(1)A person has a pay bill for a tax year if, in the tax year—
(a)the person is the secondary contributor in relation to payments of earnings to, or for the benefit of, one or more employed earners, and
(b)in consequence, the person incurs liabilities to pay secondary Class 1 contributions.
(2)The amount of the person's pay bill for the tax year is equal to the total amount of the earnings in respect of which the liabilities mentioned in subsection (1)(b) are incurred.
(3)For the purposes of this section a person is treated as incurring, in respect of any earnings, any liabilities which the person would incur but for the condition in section 6(1)(b) of the Contributions and Benefits Act.
(4)The Treasury may by regulations provide for persons specified in certificates in force under section 120(4) of the Social Security Contributions and Benefits Act 1992 (employment at sea: continental shelf operations) to be treated for the purposes of this section as the secondary contributor in relation to payments of earnings to which the certificate relates and as liable to pay secondary Class 1 contributions to which the certificate relates.
(5)For the purposes of this section—
(a)references to “payments of earnings” are to be interpreted as they would be interpreted for the purposes of determining liability to pay secondary Class 1 contributions under the Contributions and Benefits Act;
(b)the amount of any earnings is to be calculated in the same manner and on the same basis as for the purpose of calculating the liabilities mentioned in subsection (1)(b).
(6)In this section references to liability to pay secondary Class 1 contributions are to liability to pay secondary Class 1 contributions under Part 1 of the Contributions and Benefits Act [F1(including a case where the amount of a liability to pay a secondary Class 1 contribution is £0)].
Textual Amendments
F1Words in s. 100(6) substituted (15.3.2022) by National Insurance Contributions Act 2022 (c. 9), s. 9