SOCIAL SECURITY Citation, commencement and effect 1 1 These Regulations may be cited as the Social Security (Contributions) (Amendment No. 3) Regulations 2001 and shall come into force on 6th April 2001. 2 The amendment made by regulation 9 shall have effect in relation to any time in the tax year beginning with 6th April 2000, and to subsequent tax years, and the amendments made by the other provisions of these Regulations shall have effect in relation to the tax year beginning with 6th April 2001 and to subsequent tax years. Interpretation 2 In these Regulations “the principal Regulations ” means the Social Security (Contributions) Regulations 1979 , and, in the following provisions of these Regulations, except where otherwise expressly provided, a reference to a numbered regulation or Schedule is a reference to the regulation of, or Schedule to, the principal Regulations which bears that number. Amendment of the principal Regulations 3 Amend the principal Regulations in accordance with the following provisions of these Regulations. 4 In regulation 1(2) (interpretation) after the definition of “British ship” insert— “cash voucher” has the meaning given to it in section 143 of the Income and Corporation Taxes Act 1988 (cash vouchers taxable under PAYE ) ; . 5 For regulation 18 (calculation of earnings) substitute— Calculation of earnings for the purpose of earnings-related contributions 18 For the purpose of determining the amount of earnings-related contributions, the amount of a person’s earnings from employed earner’s employment shall be calculated on the basis of his gross earnings from the employment or employments in question. This is subject to the provisions of Schedule 1ZB (calculation of earnings for the purposes of earnings-related contributions in particular cases) and Schedule 1ZC to these Regulations (payments to be disregarded in the calculation of earnings). . 6 For regulation 19 (payments to be disregarded in the calculation of earnings) substitute— Payments to be disregarded in the calculation of earnings for the purpose of earnings-related contributions 19 Schedule 1ZC specifies payments which are to be disregarded in the calculation of earnings from employed earner’s employment for the purpose of earnings-related contributions. . 7 1 Amend regulation 22HA (prescribed emoluments in respect of which Class 1A contributions are not payable) as follows. 2 In paragraph (2), for the words from “by virtue of” to the end substitute— by virtue of the following provisions of Schedule 1ZC to these Regulations— in Part VI, paragraphs 4 to 7; in Part VIII, paragraphs 4, 5 and 12; in Part IX, paragraphs 2 to 7; and in Part X, paragraphs 5, 9 and 11 to 13. . 3 In paragraph (3)— a for “regulation 19(1)(d) of these Regulations” substitute “paragraph 1 of Part II of Schedule 1ZC to these Regulations (payments in kind)”; b for “regulation 19(1)(zg) of these Regulations” substitute “paragraph 3 of Part VIII of Schedule 1ZC to these Regulations (qualifying travelling expenses)”; and c for “regulation 19(4)(b) of these Regulations” substitute “paragraph 9 of Part VIII of Schedule 1ZC to these Regulations (specific and distinct expenses)”. 4 In paragraph (4) for “regulation 19(1)(zc)(ii) of these Regulations” substitute “paragraph 2(2)(b) of Part VIII of Schedule 1ZC to these Regulations (relocation expenses where the relevant change occurred before 6th April 1998)”. 5 In paragraph (7) for sub-paragraph (g) substitute— g A57 (staff suggestion schemes); . 8 In regulation 43D(2)(Class 2 and Class 3 contributions paid late through ignorance or error) for the words from “the amount of such a contribution” to the end substitute— the amount of that contribution shall be calculated by reference to the weekly rate at which a contribution paid under section 12 of the Social Security Contributions and Benefits Act 1992 would have been payable if it had been paid at the time when the period began. . 9 In regulation 119(2)(b) (conditions as to residence or presence in Great Britain and liability for Class 1A contribution) for “in respect of any car” substitute “in respect of something”. 10 After Schedule 1ZA (elections about share option gains) insert (as Schedule 1ZB) the Schedule set out in Schedule 1 to these Regulations. 11 After Schedule 1ZB (inserted by regulation 10 of these Regulations) insert (as Schedule 1ZC) the Schedule set out in Schedule 2 to these Regulations. 12 Omit Schedules 1A , 1B and 1C . Clive Betts Jim Dowd Two of the Lords Commissioners of Her Majesty’s Treasury 20th February 2001 The Secretary of State hereby concurs. Jeff Rooker Minister of State Department of Social Security 26th February 2001