The Social Security (Contributions) (Amendment No. 2) Regulations 2025
The Social Security (Contributions) (Amendment No. 2) Regulations 2025, effective April 6th, 2025, amend the 2001 Social Security (Contributions) Regulations.
Specifically, they modify the reporting requirements for Real Time Information (RTI) employers.
The amendment clarifies that employers must report earnings information to HMRC unless employee earnings fall below either the lower earnings limit or the secondary threshold, whichever is lower.
This ensures consistent reporting even when the secondary threshold is below the lower earnings limit.
A Tax Information and Impact Note was deemed unnecessary due to the absence of substantive tax policy changes.
Arguments For
Improved Clarity and Compliance: The amendment clarifies reporting thresholds for RTI employers, reducing ambiguity and improving compliance with existing legislation.
Alignment with Tax Policy: The change ensures consistent reporting requirements regardless of the relationship between the lower earnings limit and secondary threshold.
Streamlined Administration: The changes facilitate more efficient processing and reduce the potential for errors in reporting to HMRC.
Legal Basis: The regulations are made under the authority of sections 175(4) of and Schedule 1 to the Social Security Contributions and Benefits Act 1992 and corresponding sections of the Northern Ireland Act 1992.
Arguments Against
Minimal Impact: The amendment is a relatively minor technical adjustment; some might argue resources could be better allocated to more significant policy changes.
Unnecessary Complexity: Critics might argue that introducing a new threshold reference introduces unnecessary complexity to the existing regulation.
Administrative Burden: Whilst aiming for increased efficiency, changes could place a small additional administrative burden on businesses, particularly smaller employers.
The Commissioners for His Majesty’s Revenue and Customs make the following Regulations in exercise of the powers conferred by section 175(4) of, and paragraphs 2 and 6(1) of Schedule 1 to, the Social Security Contributions and Benefits Act 1992 1 and by section 171(4) and (10) of, and paragraphs 2 and 6(1) of Schedule 1 to, the Social Security Contributions and Benefits (Northern Ireland) Act 19922 and now exercisable by them3.
This introductory section states that the Commissioners of His Majesty's Revenue and Customs (HMRC) created these regulations.
They have the legal authority to do so under specific sections of the Social Security Contributions and Benefits Act 1992 (for England, Wales, and Scotland) and the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (for Northern Ireland).
These Regulations may be cited as the Social Security (Contributions) (Amendment No. 2) Regulations 2025 and come into force on 6th April 2025 immediately after the coming into force of the Income Tax (Pay As You Earn) (Amendment) Regulations 20254.
This section provides the official title of the regulations and specifies their effective date as April 6th, 2025 immediately following another set of related regulations.
The Social Security (Contributions) Regulations 20015 are amended as follows.
This section indicates that the regulations amend the Social Security (Contributions) Regulations 2001.
Subsequent sections detail the specific amendments.
In paragraph 21A(1)(b) of Schedule 4 (real time returns of information about payments of earnings)—
(a) after “below” insert “either”; and
(b) after “lower earnings limit” insert “or the secondary threshold, whichever is the lesser amount,”.
This section details specific amendments to paragraph 21A(1)(b) of Schedule 4 within the 2001 regulations.
The amendment adds the words "either" and "or the secondary threshold, whichever is the lesser amount" to clarify the reporting threshold for Real Time Information (RTI).
Angela MacDonald
Justin Holliday
Two of the Commissioners for His Majesty’s Revenue and Customs
10th March 2025
This section contains the signatures of two HMRC Commissioners and the date of signing, signifying their approval of the regulations.
These Regulations amend the Social Security (Contributions) Regulations 2001 (“the 2001 Regulations”).
Regulation 3 amends paragraph 21A(1)(b) of Schedule 4 to the 2001 Regulations by adding reference to the secondary threshold so that a Real Time Information (RTI) employer must deliver to His Majesty’s Revenue and Customs (HMRC) the information specified in Schedule 4A (real time returns) unless the employee’s earnings are below either the lower earnings limit or the secondary threshold, whichever is the lesser amount. This change ensures that where the secondary threshold is less than the lower earnings limit, an RTI employer would still be required to provide to HMRC the information specified in Schedule 4A of the 2001 Regulations where the earnings are at or above the secondary threshold.
A Tax Information and Impact Note has not been prepared for these Regulations as they contain no substantive changes to tax policy.
The explanatory note summarises the regulations.
It clarifies the amendment to the 2001 regulations, highlighting the inclusion of the secondary threshold in determining reporting requirements for RTI employers to HMRC. It also states that a tax note was not required because these changes do not significantly alter tax policy.
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