Social Security Contributions and Benefits (Northern Ireland) Act 1992

15 Class 4 contributions recoverable under the Income Tax Acts. N.I.

(1) Class 4 contributions shall be payable for any tax year in respect of all annual profits or gains which—

(a) are immediately derived from the carrying on or exercise of one or more trades, professions or vocations, and

(b) are profits or gains chargeable to income tax under Case I or Case II of Schedule D for the year of assessment corresponding to that tax year.

(2) Class 4 contributions in respect of profits or gains shall be payable—

(a) in the same manner as any income tax which is, or would be, chargeable in respect of those profits or gains (whether or not income tax in fact falls to be paid), and

(b) by the person on whom the income tax is (or would be) charged,

in accordance with assessments made from time to time under the Income Tax Acts as applied and modified by section 16(1) to (3) of the Great Britain Contributions and Benefits Act.

[F1 (3) The amount of a Class 4 contribution under this section for any tax year is equal to the aggregate of—

(a) the main Class 4 percentage of so much of the profits or gains referred to in subsection (1) above (computed in accordance with Schedule 2 to the Great Britain Contributions and Benefits Act, the text of which is set out as Schedule 2 to this Act) as exceeds [F2 £4,745] but does not exceed [F3 £31,720]; and

(b) the additional Class 4 percentage of so much of those profits or gains as exceeds [F3 £31,720];

but the figures specified in this subsection are subject to alteration under section 129 of the Administration Act.

(3ZA) For the purposes of this Act—

(a) the main Class 4 percentage is 8 per cent; and

(b) the additional Class 4 percentage is 1 per cent;

but the main Class 4 percentage is subject to alteration under section 129 of the Administration Act.]

[F4 (3A) Where income tax is (or would be) charged on a member of a limited liability partnership in respect of profits or gains arising from the carrying on of a trade or profession by the limited liability partnership, Class 4 contributions shall be payable by him if they would be payable were the trade or profession carried on in partnership by the members.]

(4) The reference in subsection (1) above to profits or gains chargeable to income tax under Case I or Case II of Schedule D shall be taken to include a reference to profits or gains consisting of a payment of enterprise allowance chargeable to income tax under Case VI of Schedule D by virtue of section 127(2) of the M1 Income and Corporation Taxes Act 1988.

(5) For the purposes of this section the year of assessment which corresponds to a tax year is the year of assessment (within the meaning of the Tax Acts) which consists of the same period as that tax year.

Textual Amendments

F1 S. 15(3)(3ZA) substituted (with effect for 2003-04 and subsequent tax years) for s. 15(3) by National Insurance Contributions Act 2002 (c. 19), ss. 3(2), 8(2)

F2 Sum in s. 15(3) substituted (6.4.2004) by The Social Security (Contributions) (Re-rating and National Insurance Funds Payments) Order 2004 (S.I. 2004/889), arts. 1(1), 4(a)

F3 Sums in s. 15(3) substituted (6.4.2004) by The Social Security (Contributions) (Re-rating and National Insurance Funds Payments) Order 2004 (S.I. 2004/889), arts. 1(1), 4(b)

F4 S. 15(3A) inserted (6.4.2001) by 2000 c. 12, s. 13; S.I. 2000/3316, art. 2

Marginal Citations

M1 1988 c.1.