The Social Security (Contributions) (Amendment No. 2) Regulations 2005

• Citation: S.I. 2005/728
• Sections: 4

Section 1 Citation, commencement and effect

These Regulations may be cited as the Social Security (Contributions) (Amendment No. 2) Regulations 2005, shall come into force on 6th April 2005 and have effect in relation to payments of earnings made in respect of the academic year beginning on 1st September 2005 and subsequent academic years.

Section 2 Amendment of the Social Security (Contributions) Regulations 2001

The Social Security (Contributions) Regulations 2001 are amended as follows.

Section 3 Amendment of regulation 40

(1) Amend regulation 40 (prescribed general earnings in respect of which Class 1A contributions are not payable) as follows.

(2) In paragraph (2), after sub-paragraph (a) insert—

(ab) in Part 7, paragraph 12;

Section 4 Amendment of Part 7 of Schedule 3

(1) Part 7 of Schedule 3 to the principal Regulations (payments in respect of training and similar courses disregarded in the computation of employed earner’s earnings) is amended as follows.

(2) At the end add the following paragraph—

Payments made by employers to earners in full-time attendance at universities &c.

(12)

(1) A payment to an employed earner receiving full-time instruction at a university, technical college or similar educational establishment (within the meaning of section 331 of the Taxes Act) if the conditions in sub-paragraphs (2) to (6) are satisfied, but subject to the exclusion in sub-paragraph (7).

(2) The employed earner must have enrolled at the educational establishment for a course lasting at least one academic year at the time when payment is made.

(3) The secondary contributor must require the employed earner to attend the course for an average of at least twenty weeks in an academic year.

(4) The educational establishment—

(a) must be open to members of the public generally,

(b) must offer more than one course of practical or academic instruction.

(5) The educational establishment must not be run by—

(a) the secondary contributor, or a person who would be treated by section 839 of the Taxes Act as connected with him; or

(b) a trade organisation of which the secondary contributor is a member.

(6) The total amount of earnings payable to the earner in respect of his attendance, including lodging, travelling and subsistence allowances, but excluding any tuition fees, must not exceed £15,000 in respect of an academic year.

(7) This paragraph does not apply to any payment made by the secondary contributor to the employed earner for, or in respect of, work done for the secondary contributor by the earner (whether during vacations or otherwise).

(8) This paragraph has effect in respect of payments made in relation to the academic year beginning on 1st September 2005 and subsequent academic years.

(9) In this paragraph—

“academic year” means the period beginning on 1st September of one calendar year and ending on 31st August of the following calendar year.

“trade organisation” means an organisation of secondary contributors (in their capacity as employers) the members of which carry on a particular profession or trade for the purposes of which the organisation exists.