aggregate of his earnings factors derived from earnings in respect of which primary Class 1 contributions, payable at the main primary percentage, have been paid, credited earnings, or Class 2 or Class 3 contributions paid or credited is more than 25 times the lower earnings limit but less than the qualifying earnings factor and either—

• (i) the period referred to in sub-paragraph (b) has passed, or

• (ii) he has sooner applied under regulation 56 for the return of any Class 3 contributions paid in respect of that year;

• (d) in respect of any year if it causes the aggregate of his earnings factors derived from earnings in respect of which primary Class 1 contributions, payable at the main primary percentage, have been paid, credited earnings, or Class 2 or Class 3 contributions paid or credited to exceed the qualifying earnings factor by an amount which is half or more than half that year’s lower earnings limit;

• (e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (f) in respect of the year in which he attains 17 or 18 years of age if in an earlier year he has satisfied the first contribution condition for retirement pension or widow’s pension or widowed mother’s allowance.

Sub-paragraphs (a), (b) and (c) are subject to the following qualification.

• (2) ... A person shall be entitled to pay a Class 3 contribution in respect of any year if it would enable him to satisfy—

• (a) the first contribution condition for retirement pension widowed mother’s allowance, widowed parent’s allowance... or widow’s pension and he has not satisfied that condition at the beginning of that year; or

• (b) the contribution condition for... widow’s payment and he has not satisfied that condition at the beginning of that year.

• (2A) No person shall be entitled to pay a Class 3 contribution in respect of the year in which he attains pensionable age or any subsequent year.

This is subject to the following qualification.

• (2B) A person—

• (a) who has attained the age of 60;

• (b) to whom a full gender recognition certificate is issued; and

• (c) whose acquired gender is male;

is not precluded from paying Class 3 contributions for the relevant years.

• (2C) For the purposes of paragraph (2B) the relevant years are—

• (a) the year in which the person attains the age of 60;

• (b) any subsequent year before that in which the full gender recognition certificate is issued; and

• (c) the year in which the full gender recognition certificate is issued.

• (3) In this regulation “credited” means credited for the purposes of retirement pension, a state pension under section 2 or 4 of the Pensions Act 2014, widowed mother’s allowance, widowed parent’s allowance... and widow’s pension.

Class 3 contributions not paid within prescribed periods

50

• (1) If—

• (a) a person (“the contributor”)—

• (i) was entitled to pay a Class 3 contribution under regulation 48, 146(2)(b) or 147; and

• (ii) failed to pay that contribution in the appropriate period specified for its payment; and

• (b) the condition in paragraph (2) is satisfied,

the contributor may pay the contribution within such further period as an officer of the Board may direct.

• (2) The condition is that an officer of the Board is satisfied that—

• (a) the failure to pay is attributable to the contributor’s ignorance or error; and

• (b) that ignorance or error was not the result of the contributor’s failure to exercise due care and diligence.

Disposal of contributions not properly paid

51

• (1) Where contributions (other than Class 1A, Class 1B or Class 4 contributions) are paid which are of the wrong class, or at the wrong rate, or of the wrong amount, HMRC may treat them as paid on account of contributions properly payable under the Act.

• (2) Where the whole or any part of a Class 1A contribution or a Class 1B contribution falls to be returned by HMRC to any person under regulation 52 or 52A or any part of a Class 1A contribution falls to be repaid by HMRC to any person under regulation 55(1), or regulation 55A, HMRC may treat—

• (a) the amount of the Class 1A contribution or, as the case may be, any part of such a contribution, as a payment on account of any secondary Class 1 contributions, Class 1B contributions or Class 2 contributions;

• (b) the amount of that Class 1B contribution or, as the case may be, any part of such a contribution, as a payment on account of any secondary Class 1 contributions, Class 1A contribution or Class 2 contributions,

properly payable by that person.

Return of contributions

52

• (1) This regulation applies if a contribution other than a Class 4 contribution has been paid in error.

Return of contributions: further provisions

53

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Return of Class 1 contributions paid at the non-contracted out rate instead of at the contracted-out rate

54

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Repayment of Class 1A contributions

55

• (1) Subject to regulations 51 and 57 and paragraphs (2) and (3), where, in a case specified in paragraph (2), in the light of information provided to the Board, it appears that too much has been paid in respect of a Class 1A contribution, they shall repay to the person paying that contribution the amount which has been overpaid, unless that amount does not exceed 50 pence.

• (2) The cases to which paragraph (1) applies are those in which a person has paid a Class 1A contribution and—

• (a) in calculating the amount of that contribution the person used information which later proves to have been inaccurate or incomplete; or

• (b) the employee who received the general earnings in respect of which the contribution was payable is later found to have been a person not residing in the United Kingdom for the purposes of income tax at the time of receipt.

• (3) The repayment of part of a Class 1A contribution under paragraph (1) is subject to the condition that the person referred to in that paragraph the applicant shall make an application to that effect in writing to the Board and within the period of 6 years from the end of the year in which the Class 1A contribution was due to be paid.

Return of precluded Class 3 contributions

56

• (1) Subject to regulations 51 and 57 and to paragraph (2), where a contributor has paid a Class 3 contribution which by virtue of section 14(1) of the Act (restriction on the right to pay Class 3 contributions) or regulation 49 he was not entitled to pay, the Board shall, on application of the contributor, return that contribution to the contributor.

• (2) A contributor wishing to apply for the return of a contribution falling within paragraph (1) shall make an application to the Board either—

• (a) in writing; or

• (b) in such form, and by such means of electronic communications, as are approved.

Calculation of return of contributions

57

• (1) In calculating the amount of any return of contributions to be made under regulation 52, 52A, 55, 55A or 56, there shall be deducted—

• (a) the amount of any contribution which has under regulation 51 been treated as paid on account of other contributions;

• (b) in the case of such contributions paid in error in respect of any person, the amount, if any, paid to that person (and to any other person on the basis of that error) by way of contributory benefit which would not have been paid had any of the contributions (in respect of which an application for their return is duly made in accordance with regulation 52(8)) not been paid in the first instance;

• (c) the amount of any contributions equivalent premium payable under Chapter III of Part III of the Pensions Act ;

• (d) the amount of any minimum contributions paid by the Board under section 43 of the Pensions Act (minimum contributions to personal pension schemes);

• (e) the amount of any payment made by the Board under section 7 of the Social Security Act 1986 (schemes becoming contracted-out between 1986 and 1993); and

• (f) in the case of such contributions paid in error in respect of any person, the amount of any payment made by the Board under section 42A(3) of the Pensions Act (age-related rebates) .

• (2) Paragraph (1)(b) is subject to the qualification that, if the Secretary of State certifies that a deduction of an additional amount of income support or income-based jobseeker’s allowance has been made under regulation 13 of the Social Security (Payments on account, Overpayments and Recovery) Regulations 1988 (“the 1988 Regulations”) (sums to be deducted in calculating the recoverable amount), paragraph (3) applies.

• (3) If this paragraph applies, the amount to be returned shall be reduced by applying the formula—

$$CB-IS$Here—CB is the amount of contributory benefit specified in paragraph (1)(b) andIS is the amount of income support or income-based jobseeker’s allowance specified in regulation 13(b) of the 1988 Regulations.$

• (4) In this regulation the expression “contributions equivalent premium” has the same meaning as in section 55(2) of the Pensions Act.

Reallocation of contributions for benefit purposes

58

• (1) Where any payment of earnings is made in one year which, but for regulation 7(3), would by virtue of that regulation have been treated as paid at an interval falling within another year, the contributions paid in respect of those earnings shall, on the application of the employed earner or the direction of the Secretary of State, be treated, for the purposes of entitlement to benefit, as paid in respect of that other year.

• (2) Where—

• (a) an employed earner’s employment commences in one year;

• (b) the first payment of earnings in respect of that employment is made in the following year; and

• (c) earnings in respect of that employment which fall to be paid in that later year are paid at regular intervals,

the contributions paid in respect of the first payment of earnings shall, on the application of the employed earner to the Secretary of State, be treated, for the purposes of entitlement to benefit, as paid in respect of the year in which the employment commenced.

Circumstances in which two-year limit for refunds of Class 1, 1A or 1B contributions not to apply

59

• (1) Section 19A(1) of the Act (repayment of Class 1, 1A or 1B contributions paid in error) does not apply where the three circumstances prescribed in paragraphs (2), (3) and (4) exist.

• (2) The first circumstance is that, in respect of the earnings derived in year 1 from an employment of the earner, Class 1, 1A or 1B contributions have been paid.

• (3) The second circumstance is that in respect of that employment and before the end of year 2—

• (a) an application for the determination of a question as to the category of earners in which the earner is or was to be included (“the categorisation question”) has been made under section 17(1)(a) of the Administration Act in accordance with regulation 13(1) of the Social Security (Adjudication) Regulations 1995 ;

• (b) the question of law arising in connection with the categorisation question has been referred by the Secretary of State to a court under section 18 of the Administration Act;

• (c) a request in writing has been made that an officer of the Board—

• (i) decide the categorisation question under section 8(1)(a) of the Transfer Act, or

• (ii) vary a decision made under that section; or

• (d) the amount of income tax, which is liable to be paid in respect of year 1 and in respect of which the person liable to pay a Class 1B contribution is accountable, has been the subject of a relevant tax appeal.

• (4) The third circumstance is that the question, reference, request or appeal referred to in paragraph (3) has not been determined or finally disposed of, as the case may be, at the end of year 2.

• (5) For the purposes of this regulation—

• “relevant tax appeal” has the meaning given by paragraph 6(4A) of Schedule 1 to the Act ;

• “year 1” and “year 2” have the meanings given by section 19A(1) of the Act,

and a question, reference, request or appeal shall only be taken to be determined or finally disposed of when the time for appealing against it has expired or no further appeal is possible.

PART 6 — LATE PAID AND UNPAID CONTRIBUTIONS (OTHER THAN CLASS 4 CONTRIBUTIONS)

Treatment for the purpose of contributory benefit of unpaid primary Class 1 contributions where no consent, connivance or negligence on the part of the primary contributor

60

• (1) If a primary Class 1 contribution payable on a primary contributor’s behalf by a secondary contributor is not paid, and the failure to pay that contribution is shown to the satisfaction of an officer of the Board not to have been with the consent or connivance of, or attributable to any negligence on the part of the primary contributor, that contribution shall be treated—

• (a) for the purpose of the first contribution condition of entitlement to a contribution-based jobseeker’s allowance or short term incapacity benefit as paid on the date on which payment is made of the earnings in respect of which the contribution is payable; and

• (b) for any other purpose of entitlement to contributory benefit, as paid on the due date.

• (2) In paragraph (1)(a) “the first contribution condition”, in relation to a contribution-based jobseeker’s allowance means the condition specified in section 2(1)(a) of the Jobseeker’s Act 1995.

• (3) Where—

• (a) an amount is retrospectively treated as earnings by retrospective contributions regulations, and

• (b) the primary Class 1 contribution payable in respect of those earnings is not paid, and the failure to pay that contribution is shown to the satisfaction of an officer of the Board not to have been with the consent or connivance of, or attributable to any negligence on the part of the primary contributor,

that contribution shall be treated in accordance with paragraph (1)(a) and (b).

Voluntary Class 2 contributions not paid within permitted period

61

• (1) If a person who was entitled, but not liable, to pay a Class 2 contribution (“the contributor”) fails to pay that contribution within the period within which it may be paid, and the condition in paragraph (2) is satisfied, the contribution may be paid within such further period as an officer of the Board may direct.

• (2) The condition is that an officer of the Board is satisfied that—

• (a) the failure was attributable to the contributor’s ignorance or error; and

• (b) that ignorance or error was not the result of the contributor’s failure to exercise due care and diligence.

Payment of contributions after death of contributor

62

If a person dies, any contributions which, immediately before his death he was entitled, but not liable, to pay, may be paid, notwithstanding his death, subject to the same provisions with respect to the time for payment as were applicable to that person.

Class 2 contributions paid late in accordance with a payment undertaking

63

• (1) This regulation applies to any Class 2 contributions which—

• (a) the earner has failed to pay on or by the due date and which, after that date, is payable in accordance with the provisions of an undertaking to pay such a contribution entered into after that date; and

• (b) would when paid fall to be computed in accordance with section 12(3) of the Act.

• (2) In the case of a contribution to which this regulation applies—

• (a) which is paid in accordance with the provisions of an undertaking entered into in the contribution year or the year immediately following that year, the amount of such a contribution shall be computed by reference to the weekly rate applicable in the contribution year;

• (b) which is paid in accordance with the provisions of an undertaking entered into in any year other than a year specified in sub-paragraph (a), the amount of such a contribution shall be computed by reference to the highest weekly rate of such a contribution in the period beginning with the contribution week in respect of which the contribution is paid and ending with the day on which the undertaking was entered into;

• (c) which is not paid in accordance with the provisions of the undertaking, the amount of such a contribution shall be computed by reference to the highest weekly rate of such a contribution—

• (i) where the contribution is paid in accordance with a further undertaking, in the period beginning with the contribution week in respect of which the contribution is paid and ending with the day on which the further undertaking was entered into, or

• (ii) where the contribution is paid otherwise than in accordance with a further undertaking, in the period beginning with the contribution week in respect of which the contribution is paid and ending with the day on which it is paid.

• (3) In this regulation “undertaking” means an arrangement between the Board and an earner under which the Board have agreed to accept payment of arrears of Class 2 contributions by instalments.

Class 2 and Class 3 contributions paid within a month from notification of amount of arrears

64

• (1) This regulation applies to any Class 2 or Class 3 contribution—

• (a) which would when paid fall to be computed in accordance with section 12(3) or 13(6) of the Act ; and

• (b) the amount of that contribution has been notified to the contributor by the Board in the last month of a year.

• (2) Where a contribution to which this regulation applies is paid—

• (a) within one calendar month from the date of such notification; and

• (b) in the year following that in which the amount was so notified;

the amount of that contribution shall be computed by reference to the weekly rate or, as the case may be, amount of such a contribution calculated in accordance with section 12 or 13 of the Act as if the contribution had been paid on the last day of the year in which the notification was given.

Class 2 and Class 3 contributions paid late through ignorance or error

65

• (1) This regulation applies to any Class 2 or Class 3 contribution which would when paid fall to be computed at a rate or, as the case may be, an amount other than that applicable in the contribution year in accordance with section 12(3) or 13(6) of the Act.

• (2) Where—

• (a) it is shown to the satisfaction of an officer of the Board that, by reason of ignorance or error on the part of the earner, not being ignorance or error due to any failure on his part to exercise due care and diligence, he has failed to pay a Class 2 contribution to which this regulation applies for any period on or by the due date; and

• (b) payment of that contribution is made in a year later than that in which the period commenced;

the amount of that contribution shall be calculated by reference to the weekly rate at which a contribution paid under section 12 of the Act would have been payable if it had been paid at the time when the period began.

• (3) Where a Class 3 contribution would otherwise fall to be calculated in accordance with section 13(6) of the Act, but it is shown to the satisfaction of an officer of the Board that the contributor has not paid that contribution before the end of the second year following the contribution year by reason of ignorance or error on the part of the earner, not being ignorance or error due to any failure on his part to exercise due care and diligence, the amount of that contribution shall be computed by reference to the amount of such a contribution applicable to the period for which the contribution is paid.

• (4) Where—

• (a) a Class 3 contribution would when paid fall to be computed in accordance with section 13(6) of the Act,

• (b) such a contribution remains unpaid for a period commencing at any time after the end of the second year following the contribution year (“the relevant period”), and

• (c) it is shown to the satisfaction of an officer of the Board that the contributor has not, during the relevant period only, paid such a contribution by reason of ignorance or error not being ignorance or error due to any failure on the contributor’s part to exercise due care and diligence,

paragraph (5) applies.

• (5) If this paragraph applies to a contribution, the amount of that contribution shall be calculated in accordance with section 13(6) of the Act as if the contribution had been paid at the time when the relevant period commenced.

PART 7 — COLLECTION OF CONTRIBUTIONS (OTHER THAN CLASS 4 CONTRIBUTIONS) AND RELATED MATTERS

Notification of national insurance numbers to secondary contributors

66

Every employed earner, in respect of whom any person is liable to pay an earnings-related contribution, shall, on request, supply his national insurance number to that person.

Collection and recovery of earnings-related contributions, and Class 1B contributions

67

• (1) Subject to the provisions of regulations 68 and 70, earnings-related contributions and Class 1B contributions shall be paid, accounted for and recovered in like manner as income tax deducted from the PAYE income by virtue of regulations under section 684 of ITEPA 2003 (PAYE Regulations).

• (1A) PAYE income has the meaning given in section 683 of ITEPA 2003.

• (2) ...The provisions contained in Schedule 4, (which contains provisions derived from the PAYE Regulations with extensions and modifications) shall apply to and for the purposes of earnings-related contributions and Class 1B contributions.

• (3) Schedules 4A (real time returns) and 4B (additional information about payments) apply to and for the purposes of earnings-related contributions.

Other methods of collection and recovery of earnings-related contributions

68

• (1) The Board may authorise arrangements under which earnings-related contributions are to be paid in a different manner from that prescribed by regulation 67.

• (2) The provisions of regulation 67 shall be in addition to any remedy otherwise available for the recovery of earnings-related contributions.

Transfer of liability from secondary contributor to employed earner: relevant employment income

69

Schedule 5 contains provisions which have effect with respect to elections made jointly by a secondary contributor and an employed earner that the liability of the secondary contributor in respect of relevant employment income shall be transferred to the employed earner.

Payment of Class 1A contributions

70

• (1) In the cases prescribed by paragraph (2), contributions shall be paid to the Board in accordance with regulations 71 to 83.

• (2) The cases prescribed by this paragraph are cases where an employer is liable to pay a Class 1A contribution to the Board.

• (3) For the purposes of this regulation and regulations 71 to 83where—

• (a) any payment to the Board is made by cheque; and

• (b) the cheque is paid on its first presentation to the banker on whom it is drawn,

the payment shall be treated as made on the day on which the cheque was received by the Board, and related expressions shall be construed accordingly.

• (4) In this regulation, and in regulations 71 to 83, “employer” means the person liable, in accordance with section 10(2) or 10ZA(4) of the Act, to pay a Class 1A contribution.

Due date for payment of a Class 1A contribution

71

• (1) Subject to regulation 40C(2), 40D(2), 72(2) or 73(2), as the case may be, an employer who is liable to pay a Class 1A contribution to the Board shall pay that contribution to them not later than 19th July or, where payment is made by an approved method of electronic communications in respect of earnings paid after 5th April 2004, not later than 22nd July in the year immediately following the end of the year in respect of which it is payable.

• (2) A Class 1A contribution paid to the Board in accordance with paragraph (1) shall be shown in a return made to them in accordance with regulation 80(1).

Provisions relating to a Class 1A contribution due on succession to business

72

• (1) Paragraphs (2) and (3) apply in relation to the payment of a Class 1A contribution if—

• (a) there is a change in the employer who is liable to pay ... earnings to or for the benefit of all the persons who are employed in a business in respect of their employment in that business; and

• (b) the employees in question are those who ceased to be employed in that business before the change of employer occurred.

• (2) Not later than 14 days or, where payment is made by an approved method of electronic communications in respect of earnings paid after 5th April 2004, 17 days after the end of the relevant final tax month, the employer shall pay to the Board—

• (a) any Class 1A contribution referred to in paragraph (1) in respect of the relevant final year; and

• (b) where the relevant final tax month is the month beginning on 6th April, 6th May or 6th June, any Class 1A contribution referred to in paragraph (1) in respect of the year immediately preceding the relevant final year.

• (3) The employer shall include the amount of any Class 1A contribution which is payable in accordance with paragraph (2)(a) in the return required by regulation 80(1) for the relevant final year.

• (4) In this regulation—

• “business” includes any trade, concern or undertaking;

• “emoluments” means so much of a person’s remuneration or profits derived from employed earner’s employment as constitutes earnings for the purposes of the Act; and

• “employer” means the employer before the change referred to in paragraph (1)(a);

• ...

• “relevant final tax month” means the tax month in which the employer has made any payments of emoluments which were, by reason of the change of employer referred to in paragraph (1)(a) in respect of the employment of all those persons who were employed by him in that tax month, the final payment of ... earnings to be made by him in the year in which those payments were made; ...

• “relevant final year” means the year in which the relevant final income tax month occurs.

Provisions relating to a Class 1A contribution due on cessation of business

73

• (1) Paragraphs (2) and (3) apply in relation to the payment of a Class 1A contribution if—

• (a) an employer ceases to carry on business and upon that cessation no other person becomes liable to pay ... earnings to or for the benefit of any employee in respect of his employment in that business; and

• (b) the employees are all those who were employed in that business at any time in the relevant final year or the year immediately preceding the relevant final year.

• (2) Not later than 14 days or where payment is made by an approved method of electronic communications in respect of earnings paid after 5th April 2004, 17 days after the end of the relevant final tax month, the employer shall pay to the Board—

• (a) any Class 1A contribution referred to in paragraph (1) in respect of the relevant final year; and

• (b) where the relevant final tax month is the month beginning on 6th April, 6th May or 6th June any Class 1A contribution referred to in paragraph (1) in respect of the year immediately preceding the relevant final year.

• (3) The employer shall include the amount of any Class 1A contribution which is payable in accordance with paragraph (2)(a) in the return required by regulation 80 for the relevant final year.

• (4) In this regulation—

• “business” includes any trade, concern or undertaking;

• “employer” means the employer before the cessation of business referred to in paragraph (1)(a);

• ...

• “relevant final tax month” means the tax month in which the employer has made any payments of emoluments which were, by reason of the cessation of business referred to in paragraph (1)(a) in respect of the employment of all those persons who were employed by him in that tax month, the final payment of ... earnings to be made by him in the year in which those payments were made; ...

• “emoluments” means so much of a person’s remuneration or profits derived from employed earner’s employment as constitutes earnings for the purposes of the Act;

• “relevant final year” means the year in which the relevant final tax month occurs.

Employer failing to pay a Class 1A contribution

74

• (1) If—

• (a) the employer has paid no amount of a Class 1A contribution to the Board by the date which applies to him under regulation 71(1), 72(2) or 73(2) (as the case may be); and

• (b) the Board are unaware of the amount, if any, which the employer is liable so to pay, they may give notice to the employer requiring him to render, within 14 days, a return in the prescribed form showing the amount of a Class 1A contribution which the employer is liable to pay to them under that regulation in respect of the year in question.

• (2) A notice may be given by the Board under paragraph (1) notwithstanding that an amount of a Class 1A contribution has been paid to them by the employer under regulation 71(1), 72(2) or 73(2), in respect of the year in question, if they are not satisfied that the amount so paid is the full amount which the employer is liable to pay to them for that year and the provisions of this regulation shall have effect accordingly.

• (3) Upon receipt of a return made by an employer under paragraph (1) the Board may prepare a certificate showing the amount of a Class 1A contribution which the employer is liable to pay to them for the year in question.

• (4) The production of the return made by the employer under paragraph (1) and of the certificate of the Board under paragraph (3) shall be sufficient evidence that the amount shown in the certificate is the amount of a Class 1A contribution which the employer is liable to pay to the Board in respect of the year in question.

• (5) Any document purporting to be a certificate under paragraph (3) shall be presumed to be such a certificate until the contrary is proved.

Specified amount of a Class 1A contribution

75

• (1) If, following the date which applies to him under regulation 71(1), 72(2) or 73(2) (as the case may be), the employer has paid no amount of a Class 1A contribution to the Board in respect of the year in question and there is reason to believe that the employer is liable so to pay, the Board—

• (a) in the case of the first year in which the employer is liable to pay such a contribution, upon consideration of any information which has been provided to them by the employer relating to his liability to pay such contributions; or

• (b) in the case of any later year, upon consideration of the employer’s record of past payments;

may to the best of their judgment specify the amount of a Class 1A contribution which they consider the employer is liable to pay and give notice to him of that amount.

• (2) If, on the expiration of the period of 7 days allowed in the notice, the specified amount of a Class 1A contribution or any part of that amount is unpaid, the amount so unpaid—

• (a) shall be treated for the purposes of these Regulations to be an amount of a Class 1A contribution which the employer was liable to pay in respect of the year in question in accordance with regulation 71(1), 72(2) or 73(2); and

• (b) may be certified by the Board.

• (3) Paragraph (2) does not apply if, during the period allowed in the notice—

• (a) the employer pays to the Board the full amount of a Class 1A contribution which he is liable to pay under regulation 71(1), 72(2) or 73(2), in respect of the year in question; or

• (b) the employer satisfies the Board that no amount of such a contribution is due.

• (4) The production of a certificate such as is mentioned in paragraph (2)(b) shall, until the contrary is established, be sufficient evidence that the employer is liable to pay to the Board the amount shown in the certificate, and any document purporting to be such a certificate shall be deemed to be such a certificate until the contrary is proved.

• (5) A notice may be given by the Board under paragraph (1) notwithstanding that an amount of a Class 1A contribution has been paid to them by the employer under regulation 71(1), 72(2) or 73(2) in respect of the year in question, if, after seeking the employer’s explanation as to the amount of a Class 1A contribution paid, they are not satisfied that the amount so paid is the full amount which the employer is liable to pay to them in respect of that year, and this regulation shall have effect accordingly, but paragraph (2) shall not apply if, during the period allowed in the notice, the employer satisfies the Board that no further amount of a Class 1A contribution is due in respect of that year.

• (6) Where, during the period allowed in a notice given by the Board under paragraph (1), the employer claims, but does not satisfy the Board, that the payment of a Class 1A contribution made in respect of the year specified in the notice is the full amount of a Class 1A contribution which he is liable to pay to the Board in respect of that year, the employer may require the Board to inspect his documents and records as if they had called upon him to produce those documents and records in accordance with Schedule 36 to the Finance Act 2008 (information and inspection powers).

• (7) If the employer does require the Board to inspect his documents and records in accordance with paragraph (6), the provisions of paragraph 26A of Schedule 4 shall apply in relation to that inspection and the notice given by the Board under paragraph (1) shall be disregarded.

Interest on an overdue Class 1A contribution

76

• (1) Where an employer has not paid a Class 1A contribution, which he is liable to pay, by the date which applies to him under regulation 71(1), 72(2) or 73(2) (as the case may be), any contribution not so paid shall carry interest at the rate applicable under paragraph 6(3) of Schedule 1 to the Act from the reckonable date until payment.

• (2) Interest payable under this regulation shall be recoverable as if it were a Class 1A contribution which an employer is liable to pay to the Board under regulation 71(1), 72(2) or 73(2), as the case may be).

• (3) A contribution to which paragraph (1) applies shall carry interest from the reckonable date even if that date is a non-business day within the meaning of section 92 of the Bills of Exchange Act 1882.

• (4) A certificate of the Board that any amount of interest payable under this regulation has not been paid to the Board or, to the best of the Board’s knowledge and belief, to any person acting on their behalf, shall be sufficient evidence that the employer is liable to pay to the Board the amount of interest shown on the certificate and that the sum is unpaid and due to be paid, and any document purporting to be such a certificate shall be deemed to be a certificate until the contrary is proved.

• (5) For the purposes of this regulation, “the reckonable date” means the 19th July or where payment is made by an approved method of electronic communications in respect of earnings paid after 5th April 2004, the 22nd July in the year immediately following the end of the year in respect of which the Class 1A contribution is payable to the Board.

Payment of interest on a repaid Class 1A contribution

77

• (1) Where—

• (a) a Class 1A contribution paid by an employer to the Board in respect of the year ended 5th April 1999 or any subsequent year is repaid to him; and

• (b) that repayment is made after the relevant date,

any such repaid contribution shall carry interest at the rate applicable under paragraph 6(3) of Schedule 1 to the Act from the relevant date until the order for the repayment is issued.

• (2) For the purposes of this regulation, “the relevant date” means—

• (a) the 14th day after the end of the year in respect of which the Class 1A contribution was paid; or

• (b) if later than that day, the date on which the contribution was paid.

Repayment of interest paid on a Class 1A contribution

78

If an employer has paid interest on a Class 1A contribution, that interest shall be repaid to him where—

• (a) the interest paid is found not to have been due to be paid, although the contribution in respect of which it was paid was due to be paid;

• (b) the Class 1A contribution in respect of which interest was paid is returned or repaid to the employer in accordance with the provisions of regulation 52 or 55.

Remission of interest on a Class 1A contribution

79

• (1) Where interest is payable in accordance with regulation 76 it shall be remitted for the period commencing on the first relevant date and ending on the second relevant date in the circumstances specified in paragraph (2).

• (2) For the purposes of paragraph (1), the circumstances are that the liability, or a greater liability, to pay interest in respect of a Class 1A contribution arises as the result of an official error being made.

• (3) For the purposes of this regulation—

• “official error” means a mistake made, or something omitted to be done, by an officer of, or person employed in relation to, the Board acting as such, where the employer or any person acting on his behalf has not caused, or materially contributed to, that mistake or omission;

• “the first relevant date” means the date defined in regulation 76(5) or, if later, the date on which the official error occurs; and

• “the second relevant date” means the date 14 days after the date on which the official error is rectified and the employer is advised of its rectification.

Return by employer

80

• (1) Where a Class 1A contribution is payable to the Board in accordance with regulation 71(1), 72(2) or 73(2), the employer shall render to them a return, not later than 6th July following the end of the year, showing—

• (a) such particulars as they may require for the identification of the employer;

• (b) the year to which the return relates;

• (c) the amounts which are general earnings in respect of which a Class 1A contribution is payable; and

• (d) the amount of any Class 1A contribution payable in respect of that year.

• (1A) The employer must render the return required by paragraph (1)—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) by delivering it to an official computer system by an approved method of electronic communications.

• (1AA) Paragraph (1A) does not apply if the employer is one to whom paragraph 21D(1) of Schedule 4 (exceptions from making electronic real time information returns) applies but in those circumstances the employer must render the return by sending it to HMRC.

• (1AB) Despite paragraph (1A), where regulation 73 (provisions relating to Class 1A contribution due on cessation of business) applies to an employer, that employer may choose to render the return required by paragraph (1) in accordance with paragraph (1A)(b) or by sending it to HMRC.

• (1B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (1C) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (1D) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (1E) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (1F) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (2) The return shall include a declaration by the person making the return to the effect that the return is, to the best of his knowledge, correct and complete.

• (3) The declaration must be—

• (a) signed by the employer; or,

• (b) where the employer is a body corporate, signed either by the secretary or by a director.

• (3A) Where the return referred to in this regulation is rendered as mentioned in paragraph (1A)(b) the declaration must, instead of being signed, be authenticated by or on behalf of the employer in such a manner as may be approved by HMRC.

• (4) If, by the date which applies to him under regulation 71(1), 72(2) or 73(2) (as the case may be), an employer has failed to pay a Class 1A contribution which he is liable to pay, the Board may prepare a certificate showing the total amount of a Class 1A contribution remaining unpaid in respect of the year in question and regulation 76(1) and (2) shall, with any necessary modifications, apply to the amount shown in that certificate.

• (5) This regulation is subject to regulations 40C(2) and 40D(2).

Penalties for failure to make a return and incorrect returns

81

• (1) Schedule 24 to the Finance Act 2007 (penalties for errors) applies to the return of contributions referred to in regulation 80(1) (return by employer) as if—

• (a) Class 1A contributions were a tax; and

• (b) that tax and the return of contributions in relation to it were listed in the table in paragraph 1 of that Schedule.

• (1A) That Schedule also applies to decisions made under section 8(1)(c) of the Social Security Contributions (Transfer of Functions, etc) Act 1999 regarding Class 1A contributions and for that purpose a reference in the Schedule to an assessment is to be treated as if it included a reference to a decision and “under-assessment” shall be construed accordingly.

• (1B) Paragraphs (6) to (9) do not apply in relation to penalties under paragraphs (1) and (1A).

• (2) Any person who fails to make a return referred to in paragraph (1) by the date which applies to him under regulation 71(1), 72(2) or 73(2), may be liable—

• (a) within 6 years after the date of that failure, to a penalty of the relevant monthly amount for each month (or part of a month) during which the failure continues but excluding any month after the twelfth, or for which a penalty under this paragraph has already been imposed; and

• (b) if the failure continues beyond 12 months, to a penalty not exceeding so much of the amount payable by him in accordance with the regulations for the year to which the return relates as remains unpaid at the end of 19th July after the end of that year.

• (3) The penalty referred to in paragraph (2)(b) is without prejudice to any penalty which may be imposed under paragraph (2)(a) and may be imposed within six years after the date of the failure referred to in paragraph (2) or at any later time within three years of the final determination of the amount of a Class 1A contribution by reference to which the amount of that penalty is to be ascertained.

• (4) For the purposes of paragraph (2), “the relevant monthly amount” in the case of a failure to make a return is—

• (a) where the number of earners in respect of whom particulars of the amount of any Class 1A contribution payable should be included in the return is 50 or less, £100; or

• (b) where that number is greater than 50, £100 for each 50 such earners and an additional £100 where that number is not a multiple of 50.

• (5) The total penalty payable under paragraph (2)(a) shall not exceed the total amount of Class 1A contributions payable in respect of the year to which the return in question relates.

• (6) Any penalty imposed in accordance with this regulation shall be recoverable as if it were a Class 1A contribution which the employer is liable to pay to the Board under regulation 71.

• (7) A penalty imposed in accordance with this regulation shall be due and payable at the end of 30 days beginning with the date on which notice of the decision to impose it was issued.

• (8) The Board may, in their discretion, mitigate any penalty, or stay or compound any proceedings for any penalty, imposed in accordance with the provisions of this regulation, and may also, after judgment, further mitigate or entirely remit such a penalty.

• (9) For the purposes of this regulation a person shall be deemed not to have failed to have done anything required to be done within a limited time if he—

• (a) did it within such further time as the Board allowed; or

• (b) had a reasonable excuse for the failure and if that excuse ceased, did it without unreasonable delay after that excuse ceased.

Application of the Management Act to penalties for failure to make a return and incorrect returns

82

• (1) Section 100 of the Management Act (determination of penalties by an officer of the Board) shall apply with any necessary modifications in relation to the determination of any penalty under regulation 81 as it applies to the determination of a penalty under the Taxes Acts.

• (2) Section 100D of the Management Act (penalty proceedings before court) shall apply with any necessary modifications in relation to any proceedings for a penalty under regulation 81 as it applies to proceedings for a penalty under the Taxes Acts.

• (3) Section 104 of the Management Act (saving for criminal proceedings) shall apply with any necessary modifications in relation to the provisions of regulation 81 as it applies to the provisions of the Taxes Acts.

• (4) Section 105 of the Management Act (evidence in cases of fraudulent conduct) shall apply with any necessary modifications in respect of any proceedings for a penalty under regulation 81, or on appeal against the determination of such a penalty, as it applies in relation to any proceedings for a penalty, or on appeal against the determination of a penalty, under the Management Act.

• (5) In this regulation—

• “the Management Act” means the Taxes Management Act 1970 ; and

• “the Taxes Acts” has the same meaning as in section 118(1) of the Management Act (interpretation) .

Set-off of Class 1A contributions falling to be repaid against earnings-related contributions

83

• (1) In the circumstance prescribed by paragraph (2), an amount in respect of a Class 1A contribution that falls to be repaid in accordance with these Regulations may be set off against liabilities under them to the extent prescribed in paragraph (3).

• (2) The circumstance is that an employer has paid to the Board in accordance with regulations 70 to 82 an amount, in respect of Class 1A contributions, which he was not liable to pay.

• (3) The extent of the set-off is that the employer shall be entitled to deduct the amount which he was not liable to pay in respect of Class 1A contributions from any payment in respect of secondary earnings-related contributions which he is subsequently liable to pay to a Collector under paragraph 10 or 11 of Schedule 4 for any income tax period in the same year.

• (4) In this regulation “Collector”, “income tax period” and “year” have the meanings given in paragraph 1(2) of Schedule 4.

Special provisions relating to primary Class 1 contributions

84

• (1) If in accordance with an arrangement authorised under regulation 68, notwithstanding paragraph 3(1) of Schedule 1 to the Act (method of paying Class 1 contributions), an earner is required to make direct payments in respect of primary Class 1 contributions in respect of earnings paid to him or for his benefit, the following provisions of this regulation apply.

• (2) In a case to which this regulation applies—

• (a) the earner shall be liable for such of the primary Class 1 contributions as are specified in the arrangements authorised under regulation 68, and

• (b) the secondary contributor shall be liable for any other Class 1 contributions,

in respect of earnings paid to the earner or for the earner’s benefit from the employment in question.

• (3) The Board shall notify the secondary contributor in writing of—

• (a) the arrangement,

• (b) the contributions for which, notwithstanding the arrangement, he will remain accountable to the Board, and

• (c) the period to which the arrangement relates (“the relevant period”).

• (4) During the relevant period, paragraph 3(1) of Schedule 1 to the Act (method of paying Class 1 contributions) shall not apply to the secondary contributor in respect of those contributions—

• (a) to which the arrangement relates, and

• (b) for which he would otherwise have been accountable to the Board,

unless and until the arrangement has been cancelled before the end of the period and the secondary contributor has been notified in writing of its cancellation.

Exception in relation to earnings to which regulation 84 applies

85

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Special provisions relating to culpable employed earners and to secondary contributors or employers exempted by treaty etc., from enforcement of the Act or liability under it

86

• (1) As respects any employed earner’s employment—

• (a) where there has been a failure to pay any primary contribution which a secondary contributor is, or but for the provisions of this regulation would be, liable to pay on behalf of the earner and the failure was due to an act or default of the earner and

• (i) not to any negligence on the part of the secondary contributor, or

• (ii) it is shown to the satisfaction of an officer of the Board that the earner knows that the secondary contributor has wilfully failed to pay the primary contribution which the secondary contributor was liable to pay on behalf of the earner and has not recovered that primary contribution from the earner

• (b) where the secondary contributor is a person against whom, by reason of any international treaty or convention as mentioned in paragraph 30 of Schedule 4, the provisions of the Act are not enforceable and who is not willing to pay on behalf of the earner any contribution due in respect of earnings paid to or for the benefit of the earner in respect of that employment,

the provisions of paragraph 3(1) of Schedule 1 to the Act (method of paying Class 1 contributions) shall not apply in relation to that contribution.

• (2) Where, as respects any employed earner’s employment the employer is a person who by reason of any such international treaty or convention is exempt from the provisions of the Act, he may, if he so wishes, pay contributions in respect of any earnings paid to or for the benefit of the earner in respect of the employment, or contributions under section 10 of the Act..., in either case to the same extent to which he could have paid such contributions if he had not been so exempt.

• (3) In this regulation “employer” has the same meaning as it has in paragraph 30 of Schedule 4.

Notification of commencement or cessation of payment of Class 2 or Class 3 contributions

87

• (1) Every person to whom paragraph (2) applies shall immediately notify the relevant date to the Board in writing or by such means of electronic communications as may be approved.

• (2) This paragraph applies to a person who on or before 5th April 2009—

• (a) becomes, or ceases to be, liable to pay a Class 2 contribution;

• (b) becomes, or ceases to be, entitled to pay a Class 2 contribution although not liable to do so; or

• (c) is entitled to pay a Class 3 contribution and wishes either to do so or to cease doing so.

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

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

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

• (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Notification of change of address

88

A person to whom section 11(5B) of the Act (class 2 contributions treated as paid) applies; or paying Class 2 contributions ... or Class 3 contributions, shall immediately notify the Board of any change of his address in writing or by such means of electronic communications as may be approved.

Method of, and time for, payment of Class 2 and Class 3 contributions etc.

89

• (1) Where Class 2 or Class 3 contributions are payable by a person other than in accordance with the Taxes Management Act 1970 (as modified by section 11A of the Act) or in accordance with, arrangements approved under regulation 90 or in accordance with regulation 90ZA or 148C, such contributions shall be paid in accordance with paragraph... (2A), (3) or (4), as the case may be.

• (1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (2A) Where—

• (a) a person who is entitled, although not liable, to pay a Class 2 contribution in any year has notified HMRC of his entitlement in accordance with the provisions of regulation 87, 87A or 87AA; and

• (b) HMRC has, no later than the notification date, issued him with written notice of the amount he may pay in respect of his entitlement in that period;

that person may, if the person so wishes, pay to HMRC a sum not exceeding that amount.

• (3) Where—

• (a) a person ... who is entitled to pay a Class 3 contribution, in any year, has notified HMRC of his entitlement in accordance with the provisions of regulation 87, 87A or 87AA; and

• (b) HMRC, within 14 days after the end of a contribution quarter which commences in that year, have issued him with written notice of the amount he may pay in respect of his entitlement in that quarter;

that person may, if he so wishes, pay to the Board a sum not exceeding that amount.

• (4) Where—

• (a) paragraph (5) ... applies to a person; and

• (b) HMRC have then, in respect of that ... entitlement to pay Class 2 or Class 3 contributions, issued or re-issued him, as the case may be, with written notice of ... the amount of his entitlement;

that person ... may pay a sum not exceeding the amount of his entitlement, to HMRC.

• (5) This paragraph applies to a person who—

• (a) has notified HMRC in accordance with the provisions of regulation 87, 87A or 87AA that—

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

• (ii) he is entitled although not liable to pay a Class 2 contribution in a tax year, or is entitled to pay a Class 3 contribution in a contribution quarter; and

• (b) has—

• (i) not, by the notification date, had written notice issued to him in respect of that week or weeks of the kind referred to in paragraph (2A);

• (ii) not had written notice issued to him in respect of that week or weeks of a kind mentioned in paragraph (3) and more than 14 days have elapsed since the end of the contribution quarter in question; or

• (iii) notified HMRC in accordance with regulation 87, 87A or 87AA that he has ... ceased to be entitled to pay Class 2 or Class 3 contributions....

• (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (7) In this regulation—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

• (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (d) “contribution quarter” means one of the four periods of not less than 13 contribution weeks commencing on the first, fourteenth, twenty-seventh or fortieth contribution week, as the case may be, in any year;

• (e) “notification date” means 31st October following the end of the tax year.

Arrangements approved by the Board for method of, and time for, payment of Class 2 and Class 3 contributions

90

• (1) The Board may from time to time approve arrangements under which contributions are paid at times or in a manner different from those prescribed by regulation 89.

• (2) When granting approval under paragraph (1), the Board may impose such conditions as they see fit.

• (3) The Board may, in particular, grant approval under paragraph (1) if, as respects any year in which a person is both an employed earner and a self-employed earner, the condition in paragraph (4) is satisfied.

• (4) The condition is that the Board are satisfied that the total amounts of primary Class 1 contributions and Class 2 contributions likely to be paid by or in respect of that person in respect of that year will exceed the amount equal to 53 primary Class 1 contributions payable on earnings at the upper earnings limit for that year at the main primary percentage.

• (5) The provisions of these Regulations shall, subject to the provisions of the arrangements, apply to the person affected by the arrangements.

• (6) Where in respect of an earner arrangements are approved under paragraph (1) for payment of contributions by way of direct debit of a bank, those arrangements shall be subject to the condition that any payment by way of direct debit on account of such contributions after the authority of the bank to make such payment has for any reason ceased to be effective, shall not be a payment of contributions for the purposes of the Act.

PART 8 — CLASS 4 CONTRIBUTIONS

Exception from Class 4 liability of persons over pensionable age and persons not resident in the United Kingdom

91

Any earner who—

• (a) at the beginning of a year of assessment is over pensionable age; or

• (b) for the purposes of income tax is not resident in the United Kingdom in the year of assessment;

shall be excepted from liability for contributions under section 15 of the Act (Class 4 contributions).

Exception of divers and diving supervisors from liability for Class 4 contributions

92

A person who performs the duties of an employment to which section 314 of the Taxes Act applies (divers and diving supervisors) shall be excepted from liability for contributions under section 15 of the Act on so much of his profits or gains as are derived from that employment.

Exception of persons under the age of 16 from liability for Class 4 contributions

93

• (1) Where, as respects any year of assessment, a person to whom this regulation applies wishes to be excepted from liability to pay contributions under section 15 of the Act for that year, the following provisions of this regulation shall apply, subject to the provisions of regulations 97 and 98.

• (2) Any such person shall make application to the Board for a certificate of exception for that year.

• (3) If it is shown to the satisfaction of the Board that the applicant is a person to whom this regulation applies and the application is made before the beginning of the year of assessment to which it relates, the Board shall issue in respect of the applicant such a certificate of exception for that year.

• (4) If the application is not made until the beginning of the year of assessment to which it relates, but is made before contributions under that section 15 of the Act for that year become due and payable and it is shown to the satisfaction of the Board that the applicant is a person to whom this regulation applies, the Board may issue in respect of the applicant a certificate of exception for that year.

• (5) Where under paragraphs (1) to (4) a certificate of exception has been issued in respect of an applicant for any year of assessment, the Board shall not collect any contributions under section 15 of the Act from the applicant for that year.

• (6) This regulation applies to any person who at the beginning of the year of assessment is under the age of 16.

Exception from Class 4 liability by reference to Class 1 contributions paid on earnings chargeable to income tax under Schedule D

94

• (1) If, for any year of assessment—

• (a) an earner has earnings from employment which is employed earner’s employment; and

• (b) those earnings are chargeable to income tax under Schedule D;

the earner shall be excepted from liability to pay contributions under section 15 of the Act on those earnings.

• This is subject to the following qualification.

• (2) It shall be a condition of exception from liability that the earner makes an application for such an exception to the Board before the beginning of the year of assessment to which the application relates, or before such later date as the Board may allow.

• (3) An application under paragraph (2) shall be made in such manner as the Board may direct and, for the purpose of enabling the Board to determine whether the earner is entitled to the exception, the earner shall furnish the Board with such information and evidence as the Board may require, whether the requirement is made at the time of the application or later.

• (4) Without prejudice to the earner’s right to any such exception, nothing in paragraphs (1) to (3) shall affect the Board’s powers under regulation 95 to defer, pending the determination of the application, the earner’s liability under section 15 of the Act.

Deferment of Class 4 liability where such liability is in doubt

95

Where, as respects any year of assessment before the tax year 2015-16, it appears to the Board that, by virtue of the provisions of this Part, there is doubt as to the extent, if any, of an earner’s liability to pay contributions under section 15 of the Act (Class 4 contributions) for that year, or that at the date on which any application under regulation 96 is made, it is not possible to determine whether, having regard to the provisions of these Regulations, the earner is or will be liable to pay such contributions for that year, the Board may issue in respect of the earner a certificate of deferment deferring that earner’s liability for such contributions and for such period as the Board may direct.

Application for deferment of Class 4 liability

96

• (1) If a person wishes his liability to pay contributions under section 15 of the Act for any year of assessment to be deferred, he shall make an application for that purpose to the Board.

• (2) Any such application—

• (a) shall be made before the beginning of that year or before such later date as the Board may allow; and

• (b) is subject to regulations 97 and 98.

General conditions for application for, and issue of, certificates of exception and deferment

97

• (1) Any application made under any of regulations 91 to 96, for a certificate of exception from, or deferment of, liability to pay contributions under section 15 of the Act for any particular year of assessment shall be made in such form and in such manner as the Board may approve.

• (2) Any person making such application shall furnish, or cause to be furnished, to the Board such information or evidence as they may require for the purpose of enabling them to determine whether such a certificate should be issued in respect of that person.

• (3) On the issue of such a certificate the person in respect of whom the certificate is issued shall be excepted from liability to pay the contributions to which the certificate relates or his liability for such payment shall be deferred.

• (4) If, for the purpose of obtaining a certificate of exception or deferment, the person making the application furnishes or causes to be furnished to the Board information which is erroneous, or fails to furnish or cause to be furnished to them information which is relevant, and but for such furnishing or failure the certificate would not have been issued for any particular year of assessment—

• (a) the Board may revoke the certificate in so far as it relates to that year; and

• (b) the person who made the application shall be liable to pay contributions under section 15 of the Act for that year to the extent to which he would have been so liable if the certificate had not been issued.

Revocation of certificates of exception and deferment

98

Where under regulation 97(4)(a) the Board revoke a certificate of exception or deferment—

• (a) they shall be responsible for calculating the contributions due under section 15 of the Act for the year specified in paragraph 97(4)(b) (being the current or a past year) and for the collection of those contributions;

• (b) the applicant shall—