ESM2501 - Offices: legislation
Section 19(1)1 ICTA 1988/Section 5 ITEPA 2003
Sections 2(1) and 7 SS Contributions and Benefits Act 1992
SS (Categorisation of Earners) Regulations 1978 (SI 1978 No. 1689) Regulation 2 and paragraph 10 in Part III of Schedule 1
Tax
(Periods to 5 April 2003) - Under Section 19(1)1 ICTA 1988, tax
is chargeable under Schedule E in respect of any
office or employment on emoluments therefrom which
fall under one or more of the three cases.
(Periods from 6 April 2003) - Under Section 5 ITEPA 2003,
the provisions of the employment income Parts of ITEPA that are
expressed to apply to employments apply equally to offices, unless
otherwise indicated.
NICs
Class 1 NICs are payable where an employed earner is gainfully
employed in Great Britain either under a contract of service or in
an office (including electiveoffice) with emoluments chargeable to income tax under
Schedule E/asemployment income. And there will still be a Class
1 NICs liability even if the tax is charged in a different way. For
example, where the emoluments/earnings from the office are, by
concession (SE02500/EIM02500) or administrative practice
(SE03000/EIM03002), included as professional receipts under
Schedule D. Such treatment does not alter the fact that, legally,
the emoluments/earnings are chargeable to tax under Schedule E/as
employment income.
Also, there are special NICs rules for some offices. For
instance,
ESM2502 refers to the office of Returning
Officer. Although an office, any employment as a Returning Officer
is disregarded for NICs purposes (although not for tax).
Section 7 C&B Act 1992 provides that the secondary
contributor is either
- such person as may be prescribed (that is, set out in regulations); or
- if no such person is prescribed, the government department, public authority or body of persons responsible for paying the emoluments of the office
