Clauses 71 and 72
of the Bill and the corresponding amendments have been reproduced here
for ease of reference.
| Earnings
of workers supplied by service companies etc. |
71.
After section 4 of the Contributions and Benefits Act there shall
be inserted-
|
| |
| "Earnings
of workers supplied by service companies etc. |
4A.
- (1) Regulations may make provision for securing that where-
|
| |
(a) an
individual ("the worker") in any specified circumstances personally
performs, or is under an obligation personally to perform,
services for the purposes of a business carried on by another
person ("the client"), and
|
| |
(b) the
performance of those services by the worker is (within the
meaning of the regulations) referable to a contract between
the client and a third party,
|
| |
relevant
payments or benefits are, to the specified extent, to be treated
for the purposes of the applicable provisions of this Act as
earnings paid to the worker in respect of an employed earner's
employment of his (where they would not be such earnings apart
from the regulations).
|
| |
(2)
Subsection (1) above applies-
|
| |
(a) whether
or not the client is a person with whom the worker holds any
office or employment; and
|
| |
(b) whether
or not there is any contract between the third party and the
worker.
|
| |
(3)
Regulations under this section may, in particular, make provision-
|
| |
(a) for
the worker to be treated for the purposes of the applicable
provisions of this Act, in relation to relevant payments or
benefits, as employed in employed earner's employment by the
client;
|
| |
(b) for
the client to be treated for those purposes as the secondary
contributor in respect of any earnings which are treated as
paid to the worker in connection with relevant payments or
benefits;
|
| |
|
| |
(i)
any deductions to be made, and
|
| |
(ii)
in other respects the manner and basis in and on which the
amount of earnings that the worker is to be treated as having
been paid for any period is to be calculated or estimated,
|
| |
in connection
with relevant payments or benefits;
|
| |
(d) for
apportioning payments or benefits of any specified description,
in such manner or on such basis as may be specified, for the
purpose of determining the part of any such payment or benefit
which is to be treated as a relevant payment or benefit for
the purposes of the regulations;
|
| |
(e) for
disregarding for the purposes of the applicable provisions
of this Act, in relation to relevant payments or benefits,
an employed earner's employment in which the worker is employed
(whether by the third party or otherwise) to perform the services
in question;
|
| |
(f) for
otherwise securing that a double liability to pay any amount
by way of a contribution of any description does not arise
in relation to a particular payment or benefit or (as the
case may be) a particular part of a payment or benefit;
|
| |
(g) for
securing that, to the specified extent, two or more connected
persons (within the meaning of section 839 of the Income and
Corporation Taxes Act 1988) are treated as a single person
for any purposes of the regulations;
|
| |
(h) (without
prejudice to paragraph (g) above) for securing that a contract
made with a person other than the client is to be treated
for any such purposes as made with the client;
|
| |
(i) for
excluding or modifying the application of the regulations
in relation to such cases, or payments or benefits of such
description, as may be specified.
|
| |
(4)
Regulations under this section may make provision for securing
that, in applying any provisions of the regulations, any term
of a contract or other arrangement which appears to be of a
description specified in the regulations is to be disregarded.
|
| |
(5)
Any regulations made in pursuance of subsection (3)(i) above
may be framed by reference to-
|
| |
(a) any
certification procedure which may be established by the Treasury
for the purposes of that provision, or
|
| |
(b) such
certification procedure established by the Inland Revenue
as may be specified;
|
| |
and
any regulations made in pursuance of section 2(2) above or section
7(2) below may also be framed by reference to any certification
procedure such as is mentioned in paragraph (a) or (b) above.
|
| |
(6)
In this section-
|
| |
"the applicable
provisions of this Act" means this Part of this Act and Parts
II to V below;
|
| |
"business"
includes any activity carried on-
|
| |
(a)
by a government department or public or local authority
(in the United Kingdom or elsewhere), or
|
| |
(b)
by a body corporate, unincorporated body or partnership;
|
| |
"relevant
payments or benefits" means payments or benefits of any specified
description made or provided (whether to the third party or
the worker or otherwise) in connection with the performance
by the worker of the services in question;
|
| |
"specified"
means prescribed by or determined in accordance with regulations
under this section;
|
| |
|
| |
(a)
any person with whom the worker holds any office or employment,
and
|
| |
(b)
any body corporate, unincorporated body or partnership of
which the worker is a member.
|
| |
(7)
Any reference in this section to the performance by the worker
of any services includes a reference to any such obligation
of his to perform them as is mentioned in subsection (1)(a)
above.
|
| |
(8)
Regulations under this section shall be made by the Treasury
with the concurrence of the Secretary of State.
|
| |
(9)
If, on any modification of the statutory provisions relating
to income tax, it appears to the Treasury to be expedient to
modify any of the preceding provisions of this section for the
purpose of assimilating the law relating to income tax and the
law relating to contributions under this Part of this Act, the
Treasury may with the concurrence of the Secretary of State
by order make such modifications of the preceding provisions
of this section as the Treasury think appropriate for that purpose."
|
|
| Earnings
of workers supplied by service companies etc: Northern Ireland |
72.
After section 4 of the Social Security Contributions and Benefits
(Northern Ireland) Act 1992 there shall be inserted-
|
| |
| "Earnings
of workers supplied by service companies etc. |
4A.
- (1) Regulations may make provision for securing that where-
|
| |
(a) an
individual ("the worker") in any specified circumstances personally
performs, or is under an obligation personally to perform,
services for the purposes of a business carried on by another
person ("the client"), and
|
| |
(b) the
performance of those services by the worker is (within the
meaning of the regulations) referable to a contract between
the client and a third party,
|
| |
relevant
payments or benefits are, to the specified extent, to be treated
for the purposes of the applicable provisions of this Act as
earnings paid to the worker in respect of an employed earner's
employment of his (where they would not be such earnings apart
from the regulations).
|
| |
(2)
Subsection (1) above applies-
|
| |
(a) whether
or not the client is a person with whom the worker holds any
office or employment; and
|
| |
(b) whether
or not there is any contract between the third party and the
worker.
|
| |
(3)
Regulations under this section may, in particular, make provision-
|
| |
(a) for
the worker to be treated for the purposes of the applicable
provisions of this Act, in relation to relevant payments or
benefits, as employed in employed earner's employment by the
client;
|
| |
(b) for
the client to be treated for those purposes as the secondary
contributor in respect of any earnings which are treated as
paid to the worker in connection with relevant payments or
benefits;
|
| |
|
| |
(i)
any deductions to be made, and
|
| |
(ii)
in other respects the manner and basis in and on which the
amount of earnings that the worker is to be treated as having
been paid for any period is to be calculated or estimated,
|
| |
in connection
with relevant payments or benefits;
|
| |
(d) for
apportioning payments or benefits of any specified description,
in such manner or on such basis as may be specified, for the
purpose of determining the part of any such payment or benefit
which is to be treated as a relevant payment or benefit for
the purposes of the regulations;
|
| |
(e) for
disregarding for the purposes of the applicable provisions
of this Act, in relation to relevant payments or benefits,
an employed earner's employment in which the worker is employed
(whether by the third party or otherwise) to perform the services
in question;
|
| |
(f) for
otherwise securing that a double liability to pay any amount
by way of a contribution of any description does not arise
in relation to a particular payment or benefit or (as the
case may be) a particular part of a payment or benefit;
|
| |
(g) for
securing that, to the specified extent, two or more connected
persons (within the meaning of section 839 of the Income and
Corporation Taxes Act 1988) are treated as a single person
for any purposes of the regulations;
|
| |
(h) (without
prejudice to paragraph (g) above) for securing that a contract
made with a person other than the client is to be treated
for any such purposes as made with the client;
|
| |
(i) for
excluding or modifying the application of the regulations
in relation to such cases, or payments or benefits of such
description, as may be specified.
|
| |
(4)
Regulations under this section may make provision for securing
that, in applying any provisions of the regulations, any term
of a contract or other arrangement which appears to be of a
description specified in the regulations is to be disregarded.
|
| |
(5)
Any regulations made in pursuance of subsection (3)(i) above
may be framed by reference to-
|
| |
(a) any
certification procedure which may be established by the Treasury
for the purposes of that provision, or
|
| |
(b) such
certification procedure established by the Inland Revenue
as may be specified;
|
| |
and
any regulations made in pursuance of section 2(2) above or section
7(2) below may also be framed by reference to any certification
procedure such as is mentioned in paragraph (a) or (b) above.
|
| |
(6)
In this section-
|
| |
"the applicable
provisions of this Act" means this Part of this Act and Parts
II to V below;
|
| |
"business"
includes any activity carried on-
|
| |
(a)
by a government department or public or local authority
(in the United Kingdom or elsewhere), or
|
| |
(b)
by a body corporate, unincorporated body or partnership;
|
| |
"relevant
payments or benefits" means payments or benefits of any specified
description made or provided (whether to the third party or
the worker or otherwise) in connection with the performance
by the worker of the services in question;
|
| |
"specified"
means prescribed by or determined in accordance with regulations
under this section;
|
| |
|
| |
(a)
any person with whom the worker holds any office or employment,
and
|
| |
(b)
any body corporate, unincorporated body or partnership of
which the worker is a member.
|
| |
(7)
Any reference in this section to the performance by the worker
of any services includes a reference to any such obligation
of his to perform them as is mentioned in subsection (1)(a)
above.
|
| |
(8)
Regulations under this section shall be made by the Treasury
with the concurrence of the Department.
|
| |
(9)
If, on any modification of the statutory provisions relating
to income tax, it appears to the Treasury to be expedient to
modify any of the preceding provisions of this section for the
purpose of assimilating the law relating to income tax and the
law relating to contributions under this Part of this Act, the
Treasury may with the concurrence of the Department by order
make such modifications of the preceding provisions of this
section as the Treasury think appropriate for that purpose."
|
|
| |
Clause 71 |
| |
BY THE BARONESS HOLLIS OF HEIGHAM |
| |
Page 75, line 5, leave out ("a contract between the client and a third
party,") and insert ("arrangements involving a third person (and not
referable to any contract between the client and the worker),") |
| |
Page 75, line 10, leave out from ("his") to end of line 11 |
| |
Page 75, leave out lines 12 to 16 and insert--
("(2) For the purposes of this
section--
(a) "the
intermediary" means--
(i) the
third person mentioned in subsection (1)(b) above, or
(ii) where
the third person does not have such a contractual or other relationship
with the worker as may be specified, any other person who has
both such a relationship with the worker and such a direct or
indirect contractual or other relationship with the third person
as may be specified; and
(b) a
person may be the intermediary despite being--
(i) a
person with whom the worker holds any office or employment, or
(ii) a
body corporate, unincorporated body or partnership of which the
worker is a member;
and subsection
(1) above applies whether or not the client is a person with whom
the worker holds any office or employment.") |
| |
Page 75, line 21, leave out ("relevant payments or benefits,") and
insert ("the specified amount of relevant payments or benefits (the
worker's "attributable earnings"),") |
| |
Page 75, line 22, leave out ("client") and insert ("intermediary") |
| |
Page 75, line 23, leave out ("client") and insert ("intermediary") |
| |
Page 75, line 24, leave out from ("of") to end of line 26 and insert
("the worker's attributable earnings";) |
| |
Page 75, line 30, leave out from ("of") to ("period") in line 32 and
insert ("the worker's attributable earnings for any specified") |
| |
Page 75, line 33, at end insert--
("( ) for
aggregating any such amount, for purposes relating to contributions,
with other earnings of the worker during any such period;
( ) for
determining the date by which contributions payable in respect of
the worker's attributable earnings are to be paid and accounted
for;")
|
| |
Page 75, line 44, leave out ("third party") and insert ("intermediary") |
| |
Page 76, line 1, at end insert ("persons, whether--
|
| |
Page 76, line 4, after ("1988)") insert (", or
(ii) persons
of any other specified description,")
|
| |
Page 76, line 12, at end insert--
("( ) Regulations made
in pursuance of subsection (3)(c) above may, in particular, make provision--
(a) for
the making of a deduction of a specified amount in respect of general
expenses of the intermediary as well as deductions in respect of
particular expenses incurred by him;
(b) for
securing reductions in the amount of the worker's attributable earnings
on account of--
(i) any
secondary Class 1 contributions already paid by the intermediary
in respect of actual earnings of the worker, and
(ii) any
such contributions that will be payable by him in respect of the
worker's attributable earnings.")
|
| |
Page 76, leave out lines 18 to 28 |
| |
Page 76, line 40, leave out ("third party") and insert ("intermediary") |
| |
Page 76, line 45, leave out from beginning to end of line 2 on page
77 |
| |
Clause 72 |
| |
BY THE BARONESS HOLLIS OF HEIGHAM |
| |
Page 77, line 28, leave out ("a contract between the client and a
third party,") and insert ("arrangements involving a third person
(and not referable to any contract between the client and the worker),") |
| |
Page 77, line 33, leave out from ("his") to end of line 34 |
| |
Page 77, leave out lines 35 to 39 and insert--
("(2) For the purposes of this
section--
(a) "the
intermediary" means--
(i) the
third person mentioned in subsection (1)(b) above, or
(ii) where
the third person does not have such a contractual or other relationship
with the worker as may be specified, any other person who has
both such a relationship with the worker and such a direct or
indirect contractual or other relationship with the third person
as may be specified; and
(b) a
person may be the intermediary despite being--
(i) a
person with whom the worker holds any office or employment, or
(ii) a
body corporate, unincorporated body or partnership of which the
worker is a member;
and subsection
(1) above applies whether or not the client is a person with whom
the worker holds any office or employment.") |
| |
Page 77, line 44, leave out ("relevant payments or benefits,") and
insert ("the specified amount of relevant payments or benefits (the
worker's "attributable earnings"),") |
| |
Page 77, line 45, leave out ("client") and insert ("intermediary") |
| |
Page 77, line 46, leave out ("client") and insert ("intermediary") |
| |
Page 77, line 47, leave out from ("of") to end of line 2 on page 78
and insert ("the worker's attributable earnings";) |
| |
Page 78, line 6, leave out from ("of") to ("period") in line 8 and
insert ("the worker's attributable earnings for any specified") |
| |
Page 78, line 9, at end insert--
("( ) for
aggregating any such amount, for purposes relating to contributions,
with other earnings of the worker during any such period;
( ) for
determining the date by which contributions payable in respect of
the worker's attributable earnings are to be paid and accounted
for;")
|
| |
Page 78, line 20, leave out ("third party") and insert ("intermediary") |
| |
Page 78, line 27, at end insert ("persons, whether--
|
| |
Page 78, line 30, after ("1988)") insert (", or
(ii) persons
of any other specified description,")
|
| |
Page 78, line 38, at end insert--
("( ) Regulations made
in pursuance of subsection (3)(c) above may, in particular, make provision--
(a) for
the making of a deduction of a specified amount in respect of general
expenses of the intermediary as well as deductions in respect of
particular expenses incurred by him;
(b) for
securing reductions in the amount of the worker's attributable earnings
on account of--
(i) any
secondary Class 1 contributions already paid by the intermediary
in respect of actual earnings of the worker, and
(ii) any
such contributions that will be payable by him in respect of the
worker's attributable earnings.")
|
| |
Page 78, line 44, leave out from beginning to end of line 6 on page
79 |
| |
Page 79, line 18, leave out ("third party") and insert ("intermediary") |
| |
Page 79, leave out lines 23 to 27 |
