Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
Payment of Class 1 contributions
Paragraph 3 of Schedule 1 to the Social Security Contributions and Benefits Act 1992 (c. 4) (method of paying Class 1 contributions) is amended as follows.
In sub-paragraph (3) (deduction of contributions from earnings) for “sub-paragraph (4)” substitute “ sub-paragraphs (3A) to (5) ”.
After that sub-paragraph insert—
In sub-paragraph (4) (contributions in respect of ex-employees), in paragraph (b) for “earnings” to the end substitute “ or in the next tax year non-monetary earnings. ”
In sub-paragraph (5) (recovery of contributions in a case where sub-paragraph (4) applies) omit from “or” at the end of paragraph (a) to the end.
Paragraph 3 of Schedule 1 to the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7) (method of paying Class 1 contributions) is amended as follows.
In sub-paragraph (3) (deduction of contributions from earnings) for “sub-paragraph (4)” substitute “ sub-paragraphs (3A) to (5) ”.
After that sub-paragraph insert—
In sub-paragraph (4) (contributions in respect of ex-employees), in paragraph (b) for “earnings” to the end substitute “ or in the next tax year non-monetary earnings. ”
In sub-paragraph (5) (recovery of contributions in a case where sub-paragraph (4) applies) omit from “or” at the end of paragraph (a) to the end.
Schedule 1 to the Social Security Contributions and Benefits Act 1992 (c. 4) (supplementary provisions relating to Class 1 contributions) is amended as follows.
In paragraph 3A (restrictions on recovery of employer’s contributions)—
in sub-paragraph (2) for “a gain” to the end substitute “ relevant employment income of that earner. ”, and
after that sub-paragraph insert—
In paragraph 3B (transfer of liability to be borne by the earner)—
in sub-paragraph (1), in paragraph (a)—
for “share option gains by the earner” substitute “ relevant employment income of the earner ”, and
for “such gains” substitute “ such income ”,
after that sub-paragraph insert—,
in sub-paragraph (2)(b) for “share option gains by the earner, or the part of them” substitute “ relevant employment income of the earner, or the part of it ”,
in sub-paragraph (3) for “sub-paragraph (7)(b)” substitute “ sub-paragraphs (7)(b) and (7B) ”,
in sub-paragraph (7)(b) for “on share option” to the end substitute,
after sub-paragraph (7) insert—,
for sub-paragraph (10) substitute—, and
omit sub-paragraph (13).
The amendments made by this section have effect in relation to—
agreements entered into after the date of commencement of this section which are in respect of post-commencement employment income, and
elections made after that date.
For the purposes of subsection (4), “post-commencement employment income” means income which is relevant employment income within paragraph 3A(2B) of Schedule 1 to the Social Security Contributions and Benefits Act 1992 (c. 4) which, after the date of commencement of this section, counts as employment income for a tax year by virtue of Part 7 of the Income Tax (Earnings and Pensions) Act 2003 (c. 1).
Schedule 1 to the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7) (supplementary provisions relating to Class 1 contributions) is amended as follows.
In paragraph 3A (restrictions on recovery of employer’s contributions)—
in sub-paragraph (2) for “a gain” to the end substitute “ relevant employment income of that earner. ”, and
after that sub-paragraph insert—
In paragraph 3B (transfer of liability to be borne by the earner)—
in sub-paragraph (1), in paragraph (a)—
for “share option gains by the earner” substitute “ relevant employment income of the earner ”, and
for “such gains” substitute “ such income ”,
after that sub-paragraph insert—,
in sub-paragraph (2)(b) for “share option gains by the earner, or the part of them” substitute “ relevant employment income of the earner, or the part of it ”,
in sub-paragraph (3) for “sub-paragraph (7)(b)” substitute “ sub-paragraphs (7)(b) and (7B) ”,
in sub-paragraph (7)(b) for “on share option” to the end substitute,
after sub-paragraph (7) insert—,
for sub-paragraph (10) substitute—, and
omit sub-paragraph (13).
The amendments made by this section have effect in relation to—
agreements entered into after the date of commencement of this section which are in respect of post-commencement employment income, and
elections made after that date.
For the purposes of subsection (4), “post-commencement employment income” means income which is relevant employment income within paragraph 3A(2B) of Schedule 1 to the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7) which, after the date of commencement of this section, counts as employment income for a tax year by virtue of Part 7 of the Income Tax (Earnings and Pensions) Act 2003 (c. 1).
Method of recovery of contributions etc
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In section 121B(1) of that Act (time limit for compliance with certificate of non-payment of contributions, etc in Scotland), for “30 days” substitute “ 14 days ”.
In section 121C of that Act (liability of directors etc for company’s contributions), after subsection (8) insert—
After paragraph 7B of Schedule 1 to the Social Security Contributions and Benefits Act 1992 (c. 4) (collection of contributions otherwise than through PAYE system) insert—
For section 115A of the Social Security Administration (Northern Ireland) Act 1992 (c. 8) (recovery of contributions, etc) substitute—
In section 115B of that Act (liability of directors etc for company’s contributions), after subsection (8) insert—
After paragraph 7B of Schedule 1 to the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7) (collection of contributions otherwise than through PAYE system) insert—
Provision of information
For section 110ZA of the Social Security Administration Act 1992 (c. 5) (powers exercisable by officers of Inland Revenue) substitute—
For section 104ZA of the Social Security Administration (Northern Ireland) Act 1992 (c. 8) (powers exercisable by officers of Inland Revenue) substitute—
Statutory sick pay and statutory maternity pay
The Social Security Administration Act 1992 (c. 5) is amended as follows.
In section 130 (duties of employers: statutory sick pay and claims for other benefits), after subsection (4) insert—
In section 132 (duties of employers: statutory maternity pay and claims for other benefits), after subsection (3) insert—
In section 113 (breach of regulations), in subsection (1A)(b) omit “, statutory sick pay or statutory maternity pay”.
After that section insert—
The Social Security Administration (Northern Ireland) Act 1992 (c. 8) is amended as follows.
In section 122 (duties of employers: statutory sick pay and claims for other benefits), after subsection (4) insert—
In section 124 (duties of employers: statutory maternity pay and claims for other benefits), after subsection (3) insert—
In section 107 (breach of regulations), in subsection (1A)(b) omit “, statutory sick pay or statutory maternity pay”.
After that section insert—
Miscellaneous and general
Schedule 1 (which makes minor and consequential amendments) has effect.
The enactments and instruments mentioned in Schedule 2 are repealed or revoked to the extent specified.
The preceding provisions of this Act come into force in accordance with provision made by the Treasury by order.
The power to make an order under subsection (1) is exercisable by statutory instrument.
An order under this section—
may include incidental, supplementary, consequential or transitional provision or savings;
may make different provision for different purposes.
An amendment, repeal or revocation contained in Schedule 1 or 2 has the same extent as the enactment or instrument to which it relates.
Subject to subsections (1) to (3) this Act extends to England and Wales, Scotland and Northern Ireland.
This Act may be cited as the National Insurance Contributions and Statutory Payments Act 2004.
Minor and consequential amendments
The Social Security Contributions and Benefits Act 1992 (c. 4) is amended as follows.
In section 10A (Class 1B contributions), in subsection (4) for “6(2A) or 10(8A)” substitute “ 6(2) or 10(6) ”.
In section 18 (Class 4 contributions recoverable under regulations), in subsection (2)(b) after “6” insert “ or 7BZA ”.
The Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7) is amended as follows.
In section 10A (Class 1B contributions), in subsection (4) for “6(2A) or 10(8A)” substitute “ 6(2) or 10(6) ”.
In section 18 (Class 4 contributions recoverable under regulations), in subsection (2)(b) after “6” insert “ or 7BZA ”.
The Social Security Administration Act 1992 (c. 5) is amended as follows.
In section 111 (delay, obstruction etc of inspector)—
in subsection (3) after “by”, where it first occurs, insert “ virtue of ”, and
omit subsection (4).
In section 162 (destination of contributions)—
omit subsection (4ZA),
in subsection (4ZB) for “Subsections (4)(b) and (c) and (4ZA)” substitute “ Subsection (4)(b) and (c) ”, and
in subsection (4A) for “or 7B” substitute “ , 7B or 7BZA ”.
The Social Security Administration (Northern Ireland) Act 1992 (c. 8) is amended as follows.
In section 105 (delay, obstruction etc of inspector)—
in subsection (3) after “by”, where it first occurs, insert “ virtue of ”, and
omit subsection (4).
In section 142 (destination of contributions)—
omit subsection (4ZA),
in subsection (4ZB) for “Subsections (4)(b) and (c) and (4ZA)” substitute “ Subsection (4)(b) and (c) ”, and
in subsection (4A) for “or 7B” substitute “ , 7B or 7BZA ”.
Section 4 of the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2) (recovery of contributions where income tax recovery provisions not applicable) is amended as follows.
In paragraph (a) after each reference to “paragraph 6” insert “ or 7BZA ”.
Omit paragraph (b) and “and” immediately after it.
In paragraph (c) omit each reference to “or 7B” and at the end insert
Repeals and revocations
Repeals
In Schedule 1—in paragraph 3(5), the words from “or” at the end of paragraph (a) to the end, and paragraph 3B(13).
Section 111(4).
In section 113(1A)(b), the words “, statutory sick pay or statutory maternity pay”.
Section 162(4ZA).
Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7)
In Schedule 1—in paragraph 3(5), the words from “or” at the end of paragraph (a) to the end, and paragraph 3B(13).
Section 105(4).
In section 107(1A)(b) the words “, statutory sick pay or statutory maternity pay”.
Section 142(4ZA).
Section 4(b) and the word “and” immediately after it.
In section 4(c), the words “or 7B” each time they occur.
In Schedule 3, paragraph 52(5).
In Schedule 5, paragraphs 1 and 3.
Section 75(2).
Section 79(2).
In Schedule 6, paragraph 4(b).
Revocations
In Schedule 3, paragraph 45(6).
In Schedule 4, paragraphs 1, 3 and 8.