These Regulations may be cited as the Social Security (Contributions) (Amendment No 7) Regulations 2000 and shall come into force on 1st September 2000.

In paragraph (1) of regulations 19 of the Social Security (Contributions) Regulations 1979 (payments to be disregarded) after sub-paragraph (za) insert—

“(zaa)    any amount in respect of expenditure which by virtue of section 200E of the Income and Corporation Taxes Act 1988 (exemption for education and training funded by employers) is not taken to be included in the emoluments of the employee from the office or employment for the purposes of Schedule E;”.

Jim Dowd

Greg Pope

Two of the Lords Commissioners of Her Majesty's Treasury

28th July 2000

The Secretary of State hereby concurs

P Hollis

Parliamentary Under-Secretary of State for Social Security

29th July 2000

These Regulations amend the Social Security (Contributions) Regulations 1979 (SI 1979/591).

Regulation 2 inserts a new sub-paragraph (zaa) into regulation 19(1) of the 1979 Regulations (payments to be disregarded in the computation of earnings). The new sub-paragraph relates to payments made by an employer to an employee's individual learning account (for which grants are payable under section 108 of the Learning and Skills Act 2000 (c 21) or the equivalent Scottish provision. Such payments by employers are to be disregarded in computing the amount of the employee's earnings for the purposes of earnings-related contributions. To qualify for disregard, the payment must be taken not to be included in computing the emoluments of the office or employment for income tax purposes by virtue of section 200E (exemptions for education and training funded by employers) of the Income and Corporation Taxes Act 1988 (c 1).