Social Security Contributions and Benefits (Northern Ireland) Act 1992

[F1 10 Class 1A contributions: benefits in kind etc. N.I.

(1) Where—

(a) for any tax year an earner is chargeable to income tax under Schedule E on an amount which for the purposes of the Income Tax Acts is or falls to be treated as an emolument received by him from any employment (“the relevant employment”),

(b) the relevant employment is both employed earner’s employment and employment to which Chapter II of Part V of the 1988 Act (employment as a director or with annual emoluments of more than £8,500) applies, and

(c) the whole or a part of the emolument falls, for the purposes of Class 1 contributions, to be left out of account in the computation of the earnings paid to or for the benefit of the earner,

a Class 1A contribution shall be payable for that tax year, in accordance with this section, in respect of that earner and so much of the emolument as falls to be so left out of account.

(2) Subject to section 10ZA below, a Class 1A contribution for any tax year shall be payable by—

(a) the person who is liable to pay the secondary Class 1 contribution relating to the last (or only) relevant payment of earnings in that tax year in relation to which there is a liability to pay such a Class 1 contribution; or

(b) if paragraph (a) above does not apply, the person who, if the emolument in respect of which the Class 1A contribution is payable were earnings in respect of which Class 1 contributions would be payable, would be liable to pay the secondary Class 1 contribution.

(3) In subsection (2) above “relevant payment of earnings” means a payment which for the purposes of Class 1 contributions is a payment of earnings made to or for the benefit of the earner in respect of the relevant employment.

(4) The amount of the Class 1A contribution in respect of any emolument shall be the Class 1A percentage of so much of it as falls to be left out of account as mentioned in subsection (1)(c) above.

(5) In subsection (4) above “the Class 1A percentage” means a [F2 secondary percentage] for the tax year in question.

(6) No Class 1A contribution shall be payable for any tax year in respect of so much of any emolument as is taken for the purposes of the making of Class 1B contributions for that year to be included in a PAYE settlement agreement.

(7) For the purposes of this section—

(a) the amounts which for the purposes of the Income Tax Acts are or fall to be treated as emoluments received by an earner from any employment shall be determined (subject to paragraph (b) below) disregarding sections [F3 193(4), 194(1), 195(7),] 198, 201, 201AA and 332(3) of the 1988 Act (deductions for expenses etc.) [F4 and section 50(2) of the M1 Finance Act 1989 (provision of security assets or services]; but

(b) where an amount which is deductible in respect of any matter under any of those sections is at least equal to the whole of any corresponding amount which (but for this paragraph) would fall by reference to that matter to be included in those emoluments, the whole of the corresponding amount shall be treated as not so included.

(8) The Treasury may by regulations—

(a) modify the effect of subsection (7) above by adding any enactment contained in the Income Tax Acts to the list of sections of the 1988 Act contained in paragraph (a) of that subsection; or

(b) make such amendments of subsection (7) above as appear to them to be necessary or expedient in consequence of any alteration of the provisions of the Income Tax Acts relating to the charge to tax under Schedule E.

(9) The Treasury may by regulations provide—

(a) for Class 1A contributions not to be payable, in prescribed circumstances, by prescribed persons or in respect of prescribed persons or emoluments;

(b) for reducing Class 1A contributions in prescribed circumstances.

(10) In this section “the 1988 Act” means the M2 Income and Corporation Taxes Act 1988.]

Textual Amendments

F1 S. 10 substituted (28.7.2000) by 2000 c. 19, s. 78(2)

F2 Words in s. 10(5) substituted (with effect for 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), ss. 6, 8(2), Sch. 1 para. 21

F3 Words in s. 10(7)(a) inserted (with effect in relation to tax year 2000-2001 and subsequent tax years) by S.I. 2001/965, reg. 2(2)(a)

F4 Words in s. 10(7)(a) inserted (with effect in relation to tax year 2000-2001 and subsequent tax years) by S.I. 2001/965, reg. 2(2)(b)

Marginal Citations

M1 1989 c. 26

M2 1988 c. 1.