SOCIAL SECURITY Citation and commencement 1 These Regulations may be cited as the Social Security (Contributions)(Amendment No. 5) Regulations 2002 and shall come into force on 28th November 2002. Interpretation 2 In these Regulations “the principal Regulations ” means the Social Security (Contributions) Regulations 2001 and “regulation” and “Schedule” mean a regulation of or Schedule to the principal Regulations, as the case may be. Amendments to the principal Regulations 3 In regulation 70(4) for the words from “includes” to the end substitute “means the person liable, in accordance with section 10(2) or 10ZA of the Act , to pay a Class 1A contribution”. 4 In paragraph 1(2) of Schedule 4 for the definition of “employer” substitute– “employer” means, subject to paragraph 3, the secondary contributor determined– by section 7 of the Act, or under regulation 5 of and Schedule 3 to the Social Security (Categorisation of Earners) Regulations 1978 , or under regulation 122; . 5 In paragraph 4 of Schedule 4 for “is required to pay” substitute “pays”. 6 After paragraph 4 of Schedule 4 insert– Intermediaries 4A 1 Where any payment of emoluments of an employee is made by an intermediary of the employer, the employer shall be treated, for the purposes of this Schedule other than– a paragraph 7(1), b paragraph 7(3)(a), c the references to a subsequent payment of emoluments or of monetary earnings in paragraph 7(3) and (8), and d paragraph 7(11), as making the payment of those emoluments to the employee. 2 For the purposes of this paragraph, a payment of emoluments of an employee is made by an intermediary of the employer if it is made– a either– i by a person acting on behalf of the employer and at the expense of the employer, or ii by a person connected with him, or b by trustees holding property for any persons who include, or class of persons which includes, the employee. 3 Section 839 of the Taxes Act (connected persons) applies for the purposes of this paragraph. 7 1 Amend paragraph 7 of Schedule 4 as follows. 2 In sub-paragraph (1) omit “thereon” and add at the end “(the “section 6(4)(a) amount”)”. 3 For sub-paragraph (3) substitute– 3 If the employer– a on making any payment of emoluments to an employee does not deduct from those emoluments the full section 6(4)(a) amount, or b is treated as making a payment of emoluments by paragraph 4A, he may recover, in a case falling within paragraph (a) the amount not so deducted or, in a case falling within paragraph (b) the section 6(4)(a) amount, by deduction from any subsequent payment of emoluments made by the employer to that employee during the same year. This sub-paragraph is subject to sub-paragraphs (4) and (5). 4 In sub-paragraph (4) insert at the end the following paragraph– ; or e the employer is treated as making a payment of emoluments by paragraph 4A. 5 In sub-paragraph (5)(b) after “sub-paragraphs” insert “in a case falling within paragraph (a) of any of those sub-paragraphs”. 6 In sub-paragraph (6) for the words from “amount” to the end substitute “section 6(4)(a) amount”. 7 For sub-paragraph (8) substitute– 8 Where, in the circumstances specified in sub-paragraph (6), the employer– a does not deduct from the earnings referred to in that sub-paragraph the full section 6(4)(a) amount, or b is treated as making a payment of emoluments by paragraph 4A, he may recover, in a case falling within paragraph (a) the amount not so deducted or, in a case falling within paragraph (b) the section 6(4)(a) amount, by deduction from any subsequent payment of monetary earnings to that employee, or ex-employee (as the case may be) during the same year. This sub-paragraph is subject to sub-paragraph (5). 8 In sub-paragraph (9)(c) for the words from “amount” to the end substitute “section 6(4)(a) amount”. Tim Flesher Dave Hartnett Two of the Commissioners of Inland Revenue 27th November 2002