Making of deductions or refunds
To the extent that the appropriate amount is attributable to secondary Class 1
contributions payable in respect of earnings paid in a tax year it may be
deducted from any one or more Class 1 contributions payments made by P in
respect of that tax year.
If the amount which P would be entitled to deduct under this section exceeds
the amount of the payments from which it can be deducted, HMRC must
instead refund the excess to P if P requests them to do so.
No deduction or refund may be made under this section until an application
has been submitted to, and granted by, HMRC.
An application must contain such information, and must be made in such form
and manner, as is specified by HMRC.
No application may be made for a refund in respect of a qualifying employee
after the end of the period of 4 years beginning with the day on which the last
deduction could be made in respect of the qualifying employee.
Part 2 of the Social Security Contributions (Transfer of Functions, etc.)
Part 3 of the Social Security Contributions (Transfer of Functions, etc.)
(Northern Ireland) Order 1999 (S.I. 1999/671),
(decisions and appeals), the decisions to which this subsection applies are
decisions of an officer of Revenue and Customs under section 8 of that Act or
Subsection (6) applies to—
a decision whether P is or was entitled to make a deduction under this
section and, if so, the amount that P is or was entitled to deduct, and
a decision whether P is entitled to a refund under this section and, if so,
the amount of the refund.
This section applies where P is or was entitled to make a deduction under
section 8 in respect of a qualifying employee.
P must keep and preserve any documents or records relating to—
P’s entitlement to make a deduction in respect of the employee, and
the calculation of any amount that has been, or could have been,
for not less than 3 years beginning with the date on which the last deduction
under section 8 is, or could be, made in respect of the employee.
Accordingly, the duty imposed by paragraph 26(1) of Schedule 4 to the 2001
Regulations (retention by employer of contribution and election records) does
not apply to any such documents or records.
The duty imposed by this section may be discharged by preserving the
documents or records in any form or by any means.
For the purposes of Schedule 36 to the Finance Act 2008 (information and
inspection powers), as applied by section 110ZA of SSAA 1992 and section
104ZA of SSA(NI)A 1992, the duty imposed by this section is to be treated as if
it were a duty imposed under or by virtue of SSCBA 1992 or SSCB(NI)A 1992.
This Part does not apply if P starts the new business pursuant to avoidance
Arrangements are “avoidance arrangements” if the main purpose, or one of the
main purposes, of P in being a party to them is to secure that activities which
might otherwise have been carried on as part of another business (whether by
P or any other person) are carried on by P as part of the new business in order
to obtain deductions or refunds (or increased deductions or refunds) under
Interpretation of Part 2
“the 2001 Regulations” means the Social Security (Contributions)
Regulations 2001 (S.I. 2001/1004);
“the appropriate amount” is to be read in accordance with section 7;
“arrangements” includes any agreement, understanding, scheme,
transaction or series of transactions (whether or not legally
“Class 1 contributions payments” means payments under—
paragraph 10 of Schedule 4 to the 2001 Regulations (monthly
paragraph 11 of that Schedule (quarterly payments);
“the Eastern Region” means—
the counties of Bedford, Cambridgeshire, Central Bedfordshire,
Essex, Hertfordshire, Norfolk and Suffolk, and
the non-metropolitan districts of Luton, Peterborough,
Southend-on-Sea and Thurrock;
“the excluded regions” has the meaning given by section 4(5);
“HMRC” means the Commissioners for Her Majesty’s Revenue and
“holiday period” has the meaning given by section 6(4);
“qualifying employee” has the meaning given by section 6;
“the relevant period” has the meaning given by section 4(4);
“the South East Region” means—
the counties of Buckinghamshire, East Sussex, Hampshire, the
Isle of Wight, Kent, Oxfordshire, Surrey and West Sussex, and
the non-metropolitan districts of Bracknell Forest, Brighton and
Hove, Medway, Milton Keynes, Portsmouth, Reading, Slough,
Southampton, West Berkshire, Windsor and Maidenhead and
Expressions used in this Part and in Part 1 of SSCBA 1992 or SSCB(NI)A 1992
have the same meaning for the purposes of this Part as they have for the
“SSAA 1992” means the Social Security Administration Act 1992;
“SSA(NI)A 1992” means the Social Security Administration (Northern
“SSCBA 1992” means the Social Security Contributions and Benefits Act
“SSCB(NI)A 1992” means the Social Security Contributions and Benefits
(Northern Ireland) Act 1992.
Part 1 comes into force on 6 April 2011.
Part 2 and this Part come into force on the day on which this Act is passed.
The amendments made by Part 1 have the same extent as the provisions to
Part 2 and this Part extend to England and Wales, Scotland and Northern
This Act may be cited as the National Insurance Contributions Act 2010.