EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Social Security (Contributions) Regulations 2001 to provide that Horizon Shortfall Scheme Appeals payments will be disregarded in the calculation of earnings for the purpose of establishing liability to Class 1 National Insurance contributions.

Horizon Shortfall Scheme Appeals payments are made by the Department for Business and Trade (“DBT”) to persons or nominated individuals who have been compensated under the Horizon Shortfall Scheme and have appealed to have their compensation assessed by the independent appeals process set up by DBT.

Relevant onward payments are payments made by a company who is a recipient under the Horizon Shortfall Scheme Appeals compensation payment to an individual who is or was a director or employee of that company for the purpose of passing on all or part of that compensation payment to that individual.

A Tax Information and Impact Note covering this instrument will be published on the website at: https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.