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SSCBA 1992, subsections 2(1)(a) and 122(1)

Section 19(1) 1 ICTA 1988/Part 2 ITEPA 2003

For NICs purposes, a person who is gainfully employed in Great Britain either under a contract of service or in an office with emoluments chargeable to income tax under Schedule E/general earnings is an employed earner for contribution purposes. The term ‘contract of service� includes contract of apprenticeship.

For income tax purposes, tax is chargeable under S.19(1)1 ICTA1988 on any emoluments from an employment up to and including 5 April 2003. An apprenticeship falls within the term ‘employment�. The reason for this is that, although, in a contract of apprenticeship, the primary purpose is the teaching and learning of a trade or profession, there is still a secondary purpose � service for the master.

From 6 April 2003, employment income is chargeable under Part 2 of ITEPA 2003 and under S.4(1)(b) “employment� includes any employment under a contract of apprenticeship.

A contract of employment is specifically defined in much of the employment rights legislation as meaning a contract of service or apprenticeship.