In section 4 of the Social Security Contributions and Benefits Act 1992 (payments treated as remuneration and earnings), after subsection (6) insert—

“(6A)

In any case where—

(a)

a benefit of a kind mentioned in section 308 or 308A of ITEPA
2003 (contributions to pensions schemes) is provided to or for the benefit of an employed earner pursuant to optional remuneration arrangements, and

(b)

the employed earner would be chargeable to income tax in
respect of the benefit if section 228A(5) of that Act had effect with the omission of paragraphs (f) and (g) (which refer to sections 308 and 308A),

regulations may make provision for the purposes of this Part for treating the amount foregone in relation to the benefit as remuneration derived from the earner’s employment.

(6B)

Regulations made under subsection (6A) must make provision for
amounts not exceeding the contributions limit for a tax year not to be so treated.

(6C)

The contributions limit is the amount specified by regulations made
under subsection (6A) as the contributions limit for the whole of a tax year; but—

(a)

the regulations may make other provision about that limit,
including provision prescribing an equivalent of that limit for earners paid weekly or at other intervals; and

(b)

if an equivalent is prescribed, the regulations may prescribe
an amount which exceeds by not more than £1 the amount which is the arithmetical equivalent of that limit.

(6D)

Regulations made under subsection (6A) —

(a)

may make provision for any amount treated as remuneration
to be treated as an amount of remuneration paid, at such time as may be determined in accordance with the regulations, to or for the benefit of the earner in respect of the earner’s employment;

(b)

may provide, in prescribed cases, for the amount treated as
remuneration to be an amount other than the amount foregone in relation to the benefit; and

(c)

may provide for that other amount to be calculated in such
manner and on such basis as may be prescribed.

(6E)

Expressions which are used in subsection (6A) and the benefits code
have the same meaning in that subsection as they have in that code.”

The amendments made by this section have effect for the tax year 2029-30
and subsequent tax years.

The first regulations made under subsection (6A) of section 4 of the Social
Security Contributions and Benefits Act 1992 , as inserted by subsection (1) , must specify the contributions limit as £2,000 for a tax year (but subject to any provision made in reliance on subsection (6C) (a) or (b) of that section).

In section 4 of the Social Security Contributions and Benefits (Northern Ireland)
Act 1992 (payments treated as remuneration and earnings), after subsection
(6) insert—

“(6A)

In any case where—

(a)

a benefit of a kind mentioned in section 308 or 308A of ITEPA
2003 (contributions to pensions schemes) is provided to or for the benefit of an employed earner pursuant to optional remuneration arrangements, and

(b)

the employed earner would be chargeable to income tax in
respect of benefit if section 228A(5) of that Act had effect with the omission of paragraphs (f) and (g) (which refer to sections 308 and 308A),

regulations may make provision for the purposes of this Part for treating the amount foregone in relation to the benefit as remuneration derived from the earner’s employment.

(6B)

Regulations made under subsection (6A) must make provision for
amounts not exceeding the contributions limit for a tax year not to be so treated.

(6C)

The contributions limit is the amount specified by regulations made
under subsection (6A) as the contributions limit for the whole of a tax year; but—

(a)

the regulations may make other provision about that limit,
including provision prescribing an equivalent of that limit for earners paid weekly or at other intervals; and

(b)

if an equivalent is prescribed, the regulations may prescribe
an amount which exceeds by not more than £1 the amount which is the arithmetical equivalent of that limit.

(6D)

Regulations made under subsection (6A) —

(a)

may make provision for any amount treated as remuneration
to be treated as an amount of remuneration paid, at such time as may be determined in accordance with the regulations, to or for the benefit of the earner in respect of the earner’s employment;

(b)

may provide, in prescribed cases, for the amount treated as
remuneration to be an amount other than the amount foregone in relation to the benefit; and

(c)

may provide for that other amount to be calculated in such
manner and on such basis as may be prescribed.

(6E)

Expressions which are used in subsection (6A) and the benefits code
have the same meaning in that subsection as they have in that code.”

The amendments made by this section have effect for the tax year 2029-30
and subsequent tax years.

The first regulations made under subsection (6A) of section 4 of the Social
Security Contributions and Benefits (Northern Ireland) Act 1992 , as inserted
by subsection (1) , must specify the contributions limit as £2,000 for a tax year (but subject to any provision made in reliance on subsection (6C) (a) or (b) of that section).

This Act comes into force on the day on which it is passed.

This Act may be cited as the National Insurance Contributions (Employer
Pensions Contributions) Act 2026.