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	United Kingdom Statutory Instruments
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" Exception from Class 4 liability in respect of certain amounts chargeable to income tax under Schedule D
     94A. Where  - 


(a) an earner has earnings from employment which is employed earner's employment; and

(b) an amount representing those earnings is included in the calculation of the profits chargeable to income tax under Schedule D,



the earner shall be excepted from liability to pay contributions under section 15 of the Act (Class 4 contributions)[8] on that amount.".

     5.  - (1) Schedule 3 is amended as follows.

    (2) For paragraphs 5 and 6 of Part 5 (certain non-cash vouchers to be disregarded as payments in kind) substitute - 

     " 5. A non-cash voucher in respect of which no liability to income tax arises by virtue of section 266(1) of ITEPA 2003[9] to the extent that the voucher is used to obtain anything the direct provision of which would fall within any of the following provisions of that Act - 


(a) section 246 (transport between work and home for disabled employees: general);

(b) section 247 (provision of cars for disabled employees);

(c) section 248 (transport home: late night working and failure of car-sharing arrangements).



     5A. A non-cash voucher in respect of which no liability to income tax arises by virtue of section 266(2) of ITEPA 2003 if the voucher evidences entitlement to use anything the direct provision of which would fall within any of the following provisions of that Act - 



(a) section 242 (works transport services);

(b) section 243 (support for public bus services);

(c) section 244 (cycles and cyclist's safety equipment).



     5B. A non-cash voucher in respect of which no liability to income tax arises by virtue of section 266(3) of ITEPA 2003 if the voucher can be used only to obtain anything the direct provision of which would fall within any of the following provisions of that Act - 



(a) section 245 (travelling and subsistence during public transport strikes);

(b) section 261 (recreational benefits);

(c) section 264 (annual parties and functions);

(d) section 296 (armed forces' leave travel facilities);

(e) section 317 (subsidised meals).



     6. A non-cash voucher to the extent that no liability to income tax arises by virtue of any of the following sections of ITEPA 2003 - 



(a) section 270 (exemption for small gifts of vouchers and tokens from third parties);

(b) section 305 (offshore oil and gas workers: mainland transfers);

(c) section 321 (suggestion awards);

(d) section 323 (long service awards);

(e) section 324 (small gifts from third parties).".

    (3) For paragraph 9 of Part 7 (payments disregarded in respect of training and similar courses) [10] substitute - 

" Return to Work Credit
     9. A payment made to a participant in a Return to Work Credit Scheme, arranged under section 2(1) of the Employment and Training Act 1973[11] in his capacity as such.".

Jim Murphy

Nick Ainger
Two of the Lords Commissioners of Her Majesty's Treasury

18th November 2003



The Secretary of State concurs. Signed by authority of the Secretary of State.


Chris Pond
Parliamentary Under-Secretary of State, Department for Work and Pensions

14th November 2003



The Department for Social Development concurs.Sealed with the Official Seal of the Department for Social Development on


13th November 2003.

L.S.

John O'Neill
Senior Officer of the Department for Social Development

Nick Montagu

Helen Ghosh
Two of the Commissioners of Inland Revenue

14th November 2003

[2] 1992 c. 7 ("the 1992 Northern Ireland Act"). Section 3(2) was amended by paragraph 3 of Schedule 3 to the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 (S.I. 1999/671) ("the Transfer Order"). The functions of the Department of Health and Social Services for Northern Ireland under the 1992 Northern Ireland Act were transferred to the Department for Social Development by Article 8(b) of, and Part II of Schedule 6 to, the Departments (Transfer and Assignment of Functions) Order (Northern Ireland) 1999 (S.R. 1999 No. 481).back

[3] The only relevant amendment to paragraph 8 of Schedule 1 is that in paragraph 39 of Schedule 3 to the Transfer Act.back

[4] The only relevant amendment to paragraph 8 of Schedule 1 is that in paragraph 38 of Schedule 3 to the Transfer Order.back

[5] Section 17(1)(a) was amended by paragraph 6(a) of Schedule 1, paragraph 17 of Schedule 3 and Schedule 10 to the Transfer Act; and paragraphs 1 and 4 of Schedule 1 to the National Insurance Contributions Act 2002 (c. 19).back

[6] Section 17(1) was amended by paragraph 7(a) of Schedule 1, paragraph 17(2) of Schedule 3, and Schedule 9 to the Transfer Order and paragraph 23(2) of Schedule 1 to the National Insurance Contributions Act 2002.back

[7] S.I. 2001/1004: relevant amendments were made by S.I. 2003/193 and 2340. Regulation 156(3) provides a rule of construction in relation to Northern Ireland for references in the principal Regulations to enactments applying only to Great Britain.back

[8] Section 15 was amended by section 13 of the Limited Liability Partnerships Act 2000 (c. 12) and section 3(1) of the National Insurance Contributions Act 2002.back

[9] I.e. the Income Tax (Earnings and Pensions) Act 2003 (c. 1): a definition of "ITEPA 2003" was inserted into section 122(1) of the Social Security Contributions and Benefits Act 1992 by paragraph 178(2) of Schedule 6 of ITEPA 2003 and into section 121(1) of the 1992 Northern Ireland Act by paragraph 199(2) of that Schedule.back

[10] Paragraph 9 of Part 7 was added by regulation 2(3) of S.I. 2003/2340.back

[11] 1973 c. 50: section 2 was substituted by section 25(1) of the Employment Act 1988 (c. 19). There are amendments to section 2 which are not relevant for present purposes.back

  Prepared 26 November 2003