The Social Security (Contributions and Credits) (Transitional and Consequential Provisions) Regulations 1985

Amendment of the principal regulations

5.—(1) The principal regulations shall be amended in accordance with the provisions of this regulation.

(2) In regulation 1(2) of the principal regulations (interpretation)—

(a) in the definition of “non-contracted-out rate” for the words from “the percentages” to “section 4(6)” there shall be substituted the words “the appropriate percentage rate for the time being specified in section 4(6B) or, as the case may be, (6E)” ;

(b) for the definition of “standard rate” there shall be substituted

““standard rate” means the appropriate percentage rate specified in section 4(6B) of the Act for primary Class 1 contributions;”.

(3) After regulation 8 of the principal regulations (equivalent amounts) there shall be inserted the following regulation—

“Equivalent earnings brackets for earners paid otherwise than weekly

8A.— (1) The amounts of the equivalent earnings brackets for the purposes of section 4(6B) and (6E) of the Act shall be determined in accordance with the following provisions of this regulation.

(2) In this regulation “the lower bracket” means the lesser amount in each bracket specified in the said section 4(6B) and (6E) and “the higher bracket” means any greater amount therein specified.

(3) The respective equivalent lower brackets shall be—

(a) where the earnings period is a multiple of a week, the amounts calculated by multiplying each lower bracket by the corresponding multiple;

(b) where the earnings period is a month, the amounts calculated by multiplying each lower bracket by 4⅓;

(c) where the earnings period is a multiple of a month, the amounts calculated by applying sub-paragraph (b) of this paragraph and multiplying each product by the corresponding multiple;

(d) in any other case, the amounts calculated by dividing each lower bracket by 7 and multiplying each quotient by the number of days in the earnings period concerned.

(4) Each of the calculations prescribed in sub-paragraphs (b) and (d) of the last preceding paragraph shall be to the nearest £0.01, and any amount of £0.005 or less shall be disregarded.

(5) The respective equivalent higher brackets shall be—

(a) in the case of brackets 1 and 2 in the said section 4(6B) and in the case of brackets 1 to 3 in the said section 4(6E), £0.01 less than the next succeeding lower bracket.

(b) in the case of bracket 3 in the said section 4(6B), the upper earnings limit determined in accordance with regulation 8 of these regulations (equivalent amounts).”

(4) Regulation 9 of the principal regulations (calculation of earnings-related contributions) shall be amended as follows—

(a) in paragraph (2) after the word “scale” there shall be inserted the words “or, for contributions payable on earnings above the upper earnings limit or the prescribed equivalent thereof, a contributions calculator;”

(b) for paragraphs (3) and (4) there shall be substituted the following paragraphs—

“(3) Where the amount of earnings to which—

(a) the appropriate scale is to be applied does not appear in the scale, the amount of contributions payable shall be calculated by reference to the next smaller amount of earnings in the appropriate column in the scale;

(b) the appropriate contributions calculator is to be applied does not appear in the calculator, the amount of contributions payable shall be calculated—

(i) by obtaining from the calculator the amounts of contributions payable on the largest components of the earnings provided for therein and

(ii) by adding the amounts of those contributions together.

(4) Where a scale or a contributions calculator would, but for the period to which it relates, be appropriate and the earnings period in question is a multiple of the period in the scale or, as the case may be, calculator, the scale or calculator shall be applied by dividing the earnings in question so as to obtain the equivalent earnings for the period to which the scale or calculator relates and—

(i) in the case of the scale, by multiplying the amount of contributions shown in the scale as appropriate to those equivalent earnings by the same factor as the earnings were divided;

(ii) in the case of the calculator, by multiplying the amount of contributions shown in the calculator as appropriate to those equivalent earnings or, where no equivalent earnings are shown, the amount of contributions calculated in accordance with paragraph 3(b) above, by the same factor as the earnings were divided.”;

(c) at the end of paragraph (5) there shall be inserted the words “, save that the contributions calculator may also be used where the contributions have been calculated in accordance with paragraph (1)”.

(5) In regulation 12(1)(a) of the principal regulations (aggregation of earnings paid in respect of different employed earner's employments by different persons and apportionment of contribution liability) the words from “and the amount of” to “(or its equivalent)” shall be omitted.

(6) In regulation 32 of the principal regulations (return of contributions)—

(a) in paragraph (1) for the words from “half a standard rate” to the words “lower earnings limit” there shall be substituted the words “one fifteenth of a standard rate contribution payable on earnings at the upper earnings limit in respect of primary Class 1 contributions”;

(b) in paragraph 2(d)(i) after the words “in excess of 53 times the amount” there shall be inserted the words “, calculated at the appropriate primary percentage rate specified for bracket 3 in section 4(6B) of the Act,”.

(7) In regulation 43B(2) of the principal regulations (Class 2 contributions paid late in accordance with a payment undertaking) for the words “in the year in which” wherever they appear there shall be substituted the words “at the time when” .

(8) In regulation 43C of the principal regulations (Class 2 and Class 3 contributions paid within a month from notification of amount of arrears) for the words “paid in the year” there shall be substituted the words “paid on the last day of the year” .

(9) In regulation 43D (Class 2 and Class 3 contributions paid late through ignorance or error)—

(a) in paragraph (2) and (3) for the words “paid in the year in which” there shall be substituted the words “paid at the time when” ;

(b) in paragraph 3(a) for the words “applicable in the contribution year” there shall be substituted the words “applicable to the period for which the contribution is paid” .