Social Security Contributions and Benefits Act 1992

Changes over time for: Section 1

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Point in time view as at 06/04/2024.

Changes to legislation:

Social Security Contributions and Benefits Act 1992, Section 1 is up to date with all changes known to be in force on or before 12 December 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.

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1 Outline of contributory system.E+W+S

(1)The funds required—

(a)for paying such benefits under this Act [F1or any other Act] as are payable out of the National Insurance Fund and not out of other public money; and

(b)for the making of payments under section 162 of the Administration Act towards the cost of the National Health Service,

shall be provided by means of contributions payable to the [F2Inland Revenue] by earners, employers and others, together with the additions under subsection (5) below [F3and amounts payable under section 2 of the Social Security Act 1993].

(2)Contributions under this Part of this Act shall be of the following F4... classes—

(a)Class 1, earnings-related, payable under section 6 below, being—

(i)primary Class 1 contributions from employed earners; and

(ii)secondary Class 1 contributions from employers and other persons paying earnings;

(b)Class 1A, payable under section 10 below F5... by persons liable to pay secondary Class 1 contributions and certain other persons;

[F6(bb)Class 1B, payable under section 10A below by persons who are accountable to the Inland Revenue in respect of income tax on [F7general earnings] in accordance with a PAYE settlement agreement;]

(c)Class 2, flat-rate, payable F8... under section 11 below by self-employed earners;

(d)Class 3, payable under section 13 [F9or 13A] below by earners and others voluntarily with a view to providing entitlement to benefit, or making up entitlement;

[F10(da)Class 3A, payable by eligible people voluntarily under section 14A with a view to obtaining units of additional pension;] and

(e)Class 4, payable under section 15 below in respect of the profits or gains of a trade, profession or vocation, or under section 18 below in respect of equivalent earnings.

(3)The amounts and rates of contributions in this Part of this Act and the other figures in it which affect the liability of contributors shall—

(a)be subject to regulations under sections 19(4) and 116 to 120 below; and

(b)to the extent provided for by Part IX of the Administration Act be subject to alteration by orders made by the [F11Treasury] from year to year under that Part,

F12...

(4)Schedule 1 to this Act—

(a)shall have effect with respect to the computation, collection and recovery of contributions of Classes 1, 1A, [F131B,] [F14, 3 and 3A], and otherwise with respect to contributions of those classes; and

(b)shall also, to the extent provided by regulations made under section 18 below, have effect with respect to the computation, collection and recovery of Class 4 contributions, and otherwise with respect to such contributions, F15....

(5)For each financial year there shall, by way of addition to contributions, be paid out of money provided by Parliament, in such manner and at such times as the Treasury may determine, amounts the total of which for any such year is equal to the aggregate of all statutory sick pay [F16, statutory maternity pay, [F17statutory paternity pay,] statutory adoption pay] [F18, statutory shared parental pay and statutory parental bereavement pay] recovered by employers and others in that year, as estimated by the Government Actuary or the Deputy Government Actuary.

(6)No person shall—

(a)be liable to pay Class 1, Class 1A [F19, Class 1B] or Class 2 contributions unless he fulfils prescribed conditions as to residence or presence in Great Britain;

[F20(aa)be treated under section 11(5B) as having actually paid Class 2 contributions unless he fulfils such conditions;]

(b)be entitled to pay Class 3 contributions unless he fulfils such conditions; or

(c)be entitled to pay Class 1, Class 1A [F19, Class 1B] or Class 2 contributions other than those which he is liable to pay, except so far as he is permitted by regulations to pay them.

[F21(7)Regulations under subsection (6) above shall be made by the Treasury.]

Textual Amendments

F1Words in s. 1(1)(a) inserted (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 12 para. 3

F2Words in s. 1(1) substituted (25.2.1999 for specified purposes, 1.4.1999 in so far as not already in force) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(2)(a), Sch. 1 para. 5(2); S.I. 1999/527, art. 2(b), Sch. 2 (with arts. 3-6)

F3Words in s. 1(1) added (29.1.1993) by Social Security Act 1993 (c. 3), ss. 2(9), 5

F4Word in s. 1(2) omitted (12.10.2015) by virtue of Pensions Act 2014 (c. 19), s. 56(1), Sch. 15 para. 2(2)(a); S.I. 2015/1475, art. 3(b)

F5Words in s. 1(2)(b) omitted (with effect in relation to the tax year beginning with 6.4.2000 and subsequent tax years) by virtue of Child Support, Pensions and Social Security Act 2000 (c. 19), ss. 74(1), 86, Sch. 9 Pt. 8(1) (with s. 74(8))

F6S. 1(2)(bb) inserted (8.9.1998 for specified purposes, 6.4.1999 in so far as not already in force) by Social Security Act 1998 (c. 14), s. 87(2), Sch. 7 para. 56(1); S.I. 1998/2209, art. 2(b)(c), Sch. Pts. 2, 3

F7Words in s. 1(2)(bb) substituted (6.4.2003 with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 170 (with Sch. 7)

F8Word in s. 1(2)(c) omitted (with effect for the tax year 2015-16 and subsequent tax years) by virtue of National Insurance Contributions Act 2015 (c. 5), Sch. 1 paras. 2, 35

F9Words in s. 1(2)(d) inserted (6.4.2009) by Pensions Act 2008 (c. 30), ss. 135(3), 149(4)

F10S. 1(2)(da) inserted (12.10.2015) by Pensions Act 2014 (c. 19), s. 56(1), Sch. 15 para. 2(2)(b); S.I. 2015/1475, art. 3(b)