Social Security Citation and commencement 1 These Regulations may be cited as the Social Security (Contributions) (Amendment No. 4) Regulations 2016 and come into force on 28th November 2016. Amendment of the Social Security (Contributions) Regulations 2001 2 The Social Security (Contributions) Regulations 2001 are amended as follows. 3 In regulation 40(2)(b) (prescribed general earnings in respect of which Class 1A contributions not payable), for “4, 5” substitute “4 to 5”. 4 1 Regulation 114 (application to employment in connection with continental shelf of Part I of the Act and so much of Part VI of the Act as relates to contributions) is amended as follows. 2 In paragraph (5)— a in sub-paragraph (c), for “regulation 5(1)(c) of the Merchant Shipping (Safe manning, Hours of Work and Watchkeeping) Regulations 1997” substitute “regulation 46(1)(c) of the Merchant Shipping (Standards of Training, Certification and Watchkeeping) Regulations 2015 ”; b for Table 1, substitute— Table 1 Column (A): capacity in which the continental shelf worker is employed Column (B): description of the certificate Master or chief mate on a ship of 3000 gross tonnage or more. A certificate which complies with regulation 6 of the Merchant Shipping Regulations. Master on a ship of between 500 gross tonnage and 2999 gross tonnage not engaged on near-coastal voyages. A certificate which complies with regulation 6 of the Merchant Shipping Regulations. Chief mate on a ship of between 500 gross tonnage and 2999 gross tonnage. A certificate which complies with regulation 6 of the Merchant Shipping Regulations. Officer in charge of an engineering watch in a manned engine-room, or designated duty engineer officer in a periodically unmanned engine-room, on a ship powered by main propulsion machinery of 750 kilowatts propulsion power or more. A certificate which complies with regulation 6 of the Merchant Shipping Regulations. Chief engineer officer and second engineer officer on a ship powered by main propulsion machinery of between 750 and 3000 kilowatts propulsion power. A certificate which complies with regulation 6 of the Merchant Shipping Regulations. Rating forming part of a navigational watch on a ship of 500 gross tonnage or more (who is not under training and whose duties are skilled in nature). A certificate which complies with regulation 14 of the Merchant Shipping Regulations. Rating forming part of an engine-room watch or designated to perform duties in a periodically unmanned engine-room on a ship powered by main propulsion machinery of 750 kilowatts propulsion power or more (who is not under training and whose duties are skilled in nature). A certificate which complies with regulation 15 of the Merchant Shipping Regulations. c in paragraph (6), for “the Merchant Shipping (Training and Certification) Regulations 1997” substitute “the Merchant Shipping (Standards of Training, Certification and Watchkeeping) Regulations 2015”. 5 In paragraph 6 of Part 5 to Schedule 3 (certain non-cash vouchers to be disregarded as payments in kind), after sub-paragraph (d), insert— da section 323A (trivial benefits provided by employers) . 6 In paragraph 3ZB of Part 8 of Schedule 3 (travel for necessary attendance: employment intermediaries) after sub-paragraph (6) insert— 6A Sub-paragraph (6B) applies if— a the client or a relevant person provides the employment intermediary (whether before or after the worker begins to provide the services) with a fraudulent document which is intended to constitute evidence that, by virtue of sub-paragraph (3), this paragraph does not or will not apply in relation to the services, b that paragraph is taken not to apply in relation to the services, and c in consequence, the employment intermediary does not under these Regulations deduct and account for an amount that would have been deducted and accounted for if this paragraph had been taken to apply in relation to the services. 6B For the purpose of recovering the amount referred to in sub-paragraph (6A)(c) (“the unpaid contributions”)— a the worker is to be treated as having an employment with the client or relevant person who provided the document, the duties of which consist of the services, and b the client or relevant person is under these Regulations to account for the unpaid contributions as if they arose in respect of earnings from that employment. 6C In sub-paragraphs (6A) and (6B) “relevant person” means a person, other than the client, the worker or a person connected with the employment intermediary, who— a is resident, or has a place of business, in the United Kingdom, and b is party to a contract with the employment intermediary or a person connected with the employment intermediary under or in consequence of which— i the services are provided, or ii the employment intermediary, or a person connected with the employment intermediary makes payments in respect of the services. . 7 After paragraph 29X of Part 3B of Schedule 4 (security for payment of Class 1 contributions: offences) insert— Part 3C CERTAIN DEBTS OF COMPANIES UNDER PARAGRAPH 3ZB OF PART 8 OF SCHEDULE 3 (TRAVEL EXPENSES OF WORKERS PROVIDING SERVICES THROUGH EMPLOYMENT INTERMEDIARIES) Interpretation of Part 3C: “relevant contributions debt” and “relevant date” 29Y 1 In this Part “relevant contributions debt”, in relation to a company means an amount within any of sub-paragraphs (2) to (5). 2 An amount within this sub-paragraph is an amount that the company is to account for in accordance with paragraph 3ZB(6A) to (6C) (persons providing fraudulent documents) . 3 An amount within this sub-paragraph is an amount which a company is to deduct and pay by virtue of paragraph 3ZB in circumstances where— a a company is an employment intermediary, b on the basis that paragraph 3ZB does not apply by virtue of sub-paragraph (3) of that paragraph the company has not deducted and paid the amount, but c the company has not been provided by any other person with evidence from which it would be reasonable in all the circumstances to conclude that sub-paragraph (3) of that paragraph applied (and the mere assertion by a person that the manner in which the worker provided the services was not subject to (or to the right of) supervision, direction or control by any person is not such evidence). 4 An amount within this sub-paragraph is an amount that the company is to deduct and pay in accordance with paragraph 3ZB in circumstances where sub-paragraph (4) of that paragraph applies (services provided under arrangements made by intermediaries). 5 An amount within this sub-paragraph is any interest or penalty in respect of an amount within any of sub-paragraphs (2) to (4) for which the company is liable. 6 In this paragraph “paragraph 3ZB” means paragraph 3ZB of Part 8 of Schedule 3 to these Regulations. 7 In this Part “the relevant date” in relation to a relevant contributions debt means the date on which the first payment is due on which contributions are not accounted for. Interpretation of Part 3C: general 29Z In this Part— “company” includes a limited liability partnership; “director” has the meaning given by section 67 of ITEPA 2003; “personal liability notice” has the meaning given by paragraph 29Z1(2); “the specified amount” has the meaning given by paragraph 29Z1(2)(a). Liability of directors for relevant contributions debts 29Z1 1 This paragraph applies in relation to an amount of relevant contributions debt of a company if the company does not deduct that amount by the time by which the company is required to do so. 2 HMRC may serve a notice (“personal liability notice”) on any person who was, on the relevant date, a director of the company— a specifying the amount of relevant contributions debt in relation to which this paragraph applies (“the specified amount”), and b requiring the director to pay HMRC— i the specified amount, and ii specified interest on that amount. 3 The interest specified in the personal liability notice— a is to be at the rate applicable under section 178 of the Finance Act 1989 for the purposes of section 86 of the Taxes Management Act 1970 , and b is to run from the date the notice is served. 4 A director who is served with a personal liability notice is liable to pay to HMRC the specified amount and the interest specified in the notice within 30 days beginning with the day the notice is served. 5 If HMRC serve personal liability notices on more than one director of the company in respect of the same amount of relevant contributions debt, the directors are jointly and severally liable to pay to HMRC the specified amount and the interest specified in the notices. Appeals in relation to personal liability notices 29Z2 1 A person who is served with a personal liability notice in relation to an amount of relevant contributions debt of a company may appeal against the notice. 2 A notice of appeal must— a be given to HMRC within 30 days beginning with the day the personal liability notice is served, and b specify the grounds of the appeal. 3 The grounds of appeal are— a that all or part of the specified amount does not represent an amount of relevant contributions debt, of the company, to which paragraph 29Z1 applies, or b that the person was not a director of the company on the relevant date. 4 But a person may not appeal on the ground mentioned in sub-paragraph (3)(a) if it has already been determined, on an appeal by the company, that— a the specified amount is a relevant contributions debt of the company, and b the company did not deduct, account for, or (as the case may be) pay the debt by the time by which the company was required to do so. 5 Subject to sub-paragraph (6), on an appeal that is notified to the tribunal, the tribunal is to uphold or quash the personal liability notice. 6 In a case in which the ground of appeal mentioned in sub-paragraph (3)(a) is raised, the tribunal may also reduce or increase the specified amount so that it does represent an amount of relevant contributions debt, of the company, to which paragraph 29Z1 applies. Withdrawal of personal liability notices 29Z3 1 A personal liability notice is withdrawn if the tribunal quashes it. 2 An officer of Revenue and Customs may withdraw a personal liability notice if the officer considers it appropriate to do so. 3 If a personal liability notice is withdrawn, HMRC must give notice of that fact to the person upon whom the notice was served. Recovery of sums due under personal liability notice: application of Part 6 of Taxes Management Act 1970 29Z4 1 For the purposes of this Part, Part 6 of the Taxes Management Act 1970 (collection and recovery) applies as if— a the personal liability notice were an assessment, and b the specified amount and any interest on that amount under paragraph 29Z1(2)(b)(ii) were income tax charged on the director upon whom the notice is served, and that Part of that Act applies with the modification in paragraph (2) and any other necessary modifications. 2 Summary proceedings for the recovery of the specified amount, and any interest on that amount under paragraph 29Z1(2)(b)(ii), may be brought in England and Wales or Northern Ireland at any time before the end of the period of 12 months beginning with the day after the day on which personal liability notice is served. Repayment of surplus amounts 29Z5 1 This paragraph applies if— a one or more personal liability notices are served in respect of an amount of relevant contributions debt of a company, and b the amounts paid to HMRC (whether by directors upon whom notices are served or the company) exceed the aggregate of the specified amount and any interest on it under paragraph 29Z1(2)(b)(ii). 2 HMRC is to repay the difference on a just and equitable basis and without unreasonable delay. 3 HMRC is to pay interest on any sum repaid. 4 The interest— a is to be at the rate applicable under section 178 of the Finance Act 1989 for the purposes of section 824 of the Taxes Act, and b is to run from the date the amounts paid to HMRC come to exceed the aggregate mentioned in sub-paragraph (1)(b). . Edward Troop Jennie Granger Two of the Commissioners of Her Majesty’s Revenue and Customs 2nd November 2016 Robert Syms Andrew Griffiths Two of the Lords Commissioners of Her Majesty’s Treasury 4th November 2016 The Secretary of State concurs as indicated in the preamble. Signed by authority of the Secretary of State for Work and Pensions Richard Harrington Minister of State Department for Work and Pensions 1st November 2016 The Department for Communities concurs as indicated in the preamble. Sealed with the Official Seal of the Department for Communities on 1st November 2016 Anne McCleary A senior officer of the Department for Communities 1st November 2016