DANSP02250 - Legislation: Regulation 3 of the Social Security Contributions (Managed Service Companies) Regulations 2007

The Social Security Contributions (Managed Service Companies) Regulations 2007 (SI 2007 No 2070)

Section 8(1)(m) of the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (the Transfer Act) makes provision for regulations to be made that prescribe decisions about National Insurance contributions (NIC) in addition to those listed in section 8(1)(a) to 8(1)(l) of the Transfer Act, see DANSP25800 for more information.

The Social Security Contributions (Managed Service Companies) Regulations 2007 (SI 2007 No 2070) took effect from 6 August 2007. The regulations allow HMRC to

  • treat the MSC as making to the worker, a payment or benefit which is treated as earnings from an employed earner’s employment, and
  • the worker is treated as receiving a payment or benefit which is treated as earnings from an employed earner’s employment
  • and the worker is treated, in relation to the payments or benefits treated as earnings, as employed in employed earner’s employment by the MSC, and
  • treat the MSC as the secondary contributor.

These regulations apply to the United Kingdom, which includes Great Britain and Northern Ireland.

Northern Ireland

Article 7 of the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 (SR 1999 No 671), for application in Northern Ireland, is equivalent to section 8 of the Transfer Act.