2019 No. 1009

Social Security

The Social Security (Contributions) (Amendment No. 2) Regulations 2019

Made

Laid before Parliament

Coming into force

These Regulations are made by the Treasury in exercise of the powers conferred by sections 3(2) and (3) of the Social Security Contributions and Benefits Act 19921 and sections 3(2) and (3) of the Social Security Contributions and Benefits (Northern Ireland) Act 19922 and now exercisable by them.

The Secretary of State and the Department for Communities concur in the making of regulation 2 of these Regulations.

Citation and commencement1

These Regulations may be cited as the Social Security (Contributions) (Amendment No. 2) Regulations 2019 and come into force on 2nd July 2019.

Amendment of the Social Security (Contributions) Regulations 20012

In Part 8 of Schedule 3 to the Social Security (Contributions) Regulations 2001 (payments to be disregarded in the calculation of earnings for the purposes of earnings-related contributions)3, after paragraph 12C insert—

12DHM Forces’ Accommodation Allowance

A payment to which no liability to income tax arises by virtue of section 297D of ITEPA 2003 (armed forces: accommodation allowances)4.

Jeremy QuinRebecca HarrisTwo of the Lords Commissioners of Her Majesty’s Treasury

The Secretary of State concurs.

Signed by authority of the Secretary of State for Work and Pensions

Guy OppermanParliamentary Under-Secretary of State for Pensions and Financial InclusionDepartment for Work and Pensions

The Department for Communities concurs.

Sealed with the Official Seal of the Department for Communities on 5th June 2019

Anne McClearyA senior officer of the Department for Communities
EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Social Security (Contributions) Regulations 2001 (S.I. 2001/1004) (“the Contributions Regulations”). They come into force on 2nd July 2019.

Schedule 3 to the Contributions Regulations provides for certain payments to be disregarded in the calculation of earnings for the purpose of establishing liability to Class 1 National Insurance contributions.

Regulation 2 of these Regulations inserts a new paragraph 12D into Part 8 of Schedule 3 to the Contributions Regulations so that payments of accommodation allowances made to, or in respect of, a member of the armed forces of the Crown and in respect of which no liability to income tax arises by virtue of section 297D of the Income Tax (Earnings and Pensions) Act 2003 (c. 1) are disregarded for this purpose.

A Tax Information and Impact Note covering the amendments made by this instrument was published on 22nd November 2017 and is available at https://www.gov.uk/government/publications/income-tax-armed-forces-accommodation-allowance-exemption/income-tax-armed-forces-accommodation-allowance-exemption. It remains an accurate summary of the impacts that apply to this instrument.